Lok Sabha Question No. 2398 (UNSTARRED), answered on 2015-12-14
Subject: Merchandise Exports from India Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: ANUPRIYA SINGH PATEL, BIDYUT BARAN MAHATO, ALOK SANJAR, PRAHLAD SINGH PATEL

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2398

## TO BE ANSWERED ON 14 TH  DECEMBER, 2015

## MERCHANDISE EXPORTS FROM INDIA SCHEME

2398. SHRIMATI ANUPRIYA PATEL: SHRI BIDYUT BARAN MAHATO: SHRI ALOK SANJAR:

SHRI PRAHLAD SINGH PATEL:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- a) whether  the  Government  has  introduced  Merchandise  Exports  from  India  Scheme (MEIS);
- b) if so, the details thereof along with its salient features; and
- c) the  details  of  foreign  exchange  earned  by  the  Government  from  export  of  various products during each of the last three years and the current year?

## ANSWER

वाणिज् य एवं उद्योग राज् य मंत्री )श्रीमती निममला सीतारमि((स्वतंत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

(INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

- (a) & (b) The  Government  of  India  has introduced  Merchandise  Exports from India Scheme (MEIS) through the Foreign Trade Policy (FTP) 201520  w.e.f.  April  1,  2015.  It  seeks  to  promote  export  of  notified  goods manufactured/  produced  in  India.  MEIS  is  a  major  export  promotion scheme of GOI implemented by the Ministry of Commerce and Industry. Details  of  the  scheme  are  available  at  the  website  of  the  Directorate General of Foreign Trade at http://dgft@gov.in .  Salient features of MEIS are as under :

## i) MEIS is result of major consolidation and simplification:

Earlier there were 5 different schemes for rewarding merchandise exports  with  different  kinds  of  duty  scrips  with  varying  conditions attached to their use. Now all these schemes have been merged into a  single  scheme,  namely  Merchandise  Exports  from  India  Scheme

(MEIS). Further, e-Commerce exports of certain specified employment  creating  sectors,  made  through  courier  or  foreign  post offices, have been supported under MEIS.

## ii) MEIS incentive Rates :

Rewards under MEIS are payable as a percentage ( 2, 3 or 5% ) of realized  FOB  value  of  covered  exports,  by  way  of  the  MEIS  duty credit  scrip.  The  scrip  can  be  transferred  or  used  for  payment  of  a number of duties/taxes including the customs / excise duty / service tax. Scrips and inputs imported under the scrips are fully transferable. This has provided much flexibility to expoters . Earlier schemes had many  conditions  attached  with  the  scrips  about  its  usages  and importability of items.

## iii)  Allocation and Product Coverage:

At  the  time  of  introduction  on  April  1,  2015,  MEIS  covered  4914 tariff lines. The product and market coverage was worked out keeping in  view  the  annual  allocation  of  Rs  18000  crores  by  DOR.  The scheme  was  slightly  revised  on  14-7-2015.    In  light  of  the  major challenges  being  faced  by  Indian  exporters  in  the  backdrop  of  the global  economic  slowdown,  Department  of  Commerce    announced increased support for export of various products and included some additional  items  under  the  Merchandise  Exports from India  Scheme (MEIS).  This  has  been  introduced  through  the  Public  Notice  44 issued  on  29 th   October,  2015  Since  the  inception  of  the  scheme, rates of 2346 tariff lines have been revised. MEIS currently incentives total 5012 tariff lines.

## iv)  Financial implication of the scheme

The  envisaged  revenue  outgo  under  the  scheme  has  been enhanced  from Rs. 18,000/- crore earlier  to  Rs.  21,000/-  crore  per annum.

## v) Duty  credit  scrips  are  freely  transferable  and  usable  for payment of custom duty, excise duty and service tax

-  All  scrips  issued  under  MEIS  and  the  goods  imported  against these scrips fully transferable.

## vi)  Incentives to be available for SEZs

Incentives  under  MEIS  are available to  units  located  in SEZs also.

## vii) e-Commerce Exports are eligible under MEIS

Goods  falling  in  the  category  of  handloom products, books / periodicals, leather footwear, toys and customized  fashion garments,   having  FOB  value  up  to  Rs.25000 per  consignment (finalized    using    e-  Commerce platform)  are eligible  for benefits under  FTP.  Such  goods  can  be  exported  in          manual  mode through Foreign Post Offices at New Delhi, Mumbai and Chennai.

Export of such goods  under  Courier Regulations  are allowed manually on pilot basis through Airports at Delhi, Mumbai and Chennai as per appropriate amendments   in   regulations   to be  made  by Department   of   Revenue.

## viii) Country Groups:

Countries  have  been  grouped  into  3  categories  for  grant  of incentives.

Category A: Traditional Markets (34) - European Union (28), EFTA (Switzerland, Norway, Iceland and Lichtenstein-4) USA, Canada.

Category  B: Emerging & Focus Markets (140)Africa  (55),  Latin America  and  Mexico  (45),  CIS  countries  (12),  Turkey  and  West Asian countries (13), ASEAN countries (10), Japan, South Korea, China, Hongkong and Taiwan,

## Category C: Other Markets (65).

(C) The foreign exchange earned by Government of India from merchandise exports of various products is as under:

## Merchandise Goods

(Amount in US$ Billions)

| .NO.   | Year   | xport   |
|--------|--------|---------|
| .      | 2012-  | 00.4    |
| .      | 2013-  | 12.6    |
| 3      | 2014-  |         |

E

3

3

3

| .   | 15                     |   10.3 |
|-----|------------------------|--------|
| .   | 2015- 16(till October) |   54.3 |

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