98% of exporters, especially MSMEs will benefit under MEIS: Piyush Goyal

Ninety-eight per cent of exporters, especially MSMEs will benefit under MEIS with reward cap of Rs. 2 crore/ Importer Exporter Code from September 1 to December 2020

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Ninety-eight per cent of exporters, especially MSMEs will benefit under Merchandise Exports from India Scheme (MEIS) with reward cap of Rs. 2 crore/ Importer Exporter Code from September 1 to December 2020, said Piyush Goyal, Union Minister of Railways, Commerce and Industry.

"98% of exporters esp MSMEs will benefit under Merchandise Exports from India Scheme (MEIS) with reward cap of Rs. 2 Cr/ Importer Exporter Code from 1st Sep to 31 Dec 2020. This will remove uncertainty and protect genuine exporters while ensuring Make in India-Make for the World," Goyal tweeted.

A notification issued by the Ministry of Commerce and Industry stated, "In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy, 2015-20 and the enabling para 3.13 of the FTP, the Central Government hereby makes the following amendments in the Foreign Trade Police 2015-20 with immediate effect:

Two new paragraphs, 3.04A and 3.04B are inserted in the Foreign Trade Policy as below:

3.04 A: The total reward which may be granted to an IEC holder under the Merchandise Exports from India Scheme (MEIS) shall not exceed Rs 2 crore per IEC on exports made in the period September 1, 2020, to December 31, 2020. Any IEC holder who has not made any export with LEO date during the period September 1, 2019 to December August 31, 2020 or any new IEC obtained on or after September 1, 2020 would not be eligible for submitting any claim for benefits under MEIS for exports made with effect from September 1, 2020.

The aforesaid ceiling may be subject to a further downward revision to ensure that the total claim under the Scheme for the period (September 1, 2020 to December 31, 2020) does not exceed the allocation prescribed by the Government, which is Rs 5,000 crore.

3.04 B: Benefits under MEIS shall not be available for exports made with effect from January 1, 2021.