Texprocil welcomes amendments in IEIS & MEIS

The Cotton Textiles Export Promotion Council (Texprocil) today welcomed the government's announcement to remove the restriction under the Incremental Exports Incentivisation Scheme, which will help in improving the cash flow of the exporters.
The government removed the restriction under the Incremental Exports Incentivisation Scheme (IEIS) yesterday.
"The decision of the government to issue duty credit scrips under the IEIS without any restriction will certainly improve the cash flow of the exporters," Texprocil Chairman R K Dalmia said in a statement here.
The IEIS for the last quarter 2012-13 was introduced vide DGFT notification in December 2012.
The scheme extended a duty credit scrip of 2 per cent on the incremental growth in exports during the period from January-March of 2013 as compared to the period from January-March of 2012 on the FOB value of exports to the US, EU and Asian countries.

Subsequently, DGFT issued a notification in September 2013 restricting the entitlement under the scheme to 25 per cent growth or incremental growth of Rs 10 crore in value, whichever is less.

Many of the exporters were affected because of this restriction, which was not there in the original scheme, Dalmia said.
The Chairman also praised the government for including exports of Made ups falling under chapter 63 to Group C countries under the Merchandise Exports from India Scheme (MEIS).
"This will promote exports of Made ups to countries like Australia and New Zealand, which falls under group C of the MEIS," he said.

Henceforth, the landing certificates will not be required under the MEIS.
Dalmia pointed out that exporters faced difficulty in getting landing certificates from the shipping companies besides incurring costs. The dispensation of the requirement to furnish landing certificates has come as a huge relief to the exporters and would certainly reduce the transaction costs for the exporters, he added.