DGFT moots amendments to MEIS to increase exports from the country
The Directorate General of Foreign Trade (DGFT) has come with various amendments for the Merchandise Export from India Scheme with a view to achieve the objective of increasing the exports of the country. The amendments are to be incorporated with immediate effect in exercise to the power conferred under the Foreign Trade Policy 2015-20. The amendment one includes the shifting the group of countries from one to another group in order to facilitate better exports. The countries include Norway, Switzerland, Iceland and Liechtenstein from group C to A and Hong Kong from B to C. The second amendment notified a list of forty two products that would be deleted from the MEIS schedule. The deleted products include various sea food, vegetable oils and other chemical products. Along with that, this amendments also has the list of products that would have the benefits of the MEIS rates. The authority announced giving rewards of 2% for the exports from Japan, Bangladesh and Sri Lanka. It is also pointed out that there are no rewards for the export to other countries. Another addition is that for a range of 63 items, the rates are fixed on the basis that they are handicraft items. But if there are any doubts regarding the nature of the product under these clusters, then they would be certified as handicrafts by DC Handicrafts or by the Export Promotion Council for Handicrafts. The MEIS has special benefits for the handicrafts product with a view to increase the handicraft exports from India. Any products that do not come under handicrafts, the MEIS will not be available and they do not receive any benefits or rewards. The reward rates under MEIS now range from 2-5 %, but earlier it was from 5-7%. The merchandise export from India has been seeing a steep decline for the last six months. In May, the export shriveled to $22.34 billion from $28 billion last year. The new scheme was brought into action due to the export shrinkage of these merchandise products. This could be considered as an effort to boost the country’s export by prioritizing the export activity.
July 15, 2015 | 8:10 pm IST.
to success.