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).
MEIS, introduced through the Foreign Trade Policy (FTP) 2015-20 on April 1,2015, with product and market focussed incentives for 4914 tariff lines, is a major export promotion scheme implemented by the Ministry of Commerce and Industry.
Rewards under MEIS are payable as a percentage of realized FOB value of covered exports, by way of the MEIS duty credit scrip, which can be transferred or used for payment of a number of duties including the basic customs duty.
The current revision introduces 110 new tariff lines and increases rates or country coverage or both for 2228 existing tariff lines. A summary of the additional coverage is as follows:
I – Global Support has been accorded to the following categories:
· Textile items
· Pharmaceuticals, Surgical, Herbals
· Project Goods Exports
· Auto Components
· Telecom, Computer, Electrical and Electronics Products
· Railway, Transport Equipment and Parts
II – Higher Support has been granted to following categories of products, many of which are manufactured by MSMEs:
· Industrial Machinery, IC Engines, Machine tools, Parts and Machinery for Dairy, Agriculture, Food Processing, Textiles, Paper.
· Hand tools used in Agriculture /Horticulture/Forestry, Safety Razors, Blades
· All type of locks, Reinforced Safes, Strong Boxes and Doors, Safe Deposit Lockers
· Flexible Tubing , Pilfer Proof Caps for packaging
· Bicycle parts
III- Additional countries have been covered for selected Leather products, Iron, Steel, and base metals, products
IV- Higher support has been allowed for Cashews, Readymade Garments, Paper Mache products and Handmade Shawls of wool
V- The following new products have been added:
· Flexible Intermediate Bulk Containers of Man Made Textile Materials
· Medical Instruments
· Sports Goods
· Value added / processed products of Natural Rubber, Chemicals, and Plastics