IEIS, MEIS changes hailed
The Cotton Textiles Export Promotion Council (Texprocil) has welcomed the Government’s decision to amend the Incremental Exports Incentivisation Scheme (IEIS) and the Merchandise Exports from India Scheme (MEIS). The Government removed the restriction under IEIS last week. “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 RK Dalmia said.
The Cotton Textiles Export Promotion Council (Texprocil) has welcomed the Government’s decision to amend the Incremental Exports Incentivisation Scheme (IEIS) and the Merchandise Exports from India Scheme (MEIS). The Government removed the restriction under IEIS last week. “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 RK Dalmia said.
IEIS for the last quarter 2012-13 was introduced on December 28, 2012. The scheme extended a duty credit scrip of two per cent on the incremental growth in exports during the period from January 1, 2013 to March 3, 2013 as compared to the period from January 1, 2012 to March 31, 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 pointed out.
He also complimented the Government for including exports of made-ups falling under chapter 63 to Group C countries under MEIS through a notification last week. “This will promote exports of made-ups to countries like Australia and New Zealand which falls under group C of the MEIS,†Dalmia said. According to the notification, landing certificates henceforth, shall 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 exemption of landing certificates has come as a huge relief to the exporters and would certainly reduce the transaction costs for the exporters, the Texprocil Chairman said.
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