Govt announces new incentives for export sector

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SME Times News Bureau | 30 Oct, 2015
In light of the major challenges being faced by Indian exporters in the backdrop of the global economic slowdown, Department of Commerce today announced increased support for export of various products and included some additional items under the Merchandise Exports from India Scheme (MEIS). This has been introduced through the Public Notice 44 issued on 29th October by the Directorate General of Foreign Trade.

The Government Friday announced enhanced support for export of various products and covers some additional products through Merchandise Exports from India Scheme (MEIS), informed an official press release on Friday.

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 described in detail in the Public Notice No.44 dated 29th October, 2015, is as follows:

I - Global Support has been accorded to the following categories:

Textile items (Chap 50-60)
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

5. The complete list of products, rates and country coverage is available at the DGFT website: http://dgft.gov.in/Exim/2000/PN/PN15/pn4416.pdf