Export incentive scheme MEIS has not been discontinued: DGFT

The commerce ministry has clarified that export incentive scheme MEIS has not been discontinued from August 1 this year and an inter-ministerial consideration is going on for the continuation of a 2 percent increase for labor-intensive sectors. Under Merchandise Exports from India Scheme (MEIS), the government provides duty benefits depending on product and country.

Rewards under the scheme are payable as a percentage of realized free-on-board value and MEIS duty credit scrip can be transferred or used for payment of a number of duties including the basic customs duty. "There has been confusion about MEIS/RoSCTL (Rebate of State and Central Taxes and Levies). It is clarified that MEIS has not been discontinued w.e.f. 1.8.2019.

"The issues under inter-ministerial consideration are - a continuation of 2 percent increase sanctioned w.e.f.1.11.2017 in labor-intensive/MSME sectors," the Directorate General of Foreign Trade (DGFT) said in a tweet. DGFT under the ministry deals with export and import related issues.

"Continuation of MEIS for RMG and made-ups, a continuation of RoSL with existing MEIS rates or RoSCTL only for RMG & made-ups," it said. It added that the government decision would be notified on these issues at the earliest.

"MEIS system has been blocked for LEO (Let Export Order ) after 1.8.2019 till then. We are sorry," it added.