HomeNewsExport incentives under MEIS for made ups enhanced

Export incentives under MEIS for made ups enhanced

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The Directorate General of Foreign Trade (DGFT) has issued a notice by which rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry, that is, readymade garments and made ups have been enhanced from two percent to four percent of value of exports with effect from 01.11.2017 till 30.06.2018. The estimated annual incentives will be Rs. 1,143.15 crore for 2017-18 and Rs. 685.89 crore for 2018-19. This measure will incentivise the exports of labour intensive sectors of readymade garments and made ups and contribute to employment generation.

The Government had introduced Merchandise Exports from India Scheme (MEIS) through the Foreign Trade Policy (FTP) 2015-20 w.e.f. April 1, 2015 with an intention to promote export of notified goods manufactured/ produced in India. Rewards under MEIS are payable as a percentage (2, 3 or 5%) of realized FOB value of covered exports, by way of the MEIS duty credit scrip. The scrip can be transferred or used for payment of a number of duties/taxes including the customs / excise duty / service tax. Scrips and inputs imported under the scrips are fully transferable providing flexibility to exporters.

Made ups were earlier eligible for 2% incentives and the industry has been lobbying for the enhancement of this rate considering the tough conditions prevailing in the international market. Current enhancement in rate meets their demand.

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