The Directorate General of Foreign Trade (DGFT) on behalf of the Central Government’s Ministry of Commerce & Industry released a notification on Tuesday which ought to put a ceiling or cap on the MEIS benefits received by the Exporters on the exports made during the period from September 1 to December 31, 2020.
The notification said, “Total reward which may be granted to an IEC (Import Export Code) holder under the Merchant Export from India Scheme (MEIS) shall not exceed the ceiling of Rs.2 Crore per IEC on exports made in the period from September 1st, 2020 to December 31st, 2020 [period based on Let Export Order (LEO) date of Shipping bill(s)].”
It further added that any IEC holder who has not made any exports with LEO date during the period of one year preceding September 1, 2020, or any new IECs obtained on or after the date of publication of this notification would not be eligible for submitting any claim under this scheme.
Also, the notification said, “The aforesaid ceiling may be subject to a further downward revision to ensure that the total claim under the Scheme for the period (September 1 to December 31, 2020) does not exceed the allocation prescribed by the government, which is Rs.5,000 Crores.”
The above-aforementioned notification also informed that the Benefits of the MEIS will not be available to the Exporters for the exports made from January 1st, 2020.
With Warm Regards,