 "Duty incentives to boost exports")
Towards the end of October, the Director General of Foreign Trade (DGFT) Anup Wadhawan added 110 entries in the list eligible for duty credits under the Merchandise Exports from India Scheme (MEIS). And, extended the benefits for exports to more countries for about 2,000 items.
A little earlier, he'd issued a useful public notice to alleviate the problems in claiming MEIS benefits due to non-transmission of shipping bills from Customs to the DGFT website, for exports made during April and May. Also, the DGFT extended the rates and conditions for rewards under the Services Exports from India Scheme till March 31, 2016.
The MEIS scheme was introduced this April. Initially, 4,914 items were notified for benefits. In July, 42 items were removed and 30 added. With the latest addition of 110, a total of 5,012 items now earn duty credits under MEIS. The new items eligible include 21 chemicals, seven plastic products, 51 optical, medical and measuring instruments, and 19 sporting goods. Over a 100 items covering parts and accessories of vehicles, hand tools, machinery and their parts now earn higher duty credits. For many entries where the benefit was restricted for export to a certain group of countries, the amendments have extended the benefit for export to more groups of countries or to all countries.
The benefit of MEIS is available where the exporter presents proof of landing the goods at the destination country. However, proof of landing is not necessary where MEIS is available for export to all countries. Getting the documents to show proof of landing entails cost and delay. Exporters whose items now earn MEIS duty credit for export to all countries will now save on the cost and delay associated with getting the landing documents.
While filing the shipping bill, exporters are required to declare they are claiming rewards under MEIS and to mark 'Y' in the reward item box. Many Customs house agents of exporters inadvertently tick 'N' in the reward item box while filing the shipping bills with Customs. Thus, even though the item in many cases was eligible, once an 'N' had been ticked, such shipping bills were not transmitted to the DGFT system. To help exporters claim the MEIS benefits in such cases, DGFT has allowed them to give physical copies of the shipping bills after filing an MEIS application to its regional authorities.
Those authorities shall grant MEIS rewards after examination of such bills, as in the Foreign Trade Policy and Handbook of Procedures.
However, this relaxation is restricted to exports made in April and May of this year. Many exporters have a similar problem in respect of shipping bills filed after May, too. It would help if DGFT extends the relaxation till September.
The commerce ministry deserves kudos for this help, at a time when exports are falling. The new DGFT has got off to a good start and, hopefully, exporters will see a more responsive administration during his tenure.
tncrajagopalan@gmail.com
A little earlier, he'd issued a useful public notice to alleviate the problems in claiming MEIS benefits due to non-transmission of shipping bills from Customs to the DGFT website, for exports made during April and May. Also, the DGFT extended the rates and conditions for rewards under the Services Exports from India Scheme till March 31, 2016.
The MEIS scheme was introduced this April. Initially, 4,914 items were notified for benefits. In July, 42 items were removed and 30 added. With the latest addition of 110, a total of 5,012 items now earn duty credits under MEIS. The new items eligible include 21 chemicals, seven plastic products, 51 optical, medical and measuring instruments, and 19 sporting goods. Over a 100 items covering parts and accessories of vehicles, hand tools, machinery and their parts now earn higher duty credits. For many entries where the benefit was restricted for export to a certain group of countries, the amendments have extended the benefit for export to more groups of countries or to all countries.
The benefit of MEIS is available where the exporter presents proof of landing the goods at the destination country. However, proof of landing is not necessary where MEIS is available for export to all countries. Getting the documents to show proof of landing entails cost and delay. Exporters whose items now earn MEIS duty credit for export to all countries will now save on the cost and delay associated with getting the landing documents.
While filing the shipping bill, exporters are required to declare they are claiming rewards under MEIS and to mark 'Y' in the reward item box. Many Customs house agents of exporters inadvertently tick 'N' in the reward item box while filing the shipping bills with Customs. Thus, even though the item in many cases was eligible, once an 'N' had been ticked, such shipping bills were not transmitted to the DGFT system. To help exporters claim the MEIS benefits in such cases, DGFT has allowed them to give physical copies of the shipping bills after filing an MEIS application to its regional authorities.
Those authorities shall grant MEIS rewards after examination of such bills, as in the Foreign Trade Policy and Handbook of Procedures.
However, this relaxation is restricted to exports made in April and May of this year. Many exporters have a similar problem in respect of shipping bills filed after May, too. It would help if DGFT extends the relaxation till September.
The commerce ministry deserves kudos for this help, at a time when exports are falling. The new DGFT has got off to a good start and, hopefully, exporters will see a more responsive administration during his tenure.
tncrajagopalan@gmail.com