Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,921.50-96.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Exporters voice concern at disabling of benefits

Exporters found that the claims from the period August 1, 2019 were disabled by DGFT. They were expecting MEIS to continue till March 31 2020, when the new foreign trade policy (FTP) comes in place. “FTP has a good legal framework for trade facili...

ET Bureau|
Nov 15, 2019, 07.35 PM IST
0Comments
BCCL
exporters-BCCL
Exporters earn duty credits at fixed rates of 2 to 5 per cent depending upon the product and country.
KOCHI: All India Spices Exporters Forum (AISEF) and Federation of Indian Coir Exporters Association (FICEA) have expressed concern at the non-availability of export incentive schemes introduced to offset infrastructural inefficiencies, associated costs and encourage export of notified goods, from August 2019.

“We have absolutely no idea as to how to deal with this crisis, Initial feedback from sources spoke of a technical glitch, which would be rectified soon. However there has been no clarity on the enabling of the system apart from some updates via tweets in this regard from DGFT,” said Rajiv Palicha, chairman, All India Spices Exporters Forum.

Exporters found that the claims from the period August 1, 2019 were disabled by DGFT. They were expecting MEIS to continue till March 31 2020, when the new foreign trade policy (FTP) comes in place.

“FTP has a good legal framework for trade facilitation. Sustained growth in exports needs policy continuity adhering to the duration clause of FTP,’ he said.

Introduced in 2015, the merchandise exports from India scheme (MEIS) was created by merging five existing reward schemes. It incentivizes merchandise exports of more than 8,000 items now and is the biggest of its kind.

Exporters earn duty credits at fixed rates of 2 to 5 per cent depending upon the product and country. Rewards under the scheme are payable as percentage of realized free-on –board value and MEIS duty scrips can be transferred or used for payment of a number of duties including basic customs duty.

“If the benefit is not allowed in full from August 1st 2019 exporters will lose heavily as exporters work with very thin margins and will all sustain losses in current year. Further export of spice and spice products, the exporters Forum estimates would reduce by 30 % bringing loss of forex to the country, Palicha said.

Also Read

Data analytics showed disability pension benefits misused: CBDT Chairman

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service