Export incentives under the Merchandise Export Incentive Scheme (MEIS) will be available to exporters only up to December 31, India’s Directorate General of Foreign Trade (DGFT) recently clarified. After approving a new scheme—Remission of Duties and Taxes on Export Products (RoDTEP), the government said last month MEIS will be phased out after the new scheme is rolled out.
Under MEIS, the government offers duty benefits depending on product and country. Rewards under the scheme are payable as percentage of realised 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.
“Detailed operational framework for the RoDTEP will be notified separately in consultation with the department of revenue,” DGFT said in a notice addressed to all export promotion councils, the Federation of Indian Export Organisations (FIEO), all regional authorities of DGFT and customs authorities.
It also said that if rates for any item or product will be fixed under RoDTEP before December 31, 2020, those goods will not get MEIS benefits.