As per the launch of Merchandise Export from India Scheme (MEIS) as a part of Foreign Trade Policy, rationalizes the various incentives that are given under it. The government has finalized and approved the budget more than twenty-two thousand Cr (22,000 Cr) per annum for the exports from India. The MIES Scheme has replaced the 5 schemes which were parts of FTP 2014-2019. There are:
- Focus Product Scheme(FPS)
- Market Linked Focus Product Scheme (MLFPS)
- Focus Market Scheme (FMS)
- Agriculture Infrastructure Incentive Scrip (AIIS)
- Vishesh Krishi Gramin Upaj Yojana (VKGUY)
Merchandise Export from India Scheme (MEIS)
Under the MEIS, some certain incentives and rewards are being given to the exporters at a specified rate. These rates differ from product to product as well as country to country. It is based on the FoB value and this will be on the lower side of the below laid out:
- The realized FOB value of exports under free foreign exchange
- Whatsoever FOB value for exports is mentioned on shipping bill under free foreign exchange.
Whichever will be on the lower side will be considered for incentive. As mentioned earlier, the incentives will depend on 3 categories of the countries which are below mentioned:
- Category A: European Union (28), USA and Canada (This is considered as Traditional markets that have 30 countries in total)
- Category B: Africa (55), CIS countries, Latin America along with Mexico, Turkey and other west Asia countries(13), Asian countries, South Korea, China, Taiwan. (This market are considered to be emerging ad focus market)
- Category C: The Market other than Category A and Category B
The reward is also given in a range of 2% to 5% depending upon the product.
What are those Commodities that are being awarded the highest incentives under the MEIS Scheme?
Here are the details for various product groups classification for the incentive under the MEIS Scheme.
- The highest reward under MEIS is given to Agriculture and rural industry products, Any value adds or packaged products. Eco-friendly products, Labour concentrated products that require a large number of producers or exporters, Hi-tech products.
- The First Time Support is being provided for those who deal in export of vegetables, fruits, dairy products, Oil meals, paper products.
- Global Support is being provided to those who deal in Fruits, vegetables, flower, spices, tea and coffee, oils, processed food, eco-friendly goods, marine, handloom jute and other textile products. Readymade garments, handicrafts, sport valuable goods, furniture and other wood products.
- Support for Major Markets is being given in the industries of herbals, medicinal, surgical, industry heavy and light machinery, engines, machine tools and other components and parts, all types of pumps, plastic, rubber industry, steel industry, wood, paper and stationery products, metal and base industry, automobile industry including ships, aeroplanes, helicopters etc.
There is a procedure that is to be followed if you want to claim incentives under the MEIS Scheme. The procedure is the same for all kind of exports of goods but there is an exception. The procedure for exports of goods through e-commerce is a bit different.