Govt’s amendments in IEIS & MEIS scheme welcomed by Texprocil

Government announcement to remove the restriction under the Incremental Exports Incentivisation Scheme (IEIS), which will help in improving the cash flow of the exporters yesterday which was welcomed by the Cotton Textiles Export Promotion Council (Texprocil).

The IEIS for the last quarter 2012-13 was introduced vide DGFT notification in December 2012. The scheme extended duty credit scrip of 2 percent on the incremental growth in exports during the period from January-March of 2013 as compared to the period from January-March of 2012 on the FOB value of exports to the US, EU and Asian countries.

Subsequently, DGFT issued a notification in September 2013 restricting the entitlement under the scheme to 25 percent growth or incremental growth of Rs 10 crore in value, whichever is less.

Texprocil Chairman R K Dalmia today in a statement here said that the decision of the government to issue duty credit scrips under the IEIS without any restriction will certainly improve the cash flow of the exporters. As many of the exporters were affected because of this restriction, which was not there in the original scheme.

The Chairman also praised the government for including exports of Made ups falling under chapter 63 to Group C countries under the Merchandise Exports from India Scheme (MEIS).

This will promote exports of Made ups to countries like Australia and New Zealand, which falls under group C of the MEIS.

Also exporters who faced difficulty in getting landing certificates from the shipping companies under the MEIS apart from incurring costs will henceforth not require landing certificates which is a huge relief to the exporters.