Ceiling/ cap on MRS benefits available to exporters on exports from Sep to Dec 2020

In exercise of the powers presented by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Pam 1.02 of the Foreign Trade Policy, 2015-20 and the empowering part-3.13 of the FTP. the Central Government hereby makes the following amendments in the Foreign Trade Policy 2015-20 with quick impact:

Two new paragraphs. 3.04A and 3.04B are inserted in the Foreign Trade Policy as below:

3.04A

The total reward which might be conceded to an IEC holder under the Merchandise Exports from India Scheme (MEIS) will not surpass Rs. 2 Crore for every IEC on exports made in the period 01.09.2020 to 31.12.2020 [period based on Let Export Order (LEO) date of shipping bill(s)].

Any IEC holder who has not made any export with LEO date during the period 01.09.2019 to 31.0112020 or any new IEC acquired on or after 01.09.2020 would not be qualified for presenting any claim for benefits under MRS for exports made with effect from 0L09.2020.

The previously mentioned ceiling might be liable to downward revision to guarantee that the total claim under the Scheme for the period (01.092020 to 31.12.2020) doesn't surpass the allocation prescribed by the Government. which is Its 5,000 Cr.

3.04B

Benefits under MEIS shall not be available for exports made with effect from 01.01.2021.”

Effect of this notification:-

A limit on total reward under MEIS has been forced so that for exporters made in the period 01.09.2020 to 31.12.2020 the total reward which can be guaranteed by an IEC holder doesn't surpass the ceiling of Rs. 2 Cr. further.

It has also been notified that any IEC holder who has not made any exports for a time of one year going before 01.09.2020 or any new IECs obtained on or after the date of publication of this Notification would not be qualified for submitting any claim under MEIS. Also, it has been notified that MEIS Scheme is pulled back with impact from 01.01.2021.

The previously mentioned ceiling will be liable to further downward notification to guarantee that the total claim under MEIS for the period (01.09.2020 to 31.12.2020) doesn't surpass the prescribed allocation by the Government, which is Rs 5,000 Cr.