tax alert

Recent Amendments in Merchandise Export from India Scheme (MEIS)

 

  1. Prohibited goods specified under Schedule-2 of Export Policy were ineligible for benefit under FPS/MLFPS/FMS/VKGUY. After introduction of MEIS on 01.04.2015, there was no specific clarity on applicability of MEIS on Prohibited goods provided under Appendix – 3B. Henceforth, it has been provided that prohibited goods shall not be eligible for MEIS benefit. (Effective from 01.04.2015, Para 5 of Notification no. 08/2015-20 dated 04.06.2015).
  2. Under the Transitional provisions at Para 3.05 of HBP for exports of goods and services made till 31.03.2015, application under FPS/MLFPS/FMS/VKGUY/SFIS was allowed till 30.06.2015. The said timeline has been extended indefinitely. Accordingly, exports of goods and services made till 31.03.2015 shall be applied under old procedure. (Effective from 01.07.2015, Para 1 of Public Notice no. 29/2015-20 dated 04.08.2015).
  3. Under MEIS, the destination countries have been classified as Group A (i.e., Traditional Markets), Group B (i.e., Emerging and Focus Markets) and Group C (i.e., Other Markets) countries. For majority of the products, benefit under MEIS are available for export to Group A and Group B countries.

     

    Norway, Switzerland, Iceland and Liechtenstein have been moved from Group C to Group A, whereas Hong Kong has been moved from Group C to Group B. (Effective from 14.07.2015, Para I of Public Notice no. 27/2015-20 dated 14.07.2015).

  4. The following changes have been made in Table -2 of MEIS Appendix (Effective from 14.07.2015, Para II of Public Notice no. 27/2015-20 dated 14.07.2015): )
    • 42 Items have been deleted. ( )
    • For 4 Items, the benefit under MEIS has been enhanced (refer items appearing against serial no
      134 to 137). ( )

       

      For 2 Items, the benefit under MEIS has been reduced (refer items appearing against serial
      no 251 and 380). ( )

       

      For 112 Items, the benefit under MEIS has extended for Exports to Sri Lanka and Bangladesh
      (refer items appearing against serial no 2105 to 2492). ( )

    • For 63 Items, the benefit under MEIS has been enhanced provided they are in the nature of handicraft items.( )
    • 30 new Items have been inserted for which benefit is available provided they are in the nature of handicraft items. ( )


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