The Government has removed the restriction under the Incremental Exports Incentivization Scheme (IEIS) vide DGFT Trade Notice No. 4/2016 dated May 5, 2016. Welcoming this, Shri R.K. Dalmia, Chairman, The Cotton Textiles Export Promotion Council (TEXPROCIL) said, “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.”
Incremental Export Incentivization Scheme (IEIS) for the last quarter 2012-13 was introduced vide DGFT Notification No. 27 dated 28.12.2012. The scheme extended a duty credit scrip of 2% on the incremental growth in exports during the period from 1.1.2013 to 31.3.2013 as compared to the period from 1.1.2012 to 31.3.2012 on the fob value of exports to the US, EU & Asian Countries. Subsequently, DGFT issued a Notification in September 2013 restricting the entitlement under the scheme to 25% growth or Incremental growth of Rs. 10 crores in value, whichever is less.
Many of the exporters were affected because of this restriction which was not there in the original scheme, pointed out Shri R.K. Dalmia - Chairman, TEXPROCIL. Shri R.K. Dalmia also complimented the Government for including exports of Made ups falling under chapter 63 to Group C countries under the Merchandise Exports from India Scheme (MEIS) vide Public Notice No. 06/ 2015-20 dated May 5, 2016. This will promote exports of Made ups to countries like Australia and New Zealand which falls under group C of the MEIS, according to the Chairman, TEXPROCIL.
Further, as per the Public Notice, henceforth, landing certificates shall not be required under the MEIS. Shri Dalmia pointed out that exporters faced difficulty in getting landing certificates from the shipping companies besides incurring costs. The dispensation of the requirement to furnish landing certificates has come as a huge relief to the exporters and would certainly reduce the transaction costs for the exporters, according to the Chairman, TEXPROCIL. Shri Dalmia extended his thanks to Smt Nirmala Sitharaman, Hon’ble Union Minister of State (Independent charge) for Ministry of Commerce & Industry, Shri Santosh Kumar Gangwar, Union Textile Minister and Shri Anup Wadhawan, DGFT for the above initiatives.
Courtesy by www.businesswire.com
