DGFT imposes a ceiling on MEIS benefits for exports between 1st September 2020 and 31st December 2020

The Central Government has notified a revision of its Foreign Trade Policy 2015-20. This revision will be enforced with immediate effect.

The change contemplated by the amendment to the Foreign Trade Policy 2015-20 is as follows:

The total reward which may be granted to an Importer- Exporter Code (IEC) holder under the Merchandise Exports from India Scheme (MEIS) will not exceed Rs. 2 crore. This ceiling applies per IEC. Further, the ceiling pertains to the exports made from 1^st September 2020 till 31^st December 2020.

Additionally, the said ceiling may be subjected to further downward revision. Its aim is to ensure that the total claim under MEIS for the period from 1^st September 2020 till 31^st December 2020 does not exceed the prescribed allocation. The Government has prescribed an allocation to the tune of Rs. 5,000 crore for this scheme.

Moreover, the following IEC holders will not be eligible to claim the benefits under the MEIS:

1.  IEC holder who has not made any export with Let Export Order (LEO) date during the period from 1^st September 2020 till 31^st December 2020
2. A new IEC obtained on or after 1^st September 2020

MEIS stands withdrawn with effect from 1^st January 2021. Thus no benefits under this scheme will be available for exports made after 1^st January 2021.