The Ministry of Commerce and Industry vide Instruction No. K-43022/7/2020-SEZ dated April 29, 2020 which has clarified certain issues faced by the stakeholder across the SEZs and EOUs. The inputs received so far from the DM, Ministry of Corporate Affairs and Reserve Bank of India are as follows:
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Sl. No. |
Issues raised by the stakeholders | Comments of concerned Department |
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Issues pertaining to DGFT |
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1. |
In view of increase in the input costs and ln logistics for effecting exports becoming harder, revision in the MEIS and SETS compensation may be increased by at least MEIS. 2% for 2020-21. | In view of the envisaged transition of MEIS to RoDTEP in the short term, any revision in MEIS rates is not feasible now. Further, Gems & Jewellery sector has never been covered ‘under MEIS. |
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2. |
5% additional export incentives may be given for one year to those units, which do not claim MEIS. | -Do- |
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3. |
MEIS may be granted to exporters of diamond-studded jewellery. |
-Do- |
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4. |
The MEIS scheme benefits may not be denied merely because of some procedural issues in respect of Shipping Bills at the time of export. |
DGFT has desired that exact procedural difficulty may be explained to them. |
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5. |
MEIS script may be made usable for non EDI Port/SEZ and applicable in respect of deemed manufacturers as well as FTWZ exports. |
Scripts issued from SEZ port cannot be used at any other non EDI/SEZ port, because the integration of the ICEGATE and SEZ database is not complete for a two way data transmission. FTWZ exports are not eligible for MEIS as per current policy provisions. |
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6. |
Services Export Incentive Scheme (SEIS) may be extended to cover more services: feasible wider SAC including software and units operating in International Financial Services Centre (IFSC) SEZ. |
Increasing the coverage to such services under SETS is not because of budget constraints. |
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7. |
Policy issues pertaining to FTWZ Merchandise Exports from India Scheme eligible (MEIS) Scheme applicability: The Foreign MEIS Trade Policy 2015-20 has been extended coverage till 31.032021, however the benefits of MEIS to DTA manufacturers/exporters |
As per policy provisions, exports made by FTWZ units is not for MEIS. Further, In view of the envisaged transition of to RoDTEP in the short term, any expansion in MEIS is not feasible now. There is no misconception in the Policy provisions, Exports through FIWZ, but by a FTWZ unit is still ineligible. |
The Complete Circular can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2020/04/MX-M452N_20200429_161817.pdf