Category : News
DGFT Possible shortage of funds with the Government due to Covid 19 has started showing up in the case of Exports too. Since July 23. 2020, Exporters are unable to file their applications to claim MEIS incentive on the Directorate General of Foreign Trade (DGFT) portal for shipping bills with let export order (LEO) 01.04.2020.
The reason for the same is lack of clarity on funds with DGFT and no decision by the Finance Ministry regarding requests from the Commerce Ministry to reconsider the decision to restrict MEIS to Rs. 9000 cr. only for FY 20-21
DGFT in its Office Memorandum dated 27.07.2020 has informed that since Finance Ministry had conveyed that “it is not feasible to exceed MEIS allocation beyond Rs. 9,000 cr. for FY 2020-21 (till December 2020) and there is no clarity from DOR regarding its request to reconsider the restriction of funds, they are restricting the issuance of further MEIS. As per Commerce Ministry they have already issued MEIS licenses of value Rs. 422.4 crores till 20.07.2020 for shipping bills with LEO date 01.04.2020.” Commerce Ministry probably wants to keep already allocated funds to issue MEIS for exports before 31.03.2000.
Further the registration of scrips with customs at ports which is essential before they can be debited may also be stopped for any scrips that have already been issued for exports after 01.04.2020.
The blocking of MEIS, is a blow to exports and exporters who are already reeling under the disruption internationally due to Covid-19. And ironically the blow is on those very exports that have happened with great difficult during lockdown and thereafter.
In a recent Press Release, the Commerce Minister, Shri Piyush Goyal had said that Commerce Ministry is working for early resolution to MEIS issues which will win-win for everyone.
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