Foreign Trade Policy 2015-2020 -Merchandise Exports from India Scheme (MEIS) highlights- APRIL 2, 2015

No. No.CLE-HO/POL/DGFT/14-15

APRIL 2, 2015

Members of the Council

Dear Members,

Sub: Foreign Trade Policy 2015-2020 – Merchandise Exports from India Scheme (MEIS) highlights – APRIL 2, 2015

This is in continuation to our earlier circular of date on the above subject. In the said circular, we had informed about implementation of a new scheme called Merchandise Exports from India (MEIS) Scheme in place of earlier Focus Market/Focus Market/ Market Linked Focus Product schemes.

We have compiled the major highlights of the Merchandise Exports from India (MEIS) Scheme which is given below for kind information of members.

With regards,
Yours sincerely

R Ramesh Kumar, IAS
Executive Director
COUNCIL FOR LEATHER EXPORTS


COUNCIL FOR LEATHER EXPORTS

FOREIGN TRADE POLICY 2015-20 – BRIEF HIGHLIGHTS ON MERCHANDISE EXPORTS FROM INDIA SCHEME (WITH EFFECT FROM APRIL 1, 2015)

Merchandise Exports from India Scheme (MEIS) : Schemes notified under Foreign Trade Policy like Focus Product Scheme (product-specific), Focus Market Scheme (country-specific) and Market Linked Focus Product Scheme merged into one scheme namely Merchandise Exports from India Scheme (MEIS). This MEIS scheme is a country-specific , product-specific scheme. As far as leather sector is concerned, this scheme broadly provides the following incentives.

Finished leather – No Scrip for exports to EU, USA, Canada, Australia, New Zealand, Pakistan, Hong Kong. Only 2% Scrip for exports to Notified African, CIS, Latin American and ASEAN countries and also China etc.., (Group B countries). In earlier policy, 2% Scrip was provided under Focus Product Scheme for Finished Leather for export to all countries. Additional 2% Scrip was also provided under MLFPS for exports to EU for the period 1.3.2014 to 31.8.2014 under earlier Foreign Trade Policy. However, 2% scrip extended for wet blue bovine leather (semi-finished) under 41041900 and bovine crust leather (under 41044900) get 2% scrip for export to Category B countries i.e. Africa, ASEAN, CIS, China, Japan, South Africa etc. (Group B countries) in present policy.

Leather Products (including Leather Garments & Gloves) under Chapter 42 : Reduced scrip of 3% for export to most countries (as against earlier 4% under earlier Focus Product Scheme) but no Scrip for export to Category C countries (including Australia, New Zealand, Pakistan, Hong Kong) . Only Jewellery Box (42023910) and Sports Gloves (42032110) get higher 5% Scrip for all countries.
Footwear under Chapter 64 : No scrip for footwear under 6401 (waterproof footwear) and 6402 (other footwear with outer soles and uppers of rubber or plastics) for exports to EU, USA, Canada, Australia, Hong Kong and New Zealand. However, for Group B countries including Saudi Arabia, China, Japan, UAE, South Africa etc., 2% Scrip is available for 6402 (non-leather footwear). For most other footwear, generally the 3% scrip is applied for Category A (EU, USA, Canada) and B countries (China, Africa, CIS, Japan, LAC, South Africa etc.,) only (as against earlier 4% under earlier Focus Product Scheme) and there is no scrip for Category C countries (including Australia, New Zealand, Hong Kong). For footwear components (including leather uppers & soles and heels) under 6406, no scrip for export to EU, USA, Canada, Australia, New Zealand. But 2% scrip is provided for export to Category B countries including China, South Africa etc.,. However, for other footwear components falling under 64069090 3% Scrip is extended for export to Category A (Europe, USA, Canada) and Category B ( China, Saudi Arabia, Japan etc.,)
Proof of landing document required to be provided for the above schemes to DGFT
For detailed information, members may please refer the enclosed list of countries (Category A, B & C) and list of eligible products under MEIS


No. No.CLE-HO/POL/DGFT/14-15

APRIL 2, 2015

Members of the Council

Dear Members,

Sub:Foreign Trade Policy 2015-2020

The Hon’ble Minister for Commerce and Industry announced the new Foreign Trade Policy for the period 2015-20 on April 1, 2015. The new Policy came into effect from April 1, 2015.
As far as the leather sector is concerned, the following two major aspects are to be noted.

a) Merchandise Exports from India Scheme (MEIS) : Schemes notified under Foreign Trade Policy like Focus Product Scheme (product-specific), Focus Market Scheme (country-specific) and Market Linked Focus Product Scheme merged into one scheme namely Merchandise Exports from India Scheme (MEIS). This MEIS scheme is a country-specific , product-specific scheme.

b) EPCG : The Zero Duty EPCG scheme is continuing but second hand Capital Goods cannot be imported under this scheme. Also, the condition of maintaining average level of exports achieved by the applicant in the preceding three licensing years for the same and similar products within the overall EO period including extended period stays. However, domestic procurement of capital goods will entail reduction in export obligation by 25%.

The detailed highlights are enclosed herewith wherein the details of eligible countries under MEIS are also given. The details of eligible products under MEIS are separately enclosed as attachment.

The following documents are hosted in the website of DGFT www.dgft.gov.in which members may refer.

  • Foreign Trade Policy 2015-20
  • Handbook or Procedures 2015-20
  • Foreign Trade Policy highlights
  • Foreign Trade Policy Statement
  • Application Forms and Appendices
  • MEIS rate for a product based on HS Code.

With regards,
Yours sincerely

R Ramesh Kumar, IAS
Executive Director
COUNCIL FOR LEATHER EXPORTS