AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Tax-based export incentive
The new Foreign Trade Policy includes an overhaul of the Indian export incentive system. Effective 1 April 2015, the various export incentive instruments are unified under a single new instrument, the Merchandise Export Incentive Scheme (MEIS). The MEIS simplifies the export incentive system and removes the conditions applied in previous variants.The common feature of the prior incentive schemes was that they came in the form of a "duty scrip". Under these instruments, exporters would earn duty scrip proportional to the FOB value of their exports. Exporters could use said scrip to offset tax expenditures in other areas. The destination countries and products for which such scrip was available depended on the exact program. Under the MEIS, no such conditions apply.
In its original form, notified via Public Notice 2, the MEIS includes more than 4'900 products. The incentive available for each product depends on the export destination. To this end, the world is split into three country groups (A, B and C). Group A includes the European Union members plus the United States. For those destinations, MEIS includes incentives for a total of 3973 products. The HS codes included in this intervention refer to products eligible for export incentives to these countries. Please see the further interventions under this state act for details on the incentives to the other country groups.