FIEO urges the Govt to look into concerns of Exporters contributing heavily to exports during challenging times
The Federation of
Indian Exporters Association has cautioned the commerce ministry that the
sudden imposition of a cap of Rs 2 Crore per IEC, on MEIS benefit of exports
made during September 01 to December 31st is going to seriously affect
exporters, whose numbers may not be very large, but their contribution to
exports warrant a revisit to the imposition of cap.
These benefits are part of the export competitiveness
Sharad Kumar Saraf said in a statement that the exports which will be made
during September-December, 2020 are based on the orders, which have already
been negotiated much earlier factoring the existing MEIS benefit. These
benefits are part of the export competitiveness and therefore the sudden change
will affect the exporters’ financially as buyers are not going to revise their
Notification No. 30 dated 1st September, 2020, Mr Sharad Kumar Saraf,
President, FIEO said that it will help in resolving the impasses, resulting in
blockage of MEIS benefits from 1st April 2020 and would provide huge relief to majority
of exporters and give them stable policy environment for exports.
FIEO also expressed
its concern over the financial outlay of Rs 5,000 Crore given for exports
during September-December, 2020 with the condition that if claims exceed Rs
5,000 Crore, the ceiling may further be revised downwards. This will create
huge uncertainty as those eligible for cap of Rs 2 Crore will not be able to
factor even such benefits in their exports. A clarity is also required whether
any change in the MEIS rate will be notified for those who are not affected by
the cap, if the amount of Rs 5,000 Crore is exhausted.
FIEO for extending the MEIS Scheme till 31st March, 2021
FIEO also urged the
Government to extend the MEIS Scheme till 31st March, 2021, coterminous with
the existing Foreign Trade Policy.
The RoDTEP Committee
has started the work but Industry is facing challenges in providing the data
due to frequent local lockdowns, non-availability of transport and
non-functioning of auditors. Moreover, fixation of rate for over 10,000 items
at 8 digits would be a time consuming exercise, particularly as it has to meet
the discipline of WTO, observed Mr Saraf. The extension in the MEIS Scheme till
31st March, 2021 will help in a smooth rolling of the RoDTEP Scheme as well
since the Scheme is going to stay for zero rating of exports.
FIEO wants govt to open the facility for filing of MEIS claims for exports
made from 1st of April, 2020
President FIEO also
urged the Government that since the issue of the past has been sorted out,
Government may open the facility for filing of MEIS claims for exports made
from 1st of April, 2020; Release RoSCTL
benefit for exporters of Chapter 61, 62 and 63, which are pending and announce
SEIS benefits to Service exporters for the financial year 2019-20 and notify
the scheme for 2020-21.