Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

Service Exports from India Scheme (SEIS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Service Exports from India Scheme (SEIS)

Mains level : Export promotion schemes in India

The Directorate General of Foreign Trade has imposed a cap on the total entitlement under the Services Exports from India Scheme (SEIS) at Rs 5 crore per exporter for shipments done in 2019-20 (FY20). The move is expected to benefit small businesses in the services sector.

About SEIS

  • Service Exports from India Scheme (SEIS) aims to promote export of services from India by providing duty scrip credit for eligible exports.
  • Under the scheme, service providers, located in India, would be rewarded under the SEIS scheme, for all eligible export of services from India.
  • SEIS was earlier termed as Served from India Scheme (SFIS).

Eligibility

  • Service Providers of notified services, located in India are eligible for the Service Exports from India Scheme.
  • To be eligible, a service provider (Company / LLP / Partnership Firm) should have a minimum net free foreign exchange earnings of USD 15000 in the preceding financial year to be eligible for duty credit scrips.
  • For proprietorships or individual service providers, minimum net foreign exchange earnings of USD10,000 in the preceding financial year is required to be eligible for the scheme.
  • Also, in order to claim reward under the SEIS scheme, the service provider shall have to have an active Import Export Code (IE Code) at the time of rendering such services for which rewards are claimed.

Back2Basics: Merchandise Exports from India Scheme (MEIS)

  • MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
  • This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and was in existence till 2020.
  • It intended to incentivize exports of goods manufactured in India or produced in India.
  • The incentives were for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
  • The MEIS covered almost 5000 goods notified for the purpose of the scheme.

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