India adds incentive to boost NR exports

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The Indian government added RSS (Ribbed Smoked Sheet) and TSR (Technically Specified Rubber) in Merchandise Export from India Scheme (MEIS) which would make them eligible for an incentive at the rate of two per cent for exports to 169 countries.

The Rubber Board had been pressing with the Directorate General of Foreign Trade (DGFT) for the inclusion of natural rubber (NR) in the MEIS since the announcement of Foreign Trade Policy (FTP) 2015-20, as the policy announced on 1 April 2015 had not included NR in any of the export incentive schemes. Now, vide Public Notice No. 44/2015-20 dtd. 29 October 2015, Govt. of India has added NR in Table 2 of MIES Schedule as Item No. 4976 and 4977. It is presumed that the inclusion of NR in the scheme would give a fillip to exports of NR from India.

The extension of incentive as a part of FTP is expected to improve the competitiveness of Indian exporters by reducing infrastructural inefficiencies and associated costs. In FTP 2015-20, Govt. of India has merged Focus Product Scheme, Market Linked Focus Products Scheme, Focus Market Scheme, Agri-Infrastructure Incentive Scrip and Vishesh Krishi and Gram Udyog Yojana (VKGUY) for rewarding merchandise exports with different kinds of duty scrips into a single scheme (MEIS).

Duty Credit Scrips (DCSs) shall be granted as rewards under MEIS. The DCSs and goods imported or domestically procured against them shall be freely transferable. The DCSs can be used for payment of customs duties for import of inputs or goods and payment of excise duties on domestic procurement of inputs or goods including capital goods and payment of service tax.

In June 2012, Govt. of India had added NR in the Market Linked Focus Product Scheme with two per cent incentive.