Acknowledging the fact that the apparel export industry is marred by stagnation, Government of India has removed restrictions under the Incremental Exports Incentivisation Scheme (IEIS). A notification has been released by Director General of Foreign Trade (DGFT), in which the regional authorities have been allowed to process cases in this regard without imposing any cap.
“The decision of the government to issue duty credit scrips under the IEIS without any restriction will certainly improve the cash flow of the exporters,” said RK Dalmia, Chairman, TEXPROCIL (The Cotton Textiles Export Promotion Council), in a statement.
This decision has been taken due to complaints of exporters and the restriction that came into existence in late 2013 that were not a part of the original scheme, thus, leading to multiple lawsuits.
Also Read – Group C nations to get 2% FOB value of exports under MEIS in FTP 2015 – 20
IEIS for the last quarter 2012-13, was introduced in December, 2012 and the scheme extended duty credit scrip of 2% on the incremental growth in exports during the period from January to March, 2013 compared to the same time period in 2012 on the FOB value of exports in countries like the US, EU & Asian countries.
Subsequently, DGFT issued a Notification in September 2013 restricting the entitlement under the scheme to 25% growth or incremental growth of Rs.10 crores in value, whichever is less. Many of the exporters were affected because of this restriction, which was not there in the original scheme, pointed out Dalmia.
