Directorate General of Foreign Trade (DGFT) has issued Notification No 30/2015-20 dated 1st September, 2020 in order to insert two new paragraphs i.e. 3.04A and 3.04B in the Foreign Trade Policy , 2015-2020 with immediate effect where it has been provided that the total reward under the Merchandise Export Incentive Scheme (MEIS) has been capped at INR 2 crore per Importer Exporter Code on exports made during the period from between 1st day of September, 2020 till 31st day of December, 2020 (period based on Let Export Order (LEO) date of shipping bills). The aforesaid ceiling is subject to further downward revision to ensure that the total claim under the Scheme for the period (1st September, 2020 to 31st December, 2020) does not exceed the allocation prescribed by the Government, which is INR 5,000 crore.
Further, it has also been notified that any IEC holder who has not made any exports with LEO date for a period of one year preceding the 1st day of September, 2020 i.e. between 1st September, 2019 till 31st August 2020 or any new IECs obtained on or after the date of publication of this Notification i.e. 1st September, 2020 would not be eligible for submitting any claim for benefits under this scheme for exports made w.e.f. from this date.
DGFT has also informed that the MEIS will be withdrawn with effect from 1st day of January, 2021.