Govt restores 2% additional duty incentive on mobile phones export

New Delhi, Jan 30 () The government has restored 2 per cent additional duty incentive on mobile phones export with a view to boost shipments of the product, according to a notification of the commerce ministry.

The duty benefit under the Merchandise Export from India Scheme (MEIS) is effective from January 1 and will be there till March 31, 2020.

"A 2 per cent additional ad hoc incentive for mobile phones is notified for exports made with let export date from January 1 to March 31, 2020," the Directorate General of Foreign Trade (DGFT) has said in a notification.

DGFT is an arm of the commerce ministry which deals with issues related to exports and imports.

The directorate on December 7 last year had reduced this export incentive from 4 per cent to 2 per cent.

The India Cellular and Electronics Association (ICEA) had expressed disappointment over cut in the incentive, stating it will lead to massive job losses.

According to estimates, mobile phone exports grew from Rs 1,300 crore in 2017-18 to over Rs 25,000 crore at present.

Under MEIS, the government provides duty benefits depending on product and country.

Rewards under the scheme are payable as percentage of realised free-on-board value and, MEIS duty credit scrip can be transferred or used for payment of a number of duties including the basic customs duty. RR SHW SHW
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(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)


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