India restores 2% duty incentive on export of mobile phones

India government has restored 2 percent additional duty incentive on the export of mobile phones from the country.
Saudi girls with smartphones
The duty benefit under the Merchandise Export from India Scheme (MEIS) will be effective from January 1 to March 31, 2020, PTI reported.

“A 2 percent 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) said in a notification.

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

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

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

Under MEIS, India 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.