New Delhi, September 2: The Union Minister of Railways, Commerce and Industry Piyush Goyal on Tuesday said that 98 per cent of the exporters -- especially Micro, Small and Medium Enterprises (MSMEs) -- will benefit under Merchandise Exports from India Scheme (MEIS) with reward cap of Rs 2 crore per Importer Exporter Code (IEC) from September 1 to December 31, 2020.

Issuing a circular, the Union Minister took to Twitter and wrote, "98% of exporters esp MSMEs will benefit under Merchandise Exports from India Scheme (MEIS) with reward cap of Rs. 2 Cr/ Importer Exporter Code from 1st Sep to 31 Dec 2020. This will remove uncertainty & protect genuine exporters while ensuring Make in India-Make for the World."

Here's what the Union Minister for Commerce and Industry said:

The notification stated, "In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy, 2015-20 and the enabling para 3.13 of the FTP, the Central Government hereby makes the following amendments in the Foreign Trade Policy 2015-20 with immediate effect."

The notification spoke about the insertion of two new paragraphs -- 3.04A and 3.04B -- in the Foreign Trade Policy. As per 3.04A, the total reward which may be granted to an IEC holder under the Merchandise Exports from India Scheme (MEIS) shall not exceed Rs 2 crore per IEC on exports made in the period September 1, 2020, to December 31, 2020.

Adding more, the para says those who have made any export with LEO date during the period September 1, 2019, to December August 31, 2020, will not be eligible for submitting any claim for benefits under MEIS for exports. However, para 3.04B says benefits under MEIS will not be available for exports made with effect from January 1, 2021.