Ahmedabad: Directorate of Revenue Intelligence (DRI) has busted a massive misuse of union government run Export Incentive Scheme (MEIS) by Exporters of Insecticides and recovered Rs. 52 Crores from such Exporters.

A DRI official today said that specific intelligence was developed by the DRI, Zonal Unit, Ahmedabad that various exporters of insecticides were indulged in mis-classification of their export product “insecticides” and by doing so they were wrongfully claiming MEIS benefit at higher rate than they were actually entitled for.

MEIS Scheme is an export incentive scheme of Government of India under which exporters get 1% to 7% of the FOB (Free on Board) value of their export product as incentive depending upon their product and Customs Tariff Heading under which the product is classifiable.

Acting upon the said intelligence officers of DRI conducted searches at premises of various exporters of insecticides based in Gujarat, Mumbai and Tamilnadu. Concerned persons of these insecticide companies admitted in their statements that they were mis-classifying their product i.e. insecticide and by doing so they were wrongfully claiming MEIS benefit at 3% of FOB value of their export product against their actual entitlement of 2% of FOB value.These exporters have voluntarily paid Rs. 52 crores so far towards wrongful availing of excess benefit under MEIS Scheme by resorting to mis-classification of their export product i.e. insecticides having value more than Rs.5,500 Crores. Further investigation is in progress, he said.

DeshGujarat

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