The Micro Exporters Policy is an initiative by the ECGC Ltd. – a Ministry of Commerce and Industry. The Small exporter’s Policy is basically the Standard Policy which makes way for improvements in terms of cover and offers encouragement to small exporters so that they are able to operate freely in a competitive market, without political and commercial risks hovering over them.
This scheme is issued to those exporters whose anticipated export turnover for the duration of one year does not exceed ₹1 Crore.
Salient features of the Micro Exporters Policy (MEP)
- 12 months insurance policy for small exporters for an additional sense of security
- The premium payable by the exporter would be determined on the basis of projected exports on an annual basis, which would be subject to a minimum premium of ₹5000 for the tenure of the policy.
- For shipments that are covered under the Small Exporter’s Policy, the ECGC will pay the claims up to a 95% extent where the loss would be due to commercial risks and 100% extent if the loss is caused to the exporter due to any political risk.
All exporters intending to avail of the MEP scheme should be traders, manufacturers or service providers irrespective of whether they hold an MSME certificate or not. The policy holds eligible any candidate running an export business with a turnover of less than ₹1 Crore.
The MEP scheme comes as a boon to exporters across the nation who functions with less capital investment and benefit of meager profit margins and are often under the fear of commercial or political risks.
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