AEPC requests govt to look into its demands favourably

13 Jul '15

4 min read

Virender Uppal, chairman Apparel Export Promotion Council (AEPC) has requested the Indian Government to look into its demands favourably.

The AEPC has demanded inclusion of 2 per cent fabric within 5 per cent overall entitlement under EPC for improving fabric base under Customs Notification no. 10/2015-Cus dated 1.03.2015.

AEPC has urged the government to introduce separate chapter for pre- and post-shipment export credit at fixed rate of 7 per cent interest, as done in the past.

Third, introduction of Duty Credit scrip at 5 per cent to major markets like the US, EU, Canada, Mexico, Australia, Switzerland, Russian Federation, Ireland, Brazil, China, Korea, Norway, Chile, Turkey, Saudi Arabia, South Africa and Malaysia. Simplification in landing certificates as proposed by AEPC and even for one star exporter should be considered.

Fourth, actual implementation of 24 x 7 clearances of import and export must be ensured by Customs at all airports and shipping ports.

Fifth, the government must give some indication about the finalization of India-EU FTA, CEPA with Canada, etc which need to be implemented on urgent basis so as to mitigate the duty disadvantage suffered by India vis-a-vis competitors like Bangladesh, Cambodia, Vietnam, Pakistan etc. in the major markets.

Sixth, AEPC has asked for upward revision of duty drawback rate for the garment industry.

Lastly, it has demanded simplified procedure for manufacturing including labour, taxation, statutory returns and single window clearance, trust based clearances and assessments.

Speaking at the inauguration of the 55th India International Garment Fair (IIGF) in New Delhi, Uppal said “Under the foreign trade policy (FTP) 2015-19, garment sector got 2 per cent reward only on 239 HS lines out of 398 lines, while the service sector got 5 per cent scrip under Service Sector India Scheme.”

He further added that “no Merchandise Exports from India Scheme (MEIS) has been announced to Latin America, West Asia, CIS Countries, Africa and Oceania countries.”

The non-traditional markets which used to constitute 35-40 per cent share in India’s garment exports are poised to receive a setback due to withdrawal of the Chapter 3 benefits. Secondly, conditions in major markets like the EU, which constitutes 41 per cent of India’s garment exports, continues to be subdued.

Further, India is facing duty disadvantage of 9.6 per cent compared to competing countries like Bangladesh and Pakistan who are having zero-duty access under LDC/GSP+ status under EU GSP Scheme.

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