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CMAI hails review of FTP as 'progressive package'
Dec '17
The Clothing Manufacturers' Association of India (CMAI) has hailed the mid-term review of the Foreign Trade Policy announced by the Central Government earlier this month as a ‘progressive package’ to address several issues relating to policy as well as procedures. CMAI said that the measures included in the mid-term review will be of great help.

Garment exports from India have been declining steeply for several months and there are no signs of an early revival of overseas demand. In such a situation, the measures included in the review for facilitating exports and improving ease of doing business will be of great help,” CMAI president Rahul Mehta said in a statement.

Referring to the extension of period for using scrips from 18 months to 24 months, he stated that coupled with zero rating of GST on the sale of scrips, exporters will now be able to effectively and completely use the scrips. He also welcomed the trade facilitating measures of doing away with testing of samples for drawback purpose and extending 24x7 clearance to a large number of seaports and airports. Introduction of e-sealing of consignments for exports is another measure that will facilitate exports, he added.

Mehta pointed out that garment exporters often faced problems arising from lack of coordination between commerce and finance departments, especially between DGFT and customs. The National Trade Facilitation Committee headed by cabinet secretary envisaged in the review will go a long way in improving coordination among various government departments and addressing grievances of exporters more effectively and promptly. “The focus of the committee on improving transparency, simplifying procedures and augmenting infrastructure will be of great help to exporters as a whole.”

Mentioning that garment sector was highly labour intensive and substantially in the SME sector, Mehta welcomed the focus of the review on MSMEs and labour-intensive sectors.

He requested the government to ensure timely refund of GST and drawback duty to exporters, since delay in these areas have been locking up the working capital of exporters. (RKS)

Fibre2Fashion News Desk – India

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