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DGFT adds new service providers in EPCG scheme
24
Sep '16
Providing great relief to the job working units in garment clusters like Tirupur, the Director General of Foreign Trade (DGFT) has issued a notification which includes a list of service providers to be added under the Common Service Providers (CSP) in the Export Promotion Capital Goods (EPCG) scheme. The newly added CSP can now avail EPCG benefits.
 
The list of CSP under the EPCG scheme includes job workers or third party service providers. Citing an example the DGFT says, “There may be multiple garment exporters obtaining services at different stages of garment manufacturing, such as knitting, dyeing, compacting, printing, embroidering, labelling, cutting etc, from a number of other units who own these facilities but do not engage in the export of garments. These job workers will now have the flexibility to not own all the infrastructures for conversion from input to final export products, but are eligible to get benefits under the EPCG scheme.”
 
“The Tirupur Exporters' Association (TEA) has been continuously representing to exempt the job working units from the fulfilment of export obligation when they import machinery under EPCG Scheme,” TEA president Dr. A Sakhtivel said in a statement.
 
During his meeting with Union commerce minister Nirmala Seetharaman earlier this week in New Delhi, he specifically emphasised the need to exempt the job working units from fulfilment of obligation for the benefit of Tirupur cluster and the minister immediately agreed and assured to issue a Trade Notice in this regard, Sakthivel said.
 
Glad that the long awaited relief has seen light of the day, he added that the job working units are the backbone for the garment exporting units as only about 30 garment exporting units have the integrated facilities and others depend on job working units only for their manufacturing activities. (RKS)

Fibre2Fashion News Desk – India


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