The Tiruppur Exporters’ Association (TEA) has urged Indian minister of commerce and industry Suresh Prabhu to initiate steps and offer incentives to the readymade garments sector till free trade agreements (FTAs) are signed with the United States and the European Union (EU), creating a level playing field for the industry compared to competing nations.
In a letter to the minister, the association has requested him to enhance the duty drawback rate, the benefit under the Merchandise Exports from India Scheme (MEIS) and the interest subvention for export credit to 5 per cent and clear the heavy backlog of pending rebate on state levies (ROSL) payments.The Tiruppur Exporters' Association (TEA) has urged Indian minister of commerce and industry Suresh Prabhu to initiate steps and offer incentives to the readymade garments sector till free trade agreements (FTAs) are signed with the United States and the European Union (EU), creating a level playing field for the industry compared to competing nations.#
The MEIS benefit now is 4 per cent of the free on board (FOB) value of exports and interest subvention for export credit is offered to the tune of 3 per cent.
TEA also requested the minister to either hold discussions with the office of the US trade representative (USTR), which has decided to challenge the legality of India’s export promotion schemes at the World Trade Organisation (WTO), or announce a scheme compatible to WTO regulations for apparel exporters. TEA feels exporters will lose global competitiveness once the schemes are done away with.
Due to the delay in ROSL payments, duty drawback and goods and services tax (GST) refund, many export units are unable to repay their dues to banks and run the risk of bad credit rating and may be declared non-performing assets (NPAs) in future, the letter said. ROSL dues have been cleared till May 2017 only.
The association also requested changes to the condition in fulfillment of obligation through a third party to boost modernisation of factories; doing away with manual GST refund claims that is both cumbersome and is leading to corrupt practices; and exempting exporters from international GST (IGST) payment while importing accessories that are cleared through export performance certificate (EPC) issued by the Apparel Export Promotion Council (AEPC) or allowing payment of IGST using MEIS duty credit scrip. (DS)
Fibre2Fashion News Desk – India
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