Raja M Shanmugham
President, Tiruppur Exporters' Association

The Ministry of Finance has decided to extend the benefit of the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to all export goods with effect from 1st January, 2021. But unfortunately, the RoDTEP rates have not been till now announced. As the rates have not been known, the exporting units are not in a position to quote competitive rates, get orders and execute them confidently. When the exporting units are at a time losing the orders just for 5 to 10 Cents per piece, the announcement of rate is urgently needed and in this connection, we have made representation to the Hon’ble Prime Minister and the Finance Minister to announce RoDTEP rates expediently and also pointed out that to compensate the increasing of yarn prices, we appealed to provide additional sops of 2% or 3%, which can be added with RoDTEP rates for a shorter period till the yarn prices get settled down.


Smt. Nirmala Sitharaman, the Hon'ble Union Finance Minister, presented the pragmatic, growth oriented Union Budget for the Year 2021-22 in the Parliament on 01.02.2021. The Union Budget has given importance for the development of infrastructure and the fund allotment for development of Roads and Highways Infrastructure facilities in Tamil Nadu State to the tune of Rs.1.03 Lakh would help for smooth transportation and reduction of travel time. The announcement of launching of much talked Mega Investment Textiles Parks Scheme and establishing 7 Textiles Parks in the country over a period of 3 years with Plug and Play facilities is a boost to the textile industry and we hope at least Two parks would be allotted to Tamil Nadu State.


The appreciable points are allocation of Rs.700 Crores for Amended Technology Upgradation Scheme (ATUFs) against Rs.545 Crores in last Budget, allocation of Rs.30 Crores for Export Promotion Studies against Rs.5 Crores in last Budget and allocation of Rs.100 Crores for Integrated Scheme for Skill Development, a need of the hour to the Textiles Industry. The proposal to reduce the time limit for reopening of assessment for income tax proceedings from the present 6 years to 3 years is a welcome feature in the budget.


Further to amendment made in the Union Budget 2021-22, the exporting units registered with Apparel Export Promotion Council (AEPC) were permitted to import the items like tags, labels, sticker, belt, button or hanger, printed bags without payment of duty and now while importing these items, the units have to necessarily execute the bond. The concern now is that no field authorities are in a position to clarify what kind of a bond to be executed and how it could be closed and replying to wait till the clarification come from their head office. It is to be noted that as the buyers are nominating the foreign firms to supply these items, these exporting units have to compulsory import these items specifically to attach in the exporting garments. We have represented to restore the status quo and do the exports hassle free.


We wish to note that the Ready Made Garment exporting units after obtaining Export Performance Certificate (EPC) from Apparel Export Promotion Council (AEPC) have been importing the items like Fasteners including buttons, Zip Fasteners including Zippers in roll, sliders / pullers, eyelets, rivets, laces, Badges, Stones, Velcro tape, beads for embroidery, stud etc., without payment of Customs duty. In the Union Budget 2021-22, the Basic Customs Duty has been imposed for import of these items with effect from 1st April 2021. Considering the need to have competitiveness against our neighboring countries and sustain in the global market, we have also represented to reconsider the amendment made in the Budget and permit for import of these accessories without payment of Customs duty.


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