Tirupur: Apparel exporters have appealed the central government to relax a customs board rule that ‘blacklists’ them for violating export rules and availing government benefits through manipulative ways.

Raja M Shanmugham, president of Tirupur exporters’ association, said, “Once we figure in the risky exporters’ list, we can’t avail benefits offered by the government. Customs officials would also verify the goods before allowing them to be shipped in ports and airports.”

He said many apparel units were placed in the risky exporters’ list for pricing the garments over and above the average price fixed for a particular model. “For instance, $3 is the average price of T-shirts. If it is priced at $10, it is arbitrary. The price would differ based on the quality and value-addition. The customs think the exporter shot up the price deliberately in the bill to claim more in Integrated Goods and Services Tax (IGST).”

Shanmugham said if the exporters were to figure in the risky exporters’ list, the customs would carry out 100% examination of the goods, instead of the normal procedure of checking 2-3% of the goods. 

“So, the goods may miss the vessel and packing arrangements may go disarray. It would create chaos. If they believe the exporter tried unethically to claim more in IGST, they could summon the exporter and ask him/her for an explanation, before taking action. The rule is not acceptable and should be repealed,” he said.

Published On : 05-09-2019

Source : Times of India