The Tiruppur Exporters’ Association (TEA) has opposed certain amendments announced in the recent Union Budget, relating to import of items used by the garment industry.

TEA president Raja M. Shanmugham said that the garment industry was importing items such as tags, labels, stickers, belts, buttons or hangers and printed bags without payment of Customs Duty. The only requirement was that the importer should produce the member certificate from the Apparel Export Promotion Council.

Now, as per the amendments announced in the Budget, the importing units had to execute a bond with the Customs for import without payment of Customs Duty. These products would attract Customs Duty with effect from April 1.

However, the Customs Department had not given any clarification on how to execute the bond, he said in a release. For immediate requirements, the units were paying Customs Duty and clearing the goods. It would be a cumbersome process to take bonds for the multiple accessories that every exporter was importing. It would erode the competitiveness of the garment exporters, he felt.

Mr. Shanmugham said that items such as fasteners, buttons, zippers in roll, sliders / pullers, eyelets, rivets, laces, badges, stones, velcro tape, beads for embroidery, studs, etc., were imported without payment of duty using Export Performance Certificate (EPC) obtained from AEPC. This should be continued with.

Further, the government should announce the rates for Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme and extend the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit for another three years, he said.

Published On : 13-02-2021

Source : The Hindu