Issuance of Export Performance Certificate for Duty Free Import of Fabrics

Circular No.ES/76/2015-16                                                                            March 1, 2016

To: Members of the Council        

Sub: Issuance of Export Performance Certificate for Duty Free Import of Fabrics

Dear Member,

As you are aware, the Council has been issuing Export Performance Certificate against exports of Man-Made made-ups to its members for the purpose of importing various items specified in Customs Notification No. 12/2012 dated 17.03.2012.

You may be also aware that the items specified in the above Notification are expanded from time to time.

The current Budget 2016 has expanded the above benefit vide Customs Notification No.12/2016-Customs dated 1^st March, 2016 for duty free  imports of certain Specified Fabrics against the export of Readymade Garments which is as follows :- 

(Relevant extract pertaining to MMF Textile items)

(xix) after serial number 284 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

In this connection, as you are aware, the Council along with its members has been constantly requesting the Government to bring to a halt to import of fabrics as Indian Fabrics industry has already been severely stressed with closure of over 30% fabrics manufacturing units in Surat, Bhivandi, etc. due to import of fabrics over Rs. 8,500 crores from China alone.

However, in the Budget 2016-17, the Government has announced the approval to import of Specified Fabrics of value equivalent to 1% of FOB value of exports.

In this context, the Council seeks suggestions/views from our members on this issue so that the same can be represented to the Government.

Since the task is time bound and needs to be taken up immediately with the Government, we   solicit your support & co-operation in the matter to enable us to send our reply to the Government.

Thanking you,

Yours faithfully,

V. ANIL KUMAR
EXECUTIVE DIRECTOR