In April last year, the scheme was first extended till June end and later till September 2021. The interest equalisation rates under the scheme have been revised to 2 per cent and 3 per cent for specified categories of MSME manufacturer exporters, the RBI said. The Reserve Bank on Tuesday extended the interest equalisation scheme for pre and post shipment rupee credit for MSME exporters till March 2024 with the objective of boosting outbound shipments. Exporters get subsidy under the 'Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit'. In April last year, the scheme was first extended till June end and later till September 2021. The interest equalisation rates under the scheme have been revised to 2 per cent and 3 per cent for specified categories of MSME manufacturer exporters, the RBI said. The government has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit up to March 31, 2024 or till further review, whichever is earlier. The extension takes effect from October 1, 2021 and ends on March 31, 2024," the RBI said in a notification. The scheme will not apply to telecom instruments and entities availing benefits under the Production Linked Incentive (PLI) scheme of the government. While issuing approval to the exporter, the bank will be required to furnish the prevailing interest rate, the interest subvention being provided, and the net rate being charged to each exporter, so as to ensure transparency and greater accountability in the operation of the scheme, the RBI said. It further said from April 1, 2022, banks shall reduce the interest rate charged to the eligible exporters upfront as per the guidelines and submit the claims in original within 15 days from the end of the respective month in the prescribed format. The RBI further said for the October 1, 2021 to March 31, 2022 period, banks shall identify the eligible exporters as per the scheme, credit their accounts with the eligible amount of interest equalisation and submit sector-wise consolidated reimbursement claim for the period to the Reserve Bank by April 30, 2022. India's merchandise export in February 2022 was USD 33.81 billion, an increase of 22.36 per cent over USD 27.63 billion in the same month of 2021.
Source: Economic Times
In a meeting with commerce and industry ministry on Tuesday, exporters said that freight support is much required. With crude oil prices soaring to their highest since 2008 at $139 per barrel amid the Russia-Ukraine conflict, container rates have risen ten-fold in less than a fortnight while war insurance premiums are up 3-5%, as per sources Exporters have sought freight support from the government, and flagged the issues of pending goods and services tax (GST) refunds and the status of various export incentive schemes. In a meeting with commerce and industry ministry on Tuesday, exporters said that freight support is much required. With crude oil prices soaring to their highest since 2008 at $139 per barrel amid the Russia-Ukraine conflict, container rates have risen tenfold in less than a fortnight while war insurance premiums are up 3-5%, as per sources. “We are unable to execute exports as most of them would be made at a loss with high freight charges,” said a representative of an export body who participated in the meeting. India’s merchandise exports in April-February FY22 were $374.05 billion, up 45.8% yearon-year while imports rose 59.21% to $550.12 billion.
Source: Economic Times
The post-Budget webinar will focus on privatisation and disinvestment as well as asset monetisation of core and non-core assets. With a massive plan to monetise public sector assets and privatise state-run firms, Prime Minister Narendra Modi will address investors, including officials of sovereign funds, private equity, global pension funds, investment banks and asset monetisation companies on Wednesday. The post-Budget webinar will focus on privatisation and disinvestment as well as asset monetisation of core and non-core assets. Besides representatives from real estate, infrastructure and legal experts, Modi will address stakeholders from North America, Europe, Middle East, Asia and Far East, & Australia, the government said in a statement. Other than the proposed mega LIC IPO, the government has a large pipeline of strategic disinvestment such as fuel retailer-cum-refiner BPCL, IDBI Bank, Container Corporation of India, among others. While the government will likely achieve the brownfield asset monetisation target of Rs 88,000 crore for FY22, the target for next year is almost double of that at Rs 1.62 lakh crore. The assets on offer includes highways stretches, ports, airports, railway stations, trains, among others The department of investment and public asset management will incorporate inputs from the participants to formulate robust implementation strategy for privatisation, asset monetisation and disinvestment programme.
Source: Financial Express
Opposing the GST council’s reported proposal of increasing the minimum tax slab from 5 to 8%., the city businessmen have said that any hike in the goods and services tax will ruin all the pre-burdened industries in the post-Covid turbulent times. Ludhiana MSME (micro, small, and medium enterprises) Association president Harish Kairpal said: “Our association has verified inputs that the GST council is considering to increase the lowest slab of 5% tax to 8%. This will be disaster for the ailing sectors such as textiles, garments, and engineering and even some of the healthier industries. It will not only increase our tax burden but also make the end products costlier. The central government should not go ahead with this proposal at any cost.” Ludhiana Business Forums joint secretary Abhinav Sehgal said: “The 5% GST slab covers a huge number of taxed items produced in micro factories. Even a 1% tax increase is enough to hurt these small units and businesses that operate on thin margins and limited capital.” Ludhiana Apparel Manufacturers Association general secretary Atul Saggar said: “We fail to understand this sudden need for increasing the minimum tax slab. On the one side, the GST revenues of the state and the Centre are at an all-time high, while on the other hand, they still want to penalise small businessmen with a 3% tax rise under this slab. We request the GST council, central government, and Central Board of Indirect Taxes and Customs to make no attempt to change the lowest GST slab.
Source: Times of India
The share of India’s exports in its gross domestic product (GDP) should rise to at least 20 per cent—and ideally 25 per cent as the country needs to support its import of oil—if it wants to be a $5-trillion economy, according to minister of commerce and industry Piyush Goyal, who recently told an industry body session that a strong rupee will be good for exports. Goyal also holds the portfolios of consumer affairs, food and public distribution and textiles. Delivering the keynote address virtually at the annual session of the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on ‘The great Reset: Reinforcing India’s Global Positioning’, he said he is hopeful of India’s exports touching $410 billion in this fiscal. “I am delighted that we are at $374 billion until February 2022, i.e. 11 months of this (financial) year. So I do believe that irrespective of problems that we have in the northern parts of Asia-Europe, we are well on track not only to achieve 400 [$400 billion], I am hoping closer to 410 [$410 billion],” he said. Goyal called for the reorienting of economic laws to suit the changing needs of time, according to an official release from his ministry. He urged the industry to explore various free trade agreement provisions and use them to their full potential, take active part in existing negotiations, and focus on the development of aspirational districts and tier2 and tier 3 cities, some of which can be future export hubs.
Source: Fibre2 Fashion
With the ongoing Russia-Ukraine war, garment exporters in Tirupur are worried that the volatile market would have a cascading effect on the garment industry here. Tirupur Exporters Association’s president Raja M Shanmugham said 40% of its export business is with the European Union (EU) and the UK with a monthly turnover of `1,200 crore. Most of the European buyers and brands have branches or franchises set up in Russia. Though no specific data is available on the quantum of garments sent by European buyers to Ukraine and Russia, exporters here estimate that it could be around Rupee ET50 crore a month. Last year, Rhythm Knit India in Tirupur, which manufactures children’s garments made `5 crore in the Russian market. Rajkumar Ramasamy, the managing director of Best Corporation said they do not have direct business ties with Russia. But, a UK-based client of theirs was selling Tirupur products in Russia through a franchise. Rajkumar has business of `15 crore a month with the EU, a small portion of which might be going to Russia. Though the current sale of Tirupur garments in Russia and Ukraine is minuscule, the companies had plans to expand there, which has been put on hold now, affecting longterm business plans. “Given the situation, we have halted our plans to expand our business to Russia,” said S K Saminathan, executive director Rhythm Knit India. Exporters said they had done export business with Russia in the past. “Due to several issues like lower Dun & Bradstreet rating and no payment guarantee from Russian buyers, we stopped doing business in the country,” said E Siva Sankar, managing director of Exel Sourcing Company. Due to the ongoing crisis, Siva believes buyers from the EU may slow down purchase. There could be a cascading effect of the war — a possible slowdown of the economy — which might force the European buyers to cut expenditure, industrialists feel. Garment makers also fear the crisis may push up the cost of logistics, price of raw material and of finished goods. “At this time, many people are refraining from doing textile shopping. Hence, buyers may slow down purchase,” Siva said. K E Raghunathan, convenor of the Consortium of Indian Associations, an umbrella body of MSMEs, said the textile industry in Tamil Nadu is most likely to take a hit due to the war. “If the war continues, it would cripple the supply chain. Not only garment exports, but other exporters who are into automobiles could also face the heat because of the ongoing crisis,” he said. K Selvaraju, secretary general of Southern India Mills’ Association, said exporters have been advised to wait and watch.
Source: Times of India
A policy brief Women and Trade: Towards an Enabling Ecosystem in India -- brought out by Indian Council for Research on International Economic Relations (ICRIER) -- has said that support for internationalisation of women-owned enterprises through targeted measures to boost women's participation in international trade has lagged. Economic think tank ICRIER has suggested the government to include targeted measures in the forthcoming foreign trade policy to boost women's participation in global commerce and involve them as key stakeholders in consultations for free trade agreements. A policy brief Women and Trade: Towards an Enabling Ecosystem in India - - brought out by Indian Council for Research on International Economic Relations (ICRIER) -- has said that support for internationalisation of women-owned enterprises through targeted measures to boost women's participation in international trade has lagged. "It is recommended that the upcoming foreign trade policy... (can) be used to mainstream gender in the national trade agenda. "The recognition of the gender-specific impediments and vulnerabilities that women entrepreneurs face should be reflected in both the vision and strategy, with a holistic focus on export promotion, integration in global value chains, ease of doing business, and trade facilitation just as MSMEs have been explicitly acknowledged to have strategic significance, especially with regard to manufacturing and employment generation, and are accordingly identified for focussed interventions to boost exports," the council said in a statement. Foreign trade policy (FTP), which is formulated by the commerce ministry for five years, provides guidelines for enhancing exports to push economic growth and create jobs. In such a policy, the government announces incentives for goods and services exporters. The current policy (2015-20) will end in March 2022. The think tank has also suggested setting up a National Council for Women's Entrepreneurship under the chairmanship of the Prime Minister. Collection of gender-disaggregated data and statistics on trade participation and performance as well as regular gender stakeholder consultations are vital for informed policy-making and impact assessment, it said. These should be an integral part of the institutional setup across the gamut of relevant ministries, allied regulatory agencies, export promotion councils, and specific product promoting boards, it added. "...India should also include women entrepreneurs as important stakeholders in domestic consultations on free trade agreements (FTAs) and their aspirations and concerns should be reflected in the final texts through gender-responsive provisions," it said. Traditionally, it said, India has been wary of linking issues, such as human rights, labour standards, gender, and the environment with trade, both bilaterally and multilaterally, by and large regarding them as 'veiled protectionism'. "However, with the global discourse veering towards inclusiveness in trade and sustainability, more so in the context of the COVID 19 pandemic, India should embrace a more flexible and pragmatic approach and not lag behind the curve," it suggested. Under an FTA, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they liberalise norms to enhance trade in services and boost investments.
Source: Economic Times
Indian textile manufacturer Birla Century, a division of Century Textiles & Industries limited, has launched Hill & Glade, a flagship brand catering to the home bedding segment. Offering choices in 4 different qualities, Hill & Glade will provide basic, essential, premium and grandeur, in thread counts of 160, 210, 300 and 400 respectively. Hill & Glade will launch with over 250 designs in a range of colours that will encompass solids as well as prints for the discerning consumer, the company said in a press release. Hill & Glade will also look to offer consumers choices in hand towels, face towels and bath towels. In an endeavour to merge the quality offering from Birla Century with the ethnic diversity of India, Hill & Glade will be offering a range of ethnic bedsheets later this year. Sustainability is the new buzzword, but for Birla Century it has been a practise since our inception. Preserving our mother earth has always been a priority and we always keen ‘Think today, about tomorrow’ at the heart of whatever decisions we take. This approach also reflects in our products which are much loved by consumers the world over for their attention to detail and unfailing quality standards,” R.K. Dalmia, senior president and wholetime director at Century Textiles and Industries Limited, said. “We have invested a considerable amount of time and research to get here after ensuring the feedback from a large set of target audiences determined the gaps in the home bedding segment. Hill & Glade will provide choices in terms of textures, colours and quality segments, catering to all consumers,” Ashish Mehrishi, CMO (Home Textiles & Apparel Fabrics) Birla Century, stated.
Source: Fibre2 Fashion
As part of the Azadi ka Amrit Mahotsav Ministry of Culture and Ministry of Textiles are organizing “Jharokha-Compendium of Indian handicraft/ handloom, art and culture”. It will be a PAN India celebration which will be held at 16 locations in 13 states and UTs. Jharokha is acelebration of the traditional Indian handicrafts, handlooms, and art & culture. The first event under this celebration is being organized in Bhopal, Madhya Pradeshstarting from 8th March 2022 on the occasion of International Women’s Day. It will be organized at Rani Kamlapati Railway Station which is named after the brave and fearless Queen Kamlapati of the Gond kingdom of Madhya Pradesh. Thisfirst event celebrates womanhood and the contribution of women in the field of art, craft and culture. All the stalls at the event are being setup by the women artisans making it more special. The event will be inauguratedby women who have been role models in the societyfeaturing renowned artist and Padma Shree awardee – Ms. Durga Bai Vyam,Director, AKAM; Ministry of Culture – Ms. Priyanka Chandra, IAS officer – Ms. Anubha Shrivastava, IPS officer – Ms. KiranlataKerketta and professor – Ms. Jaya Phookan. These women are a shining example of women empowerment. Their participation in the event will be an inspiration for other women to come forward and showcase their talent in different fields. • The celebrations at Jharokha will include showcasing of handicraft and handloom products from across the country. • Women artisans, weavers, and artists who have given their significant contribution in promoting and reviving Indian handloom and handicrafts will also be felicitated in the event. • A literary corner focused on local art, culture and festivals will be setup at each venue along with food stalls celebrating local Indian cuisines. • Another highlight of Jharokha will be the cultural events. These events will continue for 8 days and will include folk dance and singing performances by local teams and artists. • A dedicated corner for Ek Bharat Shrestha Bharat (EBSB) encompassing the culture and art of Manipur and Nagaland will also be setup at the venue. Azadi Ka Amrit Mahotsav is an initiative of the Government of India to celebrate and commemorate 75 years of progressive India and the glorious history of its people, culture, and achievements.
Source: India Education Diary
Dutch clean-tech start-up The Movement, the company behind the sustainable solutions Polylana Fibre and Aware claim validation technology, has announced successfully raising EUR1m (US$1.1m) in pre-seed funding. The new funding will allow The Movement to grow its team, invest in technology and create more sustainable alternatives for the textile industry, it says. The Movement offers innovative sustainable fibre and yarn solutions for the textile industry, which it claims is 100% traceable. In addition to the Polylana fibre, the company has an integrity solution called Aware that can authenticate recycled yarns in a final product to verify sustainability claims. In a statement, the company says it is no longer possible to treat sustainability as a ‘nice-to-have’. The textile industry is overwhelmed by the increasing public and regulatory pressure, it says, however, implementing sustainability in textile supply chains is extremely challenging for brands and retailers with global production networks geographically long and complex, increasing the risk of greenwashing. “We are a purpose-driven company, aiming to help textile brands and retailers to execute their sustainability goals”, says founder and managing director, Feico van der Veen. “With our solutions, we offer full transparency and traceability, proving real impact. This funding from a strategic partner, allows us to expand our engineering, business development and teams. We are looking to hire the best talent wanting to join our mission to lower the impact of textiles.” An important part of the investment will be used for the further development of the Aware blockchain platform. “With our technology, based on patented physical tracers and public blockchain, we will prove soon that third party certifications are no longer needed. Also, we will be able to provide NFTs for physical real sustainable textile products”, says Koen Warmerdam, brand manager of Aware. “Only backed with disruptive technology and true clean data, consumers can trust sustainability claims made on final products by brands.” The Movement was founded in The Netherlands in January 2020, with a vision to make sustainable alternatives available for the textile industry, combined with seamless supply chain integration. First backed by angel investors, and now with a preseed investment from a strategic partner. The Movement is a member of the Textile Exchange and the traceability partner for the Denim Deal, launched by the Dutch Government, and has offices in Amsterdam and Shanghai. The innovative Polylana fibre was developed as a lower-impact alternative for acrylic fibre. The company says that as acrylic fibre is made from acrylonitrile (ACN), it produces large quantities of hydrogen cyanide and has a large environmental footprint. “With Polylana fibre we offer a better alternative but with the same characteristics as wool”, says Tatiana Ponce Carmona, brand manager of Polylana fibre. “With the investment, we can intensify our presence and offering, but also start R&D with bio-based chemicals”.
Source: Just Style
Despite the Covid-19 crisis, about 30 percent of textile-related exports from Cambodia went to the United States, according to the Ministry of Labour and Vocational Training. During a discussion on US-Cambodia bilateral relations, W. Patrick Murphy, US Ambassador to Cambodia, said that the increase in exports of textiles indicates the excellent cooperation between Cambodia and the United States, despite some other challenges. At the same meeting, Ith Sam Heng, Minister of Ministry of Labour and Vocational Training, appreciated Murphy for strengthening the cooperation between both countries. The minister said that Cambodia continued to focus on combating human trafficking through labour trafficking, and the elimination of child labour has made significant progress, despite some challenges and issues. “To achieve this goal, we have promoted these activities responsibly, ensuring the protection and promotion of the rights and benefits of migrant workers, protection from labour exploitation or discrimination in the workplace. We provide legal assistance and well-being, assisting workers in obtaining proper legal documents and helping undocumented migrant workers, facilitating access to social security and other benefits under the target country’s laws. “On the issue of child labour, the Labor Inspectorate is working to continue the education campaign to inform the handicraft enterprises and guardians to understand the laws and regulations clearly. The laws will define children’s use in any work, while also applying the law to enterprises.” Both the countries agreed to promote these activities further and work together to improve the relationship. The ministry will continue to encourage factory owners, enterprises in the manufacturing of travel products and bags to become members of the Better Factories project in Cambodia in order to obtain certificates of origin. In the case of labour disputes, the ministry invites the parties to meet and arrive at a peaceful settlement under legal procedures. According to the latest data from the Garment Manufacturers Association in Cambodia, the exports of textile-related products went up 15.2 percent to $11.3896 billion in 2021 compared to the exports in the previous year. The garment exports accounted for $8 billion, footwear $1.390 billion, and travel goods were to the tune of $1.490 billion, while other categories amounted to $0.49 billion. Kaing Monika, Deputy Secretary General, GMAC, told Khmer Times that the main export markets for Cambodia are still the US, EU, Canada and Japan. Moreover, the unstable political situation in some countries works in favour of Cambodia. Cambodia’s new investment law and how the Kingdom handled the Covid-19 situation have helped attract many investors.
Source: Khmer Times
Bangladesh, India and Nepal have finalised an enabling memorandum of understanding (MoU), to be signed by the three countries, for implementation of the much-awaited BBIN Motor Vehicles Agreement (MVA), pending its ratification by Bhutan, to facilitate movement of passenger, personal, and cargo vehicular traffic. The decision to finalize the MoU was taken at a two-day meeting of senior officials of Bangladesh, India and Nepal in New Delhi on March 7-8. Bhutan participated in the meeting as an observer, reports our New Delhi correspondent. The officials agreed on specific steps and timelines needed to expeditiously finalise the passenger and cargo protocols for the implementation of the BBIN MVA which was signed on June 15, 2015. The Bangladesh delegation at the meeting was led by ATM Rokebul Haque, director general (South Asia) of the foreign ministry. Recalling the commitments made at the highest level for implementation of the BBIN MVA, the delegations at the meeting expressed their desire to sign the MoU at the earliest to give momentum to the implementation of the agreement, the Indian External Affairs Ministry said. The officials of the countries at the meeting emphasised the importance of operationalising the BBIN MVA expeditiously to enable seamless movement between them for facilitating trade and people-to-people contact. The two-day meeting in New Delhi was held to discuss the passenger and cargo protocols that are essential to operationalize the BBIN Motor Vehicles Agreement (MVA) for the regulation of passenger, personal and cargo vehicular traffic, which was signed on June 15, 2015. This was the first meeting of the officials since the outbreak of the Covid-19 pandemic. The last meeting was held in February 2020 in New Delhi. Operationalizing the MVA by concluding the passenger and the cargo protocol will help realise the full potential of trade and people-to-people connectivity between the BBIN countries by fostering greater subregional cooperation. The Asian Development Bank provided technical and knowledge support to the New Delhi meeting held on March 7 and 8.
Source: The Daily Star
The number of facilities certified to the Global Organic Textile Standards (GOTS) grew by double-digits last year. As GOTS reaches its 20th anniversary this year, it reported that its 18 approved global certification bodies have reported 12,338 certified facilities (up 19% from 2020) in 79 countries (up 11%) – marking a record high. The countries with the largest increase in GOTS certified facilities in 2021 were: Turkey (+61% to 1,799), Italy (+53% to 894), Germany (+19% to 817), Portugal (+35% to 608), France (+22% to 122), Denmark (+14% to 115), Switzerland (+15% to 61), Belgium (+55% to 59), Sweden (+34% to 51) and Vietnam (+264% to 51). “What seemed utopian to many in 2002 has become a reality in the past 20 years. We have created an organic textile standard, certified by approved certification bodies, which is accepted in all major markets,” said Claudia Kersten, managing director at GOTS. The results of the annual GOTS Survey among certified entities underline this. Out of 1.114 respondents (+39%), 63% indicated a permanent shift in their sustainability strategy with a focus on the environment and health of their workers and staff. Growing interest from industry, the public, and the media drove website visits up an impressive 48 percent. Media exposure grew by 64 percent and GOTS social media followers across several platforms jumped by 57percent. “As much as we are pleased with the development so far, we don’t intend to rest on our laurels” adds Rahul Bhajekar, Managing Director at GOTS. “In March 2022 we begin revision for GOTS version 7.0 involving all stakeholders including associations, organizations, companies, and individuals to further advance the progressive, innovative, stringent yet practical standard GOTS is”. In the U.S., California has become the state with the most GOTS certified companies with a total of thirty-two (+33%). These businesses encompass the entire textile supply chain from ginning through to finishing, including every production stage except for spinning. There is also GOTS certified spinning happening in Mexico, so it is possible to source products grown from USDA/NOP organic cotton and completely manufacture in North America. Canada saw six new GOTS certified companies in 2021. All GOTS activities in 2021 were virtual, but North American GOTS representative, Lori Wyman is hoping to host a GOTS Roundtable in Los Angeles as soon as the Covid situation resolves. Last November, GOTS hired Travis Wells to be the North American GOTS protection officer to strengthen the correct use of GOTS signs in the region.
Source: Home Textiles Today
Court rules government failed to fulfil obligation to collect correct amount of customs duties and VAT The British government faces paying a hefty charge to the EU after the European court of justice ruled it had been negligent in allowing criminal gangs to flood European markets with cheap Chinese-made clothes and shoes. Publishing its final ruling on Tuesday, the court concluded that the UK as member state had “failed to fulfil its obligations” under EU law to combat fraud and collect the correct amount of customs duties and VAT on imported Chinese goods. The failures by HMRC date from 2011 to 2017. Under the withdrawal agreement signed by Boris Johnson, the UK remains subject to ECJ jurisdiction for any breaches of EU law during its time as a member state. The European Commission has been seeking since 2018 to force the UK to pay more than €2bn (£1.7bn) in compensation to the EU budget. The complaint emerged in 2017, when the EU’s anti-fraud office said British authorities had allowed criminals to evade customs duties by making false claims about clothes and shoes imported from China. It found that more than half of all textiles and footwear imported into the UK from China were below “the lowest acceptable prices”. In a blow to the government, the EU’s highest court upheld the complaint, finding “that the United Kingdom has failed to fulfil its obligations under EU law by failing to apply effective customs control measures or to enter in the accounts the correct amounts of customs duties”. It also said the British government had failed to provide EU officials with all the necessary information to calculate the amount of money owed. But it was not a complete victory for the commission, which had claimed a €2.7bn payment from the UK government to cover the EU’s losses. The court said the commission’s calculations had not met the “requisite legal standard” and instructed EU officials to recalculate the losses based on recommendations in the judgment. The UK cannot appeal against this final verdict but has the right to challenge the commission over how much money it should pay into the EU budget, once a revised bill is published. The British government has also been ordered to pay four-fifths of the commission’s legal costs. The case emerged after a 2005 decision championed by the then EU trade commissioner, Peter Mandelson, to abolish quotas on textiles and clothing from all World Trade Organization countries, including China. In subsequent years, EU fraud officials became concerned that shell companies were using fake invoices that undervalued Chinese-made clothes and shoes. In 2014, the EU’s anti-fraud office launched Operation Snake to check import declarations, which included a method to calculate undervalued goods. British customs officials declined to use the EU method, arguing it was counterproductive and disproportionate. In court, the UK defence team said its customs officers had done everything required to combat fraud, contending that EU law did not mandate any method to calculate undervalued goods. The government was supported by six member states: Belgium, Estonia, Greece, Latvia, Portugal and Slovakia. The court, however, sided with EU officials, suggesting the UK should have used EU-wide method set out by the bloc’s anti-fraud office, Olaf. In a statement, the court said: “According to Olaf, fraudulent imports were increasing significantly in the United Kingdom on account of the inadequate nature of the checks carried out by the United Kingdom customs authorities, encouraging the shift of fraudulent operations from other member states to the United Kingdom.” A UK government spokesperson said they would consider the judgment and respond in full in due course, adding: “Throughout, we’ve made the case that we took reasonable and proportionate steps to tackle fraud in question and that the Commission vastly overstated the size and severity of the alleged fraud. The UK has always and continues to take customs fraud very seriously and evolves its response as new threats emerge.”
Source: Fibre2 Fashion
