Renewal of Council's Membership for the year 2020-2021

To: Members of the Council,

Sub: Renewal of Council's Membership for the year 2020-2021

Dear Sir,

Warm Greetings!!

The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) is one of the oldest Export Promotion Councils set up way back in 1954. The Council has been playing a transforming role since its inception, inculcating export culture and promoting exports of Indian Manmade fibre textiles globally. Exports of the Manmade fibre textiles which were negligible in the 1960s, have grown substantially to touch US$ 6.2 billion during 2019-20 with untiring efforts of the Member-companies reaching out to over 140 countries.

As you are one of our esteemed and valuable Member, the Council would like to continue to serve you in the realm of export. As you are aware, the SRTEPC is doing a lot of Export Promotion, liaising with Government Agencies to remove the bottlenecks, facilitating in reimbursement of taxes and also keeping members updated with the latest trends in Exports. I am sure, over the years, you were benefited from these services of the Council.

Today the whole world is looking forward to Indian manufacturers as an alternate source for their MMFT requirements. It is an opportune time for us to rise to the occasion.  Being an SRTEPC privileged member you have the one stop shop facility to promote your MMFT products from India. The main services being provided by our Council are to facilitation in exports, updating market trends, dissemination of information on Manmade fibre textiles, Liaison with Government on various policy issues, participation in international exhibitions and providing handholding support etc. Details are given in the Annexure.

Even during the current COVID 19 pandemic and complete lockdown, Council has been constantly working for its members and issuing Certificate of Origin, Export Performance Certificate, GST Certificate etc online in facilitating exports. The Council has also taken up with government for an early resolution of the serious problems faced by our members like cancellation of export orders, realization of export payments, transportation of goods & shipping of consignments, high demurrage / detention charges, movement of employees, compulsory payment of salaries / wages and export documentation etc during this period.  Issues in detail taken up by the Council are given in the Annexure.

Further our Council has been in continuous touch with Ministry of Commerce, Ministry of Textiles, Ministry of Finance, RBI, CBIC, DGFT, ECGC and other government authorities in addressing various issues such as Special export package, coverage of entire MMF textile value chain for Rebating of all taxes paid by the exporters under RoSCTL/ MEIS/ RoDTEP, extension of Moratorium period, allow functioning of textile industry during lockdown period, export documentation, logistic support and release all pending dues of government schemes etc. Please see the Annexure for detailed recommendations (immediate & long-term measures) made by the Council.

Virtual Global Expo of MMFT: Council is planning to organize virtual international exhibition for its members during 2020-2021. Similar to RBSM (Reverse Buyer Seller Meet) a Virtual Platform would be created in which we shall be inviting overseas buyers for visiting the exhibition online for the benefit of member exporters. It would be a wonderful opportunity in current times since at the nominal cost of attending a physically exhibition, exhibitors get to live interact with global buyers and know the buying trends and their requirements.

This is the time we all should support our Council for continued facilitation of exports and therefore I personally request you to renew your membership at the earliest and continue availing all the benefits for expansion of your export-trade with your target prospective customers (Buyers) across the world.

In this regard, as you are aware, the amount of renewal of membership fee (annual) is Rs 12,331/-. (Non-SSI). However, members, who are enrolling in the category of Manufacturer with the Council, and are holding valid S.S.I. certificate, issued by the competent authority in the Govt. for production of items, which are falling under the purview of the Council (i.e. Synthetic and Rayon textiles items), the renewal of membership fee will be subsidized for such SSI members to Rs 8,201/- only. All the above mentioned fees are inclusive of 18% GST.

The online renewal of membership of your company can be done through the following website:

Please use your IEC No. as User Id to login to membership account with the Council.

You can request for password by clicking forgot password, the password will be sent to your company’s registered email id with the Council.

You are also free to pay your membership fees/ charges by Bank transfer (Neft/IMPS), based on the following Bank details:

Name of the beneficiary: The Synthetic & Rayon Textiles Export Promotion Council

Name of the Bank: Union Bank Of India

Branch : V N Road, Churchgate, Mumbai

Bank Account No. : 319501010036617

MICR Code No. : 400026021

IFSC Code No. : UBIN0531952

Council GSTIN No.: 27AAATT0077C1ZR

In case of payment by bank transfer, please email us your payment details to deniza@srtepc.in, do write your company name, IEC number as well as GSTIN number. If you have already made your payment for renewal of your membership, we request you to kindly share your payment details with us by email to deniza@srtepc.in/rafique@srtepc.in.

However, in spite of the above mentioned online payment methods, for any reason, if you can not go through the necessary steps, you may simply write to Ms Deniza - deniza@srtepc.in & Mr Rafique - rafique@srtepc.in.

We will be glad to assist you to do the needful for the renewal of your membership.

Kindly contact us for any further information required in the matter.

Regards,

Ronak Rughani

Chairman

https://youtu.be/6bbJyA6dTV0

ANNEXURE

Synthetic and Rayon Textile Export Promotion Council, Mumbai.

1. Benefits of being SRTEPC members:

• Introduce exporters to overseas markets and daily updates on FOREX rates.
• Provide global market updates, business trends and trade enquiries.
• Organize trade fairs, B2B meetings in various international markets at subsidized rates.
• RBSM – Invites leading buyers from overseas to source from Indian manufacturers.
• Eligible Members avail Air fare reimbursement under MAI scheme.
• Organizes seminars on GST, policy matters, Government schemes & business trends.
• Provide regular updates on foreign trade policy and assist on procedural & logistics issues, Issues Certificate of Origin, Export Turnover Certificate, Export Performance / Import Certificate, GST Certificate, Visa recommendation letters, Letters for carrying samples abroad etc.
• Members are advised on DGFT, Customs, GST, ROSL, ROSCTL, MEIS, Duty Drawback, RBI, ECGC & TUF related issues etc.
• Overseas markets information, trade enquiries, Global trade developments, ADD - Tariff and non Tariff barriers etc.
• Council closely works with various Indian Government departments to advocate Indian MMF industry issues & initiate policy changes as required.

2. The Council has requested the Government to bring about an early resolution of the serious problems faced by our members underlined below and sought their cooperation and support in these matters –

• Export orders being cancelled by importers which were already en route to destinations/at ports that exporters had to bring back to their warehouses
• Removal of demurrage / detention charges both on imports and exports.
• Most of the overseas buyers are further negotiating on prices that were already negotiated and agreed upon and some are even deferring payment terms due to appreciation of the US Dollar.
• Exporters are unable to ship their consignments due to their inability to prepare necessary paperwork/documentation, transportation of the goods to the port, etc.
• Difficulty in transportation of the raw materials to the factories and finished goods to the ports for exports.
• Restriction of movement of the employees, CHA, officials of EPCs, Testing documentation such as Testing reports, Certificate of Origin, etc. that are essential for export shipments..
• Release of the Bill of Lading of their latest shipments because offices of the shipping lines are closed.
• Indian banks have to send export documents to foreign banks, but courier companies are not taking the documents due to which importers are unable to get the consignments released and make payments.

3. The Council recommended to the Govt. for Immediate Measures which are detailed below:

• pecial Export incentive of 3% on fibre & yarn, 4% on fabric, 5% on made-ups for at least 6 months or till the impact of coronavirus subsides and global markets stabilize
• Include the entire MMF textile value chain viz., fibres, yarns, fabrics, made-ups, etc. under RoSCTL and MEIS benefits. These entire MMF textile value chain is needed to be covered under the RoDTEP Scheme also.
• Extend one-year moratorium with immediate effect till March 31, 2021 for repayment of principal and interest amounts to the banks and NBFCs.
• Allow the textile industry to resume functioning of the units at least with 50% of the essential working staff.
• Include documentation/ paperwork, Certificate of Origin, Testing Reports, etc. also in the “Essential Services” category and issue e-passes to the employees, CHA, officials of EPCs, Testing Agencies/organizations, etc. who are associated with paper-work and documentation such as Testing reports, Certificate of Origin, etc. that are essential for export shipments.
• Compensate the full expenses incurred by the exporters due to cancellation and deferred export orders and remove demurrage charges both on imports and exports.
• Release all pending dues under Drawback, MEIS, GST, IGST, ROSL, RoSCTL, TUFS on an urgent basis or extend soft loan equivalent to Government dues pending in the books of individual textile units that could be adjusted soon as the Government clears the dues.
• Remove the names of genuine exporters from the list of Risky exporters.
• Waive the interest charges for a period of six months on all loans.
• Ministry of Finance to help and intervene through RBI in hedging the export payment for a period of at least 180 days.
• Extend ECGC support to address the cancelled and deferred orders.
• Extend support to the industry for payment of salaries and wages to the workers during the lock-down period similar to that of the supports provided by the Government of Bangladesh to its textile units.
• Extension of due date of LCs by Rollover or Providing Fund Based Credit for March & April 2020.
• Special arrangements to be made for couriering necessary export documents both international and National like LC, Agreements, etc. to the importers bank, to the companies authorized banks on a case -by- case basis.
• At the Customs RMS parameters may be tweaked appropriately to reduce the number of containers getting opened for physical examination which in turn will reduce the requirement of too many CHA, CFS and customs staff, who are otherwise required.
• CBIC/JNPT/Mundra customs should authorize shipping lines to allow loading of export containers basis verification of LEO against specific shipping bill in the ICEGATE after CHA gives in writing through e-mail, confirming the shipping bill number, date and LEO status without insisting on shipping bill print with LEO.
• In NhavaSheva port, Customs may also allow container RFID seal verification directly at each terminal gate and allow customs LEO at each terminal gate itself. This will reduce the requirement of the number of CHA staff to carry out urgent customs clearance at three different designated parking plazas for GTI, NSICT (DP world), and JNPT port terminal.
• The period of export payment realization should be increased from 270 days to 365 days and in case of delay in payments beyond the due date, no penal rate of interests should be charged by the banks.
• Reduce the freight charges to the pre-coronavirus level and ensure availability of containers for export shipments.
• State Governments to permit the units run with prescribed pre-conditions.
• Allow options to all companies to restructure loans for one year without any additional charges by Banks for provisioning etc.
• RBI should relax NPA norms for 6 months, so that no default will be eligible for being termed as an NPA account.
• Defer payment of ESI contributions to tide over the crisis, since the government is prepared to pay 3 months PF contributions.

4. For Longer Term Measures the Council proposed the following:

• Enhance working capital limit and advances for exports on a case to case basis without any collateral.
• Provide 30% additional working capital at 7.25% interest for both exports and domestic production without any collateral and margin money to meet the working capital needs, pay salaries and wages to the employees and meet the standing charges.
• Enhance Interest Equalization Scheme (IES) benefit for exports of the entire MMF textile value chain viz., fibres, yarns, fabrics, made-ups, etc. to 5% and extend 3% interest subvention for working capital.