I am glad to inform you that I along with the Executive Director had a Meeting with Shri Tarun Bajaj, Additional Secretary in New Delhi recently.
During the Meeting we had the opportunity to discuss various issues which were of interest for the MMF textile industry and its exports. We spoke at length about GST issues such as Inverted Duty Structure, ITC Accumulation, Refund of IGST/ GST on Capital Goods, Refund of Input Tax Credit availed on input services, non-refund of state levies on electricity, fuel etc., protection of Indian MMF textile segment in view of cheap imports from China, etc. The Additional Secretary was sympathetic and suggested that a Delegation from the Council meet the new Revenue Secretary and submits our representations to him. He assured that he would also brief the Revenue Secretary about the problems being faced by the MMF textile exporters. He also promised to take up the issues with the concerned officials/departments at the Ministry of Textiles.
We also met with the Secretary Textiles, Shri Raghavendra Singh and Smt. Aditi Das Rout, Trade Advisor and requested them to take up the matter of cheap imports from China with concerned authorities to protect the Indian MMF textile segment. I also urged the Secretary Textiles to expedite the proposed study on MMF textile value chain pending for approval of the Ministry with the request that it may be assigned to a professional agency already selected by the selection Committee headed by Textile Commissioner.
Further, we also met Shri P. Raghavendra Rao, Secretary (Chemicals & Petrochemicals) and discussed with him issues relating to protection of Indian MMF textile segment, inverted duty structure and non- coverage of MMF segment under ATUFS. He informed that he would like to examine the issues closely and accordingly he will take up the issues with the Revenue Secretary for duly addressing the same.
Thereafter, we had a Meeting with Shri Sanjay Chavre, Senior Development Officer, Ministry of Heavy Industry and discussed with him the issue regarding non-refund of ITC on Capital Goods. He requested that data regarding how much capital goods were being bought before GST and thereafter may be analysed so as to enable to process the proposal for refund of ITC on Capital Goods.
As you may be aware, the Government has announced the new Drawback rates for 2018-19. There has been revision in DBK rates for several items of MMF textiles. I am glad that the product of nylon filament yarn (dyed) has been added under the drawback scheme. Let me take this opportunity to express my sincere thanks to the Government for the new Drawback rates 2018- 19. I would also like to thank our members for their kind cooperation and support in substantiating the data, as and when required by the Council. I am hopeful that the increased Drawback rates will provide relief to the exporters. However, in view of the significant duties/taxes embedded in the MMF textile segment, the drawback rates should have been increased at least up to 6% to 7% from the existing 1% to 3%.
It has been an endeavour of the Council to provide yeoman services to the exporters and toward this aim it has been constantly helping exporters solve their issues pertaining to non- receipt of pending Focus Product Scheme amount, pending MEIS claims and non- receipt of Incremental Export benefits with the concerned authorities. I am also pleased to inform you that the long pending trade issues faced by one of our member- exporters pertaining to non- receipt of outstanding payment from his U.K. buyer will be reconciled very soon. It has been informed that the U.K. buyer has finally agreed to settle the outstanding claims at the earliest in installments. Indeed it is gratifying for the Council that the issue has been resolved amicably as the U.K. buyer realized that such instances would damage the image of his country as a reliable customer in the international market.
I am glad to inform that the Council’s delegation attended the Meeting called by RBI on 11th December, 2018 to discuss the difficulty being faced by some of our member-exporters on refusal of their Authorised Dealer Banks to clear their payments received through Third Party/Country. RBI Officials informed that the Indian exports should not suffer on account of payments received from Third Party/Country. They further stated that Authorised Dealer Banks can rely on documentary evidence for leading to third party payments rather than insisting on Tri Partite Agreement. Accordingly, RBI advised to take up the matter with the Regional/Zonal Managers of the concerned Banks and apprise them since this issue was raised by only 3 to 4 banks. Otherwise individual cases may be referred to RBI so that they will take up with concerned banks for redressal.
RBI also advised the Council to inform our members to provide their email id to their respective Authorised Dealer Banks with a copy marked to RBI so that their AD banks sends message to individual exporters giving details of their shipping bills outstanding. Members are therefore requested to act quickly before their Authorised Dealer Banks submits its Export Data Processing and Monitoring System (EDPMS) statement to RBI by Dec 31, 2018.
I would also like to inform the members that the Council will be holding its annual Export Award Function on 2nd February 2019 at Hotel Taj Lands End, Bandra. Smt. Smriti Zubin Irani, the Hon’ble Union Minister of Textiles has consented to be the Chief Guest at the Function and present the awards. I seek your unstinted support and guidance in making the Function a memorable one.
Let me take this opportunity to wish all the members VERY HAPPY NEW YEAR. I hope that the New Year 2019 will bring good tidings to all.