Struggling due to high cost of raw material, Indian apparel exporters have urged the Government to reconsider the amendments made in the Budget especially regarding import of accessories.
Items like fasteners comprising buttons, zip fasteners including zippers in roll, sliders/pullers, eyelets, rivets, laces, badges, stones, Velcro tape, beads for embroidery, stud, tags, labels, stickers, belts, buttons or hangers, printed bags were being imported without payment of duty and the only requirement was that the importer had to produce using Export Performance Certificate (EPC) from AEPC.
In the recently announced Union Budget 2021-22, amendment has been made in the procedure for import of the above-mentioned items wherein, the importing units have to execute a bond with Customs for import without payment of Customs Duty and the issue is that even 10 days since Budget, the Customs Department has not given any clarification on how to execute the bond and for urgency, the units are paying Customs Duty and clearing it.
Tirupur Exporters Association’s President Raja M. Shanmugham has made a representation to Nirmala Sitharaman, Union Minister of Finance, to reconsider the amendments. He has requested to reconsider the amendment and restore the status quo.
Many trims will now attract Customs duty with effect from 1 April 2021 and the competitiveness will be eroded.
Apparel Resources was first to highlight this issue on 1 February 2021.
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Raja also added while pointing out the delay in the announcement of Remission Of Duties And Taxes On Exported Products (RoDTEP) Scheme rates, the rates have to be announced quickly with additional benefits for a shorter duration.
