Textile companies are worried over the denial of permission for ‘third party exports’ for satisfying the export obligations under Export Promotion Capital Goods (EPCG) Scheme in various cases. Texpreneurs Forum formed of different stakeholders in textile industry, said a representation had been constituted to the Union Ministry of Commerce to ensure that duty-free import of machinery is permitted, considering that upgrading machinery is a costly affair. The said rule allowing ‘third party exports’ was making it possible for spinning units and wet processing firms along with garment production chain to import machinery under the EPCG scheme without duty. Such units were availing duty-free benefits, even though they have not been exporting any products directly, by using the export performance of their customers who were the end-exporters of the garments.
