Tirupur apparel traders urge centre to repeal ‘blacklisting rule’

by Apparel Resources News-Desk

06-September-2019  |  2 mins read

Apparel Exporters figured onto blacklist for customs
Image Courtesy: perfectsourcing.net

Apparel exporters from Tirupur have urged the Centre to repeal the rule of the customs department that blacklists them for breaching export rules and availing Government benefits through manipulative ways.

Raja M. Shanmugham, President Tirupur Exporters’ Association, said, “Once we figure in the risky exporters’ list, we can’t avail benefits offered by the Government. Customs officials would also verify the goods before allowing them to be shipped in ports and airports.”

The exporters have figured in the list of risky exporters for some violations like overpricing the garments above the average price fixed for a particular model. To this, Shanmugham had to say, “For instance, US $ 3 is the average price of T-shirts. If it is priced at US $10, it is arbitrary. The price would differ based on the quality and value addition. The customs think the exporter shot up the price deliberately in the bill to claim more in Integrated Goods and Services Tax (IGST).”

Apart from forgoing the benefits, the risky exporters’ have to face 100 per cent examination of goods by the customs instead of the usual 2 to 3 per cent that are checked. This makes them lose additional time on each consignment.

Shanmugham added “So the goods may miss the vessel and packing arrangements may go disarray. It would create chaos. If they believe the exporter tried unethically to claim more in IGST, they could summon the exporter and ask him/her for an explanation, before taking action. The rule is not acceptable and should be repealed.”

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