Apparel exporters in Tirupur, the knitwear hub of India, are currently in a fix as the customs officials at VO Chidambaranar Port have reportedly asked them to share export records of past 15 years.
The officials further stated that if the exporters fail to produce the required documents then their Importers Exporters (IE) Code is likely to be cancelled by the Customs Department. The IE Code is, notably, required for traders who are into import/export of goods and services in India.
Speaking exclusively on the issue, Raja M Shanmugham, President, Tirupur Exporters’ Association (TEA), told Apparel Resources, “We think that it is a total misunderstanding from the top officials in the Customs Department as bringing in the records from almost 15 years back is next to impossible and we have replied to the concerned authorities to revoke this decision and we are currently awaiting a response from their side.”
The TEA Chief further apprised us that in 2004 not many exporters were using computers to keep records and many of them don’t have the records from that long back and it is totally irrelevant to ask for such old records.
Shanmugham told Apparel Resources the industry is already suffering from the macro-economic changes made by the Government and this decision (submission of old records) will further strangulate the apparel industry and will cost the country a lot of foreign exchange.
The apparel export industry in Tirupur generated Rs. 23,000 crores in the last financial year, registering a loss of 3,000 crores as compared to the prior year, markedly.
Notably, in 2014 Reserve Bank of India (RBI) automated the exports system as a measure taken to identify exporters who were found to be involved in receiving duty drawback fraud and issued a notice that states if an exporter fails to submit Bank Realisation Certificate (BRC) or close the shipping bills inside two years, they will be put on a caution list.
When asked about steps taken to reverse this decision made by the customs officials, Shanmugham told us that the authorities must clear this misinterpretation. “Many exporters have come to us and we firmly believe that the officials must re-think about their decision, as they are saying if the exporters fail to show records from 2004 their import export code will be cancelled. If that happens, it will paralyse the apparel industry,” he concluded.
