MUMBAI, FEB. 25
The demand of Apparel Export Promotion Council (AEPC) to allow imports of manmade fabrics at concessional rate of duty is unjustified and uncalled for, according to Mr. Rakesh Mehtra, Chairman, Synthetic & Rayon Textiles Export Promotion Council (SRTEPC).
In a letter to the concerned authorities opposing the demand for AEPC, Mr. Mehtra pointed out that the window of advance licence scheme is open to all Indian exporters and the garment manufacturers should use this facility instead of seeking import of fabrics at concessional rate of duty. Such import will not allow nexus between import and export products and give rise to malpractices. This will adversely impact the domestic textile manufacturers, Mr. Mehra stressed.
He said that state of art manufacturing facilities for the production of manmade textiles, namely yarn and fabrics, existed in the country and the domestic industry would be more than happy to interact with the garment exporters to find out ways of working together.
Stating that Man made yarns and fabrics to the tune of Rs 21,000 crores per annum are being exported to various destinations world over, Mr. Mehra informed that all these have subsequently got converted into garments in those respective countries. Exporters of manmade fabrics are compelled to export to neighboring countries like Bangladesh, Vietnam and Indonesia at the instance of their buyers as adequate garment facility is not available in India, SRTEPC Chairman pointed out.
He also brought to the notice of the authorities that every other country that India exports yarn and fabrics to is using all protectionist measures to curb our exports, while the above proposal, if accepted, would lead to encouraging imports into India. This will impact the domestic manufacturers doubly, Mr. Mehra stressed.
Exports out of Bangladesh, Vietnam and other countries could be higher due to reasons other than availability of manmade fabrics, particularly on account of bilateral agreements and also duty advantages such countries have with the developed western countries, he informed Citing above facts, Mr. Mehra called upon the authorities not to allow import of manmade fabrics at concessional duty as it will seriously impact the domestic industry and also set a precedent for other exporters to take recourse to. (Source: Tecoya Trend)