By Our Special Correspondent
NEW DELHI, AUG. 08
The hike in Basic Customs Duty (BCD) on textile and garments is welcome. However, the decision does not positively impact the issue of imports from Bangladesh where there is a full exemption of Basic Customs Duty and hence Chinese fabric is easily coming to India duty free through Bangladesh in the form of Garments, stated Mr. Sanjay Jain, Chairman, Confederation of Indian Textile Industry (CITI), here.
Until and unless Government intervenes and puts a Rule of Origin clause, imports from Bangladesh will keep coming in the same pace and would affect the fabric as well as other segments of the value chain, Mr. Jain pointed out. In the last one year the imports of apparel from Bangladesh, CITI Chairman informed, has increased 44% from US$ 140 mn.in 2016-17 to US$ 201 mn. in 2017-18.
Hence, CITI Chairman requested that the Government may consider imposition of safeguard measures such as Rules of Origin, Yarn Forwarding Rules and Fabric Forwarding Rules on the countries that have FTAs with India to prevent cheaper fabrics produced from countries like China routed through these countries.
Meanwhile, lauding the Government for enhancing the Basic Customs Duty (BCD) on 328 products wherein imports had surged drastically in the last one year especially post GST, Mr. Jain, stated that, “I, on behalf of the entire textile value chain, thank our visionary Prime Minister, Union Minister of Finance, Union Minister of Commerce & Industry and Union Minister of Textiles for understanding the gravity of the situation and immediately addressing the issue by doubling the import duty on textile products where imports have increased many-folds, post GST.”
Mr. Jain pointed out that CITI had been continuously representing to the various ministries of the Government on the issue of rise in imports of yarn, fabric, made-ups and garments made out of man-made fibers and filaments with a request to increase Basic Customs Duty (BCD) on imports of such products as they are being manufactured in the Country by a large number of factories in MSME and organized mill sector.
He also stated that the decision of the Government has come at a right time and would certainly boost the ‘Make In India’ initiative of the Government of India.
CITI Chairman further stated that the decision would also help millions of people get employment in the manufacturing sector of the various segments of the entire value chain.
Mr. Jain observed that since the industry has still to do the detailed analysis, however, the Industry is hopeful that revision in import duty has covered MMF spun yarn and MMF based fabrics as huge surge of imports have been witnessed in these categories post GST which is impacting yarn and fabric manufacturers in a big way.
He further hoped that the upward revision in import duty would correct the GST anomaly where the import cost had come down substantially after implementation of GST due to abolishment of CVD and SAD. Mr. Jain stated that it is pertinent to mention here that the major part of the employment creations happens in the downstream industry like Knitting, Weaving, Apparel making & made up manufactured goods.
Today’s measures along with those announced in July in relation to import duty and GST by the Government will certainly motivate the industry to achieve ambitious targets set for the textile and clothing sector.
Mr. Jain stated that CITI being one of the apex industry chamber of the textile & clothing sector had been consistently following up with the various Ministries for enhancement of the BCD on textile products especially post GST and today’s announcement has come like a fresh breathing for the textile & clothing industry.
He noted that the responsiveness of the Government to our various problems have added immense confidence to the industry and was hoping very soon export promotion measures will also come to build both domestic and export industry strongly and fulfil the ambitions targets set by our Government. (Source: Tecoya Trend)