need to step up exports in the wake of widening trade deficit, a meeting was
convened by the Ministry of Commerce & Industry in New Delhi on 27th
August, 2018 which was chaired by Shri Suresh Prabhu, Hon’ble Union Minister of
Commerce & Industry.
efforts were made to understand the evolving Chinese market in view of the
tariff escalation by USA. In this regard the Council organised a Trade
Delegation to China from 22nd to 28th August, 2018.
At home, the
Council continued to adhere to the exporters concerns arising out of GST,
implementation of E-Way Bill, EXIM issues in Coimbatore in cooperation with
SIMA. Further the emerging opportunities under the Indo-Korea CEPA were
explained to the exporters based in the textile cluster of Karur.
by Commerce & Industry Minister
In a meeting
convened by the Ministry of Commerce & Industry in New Delhi on 27.8.2018
which was chaired by Shri Suresh Prabhu, Hon’ble Union Minister of Commerce
& Industry, the Council took up various issues related to the exports of
proposals for covering Cotton Yarn under MEIS and 3% Interest Equalization
Scheme and to increase the MEIS rates for fabrics from 2% to 4% were discussed
with the Hon’ble Minister. Also, a request was made to the Hon’ble Minister
to introduce a payment mechanism for
exports to Iran in the context of the US
sanction on that Country , engage in a dialogue with China to reduce import
duty on Indian fabrics to 5% and to take
up the issue of Additional duty of 20% imposed by Turkey on Indian fabrics .
Note consisting of all the suggestions were handed over to the Hon’ble
Minister. We hope favourable consideration and will follow up with the Hon’ble
Minister in the coming weeks.
the recent developments in the Chinese textile and apparel sector in view trade
war between China & USA and to explore possibilities of increasing export
of Indian yarn, fabrics and home textiles to China, a trade delegation
comprising of seven exporters of yarn and fabrics visited China from 22 to 28
visited textile clusters in Haimen, Tongzhou, Nantong & Shanghai and met
with some of the manufactures of leading bedding product brands. During the B2B
meetings, visits to individual companies’ offices and factory visits, there was
a keen interest to source Indian high quality cotton yarn for conversion into
value added bedlinen and sell in domestic market as well as for export.
On 28th August
2018, we met His Excellency Shri Gautam Bambawale, Ambassador of India to China
in Beijing and explained possibility of increasing export of fabrics from India
to China manifold, provided, level playing field is worked out in tariff
structure at par with Pakistan and Vietnam. The Ambassador assured us that the
issue will be take up with the Chinese authority at appropriate forums.
With regard to
the refund of accumulated Input Tax Credit on account of inverted duty
structure, CBIC has issued a clarification on many of the areas related to this
facility. However, the main issue related to the “lapse of all accumulated
Input Tax Credit as on 31.7.2018” remain unresolved. The Council has
represented to the GST Policy Wing under CBIC to allow the accumulated Input
Tax Credit balance as on 31.7.2018 for discharge of GST liability on goods both
for domestic sales as well as for exports instead to making the ITC null and
The Council has
highlighted the fact that the exporters have actually paid the GST to the
Government and it is grossly unfair to make the ITC lapse as it will add to the
costs for the exporters. We hope that the Government will come out with a
solution to this problem very soon.
It is a matter
of serious concern that there are a large number of applications for refund of
un-utilized Input Tax Credit on exports under Bond / LUT that remain pending
for payments even after the final acknowledgments have been issued by the
concerned GST Commissionerates. The
Council has taken up this issue with the Department of Revenue and we hope this
problem will be addressed at the earliest.
It has also been
noticed that, in recent times, there has been inordinate delays in the release
of Duty Drawback claims by JNPT Customs. We are given to understand that the
delay is due to a change in the system of payment of Duty Drawback amounts at
JNPT customs and the problem will get resolved very soon. The Council has taken
up this matter with the Department of Revenue.
Meeting with exporters in Coimbatore
association with TEXPROCIL organized an interactive meeting with the exporters
in Coimbatore at its Conference Hall on August 10, 2018. The objective of the meeting was to update
the participants regarding the changes that have taken place in the GST Laws
and address issues faced by the exporters with regard to the refund of IGST and
un-utilized Input Tax Credits on exports. Other issues like refund of
accumulated Input Tax Credit on account of inverted duty structure,
transitional credits, filing of Returns, issues related to GSTR-3B were also
discussed in the meeting.
Seminar in Karur
on Exports to South Korea
organised a seminar in collaboration with Karur Exporters’ Association at its
premises in Karur, Tamil Nadu on August 11, 2018. Shri A. Ravi Kumar, Joint
Director, TEXPROCIL made a presentation on “Potential to Export Textiles to
South Korea”. The objective of the seminar was to highlight the increasing
opportunities to export Indian cotton textiles in the wake of zero duty on
fabrics and made ups (including home textiles) exported from India to South
Korea under Indo-Korea CEPA. Also there is an increasing awareness amongst the
South Korean buyers about the capacity of the Indian textiles sector to supply
high quality products as per their requirements. The seminar was well attended
by the exporters from Karur which is an important centre for home
Friends, as the
current global trade tensions play out, we in the Indian cotton sector should
look out for opportunities which are bound to come our way as we have the raw
material, labour and investment climate to increase our export growth manifold.
We should also work towards setting up economically feasible projects that can
attract both domestic and export markets.
product offerings, strengthening the downstream processing and developing
value-added textile sectors such as contract and technical textiles could offer
near- to long-term benefits for India’s textile industry.