Indian garment exporters have called for simplifying key operational mechanisms in the export process under the new Foreign Trade Policy (FTP) announced last April.
The Apparel Export Promotion Council (AEPC) has urged the textiles ministry to simplify the policy’s authorisation, inspection and classification norms, media source said.
The AEPC wanted withdrawal of the need for a landing certificate for exported goods, required as proof to claim benefits under the Merchandise Exports from India Scheme (MEIS). Introduced in April, the scheme aims to boost sagging exports, covering tariff lines for 5,012 items that earn duty credits.
Exporters claim that getting the documents to show proof of landing at the destination country entails cost and delay. According to the AEPC, electronic shipping bills should be sufficient for declaration of intent. While filing the said bills, exporters are required to declare they are claiming rewards under MEIS and to mark ‘Y’ in the reward item box.
To help exporters claim MEIS benefits in such cases, directorate general of foreign trade (DGFT) has allowed them to give physical copies of the shipping bills after filing an MEIS application to its regional authorities. However, this relaxation is restricted to exports made in April and May in 2015. The AEPC has demanded an extension of this facility.
The Council has urged the government to emulate long-term garment exporting rival Bangladesh to facilitate easier transportation and avoid corruption by allowing vehicles carrying finished export merchandise and headed towards exit points like sea ports, airports and rail heads to display ‘On Export Duty’ signage. It has also asked for ‘On Export Processing Duty’ signage for vehicles carrying input material for production of export merchandise.
It has also called for proper identification and classification of goods from the current challan system.
