CMAI appreciates the Positive Measures in Mid-term Review

CMAI appreciates the Positive Measures in Mid-term Review

The Central Government has recently announced the Mid-term Review of the Foreign Trade Policy (FTP). The Clothing Manufacturers’ Association of India (CMAI) has welcomed the Mid-term Review announced on the 6th December 2017 as a Progressive Package to address several Issues relating to Policy as well as Procedures.

Mr. Rahul Mehta, President CMAI in a statement issued here stated that garment exports from the country have been declining steeply for several months and there are no sign of an early revival of overseas demand. In such a situation, the measures included in the review for facilitating exports and improving ease of doing business will be of great help.

Referring to the extension of period for using scrips from 18 months to 24 months, he stated that coupled with zero rating of GST on the sale of scrips, Exporters will now be able to effectively and completely use the scrips. He also welcomed the Trade Facilitating Measures of doing away with testing of samples for draw back purpose and extending 24×7 clearance to a large number of seaports and airports. Introduction of e-sealing of consignments for exports is another measure that will facilitate exports, he added.

Mr. Mehta pointed out that garment exporters often faced problems arising from lack of coordination between commerce and finance departments, especially between DGFT and customs. The National Trade Facilitation Committee headed by cabinet secretary envisaged in the review will go a long way in Improving coordination among various government departments and addressing grievances of exporters more effectively and promptly. The focus of the committee on improving transparency, simplifying procedures and augmenting infrastructure will be of great help to exporters as a whole.

Mehta welcomed the focus of the review on MSMEs and labour intensive sectors and pointed out that garment sector was highly labour intensive and substantially in the SME sector.

While thanking the commerce and industry minister Suresh Prabhu for the positive measures in the Mid-term Review, Mehta requested government to ensure timely refund of GST and drawback to exporters, since delays in these areas have been locking up the working capital of exporters.

–¬†Apparel and Textile News, Apparel Talk, Indian Apparel