TEA Seeks Inclusion of 59 Items under EPS

TEA Seeks Inclusion of 59 Items under EPS

Tirupur Exporters Association (TEA) president A. Sakthivel has sought inclusion of 59 additional items as “speciality fabrics” to avail the import benefits under Export Performance Scheme (EPS) and absorption of premium for post-ship guarantee by the banks.

In a memorandum to finance minister, Arun Jeitely, the TEA president pointed out that the speciality fabrics, which were there in the existing list for availing the benefits under the Export Performance Certificate scheme, did not have the ones used by the exporters in Tirupur knitwear cluster.

Hence, they have given a list of 59 items that are widely used in Tirupur like 100 percent polyester filament single jersey fabric, cotton and modal blended fabric, cotton and viscose blended fabric, among others, for increasing competitiveness of Tirupur exporters who also pleaded for enhancement of the service tax refund.

On the premiums, Sakthivel said banks were deducting the premium amount to be paid for Export Credit Guarantee Corporation’s coverage against all export advances, from the exporters’ account.

He further said that since the post-shipment guarantee is mainly intended to benefit the banks, the cost of premium with respect to whole turnover post-shipment guarantee has to be absorbed by the banks and should not be passed on to the exporters to avoid paying double premium.