Tiruppur exporters demand status quo on customs duty on accessories

As per amendments announced in the Union Budget, accessories imported by the garment industry will attract customs duty from April 1

The Tiruppur Exportersโ€™ Association (TEA) has opposed certain amendments related to the import of items used by the garment industry announced in the Union Budget.

TEA president Raja M. Shanmugham said that the garment industry was importing items such as tags, labels, stickers, belts, buttons or hangers and printed bags without payment of customs duty. The only requirement is that the importer should produce the member certificate from the Apparel Export Promotion Council. Now however, as per the amendments announced in the Budget, the importing units have to execute a bond with the Customs for import without payment of customs duty. These products will attract customs duty with effect from April 1.

The Customs Department however, has not given any clarification on how to execute the bond, the TEA said in a release. For immediate requirements, the units are paying customs duty and are clearing the goods. It will be a cumbersome process to take bonds for the multiple accessories that every exporter imports. It will erode the competitiveness of the garment exporters, Mr. Shanmugham said .

Mr. Shanmugham said that items such as fasteners, buttons, zippers in roll, sliders/pullers, eyelets, rivets, laces, badges, stones, velcro tape, beads for embroidery, studs, etc., were imported without payment of duty using the Export Performance Certificate (EPC) obtained from AEPC. This should be extended.

Further, the government should announce the rates for Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme and extend the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit for another three years, he said.

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