The Cotton Textiles Export Promotion Council (TEXPROCIL) has termed the mid-term review of Foreign Trade Policy (FTP) 2015-20 as progressive and growth oriented. The revised FTP has increased MEIS rates across the board by 2 per cent for labour intensive sectors. Earlier the MEIS rates for garments and madeups were increased from 2 per cent to 4 per cent.
“I am glad the Government has recognised the urgent need to address the challenges being faced by the exporters on account of the roll out of the GST regime by focusing on reducing procedural burden,” said TEXPROCIL chairman Ujwal Lahoti.
“The enhanced MEIS rates will provide the much-needed relief to exporters and will certainly have a positive impact on the overall exports, especially of textile products,” Lahoti said. He also said that the increase in the validity of duty credit scrips issued under the MEIS from 18 months to 24 months will increase the utility of such scrips.
With regard to export strategy, TEXPROCIL chairman said it is reassuring that the revised FTP identifies markets in Africa and Latin America to be its new focus areas as part of the Government’s goal of exploring new markets.
The revised FTP has introduced a new scheme known as Self Ratification Scheme under which Advance Authorizations will be issued in those cases where there are no SION/valid Adhoc Norms for an export product and where SION has been notified but exporter intends to use additional inputs in the manufacturing process on the basis of self-declaration. “The textiles sector, especially technical textiles sector, will benefit immensely from this scheme. The scheme also allows domestic procurements which will promote ‘Make in India’,” said Lahoti.
TEXPROCIL has been representing for enhanced benefits for cotton shopping bags covered under Chapter 42 of the ITC (HS) Classification. Lahoti welcomed the increase in MEIS rate for cotton shopping bags from 3 per cent to 5 per cent.
While the mid-term review has addressed many of the issues faced by the exporters, there are still some areas that need to be addressed immediately to promote exports of textiles, he said in a press release. He pointed out that cotton yarn continues to be denied any benefit under the FTP. He urged the Government to include cotton yarn under MEIS and 3 per cent Interest Equalization Scheme, extend the benefit of 3 per cent Interest Equalization Scheme to merchant exporters, cover fabrics under RoSL, increase MEIS rates for fabrics and to allow domestic procurements against EPCG Authorizations and Advance Authorizations without payment of GST for export production. (RKS)
Source Fibre2Fashion News Desk – India