Engineering exporters seek fast payment of duty drawback dues
Updated: Jan 09, 2014 04:51:43pm
New Delhi, Jan 9 (KNN) Amidst concerns over complete stoppage of duty drawbacks, engineering exporters have appealed to the Finance Minister, seeking his intervention to restore payment of legitimate refund claims of exporters running into several crores of rupees.
In a letter to the Finance Minister, P Chidambaram the Chairman of the engineering exporters’ body, Anupam Shah said, “ complete stoppage of duty drawback payments by customs authorities from December, 2013 is creating considerable problems and has now started impacting production schedule of exporters. A direct consequence of this would be on exports and employment.”
The total arrears for the export sector, according to Shah amount to more than Rs 5,000 crore.
The problem has further been compounded by the Customs authorities not allowing scrips earned by exporters through various government schemes such as SHIS, FPS, MLFPS and FMS to be used for payment of customs duty on their essential imports, he said.
“Our member exporters are facing considerable hardships and their financial planning has been affected which is disturbing their production schedule…”, he said adding that while delayed payments on account of duty drawbacks attract interest, such payment is hardly made.
The problem, he said, is even more acute for the engineering sector which has a long gestation period.
Meanwhile, the EEPC India chief has also sought support from Commerce and Industry Minister, Anand Sharma requesting him to take up the issue of duty drawbacks with the Finance Ministry so that the exporters’ liquidity crisis is resolved without further delay.
Shah also raised the issue of Customs Department's insistence on a Bank Realisation Certificate (BRC) from exporters for claiming drawbacks refunds at Raxaul port at the Nepal land border, even as banks have stopped issuing BRCs on specific instructions from the DGFT.
"Our exporters are losing precious market in Nepal, which is then going to China," Chairman of the EEPC India (earlier known as the Engineering Export Promotion Council) said.
He said the issue had been taken with the authorities in the different departments without any resolution. (KNN/ES)
In a letter to the Finance Minister, P Chidambaram the Chairman of the engineering exporters’ body, Anupam Shah said, “ complete stoppage of duty drawback payments by customs authorities from December, 2013 is creating considerable problems and has now started impacting production schedule of exporters. A direct consequence of this would be on exports and employment.”
The total arrears for the export sector, according to Shah amount to more than Rs 5,000 crore.
The problem has further been compounded by the Customs authorities not allowing scrips earned by exporters through various government schemes such as SHIS, FPS, MLFPS and FMS to be used for payment of customs duty on their essential imports, he said.
“Our member exporters are facing considerable hardships and their financial planning has been affected which is disturbing their production schedule…”, he said adding that while delayed payments on account of duty drawbacks attract interest, such payment is hardly made.
The problem, he said, is even more acute for the engineering sector which has a long gestation period.
Meanwhile, the EEPC India chief has also sought support from Commerce and Industry Minister, Anand Sharma requesting him to take up the issue of duty drawbacks with the Finance Ministry so that the exporters’ liquidity crisis is resolved without further delay.
Shah also raised the issue of Customs Department's insistence on a Bank Realisation Certificate (BRC) from exporters for claiming drawbacks refunds at Raxaul port at the Nepal land border, even as banks have stopped issuing BRCs on specific instructions from the DGFT.
"Our exporters are losing precious market in Nepal, which is then going to China," Chairman of the EEPC India (earlier known as the Engineering Export Promotion Council) said.
He said the issue had been taken with the authorities in the different departments without any resolution. (KNN/ES)
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