Home / General / Tirupur Exporters Association Urges Finance Minister To Clear Pending Claims

Tirupur Exporters Association Urges Finance Minister To Clear Pending Claims

Image courtesy: Tirupurexporterscompany.com

Chennai:

Port Wings News Network:

Tirupur Exporters Association (TEA), an umbrella body of knitwear and textiles-related companies in Tamil Nadu, on 4 October 2019 urged the Union Finance Minister Smt Nirmala Sitharaman to clear pending claims which is affecting the liquidity in the sector.

To press upon the issue, Shri. Raja M Shanmugham, President, TEA, has sent a requisition letter to the Minister appealing to clear the amount in related to Drawback, RoSL, RoSCTL including IGST stopped to the concerned exporting units listed under Risky Exporters category expediently.

Shri. Raja. M. Shanmugham also said about TUFs subsidy pending in the letter to inform the status of the knitwear garment exporting units.

In the letter, Shri. Raja. M. Shanmugham stated: “The knitwear garment sector has been already undergoing a liquidity crisis and at this situation, Diwali festival is approaching in next 20 days and the units have to statutorily disburse the bonus to the workers from now onwards. As the issue is critical to the units, may we request the Minister to advise to clear the pending claims amount in related to Drawback, RoSL, RoSCTL including IGST stopped to the concerned exporting units listed under Risky Exporters category expediently. ”

Regarding the Risky Exporters category, Shri. Raja. M. Shanmugham stated, “We regret to inform that duty drawback, IGST and RoSL benefits have been suspended to the knitwear garmenting units and these units are also undergoing 100% inspection at port further to classification of these units under Risky Exporters category. The concern is that these units do not know the exact reason for them being classified as Risky Exporters and moreover, during inspection, the garments taken out of the consignment are getting soiled, get un pressed condition which creates a bad reputation among buyer and affect the future orders also. We wish to note that instead of checking at ports, the concerned units can be asked to provide the documents to justify their genuineness.”

“We wish to add further that TUFs subsidy has also been pending more than three years, which is also affecting largely to the garment units. We once again request the Finance Minister to advice to release the pending claims to tide over the financial crisis immediately and also to make the bonus payment without any issue, and the measure will be particularly beneficial to the MSME units, numbering 80% out of total garment exporting units,” added Shri. Raja. M. Shanmugham.

About Editor News

Check Also

Declining Trend in Exports Not Auguring Well for Indian Economy: FIEO

New Delhi: Port Wings News Network: Responding to the sliding merchandise exports growth of -6.57 …

Leave a Reply