Port Wings News Network:
In a press release issued on 17 July, Shri.Raja M Shanmugham, President said the Department of Revenue, Ministry of Finance has increased the Basic Customs Duty from 10% to 20% for import of 23 Knitted garments items and also one Knitted fabric item which came into effect from 16th July 2018.
Shri . Raja M Shanmugham said: “Off late, the textile products imports from countries like China, Bangladesh, Vietnam, Cambodia and Sri Lanka have been significantly increased with CAGR of 17% in Five years and in last year itself, the RMG imports has increased from Rs.3,994 Crore in 2016-17 to Rs.4,983 Crore in 2017-18.”
He specifically pointed out that the leading retail stores in our Country have also started importing garments from Bangladesh and other countries, as it is cheaper compared to garments produced from our Country.
Shri.Raja M Shanmugham said considering the vulnerability of Indian Textile industry and a serious threat to employment, Tiruppur Exporters Association has been continuously making representations to the Government and also emphasizing the threat during the personal discussion with the Hon’ble Ministers and Secretaries and appealing to restrict the textile products imports. He said a white paper was also submitted to the Hon’ble Union Minister of Textiles detailing the issue and how threat has emerged from China by setting up their factories in our border countries to take advantages of abundant availability of labour, low wages and also customs duty exemption available to these countries in EU, Canada etc., He specifically noted that under agreement on South Asian Free Trade Area (SAFTA), some specified garment items imported into India from Bangladesh is also exempted.
He thanked Smt.Smriti Irani, Hon’ble Union Minister of Textiles for considering the requisition, take a swift action and helped for increasing the Basic Customs Duty from 10% to 20% to protect our textile industry and also employment. He further mentioned the Hon’ble Minister is taking a lead role for the protection of industry and also growth of industry.