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Apparel, made-ups exporters facing acute liquidity problem: FIEO President

11 Feb 2020 Evaluate

Flagging concerns, the Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf has said that apparel and made-ups exporters are facing acute liquidity problem as their huge amount of funds are blocked under a rebate scheme for state levies and an export incentive programme.

FIEO President noted that around Rs 6,000 crore of duty refund claims have not been disbursed under the Rebate of State and Central Taxes and Levies (RoSCTL) and the Merchandise Export from India Scheme (MEIS) from March 7 last year and August 1, 2019, respectively. Saraf termed this situation as a fatal blow for the apparels and made-ups industry, which is one of the largest employment generation industry particularly supporting the women workers. Further, he said that it is very unfortunate that the commitments are being ignored.

Besides, Saraf said the directorate general of foreign trade is now demanding the refund of MEIS paid between March 7, 2019, and July 31, 2019 and added that this is not only unfair but also legally untenable because the policy once announced cannot be changed retrospectively. He said that the government must honour the commitment made to the exporters.


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