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Chairmans Desk

Dear Friends,

As we all returned from celebrating the Festival of Lights “Diwali”, during the third week of October, we were greeted with the good news of the Council being selected for participation in the prestigious “PREMIER VISION” Fair held bi- annually in Paris.

We also met the Hon’ble Minister of Textiles on October 27, 2017 and apprised her of the various pending issues apart from inviting her to be the Chief Guest at the Council’s Award Function to be held shortly. We were also asked to make a presentation to the Parliamentary Standing Committee on Commerce on issues relating to GST. The Council also organised the visit of the Duty Drawback Committee to Ahmedabad in connection with extending the ROSL benefits to Fabrics and also revising the All Industry Rate of Duty Drawback, wherever necessary.

Participation in Premier Vision, Paris

Premier Vision, Paris (PV Paris) is an important and prestigious Fair showcasing creative designs and high quality textiles accompanied by a stringent selection process conducted by internal and external screening committees to admit new exhibitors.

PV Paris is a platform for high end positioning for distinct products and designs. The Fair covers Yarns, Fabrics, Designs, Knitwear solutions, Upper Jeanswear, Manufacturing, Accessories and Sourcing Connections.

With the concerted efforts of the Council and the Indian Embassy at Paris, TEXPROCIL has been selected to exhibit at the Institutional Pavilion at PV Paris to promote products of PV approved Indian Exhibitors. Recognising the role of Texprocil in promoting Indian Cotton Textiles worldwide, the organisers of PV Paris have also offered to consider applications of deserving exporters / Members of the Council. Accordingly, the Council has issued circular to all the Members seeking their interest in exhibiting at this Fair. We are happy to note that some of our members have responded positively and their company details have been sent to the Organisers for consideration. More Members are requested to take advantage of this opportunity to exhibit at PV Paris so as to reach out to leading importers of high end textile products.

Meeting with the Hon’ble Minister and Secretary Ministry of Textiles

We met the Hon’ble Minister and Secretary, Ministry of Textiles on October 27, 2017 along with the Office Bearers of CITI and discussed various pending issues relating to the Foreign Trade Policy and ROSL for Made-UPS and Fabrics. The Hon’ble Minister agreed to make recommendations to the Ministry of Commerce on the FTP issues and also take up ROSL for Fabrics. We also explained the proposals to the Secretary, Ministry of Textiles who agreed to get them examined for further action.

We also requested the Hon’ble Minister of Textiles to be the Chief Guest at the Council’s Awards Function to be held in the second week of December at Mumbai. We also requested the Secretary Textiles to preside over the Function. Final confirmation will be available after the date of the Awards Function is finalised.

Visit of Drawback Committee to Ahmedabad

The Government is in the process of reviewing the ROSL rates for Made ups and Garments and also the proposals for revising the All Industry Rates of Duty Drawback, wherever necessary. In this regard, the members of the Drawback Committee Shri G.K.Pillai , Shri Y.G.Parande , Shri Gautam Ray and the Under Secretary ( Drawback ) Shri Anand Jha had visited Ahmedabad on October 30 and 31 , 2017   and held meetings with various EPCs/ Associations . The Council had arranged factory visits for the Drawback Committee members. The Committee visited Arvind Limited, Uma Ginning and Balkrishna Textiles to understand the procedures involved in ginning and weaving (both grey and dyed fabrics) in addition to the incidence of embedded taxes.

Presentation to the Parliamentary Standing Committee on Commerce

I am glad to inform you that the Council was given an opportunity to make a presentation on the “impact of GST on exports” before the Parliamentary Standing Committee on Commerce headed by Shri Naresh Gujral in New Delhi on 3.11.2017.     In its presentation, the Council had highlighted the difficulty faced by the exporters due to delay in getting the refund of GST on exports. The Council also brought to the notice of the Committee the need to refund accumulated Input Tax Credit on fabrics, the problems faced by merchant exporters in fulfilling the conditions prescribed by the Government while procuring goods from the manufacturers for exports and the technical glitches faced by the exporters in filing returns online on the GSTN portal. The Council also proposed to the Committee that the old Duty Drawback rates should be extended till 31.3 2018 as a transitional arrangement and to refund embedded taxes on export goods. The Committee sought a detailed Note on Embedded State & Central Taxes and the impact of reduction in the Duty Drawback rates on exports of textiles.  The Council has forwarded these details to the Committee and hope that the issue will get addressed.   

Summing up

Friends, the exporting community is passing through uncertain times even though exports are showing an increasing trend!  The trying times are primarily on account of the adjustments all of us are making in our business practices under the GST system and the consequent reduction in the duty drawback rates and other incentives.  At the same time, the strengthening rupee and the tariff concessions given to our competitors by EU, Canada are acting as strong headwinds.  In the US, a large number of brick and mortar retail stores are closing down with the advent of e-commerce which is growing at an “Amazonian” pace.

 Yet, Indian export growth is being reported against all the odds which goes to show the innate resilience of our manufacturing and trading systems.  The underlying message is positive and we only hope that it gets better with the times.


Ujwal Lahoti

Chairman

TEXPROCIL

INDIAN TRADE PORTAL