Tirupur Exporters' Association
Oday requested the Union Revenue Secretary in ministry of Finance to help clear the pending duty drawback rate claims.
In a letter to Shaktikant Das, the Revenue Secretary, TEA president A Shaktivel said the association has received complaints from members that Duty Drawback rates have not been given to them since December 2014 in Chennai, Tuticorin Ports, Tirupur and Irugur ICDs, which has direct impact, as the knitwear exporting units have been nowadays operating under a thin margin amidst of heavy competition in the global market.
Stating that Tirupur knitwear exporting units have now only regained the business confidence after facing the market compression for four years due to recession, he said that full efforts are being taken to sustain in the global market and also increase the exports growth.
The exporting units have to procure raw materials and accessories in advance for the oncoming winter season, apart from meeting their statutory financial requirements and at this stage, stoppage of Drawback Rates would certainly derail their production planning, he claimed.
Ultimately, they would be hesitant to take up the future orders also, considering the difficulty in meeting out the delivery schedule, he said.
"The cause of concern is that the foreign buyers would straight away come to the conclusion that the exporting units would be unreliable suppliers and would opt for the units in the competing countries. If the buyers once leave our country and settle with the suppliers of competing countries, it would be difficult to bring them back to our country," Shaktivel said.
