The Southern region of the Federation of Indian Exporters Organisation has
urged Union Finance Minister Arun Jaitley to intervene and restore the duty
draw backs for all products which have been reduced substantially by the
Dr A Saktivel, Regional Chairman of the Federation has also sent copies of
the letter to commerce minister Suresh Prabhu and other concerned officials.
In his communication to the finance minister Dr Saktivel said that it was
extremely shocking to learn from the Customs Notification No89/2017-Customs
(N.T) dt. 21st September, 2017 that the Duty Drawback rates for all products
have been reduced substantially.
This move will impact the competitiveness of entire export sector as they
are in the verge of losing competitiveness due to various adverse effects.
Before implementation of GST it has been promised to the Exporters that
refund of input taxes will be credited to their account within 7 days of
completion of exports.
However, practically the same has not been happening since the filing of
GSTR-1,2,3 for July has been extended till October 10, 31 and November 10.
It is apparent that exporters will not be able to get their refund by
December only after considering 15 days for issue of acknowledgement, etc. This has put exporters in a very serious
The exporters started losing their business and many exporters fear that
they may be forced to close down their operations shortly.
According to feedback received from our members, it is estimated that the
order booking position for the 3rd quarter is almost 20 per cent less than last
year’s level. This also may lead to serious employment crisis, as due to this
uncertainty, exporters have also stopped booking future orders.
In this context, sudden reduction in Duty Drawback rate will put the
exporting industry into very serious crisis. Hence we request your urgent
intervention for continuance of the old duty drawback rates until 31st
The industry also urges you to kindly consider continuation of ROSL until 31st
December 2017 simultaneously to provide some relief to struggling sector.