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FIEO Southern Region requests Finance Minister Jaitley to reinstate the Duty Draw back Rates

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 finance ministry.

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 financial crisis. 

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 December, 2017.

The industry also urges you to kindly consider continuation of ROSL until 31st December 2017 simultaneously to provide some relief to struggling sector.


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