| Date: |
13-02-2016 |
| Subject: |
Industry body urges CBEC to follow Foreign Trade policy |
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KOLKATA:Federation of Industries of India has asked the Central Board of Excise and Customs (CBEC) to follow Foreign Trade Policy 2015-20 relating to goods in transit in case of imposition of new or additional duties.
"As per the Foreign Trade Policy 2015-20, regulation on goods in transit and on which letter of credit had been opened before any notification, gets exemption on those consignments. We want CBEC to follow the same," Federation of Industries of India, Secretary General H L Bhardwaj told PTI.
The Ministry of Commerce, in a recent DGFT notification for minimum import price on iron and steel has clearly mentioned that shipments under letter of credit already entered into before the notification date shall be exempted, he noted.
"But the same is not followed by CBEC in case of safeguard duty imposition. This is hurting certain industry like pipes,"said Bhardwaj.
"There should be coordination between the ministries. Despite repeated representations there is no positive outcome in form of clarification on this issue," Nezone Tubes Ltd Chairman M L Beswal said.
CBEC had imposed 20 per cent safeguard duty on steel in October 2015.
"It has affected the viability of 500 odd SMEs which import thin gauge (below 2 mm thickness) coils, which is not adequately supplied by the domestic steel makers," Bhardwaj said.
"Our industry runs on wafer-thin margins and absorbing the 20 per cent duty shock is not possible," he said adding the Centre should at least exempt the duty for those import contracts in which Line of Credit had been issued or contract signed before the notification.
The federation has also drawn the attention of Prime Minister Narendra Modi in the issue.
Source : economictimes.indiatimes.com
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