President's Message
President's Message
K. M. Subramanian
Our members mostly manufacture & export Cotton / MMF garments. In some cases where special fabrics are involved for which we don't have the capability of making fabrics inhouse, such fabrics are imported from buyer nominated suppliers from different countries.
But as per notification No 33/2024-25 dated 01.10.2024, import of knitted fabrics below US $ 3.5 per kg was prohibited. Banks do not allow members to make an outward remittance for HS code under this notification and also customs stop the import consignment citing this notification.
Vide letter number 345 / 24, Our Association had submitted a representation requesting an exemption from the Minimum Import Price (MIP) policy for importing MMF fabrics below US $3.5 per kg for exporters holding an Advance License/Special Advance License citing the following difficulties faced by our members.
->Orders worth more than Rs. 100 Crores are kept pending for want of fabrics.
->Future continuing orders are facing cancellation.
->A number of units might be forced to close operations resulting in loss of jobs.
->Quite a few orders would be forced to shift to other competing countries.
->Fixation of the minimum import price would impact the competitiveness.
->Our concentration to increase MMF garment export would face a big challenge.
->Since, the exporters re-export 100% of the imported fabrics, with a minimum of 1.6 times value addition, this notification would cause loss of foreign exchange.
->Exemption of such fabrics would not affect the domestic fabric manufacturers.
On 4th January, 2025, the Ministry of Commerce and Industry, through DGFT issued an Amendment Notification 49/2024-25 confirming that an exemption has been granted for the import of fabrics under the minimum import price (US $3.5 per kg) for exporters importing under an Advance License/Special Advance License for re-export purposes.
We thank our Honorary Chairman Padmashri Dr. A. Sakthivel, anna for his relentless efforts and dedication along with our association, in securing a crucial exemption for Advance Authorisation holders importing synthetic knitted fabrics for re-export purposes. Through his continuous efforts, including personally coordinating and meeting with the Ministry of Commerce and DGFT five times, this exemption has been successfully secured.
This move to allow import fabrics for a price below US $ 3.5 per kg under advance license / special advance license would go a long way in helping Tiruppur Exporters to improve their global share in the MMF Market.