Tirupur Exporters welcome trade policy

Tirupur Exporters Association (TEA) has welcomed New Foreign Trade Policy (2009-2014), which was unveiled by Anand Sharma, Minister of Commerce and Industry on Thursday. In a press release A Sakthivel, president, TEA welcomed the measure of providing additional Duty Credit Scrip at one per cent of the freight on board (FOB) value of exports being made in 2009-2010, 2010-2011 to Status Holders.

The introduction of Zero duty EPCG scheme and reduction of export obligation equivalent to six times of duty saved on capital goods imported under zero duty EPCG scheme are laudable measures and announcement on reduction of export obligation to 50 per cent of the normal specific export obligation on import of spares was also appreciated.

 

The other measures which was welcomed by the association include increasing the incentive available under Focus Market Scheme (FMS) from 2.5 per cent to three per cent and the Focus Product Scheme (FPS) from 1.25 per cent to two per cent.

Sakthivel said that ensuring the Dollar credit needs of exporters in a timely manner will be helpful for the exporters in a larger way.

He noted that though Market Linked Focus Product Scheme (MLFPS) announced for readymade garment exports is expiring on September 30, 2009, there was no announcement on the extension of MLFPS.   

As the markets have not picked up in the specified USA and EU countries, the association want the Commerce Ministry for extension of MLFPS for readymade garment exports by another three years.