India exempts polyester fibre, yarn imports for export use from QCO

It is to be noted that after the implementation of QCOs, exporters were facing problems to procure raw materials from global suppliers.

The Ministry of Chemicals and Fertilisers has issued a notification No 16/2024 dated 6.06.2024 in this regard. The user industry will be exempted from QCO for imports of these raw materials for exports after one stage value addition. Consumer industries are bound to adhere to pre-import conditions (using the imported fibres only for export purpose) and also the period for fulfilment of export obligation has been reduced from 18 months to 6 months for all types of MMF imported under Advance Authorisation Scheme.

Ministry of Textiles had already exempted viscose staple fibre (VSF) imported under Advance Authorisation Scheme vide Notification No 71/2023 dated 11.03.2024. It came into effect from the date of the Notification. It is to be noted that textile related raw materials come under two different ministries, i.e. the ministry of textiles and the ministry of chemicals and fertilisers.

SIMA chairman Dr. SK Sundararaman has thanked the government for considering the representations made by the Association. He said that the announcement in this regard has given a relief to the MMF textile products exporters enabling them to improve their export performance that had been significantly affected in the last two years. The Association has been demanding the government to facilitate smooth supply of raw materials at an internationally competitive rate to achieve a sustainable growth rate, both in domestic and export markets.

The Ministry of Chemicals and Fertilisers (Department of Chemicals and Petrochemicals) had implemented QCO for PSF in second half of the last year. As per the order, every user has to purchase the raw materials only from BIS licence holders, both from the domestic and international markets. Though the domestic manufacturers of the said products have obtained BIS licence, the applications submitted by several foreign manufacturers are still pending before the BIS authorities for inspection and approval. This has severely affected the manufacturer-exporters, who are the consumers of speciality fibres and filament yarns and spun yarns, as specified by the buyers, especially the overseas buyers and global brands. The said raw materials are not being manufactured in the country. It has disrupted the smooth flow and availability of MMF raw materials, thereby seriously impacting the export performance of the MMF value chain.  There was similar problem in the case of VSF.

Ashish Gujarati, former president of the Southern Gujarat Chamber of Commerce & Industry (SGCCI), told Fibre2Fashion, “Raw materials are always exempted from tariff and non-tariff barriers in India. But the ministries did not specify such provisions for exporters in orders issues for quality standards. They have issued notifications after hue and cry from the industry. Indian exporters were not able to compete in MMF products in the global market. Now, they can procure quality raw materials at competitive prices.” He said that the government should consider exempting domestic market also from such quality standards on raw materials. It should implement quality standards on finished consumer products like other countries to ensure quality products in the domestic market.

Fibre2Fashion News Desk (KUL)