Apparel Export Promotion Council is the nodal agency under the Foreign Trade Policy to promote the export of ready made garments from the country and issuing Export Performance Certificate for duty free import under Notification No.21/2002- Customs dated: 01.03.2002.
Council has received several representations from member exporters that Custom Authority-Chennai is issuing notices in terms of section 28(8) of Custom Act 1962 for levy of Anti Dumping Duty on import of Velcro tapes even imported against Import Certificate. One copy of Notice issued by Chennai Customs to M/S Dolphin Clothing, Mumbai is attached for reference.
This is to bring to your kind notice that the Item Velcro tapes is permissible to import under the provisions of Customs Notification No. 21/2002 dt 1.3.2002 and as amended by Notification No. 12/2012 dated 17.3.2012 for grant of 3% EPC license to individual exporters for import of duty free trims and accessories to be used in the manufacturing of Readymade Garments for export purpose. On the basis of export realization (FOB value) of preceding financial year, exporters obtains Export Performance Certificate and clear import consignment for use in manufacturing of Readymade Garments, for export purpose only.
It is mentioned here that item Velcro tapes import under the above scheme by bona fide exporters are used for re-export and not used in domestic market, therefore, not hampering our domestic market anyway.
Considering above facts you are requested to issue necessary instructions to concerned Custom Authorities not to levy Anti Dumping duty on Velcro Tapes import under the above said scheme which meant for re- export purpose only and also to withdraw Notices issued, so far.
(Dr. A. Sakthivel)
CC : Joint Secretary, Export, Ministry of Textiles
Udyog Bhawan, New Delhi.110001