As the lockdown in the country is proceeding, the Indian Industry leaves no stone unturned for surviving this brutal time. Taking forward its efforts to weathering the destructive epidemic, the Confederation of Indian Industry (CII) has drawn up a 10-points action plan to boost exports.
CII, an Indian industry association, is a non-government, not-for-profit organization led and managed by Industry. From a one-time delay in the payments of customs duty to the extension of a 5% interest subvention scheme for all exporters, the association has covered everything in this 10-points action plan to boost exports.
As per Chandrajit Banerjee, the director-general of CII, the transient impacts of the pandemic are apparent in exports now. The exporters have started experiencing liquidity crunch, as the supply of cash from customers and other sources tail off. The global lockdown situation has disabled not only the financial infrastructure of the Industry but also the supply of goods. Several shipments of finished products are either trapped at the port or are lying in factories due to restrictions imposed on transportation. These transportation delays are, in return, piling up various costs and charges for importers, exporters, and manufacturers.
Calling the government’s attention to all these sprouting complications, CII has come up with a 10-points action plan for boosting exports in this troubled sector.
- In the plan, CII has suggested allowing the transportation of finished consignments from the warehouse or manufacturer’s factory to the customs facility.
- For addressing liquidity issues, it has recommended the government to speed up the process of GST refunds and the banks to extend the suspension of loan, utility payments, interest payments, and declaration of Non-Performing Assets (NPA) for at least six months.
- It has proposed a March to June extension in the deferred payment of customs duty for easing the financial pressures arising from the instability of payments.
- CII has suggested the government to surrender container freight station charges and shipping line demurrage, considering the stretch caused in import container clearance time by the lockdown.
- It has advised the processing of all bills of entries based on importer’s self-declaration for avoiding their overstocking. For dealing with situations of deficiency, the association has recommended releasing cargoes on account of the importer’s undertaking.
- In the plan, CII has proposed to ease the availability of credit to exporters in this state of financial crisis. For the same, the association has suggested an increment of at least 25% in the packing credit and 180 days to 360 days extension in the threshold for returning this credit.
- CII has asked the banks to consider the financial challenges that exporters are facing. It has advised them to sanction and release a special cash credit funding, amounting to at least 20% of the contract value, for the companies who are executing export contracts.
- It has recommended the continuation of all export benefits included in the current Foreign Trade Policy until June 30 or the declaration of a new policy.
- The association has sought a 5% extension in interest subventions scheme and six months deferral in 3% extra duty drawback for all exporters.
- Citing the possibilities of delays in courier services, CII has asked CFS, Shipping Lines, and Customs Authorities to relax the requirements for original shipping documents and give up the demurrage charges on the receipts of delayed