AEPC taps exporters for part-funding VRS

Vijay Trivedi

Mumbai, Jan 6: Apparel Export Promotion Council (AEPC) has asked the exporting community to partly fund its voluntary retirement scheme (VRS) by raising annual subscription and quota fees so as to help garner additional Rs 25 crore from garment exporters.

Accordingly, from January 1, 2002, AEPC has started charging five paise per garment. In addition to that, it has increased the amendment charges to Rs 150 from Rs 100 per document and also, annual subscription by Rs 4,000 per member. Hence, now exporters have to pay Rs 7,000 for annual subscription instead of Rs 3,000 in last year.

Confederation of Indian Apparel Exporters (CIAe), president, Amit Goyal told The Financial Express: "There is no justification for additional levying fees on the garment communities."

Mr Goyal alleged that, instead of cutting down the expenses of the council, AEPC executive committee member’s are lavishly spending lakhs on cocktail parties and foreign trips. And blindly pass such load on the domestic exporters by additional fees.

Justifying the levies, AEPC, vice chairman, Ishwar G Khilnani, said: "With the removal of quota regime by year 2004, 500-strong staff involved in the quota distribution will have no job. Hence, to partly offset the VRS liabilities of these staff, council has decided to put additional burden the exporters."

The Clothing Manufacturers Association of India (CMAI), president, Premal Udani said: "These charges are unnecessary burden on the exporters and should be remove immediately."

All India Garments Exporters And Manufactureres Association (AIGEMA), president, Madan Jain said: "Instead of finding ways and means to cut down expenses, AEPC is shattering the confidence of the exporters and destroying itself as a body, which instead of holding together is falling apart."