Engineering exporters' body EEPC India Monday said exporters are facing the threat of losing refunds and a possible action by the Enforcement Directorate as banks are not issuing remittance receipts despite submission of required documents.
Engineering exporters’ body EEPC India Monday said exporters are facing the threat of losing refunds and a possible action by the Enforcement Directorate as banks are not issuing remittance receipts despite submission of required documents. “We have received several complaints from our members about banks not issuing documents about the remittance receipts even after submission of all the required papers… Thus, exporters are facing a double whammy- losing refunds like drawbacks and the possibility of ED action,” EEPC Chairman Ravi Sehgal claimed.
The exporters’ body cited media reports of the RBI contemplating forwarding cases of non-realisation of export proceeds to Enforcement Directorate, claiming that it has created “avoidable panic” even among genuine exporters who have submitted records about remittance receipts with their banks. Sehgal claimed that while EEPC India has been advising its members to reconcile their remittances records, several banks are not issuing the clearances, especially with regard to shipments to countries like Syria, Iran and Sudan, among others.
He said at a time when exports are facing global headwinds like slowdown in the US economy, uncertainty of Brexit and the trade war between the US and China, the RBI and the government should be dealing with issues like remittances in a friendly manner. “In any case, it is in the interest of exporters to get their remittances in as quickly as possible. It is in rare cases that there may be temptation of foreign exchange arbitrage which could even result into losses. So, the problem seems to be more of procedures and should be treated like that,” Sehgal said.
He pointed out that India’s overall merchandise exports remained static, logging in less than one per cent growth in November this year. “The last thing our exporters want is the procedural hassle and any enforcement action,” the EEPC India Chairman said.