EPCH urges Central Government to intervene in the Iran export issue
The Export Promotion Council for Handicrafts (EPCH) representatives R K Passi, Vice Chairman and Rakesh Kumar, Executive Director, recently met Commerce Secretary
Anup Wadhawan to address the issues faced by exporters in Iran, as they’re facing difficulties in claiming their
GST Refund and duty drawback. It is important to mention here that the US Government recently imposed sanctions on Iran, that has barred other countries, including India, from conducting a trade deal with them. Reportedly, the US President was quoted as saying that, “Individuals or entities that fail to wind down activities with Iran risk severe consequences.”
EPCH has urged the Government to intervene in this matter and come up with a solution for Indian weavers, who are facing problems from banks which are denying to accept the shipping documents for clearance of GR form to RBI, because of which the exporters are unable to get the Bank Realisation Certificate (BRC). Further, Rakesh Kumar said that without the BRC, an exporter cannot claim the benefits, such as MEIS/duty drawback and GST refund provided to them by the Central Government. During the 2017-18 period, the handicraft exports to Iran from India clocked at US $ 48.10 million, which is over Rs. 300 crore. Notably, Rakesh Kumar also marked out that despite RBI issuing a No Objection Certificate, some banks in Moradabad are not providing eBRC. Previously, in case of exports to Iran, every payment used to come in Euros from a third-party and was further credited in respective exporters’ accounts by their bank branches but with the unavailability of eBRC, they are unable to receive their due payments.
In a statement issued, EPCH has urged the Commerce Secretary to authorise UCO Bank at Moradabad to open INR account for exporters much like the
Delhi branch of the bank which allows the exports to Iran in Indian currency. Reportedly, the Commerce Secretary has assured the Exporters’ Council to take all the necessary steps in this matter and take up the issue in front of RBI and Ministry of Finance.