EPCH urges Cen­tral Gov­ern­ment to in­ter­vene in the Iran ex­port is­sue

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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.

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