Ad valorem duty affects synthetic fabrics export

The exporter would be unable to calculate the export price since the amount of duty refund would not be known. The absence of a proper procedure for refund of duty could lead to export orders being cancelled. This apart, delayed shipments may result in the importer changing the terms of payment, cancelling the order or claiming compensation.

Gupta urged the government to convene a joint meeting ofrepresentatives of different ministries and trade and industry bodies to resolve the issue at an early date. This was especially relevant because synthetic textiles was one of the few sectors registering positive growth in the depressed market. Exports of synthetic and rayon textiles grew by over 11 per cent in the first eight months of the current year.