While the relaxation in import machinery norms under the EPCG scheme to jobworking units is seen as a much expected relief, industry sources point out that the proposal is applicable only to the Common Service Providing Units located in Tirupur ‘Export Excellence Cluster’ and not others located in the periphery.

Welcoming the proposal, the President of the Tirupur Exporters’ Association Raja M Shanmugham said job working units engaged in knitting, dyeing, compacting, printing, embroidering, labelling, calendaring, etc, “registered as Common Service Provider”, would now be permitted to import machinery under the EPCG Scheme.

“The import of machinery by these job working units under the scheme had dwindled drastically in the last 12 to 18 months because many units could not get licences under the scheme. This proposal/ relaxation in conditions for registration with the indirect tax authorities was expected to pave the way for the much needed relief.

“There is an anomaly though, as the relaxation is applicable only to the Common Service Providing units in the export excellence cluster. The association intends to take up with the Commerce Ministry extension of relaxation to other units located in the periphery in places such as Uthukuli, New Tirupur, Palladam and the dyeing and printing units located in Perundurai SIPCOT premises,” TEA President told BusinessLine .

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