Industry & Economy
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Readymade Garments
US embargo on 2 shirt categories for exceeding quota
Nina Varghese
Chennai
,
Jan. 4
THE US Customs has embargoed two categories of shirts from India — 340/640 and Group II — and there is also a likelihood of embargo in two other categories shortly.
Mr A. Sakthivel, Chairman, Apparel Export Promotion Council, said that exporters would face a huge loss if these goods were not cleared as fast as possible. (340 refers to woven shirts and 640 synthetic shirts, while Group II refers to miscellaneous items.)
Mr Sakthivel said that the goods that have been embargoed would be allowed clearance in the US only from February 1 at a rate of 5 per cent of the base levels every month.
The exporters will have to pay the demurrage charges and worse still, the buyers are threatening to cancel the orders, he said.
He said he had written to the Textiles Ministry to take up the matter through the Indian Embassy in Washington so that the consignments can be cleared as fast as possible. He said that these goods were embargoed because the quota levels were exceeded this year and that this happened because of a miscalculation.
Ms Reshma Rao, a Chennai-based garment exporter, said that most of the consignments had left Indian shores before December 31 when the quota regime came to an end. Exporters are worried about the cost of cancellations.
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