The Hindu Business Line : Footwear component makers against duty-free import

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Kolkata Jan. 24 The Indian Footwear and Components Manufacturers' Association has said that the Government's policy of allowing imports of listed items by exporters up to 3 per cent of previous year's f.o.b. export value without any customs duty, CVD and VAT would hit the domestic footwear components industry.

Seeking a cut in excise on all footwear components (to 4 per cent with Cenvat credit), it suggested that shoe exporters may be allowed to buy from the domestic industry against the same licence issued by the Council for Leather Exports (CLE), and that such supplies should be treated as `deemed exports'.

Any permitted component item for duty-free import, it is pointed out, should be as per specifications, and not bemanufactured in India.

Stating that growth in the footwear components and accessories sector depended heavily on the strength of the domestic footwear component industries, Mr Mani Almal, President of IFCOMA, and Director of APL Polyfab Pvt Ltd, told Business Line here that while imports are allowed CVD and VAT-free, the domestic industries are made to pay 16 per cent excise duty, 4 per cent taxes and Octroi on the same items.

Mr Rafeeque Ahmed, former Chairman of CLE, said imports of essential footwear inputs up to 3 per cent of f.o.b. export value was quite insignificant to severely affect the domestic sector.

He said there was no problem with regard to IFCOMA's suggestion of allowing eligible manufacturers-exporters, of various leather products including footwear, to source the listed components under the 3 per cent scheme from the domestic components manufacturers without payment of excise duty.

The option, he felt, should be left to the exporters concerned , as this depended on specifications of overseas buyers and the delivery schedules.

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