Kerala HC stays DGFT notice suspending cashew export body powers

Our Bureau Kochi | Updated on August 13, 2021

DGFT had suspended the powers of CEPCI to issue RCMC, and designated APEDA to do so instead

The Kerala High Court stayed for three weeks the Directorate General of Foreign Trade’s (DGFT) notification authorising the Agricultural & Processed Food Products Export Development Authority (APEDA) to issue registration-cum-membership certificates (RCMC) to cashew exporters.

The court passed the order on a writ petition filed by Cashew Export Promotion Council of India (CEPCI) which challenged the DGFT notification by submitting that it is beyond the power of the authorities.

Counter affidavit

The court asked the Central government to file a counter affidavit within three weeks as counsel appearing for the respondents prayed for a shorter time to file the affidavit. The court posted the case for further hearing on August 26.

It may be recalled that the DGFT had suspended the powers of CEPCI to issue RCMC, and designated APEDA to issue such certificates. RCMC helps in export-related works and availing duty benefits under foreign trade policy. Cashew exporters pointed out the DGFT decision to suspend the RCMC would curtail the activities of CEPCI that functions with its own fund sourced from memberships and trade contribution.

It is also alleged that the Council was kept in the dark when the DGFT took the decision which was made without giving any notice. With the suspension of power, the financial stability of the council will be in trouble, it said.

Published on August 13, 2021

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