Worried over rising duty refund claims, which have touched over Rs 5,000 crore, engineering exporters today sought urgent intervention of the finance ministry saying that it will impact shipments.
In a letter to Finance Minister P Chidambaram, EEPC India said that complete stoppage of duty drawback payments by customs authorities from December is creating considerable problems and is impacting production schedules of exporters. "A direct consequence of this would be on exports and employment. Total arrears for the export sector amount to more than Rs 5,000 crore," (EEPC) said in a statement.
The council's chairman Anupam Shah expressed grave concern over "complete stoppage" of duty drawbacks.