During normal course of business, it has been observed that whenever any textile exporter is included in ‘Risky Exporters’ list, his all types of Export benefits such as Duty drawback, GST refund and RoSCTL gets suspended by Central Authorities and all his shipments are subjected to 100% physical examination by custom field formations due to which overseas orders usually gets delayed and which in turn result in penalty and cancellation of the order.
Exporters who are being red flagged by DGARM in the ‘Risky Exporters List’ are treated as defaulters by department even before giving them a chance to be heard. As resultantly the image and reputation of the exporter gets tarnished in the market even before the verification process is completed. As the Latin phrase ‘Audi Alteram Partem’ says that adhering to the principle of natural justice no person should be condemned unheard. There is another famous saying that ‘one bad fish can contaminate a pond’. The same has happened to the Indian Exporters. Due to a few dark horses in the industry, who have fraudulently taken refunds of IGST, one can’t let the whole community of innocent small and medium exporters to suffer on that account.
HEWA demand strict action against willful defaulters and suggest the Government to ensure that the honest exporter does not face any trouble. Many exporters have brought to the notice of HEWA that even after their successful verification by providing all necessary documents as per SOP to the field formations and after getting the NOC, their names are still shown under risky exporter list as and when any exporter checks status on the departmental website for any transaction. Exporters are facing severe cash crunch and capital blockage as they does not know to whom they should contact either DGARM, Local CGST Office, RMCC or Custom office for removal of ‘Risky Exporter’ flag tagged against their Firm’s name.
HEWA urge the Government to split the process of ‘Red Flagging’ into various steps, such as: Query based investigation rather flagging the Exporter into Risky list as most of the times Exporters don’t know the reason of their being placed in risky list.
Need central helping hand to coordinate with various agencies like GST, Customs, DG systems, DGFT etc.
Even after getting NOC from local department, the exporter has to suffer for several months in order to get back suspended GST refund, Duty Drawback, Scrolling of RoSCTL, shipping transmit online.
Hewa Delegates also Suggested Hon’ble Minister Shri Pankaj Chaudhary to initiate appropriate steps for Centralized online system with prescribed timelines to remove exporter from risky exporters list if query is resolved.
