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Exporters question govt's 'Ease of doing business initiative' after being harassed by customs

Swati Rana, Mumbai
Monday, October 3, 2016, 08:00 Hrs  [IST]

The pharma exporters are annoyed by the customs department's poor maintenance and no updates of records related to submission of documents and payment by the exporters. In spite of submitting documents and payments, the customs department is not updating their records and harassing exporters by sending show cause notices.

The exporters are facing many problems from customs from being blacklisted to receiving show cause notices which restrain exporters from exporting. The customs department blacklisted exporting companies for not receiving Export Obligation Discharge (EOD) certificate. The delay in EOD certificate by DGFT caused trouble to the exporters and also led to the cancellation of export orders from some countries.

The pharma exporters are questioning government's initiative of ease of doing business in the country after being harassed by the customs department. They demand customs department to function more effectively so that it encourages pharma exports.

A pharma exporter on condition of anonymity informed that the EOD certificate are delayed by Director General of Foreign Trade (DGFT). The EOD certificate which has to be received after an application, is taking years to get sanction. Even after receiving the EOD certificate the customs are not making any record of it and the bonds are not being discharged for which the exporters are further harassed.

The EOD certificate is important as after the issue of the certificate the customs cancels or redeem the bond within 30 days.

Highlighting the lack of update made by the customs, another pharma exporter says, “The department is not updating their records. We are submitting the required documents and making payment on time and still we are receiving a show cause notice. We spent entire day in their office to clear the issue. We are a big exporting company and if we are facing these sort of problem and harassment, what will be the fate of small and mid scale companies.”

Though the Central Board of Excise and Customs (CBEC) has taken initiative to enhance ease of doing business in the country by introducing electronic messaging system for electronic delivery order instead of a paper based delivery order; customs clearance facilitation committee at every major seaport and airport; 24x7 customs clearance facilities extending to 19 seaports and 17 Air Cargo complexes etc., still the problem face by the exporters remains just the same.


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