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ReturnVAIBHAV KAPOOR NEWS-VIEWS(2)
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PublishDate：
2006-08-03 16:26:00
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NEWS-VIEWS: VAIBHAV KAPOOR （Dated Aug.3th,2006)
Harassment of Genuine Silk Importers by Chennai Customs
·Genuine Regular Raw Silk Importers compelled to enhancement of price for assessment to USD29/- per kg
·Three Selected importers granted the privilege of clearing the goods around the price of USD17/- per kg
·Never in the past three years the Chinese Raw Silk has dropped to a level of USD17/- per kg
·Revision of prices believed to be managed by vested interests
·Additional liability by way of enhancement becoming an unbearable loss to the regular traders and importers.
Corruption has also become a highly prevalent nuisance in the Customs department too. The matter of minimum assessment price for Raw Silk imports at Chennai customs has been under much consideration and discussion in the past few days. The shadow of corruption also looms large over this matter, otherwise how could one justify permitting a select few importers clearing the goods at the price of USD15/kg and USD17/kg, whereas the other regular importers are forced to accept assessment at a price of USD29/kg.
It is a fact that the prevalent export price in China (International market Price) during the month of May 2006 was in the range of USD23.50 to USD24.50. So the goods could be booked in the month of May for May 2006 or June2006 delivery in this price range. Many importers booked cargo at these prices during the month of May. The prices started rising in the month of June when the export prices started floating in the range of USD24.50 to USD25.50 and majority of the Indian importers booked the cargo at these prices.
The Chennai customs minimum assessment price seems to be based on the International market price prevalent in the month of March and April. Whenever the booking price at China goes up Chennai Customs is enhancing the assessment price, likewise the department should reconsider the assessment price and curtail the same whenever the booking price comes down. Some major silk trade associations from Bangalore and Varanasi have represented the matter to the Chennai Customs but their efforts have not produced the desired results till now.
This is not a justifiable approach, more so when a select few importers are being permitted to have their consignments cleared at the price of USD17/- per kg. Additional liability by way of enhancement will become an unbearable loss to the regular traders and importers.
It seems to be an open secret now that the irregular revision of minimum assessment price is also eclipsed by the shadow of the select few privileged importers who on the some or the other pretext manage to get their cargoes cleared in the price range of USD15/- to USD17/- per kg while others are compelled to clear it at higher values (presently USD29/-). This is also to be seen in the light of the fact that never in the past three years the International market price for Chinese Raw Silk has dropped to a level of USD17/- per kg.
Now it is widely believed that the revision of prices being done by Chennai Customs is also being managed by some vested interests. Otherwise why only Chennai Customs would adopt such practice and no other field formation of the customs resort to such tactics.
It is also a fact that the Indian Government has already imposed an Anti-Dumping Duty on Raw Silk imports fixing the landed value as USD27.97 per kg. This means that the minimum assessment price of customs should be around USD21.50 per kg. Chennai customs has overruled even what has been fixed by the Government which is a matter of grave concern for the industry and the associations representing the trade and industry are making repeated requests to the Chennai customs in this regard and there does not seem to be any justifiable reason why their request cannot be acceded too.
It is expected that better sense prevails and this matter is brought to its logical end by the Chennai customs and genuine regular importers and traders are not harassed.
(The views expressed are those of the author and do not necessarily represent official views of CCSE and Esilk.net)
Harassment of Genuine Silk Importers by Chennai Customs
·Genuine Regular Raw Silk Importers compelled to enhancement of price for assessment to USD29/- per kg
·Three Selected importers granted the privilege of clearing the goods around the price of USD17/- per kg
·Never in the past three years the Chinese Raw Silk has dropped to a level of USD17/- per kg
·Revision of prices believed to be managed by vested interests
·Additional liability by way of enhancement becoming an unbearable loss to the regular traders and importers.
Corruption has also become a highly prevalent nuisance in the Customs department too. The matter of minimum assessment price for Raw Silk imports at Chennai customs has been under much consideration and discussion in the past few days. The shadow of corruption also looms large over this matter, otherwise how could one justify permitting a select few importers clearing the goods at the price of USD15/kg and USD17/kg, whereas the other regular importers are forced to accept assessment at a price of USD29/kg.
It is a fact that the prevalent export price in China (International market Price) during the month of May 2006 was in the range of USD23.50 to USD24.50. So the goods could be booked in the month of May for May 2006 or June2006 delivery in this price range. Many importers booked cargo at these prices during the month of May. The prices started rising in the month of June when the export prices started floating in the range of USD24.50 to USD25.50 and majority of the Indian importers booked the cargo at these prices.
The Chennai customs minimum assessment price seems to be based on the International market price prevalent in the month of March and April. Whenever the booking price at China goes up Chennai Customs is enhancing the assessment price, likewise the department should reconsider the assessment price and curtail the same whenever the booking price comes down. Some major silk trade associations from Bangalore and Varanasi have represented the matter to the Chennai Customs but their efforts have not produced the desired results till now.
This is not a justifiable approach, more so when a select few importers are being permitted to have their consignments cleared at the price of USD17/- per kg. Additional liability by way of enhancement will become an unbearable loss to the regular traders and importers.
It seems to be an open secret now that the irregular revision of minimum assessment price is also eclipsed by the shadow of the select few privileged importers who on the some or the other pretext manage to get their cargoes cleared in the price range of USD15/- to USD17/- per kg while others are compelled to clear it at higher values (presently USD29/-). This is also to be seen in the light of the fact that never in the past three years the International market price for Chinese Raw Silk has dropped to a level of USD17/- per kg.
Now it is widely believed that the revision of prices being done by Chennai Customs is also being managed by some vested interests. Otherwise why only Chennai Customs would adopt such practice and no other field formation of the customs resort to such tactics.
It is also a fact that the Indian Government has already imposed an Anti-Dumping Duty on Raw Silk imports fixing the landed value as USD27.97 per kg. This means that the minimum assessment price of customs should be around USD21.50 per kg. Chennai customs has overruled even what has been fixed by the Government which is a matter of grave concern for the industry and the associations representing the trade and industry are making repeated requests to the Chennai customs in this regard and there does not seem to be any justifiable reason why their request cannot be acceded too.
It is expected that better sense prevails and this matter is brought to its logical end by the Chennai customs and genuine regular importers and traders are not harassed.
(The views expressed are those of the author and do not necessarily represent official views of CCSE and Esilk.net)
