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EPCs propose measures for data collection, govt disposes

Lack of relevant exim data may hamper India’s global textile share

Endorsing shipping bills is no longer mandatory. While the industry is happy with this, a serious fallout of the decision has been lack of relevant and timely export and import data, which is crucial, especially in a free regime, when India will have to continuously fight against trade barriers, on the basis of authentic data. Reena Mital reports.

Endorsement IMbroglio

Export promotion councils are finding it difficult to compile comprehensive export data, following the removal of mandatory endorsements of shipping bills with the councils.

"We have to depend on DGCIS data, which is at least 5-6 months old. Moreover, the product groupings are not as detailed as the councils were able to do. Neither are we in a position to analyse the export information such as quantity, realisations, qualities, etc in as meaningful a manner as was possible when the endorsements were being done by the councils," according to sources from various EPCs.

"The textiles ministry looks to us for export information for policy framing, fighting India’s case at the WTO, etc. However, this is not easily available with the Indian agencies. We have to source the same from the websites of international agencies, which show imports of various items from India. However, these also are not always very comprehensive," they state.

According to the EPCs, the decision to stop endorsements was taken following complaints from exporters about delays in deliveries as endorsements took time. However, the EPCs believe that with barriers to international trade increasing, India being targetted continuously for anti-dumping, anti-subsidy, export competitiveness, and such other investigations, which will increase even more in the future, easy and timely access to authentic and detailed export information becomes very important. "Export promotion requires that we have ready access to data about the kind of items that are moving in a particular region, the price realisations, the potential to develop certain products for certain markets, etc. To the extent that we do not get this data as easily as was earlier available, our work could get hampered," state EPC sources. EPCs claim that they are better equipped to analyse data in the required formats, that would be of help to the government, the industry, and also to the council for their export promotion activities.

However, even as the ministry has stopped mandatory endorsements on the pretext that it causes delays in shipments, etc, industry experts believe that the real reason for this lies in the malpractices in the process at some of the EPCs. "The information in the shipping bills (name of buyer, price, size of order, etc) was being leaked out to certain parties, by unscrupulous elements in some of the councils, thus hurting genuine exporters, and leading to unhealthy price undercutting by exporters in the international market. To put an end to this, the government decided to do away with mandatory endorsements. So, it is good that this element has been taken care of. But yes, there is a need for getting export data. And there are ways in which the councils can do so, but have not really bothered to," they aver. The textiles ministry has also allowed the councils to get the endorsements voluntarily. "But not many exporters would be interested in this. Nothing here works unless it is mandatory, even if the industry knows it is important," state industry sources.

The CMIE has tied up with the DGCIS, to offer a good analysis of the data, and experts believe that this is a very good initiative, which the councils too can adopt. According to them, the EPCs can establish links with the ministries of textiles and commerce, and arrange to get the data on a priority basis. TEXPROCIL officials state that a number of suggestions were made to the DGCIS, and other related authorities and ministries, but to no avail. According to TEXPROCIL, not just exports, but imports are also getting very important, and need to be closely monitored. "This is being done in Pakistan, where an Export Promotion Board, collects all relevant information, and is in a position to disseminate the latest trade information, within 15 days of the exports or imports taking place in the country. The Indian government also needs to realise the importance of this data," said TEXPROCIL officials.

TEXPROCIL, it is learnt, had suggested to the government to allow a representative of the council to sit with the customs, and get copies of shipping bills, both exports and imports, enter the data immediately, and return the copies to the customs, so that no one can tamper with the information. However, the government did not accept this. "We have also suggested that the government allow just one or two councils to collect data for all the EPCs and products, without any costs, and disseminate the same on a monthly basis. However, nothing has come of this either."

However, the industry is not too impressed by these arguments, and believes that proper representation to the right authorities and proper follow-ups would definitely yield results.