FIEO Offers to Help Locate Untraceable Exporters

Responding to the media reports highlighting that 1377 exporters, who fraudulently claimed IGST refund worth Rs 1,875 Crore, are untraceable at their place of business, Mr Sharad Kumar Saraf, President, FIEO said that this has caused great anguish and setback to the exporting community as it indirectly reflects adversely on them as well. While the number of untraceable exporters as a percentage of total number of exporters is not much yet untraceability of such a large number of exporters requires concerted efforts by all of us to trace them and bring them to books.

On behalf of export organisations, Mr Sharad Kumar Saraf extended full co-operation to the Government to trace them. President FIEO said that every exporter has a PAN and a bank account before he applies for Importer Exporter Code. For opening the bank account, necessary KYC is done by banks also besides introduction of account by another customer. DGFT also keeps their email, telephone and bank details including the photograph of the person who applies for IEC. Exporters are also required to have GST registration providing email and mobile number, which is cross verified through electronic mode. The registration of exporters is also done at Customs and bank details are captured in which IGST amount is credited. These exporters may also be members of some Export Promotion Councils/Authorities/Commodity Boards/FIEO who can also help in providing necessary information available with them. The Star exporters also submit Chartered Accountant Certificates, which are also at times verified by the licensing authorities.

We need to pool the information available, with all the agencies, said Mr Saraf, to locate them as a few black sheep should not dent the image of genuine exporters of the country.

Mr Saraf added that the Government should further proceed in the matter by immediately issuing them suitable show cause notices. If they do not respond, DGFT should initiate action to suspend/cancel their IEC making them ineligible for further exports/imports and authorities should initiate proceedings against them to recover Government money, added President, FIEO.

FIEO/PUB/PR/19/2020-21/ July 18, 2020