Monday, November 29, 1999

Carpet exporters want bank guarantees for consignments

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Bhadoi, May 16 (PTI) Following delays in payments by offshore importers, the carpet exporters'' association has decided not to export finished goods unless the orders are backed by bank guarantees. The All-India Carpet Manufacturers Federation has decided that exports would now only be done on the basis of bank guarantees and not on the basis of document against acceptance (DA), AICMF president Ravi Patodia said. He said that the Centre has been asked to re-impose a ban on the system of DA, which was effected by the Union Commerce Ministry till 2002. Once goods are exported on the basis of DA, foreign importers create unnecessary pressure and withhold payments on one pretext or another, he alleged. Payments of the carpet exporter to the tune of around USD 500 crore have been stuck till now, Patodiya added. He said that if the DA system was not banned, small and medium exporters would vanish from the business. During an emergency meeting of AICMF held yesterday, it was unanimously decided not to export carpets on the basis of DA, he said. It was also decided that a delegation led by the Carpet Export Promotion Council would soon meet the Union Textile Minister and Union Commerce Minister and submit a charter of demand.

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