Kamal Ghorui
NEW DELHI: With the US opening a refund window, exporters are hoping to recover some of the discounts they had offered during the period, when the Trump administration levied a hefty 50% tariff on Indian goods.In a large number of cases the discount was to the tune of 15-18% to compensate for the 30% gap between the tariff imposed on India and its rivals. Following a US court order, in case of importers on record, the US authorities will deposit the money into the bank accounts there, which in most cases will be of customs agents. But in 80-85% of the cases, it will be the buyer, who will receive the refund, and it will be up to them to refund the money to Indian exporters, said Fieo director general Ajay Sahai.“When we had given those discounts, there was an understanding about getting it back in case there was a refund, we are discussing the issue with our buyers in the US,” said Puran Dawar, a footwear exporter from Agra.But, many are sceptical as it is the large exporters, especially those with written contracts covering the issue, that are likely to emerge as winners. “For those with a long-standing relationship, there is a possibility of some of it coming back. It is, however, subject to getting the money from the administration,” said Pankaj Chadha, chairman of EEPC India.Some exporters are also unclear about how the process will work, amid demands from certain American consumer groups that the benefit should actually accrue to the consumers.“For India, the US decision to refund tariffs offers a potential — but uncertain — financial upside. While Indian exports were heavily affected by the now-invalidated tariffs, especially in labour-intensive sectors, any recovery will depend not on policy but on how effectively exporters negotiate with US buyers, who will receive the refunds,” GTRI founder Ajay Srivastava said in a note.But, many are also expecting a boost for their businesses. “It will give a lot of confidence to the retailer and the brands, and ultimately to the consumers in the US.
