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COIMBATORE, March18

TIRUPUR knitwear exporters have asked for conferring similar export incentives currently given to export-oriented units (EOUs) to the domestic tariff area (DTA) garment exports as well. This could be done by introducing a new category called `export unit (domestic)' in the proposed Exim Policy 2002-07, they said.

The Tirupur Exporters Association (TEA), in its suggestions to the Union Commerce Ministry, has stated that at present, 90 per cent of readymade garments exported are from the DTA exports but these are not allowed to have full income-tax benefit.

The DTA units have practically no domestic sales. It had suggested that to allow 100 per cent income-tax exemption to these units at par with EOUs, it is enough if the DTA units incorporated under the new category exported minimum 75 per cent of their production.

The TEA, in its wish list sent to the Commerce Ministry, has also suggested introduction of a new express green card (EGC) for garment exporters.

This would facilitate expeditious clearance of Customs and Central Excise formalities including easy payment of duty-drawbacks to the garment shippers.

While seeking EPCG cover for the second-hand machinery currently not eligible, the knitwear exporters want the issue of EPCG licences on post-exports as in the case of DEPB/DFRC schemes.

TEA has said that at present only 100 textile products have been listed for DEPB rates.

There are about 350 textile products listed out for input-output norms in the existing Exim Policy.

It suggested that the new policy should announce DEPB rates for all the textile products having input-output norms.

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