Financial Daily from THE HINDU group of publications
Tuesday, Jun 04, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Industry & Economy - Handloom


Duty drawback move gladdens handloom goods exporters

Our Bureau

COIMBATORE, June 3

THE changes announced by the Government in all-industry duty drawback (DDB) rates have brought cheers to the exporters of handloom goods as the made-ups and fabrics produced from handlooms have been allowed DDB rates.

The Government has allowed eight per cent for exports of handloom made-ups (dyed or processed) with a cap of Rs 25 per kg. In the case of exporters of handloom fabrics (dyed or processed), the DDB rate fixed is seven per cent of the f.o.b value with a cap of Rs 22 per kg, according to industry sources.

The extension of the DDB for the handloom exports comes in the wake of inclusion of hank yarn, largely consumed by the handloom sector, under the excise regime for the first time in the Union Budget. The DDB rates are fixed based on the costs of inputs that attract fiscal levies such as customs and central excise duties, with a view to offsetting the duty burden on the manufacturers.

While the DDB rates with regard to the cotton grey fabrics or processed fabrics produced by the powerloom sector remained unchanged at 5.5 per cent and six per cent respectively, the DDB rate on the knitted garments has been brought down by half a per cent to 12 per cent of the f.o.b value as against the previous rate of 12.5 per cent.

The rate reduction has upset the cotton knitwear industry with the Tirupur knitwear exporters claiming that any reduction in the rate would entail Indian garments uncompetitive in the world market.

The Tirupur Exporters' Association (TEA), in a communication addressed to the Union Finance Minister, had pointed out that the knitwear exporters and the apparel export promotion council had provided sufficient cost data to show the incidence of import duty components that ranged from 18 to 20 per cent. Yet, the Centre had pruned the DDB for knits. The other competing countries including Bangladesh offer higher export incentives that blunts India's competitiveness, the association argued.

Send this article to Friends by E-Mail

Stories in this Section
Petro price hike will result in higher revenues to States


What to do with your old car? Ask BMW
Burning solid waste hazardous: Study
Hotel cos to pay fees for exemption on disclosure
Hotels see exodus of foreign guests
Entertainment park in Cyberabad on anvil
Govt hikes petrol, diesel prices; cuts excise duty
AP: ST sops for plastic goods
Stress on use of renewable energy
Centre's net tax receipts Rs 17,000 cr till May
Karnataka: Khadi outlets to be computerised
Kerala: Vypeen to get desalination plant
Foundation stone laid -- TN CM pins hopes on American school
Duty drawback move gladdens handloom goods exporters
Garment to keep soldiers cool in hot conditions
Post-divestment, Govt can call for SCI vessels in emergencies
Some hard `FACT's about divestment
AP: Empowering rural youth to be self-employed
Global workshop on hygiene behaviour
OECD defers meet on corporate governance
Social sector spending stressed
Rampant under-reporting of income suspected -- Non-salaried class comes under I-T Dept scrutiny
I-T Saral form to go back to one page
`Mangalore has potential for SEZ'
War clouds spread gloom over tourism sector
ITDC Kovalam resort
Private sector plans for Jog Falls
ITC charge-sheets: `FEMA may yield desired results'


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line