Home / Knowledge / News / Apparel/Garments / AEPC proposes measures to hike garment exports by 100%
AEPC proposes measures to hike garment exports by 100%
13
Dec '12
Dr. Sakthivel
Dr. Sakthivel
Apparel Export Promotion Council (AEPC), a leading body of Indian apparel exporters, today proposed measures to hike garment exports by 100 percent in 3 years, and 10 percent in the current fiscal year. Dr. A Sakthivel, Chairman AEPC, on behalf of the garments and textiles exporters submitted the proposal to Shri S R Rao, Commerce Secretary in the Department of Commerce, Government of India.

Speaking on the proposal Chairman AEPC said that, “We have learnt that Ministry of Commerce / Ministry of Textiles is likely to announce certain sops to the garment industry in order to face challenges on global slowdown.  I am providing herewith further details of my proposal”

PROPOSAL 1:  Cotton yarn be permitted imports without license at flat fixed customs duty rate, equivalent to all industry rate of duty drawback. Exports of finished product made from such imported yarn be allowed   at corresponding rate of duty drawback. For example import of cotton yarn be allowed at flat 3%  rate(rate of duty drawback) or dyed cotton yarn be allowed at flat rate of 3.5% ( rate of duty drawback).Exports of garments made from such cotton yarn be allowed at drawback of  7.9% on FOB (rate of duty drawback).

PROPOSAL 2: Fabrics be permitted imports without license at flat fixed customs duty rate, equivalent to all industry rate of duty drawback. Exports of finished product made from such imported fabrics are allowed at corresponding rate of duty drawback. For example import of cotton fabrics be allowed at flat   rate of 4.5% (rate of duty drawback). Exports of garments made from such cotton fabrics are allowed at drawback of 7.9% on FOB (rate of duty drawback).”

On the issue of price stability in cotton yarn and fabrics, Chairman AEPC proposed that import of cotton yarn and fabrics at fixed customs duty, equivalent to rate of drawback rate, may also be permitted and drawback may be allowed on export of readymade garments manufactured from such imported cotton yarn/fabrics at pre-determined drawback rates, he added.

Dr. Sakthivel further proposed that, :In order to protect the interest of the Government, garment exporters, member of AEPC may be permitted imports of yarn/fabrics maximum to the extent of 25% of their export performance in the preceding year.

Bangladesh, Vietnam and Cambodia do not have raw material of their own and they have achieved phenomenon growth through easy import policy of yarn and fabrics.   The current scheme of advance license in the Foreign Trade Policy of our country, although allows duty free import but it is a tedious route and is not used extensively by the exporters. Under the proposal new fabrics / yarns, which are not produced in India will also get manufactured and in times to come even these yarns / fabrics will be produced indigenously substituting imports.” 

“Under this proposal the procedural hurdles which are faced by SMEs in obtaining and closing advance licensing route for the imports would automatically get solved at one hand and on the other hand the imports for export manufacturing would be subjected to import duty (nil in the case of advance licensing scheme). This proposal would automatically lead to grant of full duty drawback at the time of value added exports in the shape of garments since inputs in the shape of yarn / fabric are subjected to payment of customs duty.”


Must ReadView All

Ghana makes tax stamp compulsory on imported textiles

Textiles | On 27th May 2018

Ghana makes tax stamp compulsory on imported textiles

To curb illegal imports, Ghanaian authorities will put a tax stamp on ...

Courtesy: Vishal Mega Mart

Apparel/Garments | On 27th May 2018

Partners Group, Kedaara Capital taking over VMM

Partners Group, a private markets investment manager, and Kedaara...

Courtesy: Deckers

Apparel/Garments | On 27th May 2018

Deckers Brands sales soar 8.4% in Q4FY18

Deckers Brands, a global leader in designing, marketing and...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search