Home / Knowledge / News / Apparel/Garments / GEA seeks 5% hike in duty drawback rate
GEA seeks 5% hike in duty drawback rate
24
Jun '14
The New Delhi-based Garment Exporters Association (GEA) has sought five percent increase in duty drawback rate and capping of interest rate at seven percent, in its recommendations sent to the Ministry of Textiles, Government of India.
 
In its representation to the Ministry of Textiles, the Garment Exporters Association said the textile industry in general and garment exporters in particular are facing serious challenges because of worldwide recessionary trends and low unit value realization from overseas markets.
 
In a letter addressed to Mr. Santosh Kumar Gangwar, Minister of State for Textiles, GEA president Rakesh Vaid said over 95 percent of garment exporters belong to the micro, small and medium enterprise (MSME) sector and it would be in the interest of the Government to create policies that would kindle the spirit for growth in these entrepreneurs.
 
The GEA suggested few important key policy initiatives which it would like the Government to consider while finalizing the Budget proposals, Foreign Trade Policy and Labour reforms.
 
“It is necessary to hike duty drawback rates by five percent by increasing the scope and coverage of duty drawback scheme so as to ensure full reimbursement of excise duties, custom duties, education cess and various other Central and  state level taxes,” the letter said.
 
Secondly, GEA recommended that the interest rates for exports, both at pre-shipment and post-shipment levels, be reduced and capped at seven percent. There is also a need to increase Interest rate subvention from 2% to 4% on export credit, it added.
 
“The interest rate for export credit should be lowered substantially as high interest rate increases production as well as transaction cost of exporters.”
 
GEA also sought exemption of diesel from duties and levies for power captive generation, abolition of customs duty on import of textile machinery and equipment, simplification of administrative procedures and reduction of delays at the customs clearance, expediting enactment and implementation of the Goods and Service Tax (GST), and allocation of more funds for the Technology Upgradation Fund Scheme (TUFS).
 
“Import of cotton, synthetic yarn and blended fabrics should be permitted without license at fixed custom duty rate, equivalent to all industry rates of duty drawback,” Mr. Vaid said.
 
“The Government should also provide 5 percent duty credit scrip for import of fabric on actual user basis for readymade garment export,” he added.
 
Finally, the GEA sought simplification of the Focus Products and Focus Market Scheme, increased allocation under Market Development Assistance (MDA) and Market Access Initiative (MAI), revision of labour laws to improve labour productivity.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 4th May 2016

Ahead of FTA talks with China, Lanka worried about TPP

Even as Sri Lanka prepares for the third round of talks for a Free...

Textiles | On 4th May 2016

IMF predicts Asian growth to remain strong

The International Monetary Fund (IMF) expects growth in Asia and the...

Courtesy: GMAC Cambodia

Apparel/Garments | On 4th May 2016

Cambodia’s garment exports rise 13% in Q1

Garment and footwear exports from the Southeast Asian nation of...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

What is the influence of foreign trends and designs on Indian fashion?

GS Krishnan
Novozymes South Asia Pvt. Ltd.

Can enzymes prove to be sustainable in the textile sector? How can they...

Tracey Montford
Cake Lingerie

How is the market for maternity lingerie in countries like US, UK and...

Mohammad Hassan
Biax Fiberfilm

<b><i>About one in every 20 patients picks up an infection while...

Kevin Nelson
TissueGen

<b><i>Kevin Nelson, Chief Scientific Officer, TissueGen discusses the...

Mr. Johan Berlin
Investkonsult Sweden AB

Mr. Johan Berlin is the majority shareholder and Managing Director of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
April 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


<%@ language="VBScript" %>
feedback
We would love to hear from you about your experience using the new interface. A quick review of yours would help us give you a better experience.
Advanced Search