Home / Knowledge / News / Apparel/Garments / Proposed duty drawback cut will devastate us - apparel exporters
Proposed duty drawback cut will devastate us - apparel exporters
04
Aug '08
The proposed cut in duty draw back from 11 to 7 percent, which the Government is still mulling over, has met with severe criticisms from the Indian apparel export industry. A plea has been made by the apparel sector urging the Finance Ministry to block any further developments in this policy which is bound to bring devastating consequences across the country.

Duty drawback is essentially reimbursement to exporters of taxes paid on goods during the course of production. However, the situation is already getting grim as Rs300,000 million fetched by the apparel sector is expected to fall by 10 percent this year.

Apparel Export Promotion Council (AEPC) vehemently protested against accepting a cut in duty drawback on grounds that slashing 3 to 4 percent will have a fatal impact on the employment number of the apparel sector which is, even now, declining at an uncontrollable rate.

However, Government has taken this stance and counteracted on this issue in light of the fact that exporters have been misusing benefits granted by the center. It is therefore, keen on introducing an entirely new system to monitor the reimbursement of taxes in addition to reducing the duty drawback.

But, exporters who have already made commitments to clients at lower prices during August – December period and are finding themselves in a fix. Additionally, hike in cotton prices which have mounted by almost 20 percent in the last two months, have also left the industry grappling for respite.

Although, the Government did try easing inflationary pressure by allowing duty-free imports of cotton fibre, it has failed to pull down prices which soared by around 15 percent.

Even experts are of the opinion that if India is to stand firm in competition to Bangladesh, Cambodia, Vietnam, and Sri Lanka, it cannot afford to lose its market, which is quite likely if the duty drawback is reduced.

Must ReadView All

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search