Home / Knowledge / News / Textiles / Textile exports hit by delay in release of duty drawback
Textile exports hit by delay in release of duty drawback
21
Apr '14
A large number of textiles exporters are facing a huge financial crunch due to substantial delay in getting duty drawback since the last five months from all the major ports.
 
According to Shri Manikam Ramaswami ,Chairman, “The Cotton Textiles Export promotion Council ( TEXPROCIL), exporters have been requesting the Customs to release the duty drawback amounts to them, as it is a refund of duties and taxes incurred at the inputs stage on export products. The delay is mainly attributed to non-availability of funds with the Customs.”
 
Drawback claims remain pending since September 2013 despite persistent follow up efforts made by the exporters, thereby, adversely affecting cash flows. “Textile industry typically operates between 3 to 5% net profit and delay in receiving the drawback amount badly impacts the industry due to funds shortage”, pointed out the Chairman, TEXPROCIL.
 
Expressing concern over the delay, Shri Manikam Ramaswami stated that “Textiles exports are getting impacted due to the Govt’s interest free borrowings from the Industry which exceeds the industry’s annual profit”.
 
“Ideally ,duty drawbacks should be released in two weeks after exports as the textiles mills operate at 50% to 75% of exports on total turnover  and if the drawback claims remain  pending just because of Custom’s collection target, then it is a serious issue and should be addressed at the earliest”, according to Shri Ramaswami.
 

Texprocil

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Kevin Nelson
TissueGen

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
January 2017

January 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