Home / Knowledge / News / Textiles / SIMA Chairman hails hike in textile duty drawback rate
SIMA Chairman hails hike in textile duty drawback rate
20
Nov '14
Chairman of The Southern India Mills’ Association (SIMA), T Rajkumar welcomed the decision of the Duty Drawback Committee and the Government for announcing enhanced rates and value caps for textiles and clothing products.

The Duty Drawback Committee recommended the enhanced rates which become applicable from November 22, 2014, on a majority of textile and apparel products, after taking feedback from various textile export promotion councils and after also taking into account the levies suffered.

T Rajkumar thanked the Committee for favourable considering the recommendations made by SIMA in respect of cotton yarn, spandex coarse spun yarn and fabrics and welcomed fixing separate rate for counts 50s and above.

Earlier cotton yarn was eligible only for a single rate at 3 per cent with a value cap of Rs 13 per kg while in the revised rate, the same has been retained for counts below 50s and for counts 50s and above, the rate has been revised to 2.8 per cent with an enhanced value cap of Rs 18 per kg.

T Rajkumar is of the opinion that though certain counts like 50s and 60s might be affected with the revised rates, while superfine counts 80s and above would be benefited. Likewise, a separate rate for spandex coarse spun yarn at 4.7 per cent with a value cap of Rs 16 per kg would help exporters to have a competitive edge.

“There has been a steady growth in the export of spandex coarse spun yarn and the revised rate would help in increasing such exports,” he said.

The drawback rate for grey cotton fabric has been reduced from 4.4 per cent to 4.3 per cent, however value cap has been hiked from Rs 24.50 to Rs 37.00 per kg, while in dyed fabrics, rate has been increased from 4.9 per cent to 5.0 per cent and value cap has also been raised from Rs 31.50 to Rs.50.00 per kg.

SIMA Chairman has stated that though the same rate has been retained for grey knitted fabrics, the rate has been revised for dyed knitted fabrics from 4.9 per cent to 5.1 per cent with a marginal increase in value cap of Rs 31.50 to Rs 33.00 per kg.

T Rajkumar appealed to treat made-ups on par with garments and consider giving enhanced rates, considering that there is a marginal reduction in drawback rates of made-ups by 0.1 per cent and Rs 4.00 per kg.

The drawback rate for cotton ready-made garments has been marginally reduced from 7.6 per cent to 7.5 per cent while substantially increasing the value cap from Rs 56.70 to Rs 75.00 per kg and in blended garments, the rate and value cap has been expanded from 8.9 per cent to 9.5 per cent and Rs 58.10 to Rs 90.00 per kg, respectively.

The drawback rates for man-made garments too have been marginally reduced from 10.2 per cent to 9.8 per cent, but value cap has been amplified from Rs 59.50 to Rs 93.00 per kg.

The SIMA Chairman added that the enhanced value cap would encourage value addition which is the need of the hour to boost exports, capture the international markets and bridge the gap in the balance of payments. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Textiles | On 27th Feb 2017

Textile industry can boost South African economy: Minister

The textile industry is one of the most strategic platforms through...

Textiles | On 27th Feb 2017

KBR bags LBED revamp contract for LG Chem's ethylene plant

KBR, Inc has bagged a technology licensing and basic engineering...

Interviews View All

Vasanth Kumar
Max Fashion India

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

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Kerem Durdag
Biovation II LLC

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Prathyusha Garimella
Prathyusha Garimella

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

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
February 2017

February 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