Home / Knowledge / News / Textiles / SIMA hails govt decision on Duty Drawback
SIMA hails govt decision on Duty Drawback
18
Nov '15
The Southern India Mills' Association (SIMA) has hailed the Central Government's decision for considering its pleas and enhancing the drawback rates and value caps for various value added products such as yarns counts in 100s and above, fabrics with less than 200 grams per sq.mtr, knitted and woven garments.

On November 16, the Central Government notified the Schedule of revised All Industry Rates of Duty Drawback effective from 23rd November, 2015

In a press release, SIMA Deputy Chairman, P Nataraj said the attractive rates given for certain value added products would encourage the textile industry to focus more on value addition which would generate more foreign exchange. He said that there is a marginal reduction in the normal products, both in the drawback rates and value caps, which could have been avoided considering the crisis being faced by the industry.

Nataraj pointed out that the revised rate also encourages the industry to follow the Cenvat route to prepare the industry for the GST when it comes into force. He said that when the exports opt for cenvat facility, they would get enhanced rate and value.

The SIMA Deputy Chairman said has that for the first time three count groups have been given for yarn based on the request made by the Association so that the value added yarn producers would get better compensation under duty drawback system.

For example, spinning mills in South India account more than 90 per cent of superfine count yarn exports (100s and above) and such yarn is eligible to get Rs 25.60 per kg as drawback value as against the previous value of Rs.18.00 per kg. Similarly, the woven grey fabric with less than 200 grams per sq metre were earlier given Rs 37 per kg and now the revise rate is Rs.40 per kg.

However, for the fabric above 200 grams per sq metre, the value cap has been steeply decreased from Rs.37 to Rs.19 per kg. The drawback rate for cotton garments have been increased from 7.5 per cent to 7.7 per cent and value cap has been increased from Rs.75 per kg to Rs.103 per kg. In the case of cotton made ups, the value cap has been reduced from Rs.71 to Rs 70 per kg while the rate has been increased from 7.1 per cent to 7.3 per cent. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Kevin Nelson
TissueGen

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kerem Durdag
Biovation II LLC

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search