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FIEO President welcomes new duty drawback plan
17 Sep '11
2 min read
Welcoming the announcement providing smooth transition from DEPB to Duty Drawback, Mr Ramu S Deora, President, FIEO thanked both the Finance Minister and the Commerce, Industry & Textile Minister for comprehensive announcements.
Mr Deora said that expansion of Duty Drawback Scheme from 2835 items to approximately 4000 items, adding 1100 from the DEPB schedule, will make Duty Drawback all encompassing without leaving any product from the existing DEPB Rates. FIEO President said that since reduction would be only to the extent of the stimulus component, added to the DEPB rates in October 2008, the new rates will be by and large acceptable to the industry.
He complimented Mr Pranab Mukherjee for giving exemption to 340 items from the capping of 5.5% as pre-October 2008 rates for these products were over 5.5%. In respect of the products covered both under DEPB and Drawback Scheme, there alignment with the DEPB Scheme will ensure a better rate for such products as well, added FIEO Chief. Responding to a query, Mr Deora said that even if the new drawback rates are little less, the saving on account of transaction time and cost will offset the disadvantage as Duty Drawback benefit will directly be credited to exporters' bank account while DEPB involves paper work and the same is subject to VAT as well on its sale/purchase.
The dispensation given to marine and passenger vehicles will ensure their export competitiveness as while the marine sector is highly employment intensive, auto sector is highly value added segment where India is carving out a place for itself, said FIEO Chief.
As regards the reduction in Duty Drawback Scheme, Mr Deora said that the same is largely on account of reduction in customs/excise duty on fuel and since the reduction has been capped at 10%, except for silk fabric, silk garments and silk carpets, the reduced rates will not have much adverse effect.
President, FIEO said that we are awaiting for detailed notification for comprehensive analysis but exporters are by and large happy with the announcement.He also appealed to exporters to continue with their good work in promoting exports as he is confident that they will be financially better-off under new scheme.
Mr Deora said that expansion of Duty Drawback Scheme from 2835 items to approximately 4000 items, adding 1100 from the DEPB schedule, will make Duty Drawback all encompassing without leaving any product from the existing DEPB Rates. FIEO President said that since reduction would be only to the extent of the stimulus component, added to the DEPB rates in October 2008, the new rates will be by and large acceptable to the industry.
He complimented Mr Pranab Mukherjee for giving exemption to 340 items from the capping of 5.5% as pre-October 2008 rates for these products were over 5.5%. In respect of the products covered both under DEPB and Drawback Scheme, there alignment with the DEPB Scheme will ensure a better rate for such products as well, added FIEO Chief. Responding to a query, Mr Deora said that even if the new drawback rates are little less, the saving on account of transaction time and cost will offset the disadvantage as Duty Drawback benefit will directly be credited to exporters' bank account while DEPB involves paper work and the same is subject to VAT as well on its sale/purchase.
The dispensation given to marine and passenger vehicles will ensure their export competitiveness as while the marine sector is highly employment intensive, auto sector is highly value added segment where India is carving out a place for itself, said FIEO Chief.
As regards the reduction in Duty Drawback Scheme, Mr Deora said that the same is largely on account of reduction in customs/excise duty on fuel and since the reduction has been capped at 10%, except for silk fabric, silk garments and silk carpets, the reduced rates will not have much adverse effect.
President, FIEO said that we are awaiting for detailed notification for comprehensive analysis but exporters are by and large happy with the announcement.He also appealed to exporters to continue with their good work in promoting exports as he is confident that they will be financially better-off under new scheme.
Federation of Indian Export Organisations
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