Duty Drawback Rates Increased to Boost Export

Government has recently raised the duty refund rates on a readymade garments such as certain MMF yarn/ fabric (chp 54, 55), readymade garment made of cotton, wool & cotton with lycra (chp 61, 62), made-ups of cotton/ MMF (chp 63), hand tools (chp 82), etc. in order to promote exports.

These revised rates are based on average incidence of Customs and Central Excise Duties and Service Tax related with the manufacture of export goods and involve substantial total drawback for exporters. Revised rates of duty drawback are effective from November 23, 2015 as the export have decline in the past 11 months.

Apart from the rate changes, many new items have been included to “better differentiate” export products with higher duty incidence and also to address classification issues.

The composite rates have been increased in cases like Madeups of Cotton, Readymade Garments of cotton and cotton with lycra and certain MMF yarns /fabrics. The Drawback Schedule has incorporated a separate entry for “Cotton yarn of 100 counts or more.

However, in a positive development, the government also allowed exporters claiming brand rate of drawback rate to avail provisional drawback rate until the brand rate is decided.

The government added the expert committee would look into exporters’ concerns arising from new schedule of rates and make further recommendations to the government in January 2016. The government will also take into account feedback from export promotion councils to this effect.

http://www.texprocil.org/cdn/gallery/12/8768f34a6384d2ae048c54a87800f760.pdf – Click here to read the complete list