New incentives for garment exporters from Sep 20.

New Delhi, Aug 29 (PTI) In order to boost garment exports, the revenue department has started the process to operationalise the Rs 5,500-crore ROSL scheme from September 20, under which exporters will be compensated for state levies.

Presently, exporters get only duty drawback on the central levies imposed during the process of manufacturing of goods for exports.

In a first of its kind move, the Cabinet had cleared Rebate of State Levies (ROSL) on export of garments to refund the state levies which were not refunded so far.

"The main objective of the scheme is to provide for remission of state levies in addition to the duty drawback scheme, through the scheme for ROSL on export of garments on an average basis only," the Central Board of Excise and Customs (CBEC) said in a notification.

In order to operationalise the above mentioned scheme, CBEC said the officers who are designated as Drawback DDOs at the respective Customs locations are to be designated as the DDOs for this scheme.

As per a notification of the Textiles Ministry, ROSL scheme will come into operation from September 20, 2016 and will remain in force for three years.

The scheme is in line with the recognised economic principle of "zero rating" of export products and in recognition of the fact that at present only central levies are rebated by way of the drawback scheme, the Ministry said.

The ROSL will provide for remission of state levies in addition to the Duty Drawback Scheme on export of garments on an average basis only.

"The scheme aims to boost Indias garment exports thereby facilitating augmenting of investment and creation of more employment in the garment sector," it said.

The rebate will be disbursed from budgetary allocation of Ministry of Textiles using the Customs EDI System.

Garment exports totalled USD 1.45 billion in July, down about 6 per cent, year-on-year.

Source : indiatoday.intoday.in