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Government notifies new duty drawback rates for exporters |
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NEW DELHI: The government has notified revised rates duty drawback for exporters as country's outward shipments slipped into red for the first time in six months in October.
The Ministry of Finance has notified the new All Industry Rates (AIR) of Duty Drawback for the 2014-15 financial year.
"As before, the drawback rates have been determined on the basis of certain broad average parameters including, inter alia, prevailing prices of inputs, input output norms, share of imports in input consumption, the applied rates of central excise and customs duties...which are used as input services in the manufacturing or processing of export goods...," it said.
Drawback caps continue on most tariff items with AIRs above 2 per cent, it said, adding "The caps have been revised. At rates below 2 per cent there is cap with respect to guar gum and frozen marine products".
Duty drawback is refund of duties on imported inputs for export items.
According to apex body FIEO, there are no major changes in the new rates, however small changes have been made in sectors like engineering, textiles, carpets and certain stationery items.
"More or less the rates have been retained and the trade and industry are appreciate the efforts of the Department," FIEO President M Rafeeque Ahmed said.
He, however complimented the Drawback Committee for rationalising several entries at four digit level saying this will benefit exporters in availing the drawback under the residuary sub-heading "others" and help address their issues.
He also said reduction in Customs component rates of agriculture products, certain items of organic chemicals, footwear, ceramic products, knitted & crocheted garments, stone/cement does not seem to be warranted as there was no change in duty structure, he said.
Exports body Texprocil said the new Drawback rates are positive and growth oriented.
"Overall the rates for Cotton textiles and the Drawback caps have been increased," it Chairman R K Dalmia said.
The new Drawback schedule has incorporated the additional categories of products such as flame retardant fabrics, Cotton Yarns below Counts 50 and above Counts 50, Cotton Lycra Yarn based on rising international demand.
India's exports contracted by 5.04 per cent to $26 billion in October while imports grew by 3.62 per cent, pushing up the trade deficit as gold imports shot up during the month.
Source : economictimes.indiatimes.com
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