India has finally announced duty drawback rates for textile and apparel items for the year 2018-19. The announcement made through ministry of finance’s Notification No. 95/2018-CUSTOMS (N.T.) shall come into force from December 19, 2018.
The duty drawback rate has been increased from 1.2 percent to 1.7 percent for cotton yarn, from 1.3 per cent to 1.6 percent for cotton fabric, and from 2 percent to 2.6 percent for made-ups.
P Nataraj, chairman, The Southern India Mills Association (SIMA), said, “The increase in duty drawback rates would help the exporters to improve their competitiveness, especially in the countries with which India has preferential tariff agreements (PTAs). The exclusion of value cap on most of the items, which has been discouraging value addition, is another welcome feature of the announcement.”
Also, there’s a marginal decrease in the duty drawback rates for apparel products. Taking into consideration the incessant slump in garment exports, the industry was hopeful of an increase in rates.
“The Government could have at least continued the existing rates of duty drawback to sustain the existing level of garment exports. The diminution in drawback rates on garments might have negative impact on exports,” SIMA Chief added.