Exporters in Tirupur have been awaiting their ROSL (Rebate on State Levies) refunds for three months. For the Tirupur knitwear cluster alone, the pending ROSL claims (1.7 per cent free on board worth exports) work out to be Rs 105 crores. Settlement of pending claims would be helpful to plants at a time when the units are operating under wafer-thin margins and struggling to sustain in the price-conscious global market. These have to compete against countries which are enjoying duty-free status in the European Union and the United States markets.

Under the ROSL scheme, a rebate on state levies is provided such as value-added tax and central sales tax on inputs, including packaging, fuel, and electricity duty, accumulated through various stages of production, from yarn to finished garments. For exporters, the scheme offers enhanced duty drawback cover on inputs.

The scheme takes into consideration all taxes paid by exporters like VAT, electricity duty, octroi, entry tax etc. The ROSL rate for garment items exported varies from 2.65 per cent to 3.9 per cent.

Tirupur exporters also want India to expedite the free trade agreement with Russia, which has given Bangladesh the duty-free garment facility, and they hope India can also avail of this facility.