Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

India: CBIC slashes duty drawback rates for cotton and polyester

The Central Board of Indirect Taxes and Customs (CBIC) has slashed duty drawback rates from 2 to 1.8 percent for cotton garments. For polyester, the new duty drawback rates will be 2.3 per cent from 2.5 per cent earlier. The new drawback rates will be effective from December 19, 2018.

Exporters noted there has been a marginal increase in business for the past couple of months mainly due to dollar appreciation but the industry is far behind the 2016-17 level. They advised the government to stop raw cotton export to boost exports.

Apparel exporters are required to use various inputs for making garments. About 70 per cent of the material consumed is cotton, which is agri-product coming from farming sector and out of GST ambit. It comes loaded with embedded taxes, which the farmer has to pay for production and transportation of cotton.

During the production process of fabric and garments, electricity gets consumed which is also embedded in the cost of garment. Expenses are incurred on fuel and transportation, exporters said, giving reasons for losing market share in the international market. All these add to the input cost and leads to losing competition especially with China.

 

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo