Exporters have welcomed the duty drawback rate rationalized for the year 2013-14, which brought more items under the scheme for tax refund to exporters to give a boost to overseas shipments."I am happy that the government has announced duty drawback for the garment cotton, man-made and silk for the year 2013-14. This is a critical incentive which we all need because of our value added imports. I applaud the government for the announcement at the times when rupee has been devalued to a considerable extent in recent times," A Sakthivel, Chairman AEPChas said.
Duty drawback allows the exporter to get back the duty paid on an item when it is exported. In order to boost export the new all industry duty drawback rates for 2013-14 to be made effective from September 21 for various export products group.
The exporters' body welcomed the increase in rates for some handicraft items, silk garments, fabrics and yarn, gold and silver jewellery and also bringing milk products under drawback as exports growth in dairy sector has been encouraging. Welcoming the move, Chairman EPCH, LekhrajMaheshwarihas said, "The Export Promotion Council for Handicrafts (EPCH) welcomes the increase in duty drawback rates in some of the handicrafts items however was expecting higher rates in some other items."
"It is an important benefit given to the handicrafts exporters, the exports are picking up and such an incentive at this juncture would certainly boost the morale of the handicrafts exporters, however, some more could have been done to lift the spirits of the exporters," said Rakesh Kumar, Executive Director, EPCH.
Among others, the drawback rates are garment cotton now will be 7.6 percent, man made will be 10.2 percent, silk 7.8 percent (from 7 per cent), leather shoes 9.1 percent (9.2 percent), leather sandals 8.1 percent (8.2 percent), sports shoes 3 percent (4 percent), etc.
