Duty drawback rates revised, apparel exporters thank Government

Duty drawback rates

The Government has announced the new rates of duty drawback and a few products have had a significant increase in rates.

Cotton T-shirts now have a drawback rate of 3.1 per cent compared to 2.1 per cent of earlier, rates for man-made T-shirts also increased by 0.5 per cent, babies garments (blended and cotton) do have a little increase.

Regarding drawback value cap per unit, there is a significant revision, as for babies garments, now the cap is Rs. 29.4 which was earlier Rs. 13, similarly in blended babies garments, earlier the cap was of Rs. 6 which is now Rs. 12.5.

This revision has come more than after three years as prior to this, the last revision was done on 28th January 2020.

The Department of Revenue, Ministry of Finance, Government of India has issued a Notification recently by revising the Drawback schedule. This notification shall come into effect from 30th October 2023.

The notification also says that in  respect  of  the  tariff  items  in  Chapters  60,  61,  62  and  63  of  the  said  schedule,  the  blend containing cotton and man-made fibre shall mean that content of man-made fibre in it shall be more than 15 per cent but less than 85 per cent by weight and the blend containing wool and man-made fibre shall mean that  content  of  man-made  fibre  in  it  shall  be  more  than  15 per cent  but  less  than  85 per cent  by  weight.  The garment or made-up of cotton or wool or man-made fibre or silk shall mean that the content in it of the respective fibre is 85 per cent or more by weight.

K.M. Subramanian, President, Tirupur Exporters Association (TEA) said, “We are happy with this decision as we have appealed for the revision of drawback rates and value cap upwards for knitwear garments.”

Courtesy: apparelresources.com

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