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.”