Apparel exporters seek hike in duty drawback rate

Apparel export trade body AEPC has suggested the government to simplify the drawback schedule and recommend a new entry in drawback for Total Operations Processing System (TOPS) as due to rise in input costs, the average unit value realisation of garments, dipped by 5.66 percent.

"Due to adhere international market, the FOB (freight on board) prices from India have fallen in the period Oct-Dec, 2012 to 5.66 percent as compared to same period in 2011, although the cost of diesel, prices of inputs have gone up. So there is need to hike in duty drawback rate for the sector," Apparel Export Promotion Council (AEPC) Chairman A. Sakthivel, suggested the drawback committee.

The drawback committee, constituted by government, visited Tirupur to assess the incidents of Customs Duty, Excise Duty and Service Tax component on the export of readymade garments.

Sakthivel made a presentation before the Drawback Committee under the Chairmanship of Dr. Saumitra Chaudhuri, Member Planning Commission on 3rd April 2013 at Tirupur. 

He suggested for simplification in the drawback schedule and recommend a new entry in drawback for TOPS. The committee appreciated the recommendation of the AEPC chief.

It is to be noted that Chairman AEPC last month had written to Chairperson CBSE on the withholding of duty drawback all India.

The Drawback committee also visited Common Effluent Treatment Plant (CETP) at Arulpuram where the committee was shown as to how the Zero Discharge in effluent has been achieved by Tirupur, which is first of its kind in the world. 

The Drawback Committee saw various complicated procedures involved in the operation in CETP.  Subsequently, Dr. A.Sakthivel took them to knitting and garment manufacturing unit.

The other members of the committee are Gautam Ray, T.R.Rustagi and SB Mohabatra, Former Secretary Textiles. Along with the delegation Vinod Kumar Agarwal, OSD - Drawback was also present.