Industry & Economy
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Exports & Imports
FIEO welcomes Ministry move on drawback rates
Our Bureau
New Delhi
,
May 4
THE Federation of Indian Export Organisation (FIEO) has welcomed the Finance Ministry's move to express drawback rates in ad valorem terms.
This would encourage value added exports and result in higher per unit realisation, according to the FIEO President, Mr O.P. Garg.
In a statement, the FIEO highlighted that the move to factor in the element of education cess and the incidence of duty on HSD/furnace oil in the duty drawback calculation would help improve export competitiveness.
FIEO President also reiterated the federation's earlier demand that State-level levies and other local levies should be neutralised for the exporters through the duty drawback.
Welcoming the move to adopt harmonised system of classification as the basis for fixing drawback rates, Mr Garg held that this step would reduce classification disputes. He also suggested that value caps on few products should be raised.
Meanwhile, the Garments Exporters' Association (GEA) on Tuesday welcomed the Government's decision to "partially roll back" the reduction in drawback rates and also for determining the rates on ad valorem basis.
The President of GEA, Mr Sudhir Kharabanda, however held that the reduction of about 50 per cent in the drawback cap per unit would discourage value addition in garments exports.
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