Financial Daily from THE HINDU group of publications
Monday, Jan 24, 2005
Financial Daily from THE HINDU group of publications Monday, Jan 24, 2005 |
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Industry & Economy
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Textiles `New drawback norms beneficial for textile units' G. Gurumurthy
Coimbatore , Jan. 23 THE Coimbatore Dstrict Exporters and Importers Association (Codexia) has appreciated the Union Government for bringing about changes in the all-industry duty drawback rate structure. The shift from the value-based drawback rate hitherto followed to a weight-based structure for textile exports will discourage raw material exports and also curtail the scope for misusing the drawback claims by boosting invoice value of exports. The Codexia Secretary, Mr M.M. Sampath Kumar, in a statement, said that the weight-based drawback rate would not deprive the export incentive benefits and on the contrary all the popular items of garment exports such as the t-shirt/nighwear, lounge wear, woven shirts/polo shirts stand to get higher drawback rates in the new arrangement. Elaborating on this, he said that the current sale value of a basic t-shirt weighing 180 gm per sq mt (GSM) is $1.25 on f.o.b. (Rs 54.30) and as per the duty drawback rate of 11.5 per cent allowed so far, the entitlement for this product worked out to Rs 6.25 only. But the new rate of Rs 42 per kg allowed as duty drawback for this product will fetch a drawback of Rs 8.40 per piece (i.e. one kg of knitted fabric would yield five t shirts as the net weight of a finished `t'-shirt of 180 GSM will each be 200 gm).
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