G. Gurumurthy

Coimbatore, March 21

Knitwear exporters from Tirupur have sought the removal of the countervailing duty incidence on imports covered under the export promotion capital goods (EPCG) scheme.

The recent Union Budget proposal has led to imposition of 4 per cent countervailing duty across all products imports, including those made under the EPCG, which will push up the costs for the export production sector, the Tirupur Exporters Association (TEA) has said in a representation to the Union Commerce Minister.

It wanted the Commerce Ministry to concede this request when the latter would initiate measures under the new foreign trade policy to be announced shortly.

Exporters' body plea

The TEA President, Mr A. Sakthivel, in a memorandum addressed to the Union Commerce Minister, Mr Kamal Nath, has also suggested that the exporters be compensated for the increase in exports by allowing proportionate reduction in income tax under the target plus scheme. This scheme in the present form has benefited only a few exporters.

Similarly, he also wanted the Centre to consider introducing Exim scrip in the place of the DEPB scheme to the exporters. The Exim scrip to be given as an option to the value of the drawbacks will enable the exporters import duty-free inputs, including the capital goods, accessories and so on.

(This article was published in the Business Line print edition dated March 22, 2006)
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