Garment exporters decry reduced duty drawback

Vijay Trivedi

Mumbai, June 6: THE reduction in rate of duty drawback (DBK) has put apparel exporters in a piquant situation one more time. This is due to the fact that the Government has reduced new DBK rates by around 25-40 per cent from the previous level.

All India Garments Exporter Association’s representative have set up meeting on Wednesday with the commerce minister at New Delhi, for restoration of the duty drawback rates.

The government has announced the revised DBK rates with a cap value applicable to various segments of garments. For example, DBK rate reduced on woven shirt to 12.5 per cent with a cap value of Rs 35 from 16.5 per cent with a maximum cap of Rs 65. Similarly on a knitted T-shirt, DBK rates reduced to 9.5 per cent with a cap of Rs 10 from 15 per cent with maximum cap of Rs 55.

While speaking with The Financial Express, Confederation of Indian Apparel Exporters (CIAe), president, Amit Goyal said: “We are meeting the commerce minister for restoration of DBK. New DBK rates are a complete eye wash, as the actual DBK rate for knitted t-shirts would actually work out to be only 4.5, as most of the T-shirts are sold between $4-5 per piece and this announcement has left most of exporters shell shocked.”
Among the other representative, CIAE, Apparel Export Promotion Council, Garments exporters, All India Export Manufactuerers Association etc., delegation to meet the commerce ministry and the joint secretary of duty drawback.