NEW RATES AND DUTY DRAW BACK FOR COTTON HANDLOOM
FABRICS AND MADEUPS – HEPC’S CONCERN
Government of India has announced new rates and
Duty Drawback for cotton handloom fabrics and madeups with effect
from 01-06-2002 after taking into account the revised tariff rates
announced in the new budget. But HEPC has expressed its concern
over some of the anomalies in handloom items which can adversely
affect the export performance.
In a statement issued by Shri Manish K. Haria,
Chairman, H.E.P.C. it is said that in the case of handloom durries
in serial number 57.02, the drawback rate is retained at the old
rate of 9% of FOB value adopted prior to 1-6-2002 without any
change in CAP values. The changes in excise duty levied on hankyarn
have not been taken into cognizance which may cause severe setback
to durry exporters particularly in Panipat. Similarly request
of the trade and Council on introducing new entry for 70:30 cotton
synthetic fibre blend, and 60:40 cotton synthetic fibre blended
durry to take care of vast gap in the duty incidence on such blended
durries have gone unnoticed. Other than this cotton durries whether
dyed or undyed were enjoying duty drawback till 1-6-2002, but
after the new announcement only cotton durries when dyed will
be entitled for drawback. Consequently, many export orders on
the pipeline for such processed durries are causing huge loss
due to denial of duty claim for processed cotton durries with
effect from 1-6-2002.
According to the Chairman, Handloom Export
Promotion Council, these anomalies will severely cripple the Handloom
exports. Handloom industry is facing severe competition both internally
and externally. The export of handoom during April to Feb 2002
is Rs. 1894 crores against last year export of Rs 1963 crores
in the corresponding period, resulting into a decline of 3.5%
in Rupee terms and 7.6% in dollar terms. Therefore, Council had
taken up these issues with Ministry of Textiles, Ministry of Revenue
for its early redressal, he said.
