Union Government extends duty drawback facility for textiles
The Central Board of Excise and Customs (CBEC) has extended duty drawback facility on all textile products for one year to boost exports.
Besides, CBEC also has increased rates in some cases for the benefit of Indian exporters.
What is duty drawback?
- It is a refund that can be obtained when an import fee has already been paid by a business entity for a good but the good is then subsequently exported.
- In order to obtain a duty drawback, a business does not have to have paid the import duty nor do they have had to perform the product’s exportation. But they only need to be assigned the drawback from those to whom it would typically be due.
Under the revised norms
- Domestic textiles will attract drawback of 7.5% now as against 7.3% earlier. Thus, duty drawback benefits textile exporters will help to overcome barriers exporters face in exports.
- Similarly, incorporation of blanket and other cotton products in this category will attract drawback rate of 8% from 7.2% earlier.
What is purpose of the duty drawback facility?
These drawback duties are aimed at giving a boost to exports of cotton textiles. It will provide adequate neutralization of incidence of duties and taxes on the export goods and make them more competitive in the international markets.
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Month: Current Affairs - November, 2016