TEA demands duty drawback for garments sector

By

Maverick Martins

Published
Dec 3, 2018

The Tirupur Exporters Association (TEA) has sought revision of all-industry rate of duty drawback for the garments sector to help it overcome the crisis and boost exports in the sector.
 

TEA has written to the Finance Minister Arun Jaitley to look into the matter and resolve the issue at the earliest and claimed that it is affecting the exports in the sector.
 
Earlier, TEA had appealed to the Union Textiles Minister Smriti Zubin Irani to release the pending rebate on state levies (ROSL) to the garment sector.

The pending ROSL claims for Tirupur cluster work out to Rs 105 crore (approx $15 million) and a quick settlement is expected to help the exporting units.
 
“The duty drawback rate was usually announced in September or October, but it was not this year and the government has been delaying the announcement since the rupee has depreciated, and that was affecting exports,” president of the association Raja M Shanmughan said in a press statement.
 
“In the half-yearly period of this financial year, the exports recorded Rs 26,056 crore against Rs. 29,210 crore during the corresponding period last year, a decline of 10.8 percent. The exports from Tirupur for the same six-month period saw a decline from Rs 13,600 crore to Rs 12,100 crore,” he added.
 
TEA has also requested the government to initiate free trade agreement (FTA) with potential European countries to boost exports from the country.