AEPC urges Govt to retain drawback at pre-GST stage
The Dollar Business Bureau Amid declining exports, apparel exporters body Apparel Exports Promotion Council (AEPC) urged the Government to keep the total duty reimbursements to the apparel sector be retained at pre-GST stage of 7.5% drawback without input tax credits, in addition to 3.5% of RoSL. India’s apparel exports has recorded a decline of 39%, in dollar terms, for the month of October. Overall, there has been a decline of 5.94% in the outbound shipments of apparels, according to the data released by the Government. “AEPC has indicated earlier about the decline in exports in the coming days on account of the issues which have arose after the implementation of GST,” the exporters’ body said in a statement. “In the wake of dwindling apparel exports, ...
AEPC demands refund of IGST on apparel machinery import
The Dollar Business Bureau Exporters’ body Apparel Export Promotion Council (AEPC) has asked the Ministry of Finance for the refund of Integrated Goods and Service Tax (IGST) paid on the import of machinery used by apparel manufacturer exporters. AEPC, in a letter written to Ministry of Finance, has stated that after the implementation of GST from July 1, 2017, apparel exporters are required to pay IGST up to 18% on assessable value plus basic customs duty (BCD) while clearing shipments of capital goods under the Export Promotion Capital Goods (EPCG) scheme. “The incidence of a very high IGST without any corresponding relaxation for export obligation has rendered the EPCG scheme unattractive,” AEPC said in a statement. In the letter written to GK Pillai, Chairman ...
AEPC demands refund of IGST on apparel machinery import
The Dollar Business Bureau Exporters’ body Apparel Export Promotion Council (AEPC) has asked the Ministry of Finance for the refund of Integrated Goods and Service Tax (IGST) paid on the import of machinery used by apparel manufacturer exporters. AEPC, in a letter written to Ministry of Finance, has stated that after the implementation of GST from July 1, 2017, apparel exporters are required to pay IGST up to 18% on assessable value plus basic customs duty (BCD) while clearing shipments of capital goods under the Export Promotion Capital Goods (EPCG) scheme. “The incidence of a very high IGST without any corresponding relaxation for export obligation has rendered the EPCG scheme unattractive,” AEPC said in a statement. In the letter written to GK Pillai, Chairman ...
Govt slashes RoSL rates post-GST to 0.39%, apparel industry not happy with the move
Aamir H Kaki The Government has slashed the rates under the Rebate of State Levies (RoSL) Scheme on export of garments and textile made-up articles to 0.39% from 3.9%, which would impact the industry in a huge way. A notification issued by the CBEC on Thursday said, “The Ministry of Textiles has issued notification (No.14/26/2016-IT) dated June 27, 2017 revising the rates of rebate in Schedules I, II and III for the RoSL Scheme effective from July 1, 2017. The revised rates are 0.39% for RoSL and 0.23% for RoSL under Advance Authorization-All Industry Rates (AA-AIR) combination respectively." “These revised rates on garment and textile made-up exports under RoSL Scheme are applicable to exports with Let Export Order dates from July 1 onwards,” ...
Apparel industry confident of achieving $30 bn exports target
Ahmad Shariq Khan & Aamir H Kaki Apparel Exports Promotion Council (AEPC), the official body of exporters in India, said that it is confident of achieving the target of $30 billion in exports set by the government, as well as committed to go beyond to exceed it. “We not only have to reach the target of $30 billion in exports that the government has set for us, but we have to go ahead and exceed that target. With our strategies and the reforms, I don’t think that this is going to be very difficult,” said Ashok G Rajani, Chairman, AEPC and Midas Touch Exports, while addressing a press conference in New Delhi on Tuesday. The press conference was organised to provide the details ...
Package for textiles to benefit the local industry more
Aamir H Kaki Commenting on the government’s approval for a special package for Textile and Apparel sector, Kripabar Baruah, Deputy Director, The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC), said that this is majorly going to benefit the domestic garments industry compared to exports. “The garment makers who are importing fabrics will be given additional duty drawbacks of 5 percent by the government, to promote manufacturing in the country. They are allowed to import almost free of cost under the Advance Authorisation Scheme,” Baruah told The Dollar Business. He said that the package will definitely generate employment, but mainly in the domestic manufacturing sector, not in the export sector. “The exports in this scenario are volatile and the profit margin is thin. Therefore, ...
Tirupur garment exports surge by 16.3% in FY16
The Dollar Business Bureau India’s garment exports from Tirupur, grew by 16.3% to Rs.23,050 crore in 2016. Tirupur is the main hub for knitwear in the country. It contributes nearly 90% of total cotton knitwear exported from the country. India’s total apparel exports were $7.78 billion in 2015, and its top five markets were the US, UAE, the UK, Germany, and France. “Exports from Tirupur would sustain growth in the current fiscal too following good demand from EU and this can be doubled if the Free Trade agreement (FTA) is finalised,” A Sakthivel, President of Tirupur exporters association opined. “We have seen growth in Europe, we are getting new buyers. Exports can jump to Rs.50,000 crore if the FTA with EU is in place,” ...
India, Bangladesh to join hands to develop regional exports hub
The Dollar Business Bureau India and Bangladesh are considering the development of a regional supply chain to boost their exports and set up a joint manufacturing hub of South Asian countries to counter China’s Pearl Valley Delta. India has plans to set up a special economic zone in Bangladesh and both the countries are likely to take a formal decision next month when Prime Minister Narendra Modi is expected to visit Dhaka, a media report said quoting senior government officials. “I have already spoken to the export processing zone regulators in Bangladesh, and we are looking forward to the idea of the Indian SEZ,” Bangladesh Foreign Minister Shahriar Alam was quoted as having said in New Delhi. Although the ...
