Search Result for : Duty Drawback

The Dollar Business Bureau Apparel exporters’ body, Apparel Export Promotion Council (APEC) has welcomed the Government’s move to double the rates of incentives under the Merchandise Exports from India scheme (MEIS) for readymade garments and made-ups. Last week, the Directorate General of Foreign Trade (DGFT) has increased the rates for garments and made-ups to 4% from 2% of value of exports under the MEIS. The revised rates are effective from November 1. Commenting on development, AEPC Chairman Ashok G. Rajani said, “We welcome the increase in the rates of MEIS. The enhancement in the rates will help in the fulfilment of orders for the Christmas festival as it will result in easing the blocked capital. It will help in the mitigation of the ...

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, ...

The Dollar Business Bureau The slew of measures such as reduction of GST rate on man-made fibres, immediate refund of GST and introduction of e-wallet facility for exporters, taken by the GST Council last week, have been welcomed by the Apparel Export Promotion Council (AEPC). “AEPC welcomes the slew of measures taken by the GST Council under the Chairmanship of Finance Minister Arun Jaitley in its 22nd meeting,” the Exporters’ body said in a statement. AEPC views that these measures will provide immediate relief to the apparel exporters which have been going through a stressful phase due to various factors, global as well as domestic, it added. The measures include reduction in the GST rate from 18% to 12% of man-made items like synthetic filament yarn ...

The Dollar Business Bureau Ahead of the GST Council’s meeting on Friday, Apparel Export Promotion Council (AEPC) have urged the government to address the refund of embedded taxes on exports, including the levies on cotton, electricity, input tax credit restrictions for man-made fibres used in textiles and purchases made from unregistered dealers. The GST Council would take decisions on the IGST refunds at its Friday meeting in New Delhi, Sushil Kumar Modi, its Head of Group of Ministers (GoM) has said on Wednesday.  As per an Industry representation, Middle East, South Asian and African countries have emerged as a significant market for Indian readymade garments and since lot of orders were already booked before the introduction of GST, the curtailment in duty drawback ...

By Ranjeet Mahtani and Suhasini Joshi The Duty Drawback Scheme introduced for incentivizing and facilitating exports has been continued under the GST regime. This drawback scheme is an export beneficiation where either a part, or in some cases the entire customs and central excise duties levied on inputs used in manufacturing export goods and Service tax on services used for export of such goods are refunded by the Central Government to the exporter. The exports that are eligible under this scheme are: export of goods which were imported into India as such, or export of goods which were imported into India for use for identified purposes and export of goods which are manufactured or produced out of materials which were either imported or indigenously procured. Under this ...

The Dollar Business Bureau The Ministry of Textiles issued a notification on August 1, as a transitional arrangement for the period July-September 2017, exporters of garments and made-ups can claim remission of state levies on rates there prior to the introduction of GST. Under the remission of state levies (RoSL) garments and exporters of made-ups are entitled to claim refunds of the levies paid, from the Central government. Post GST many exporters were demanding that the government retain RoSL under the duty drawback scheme which was announced by the Central Government in 2016 as part of the Rs.6000 crore package, announced by the textile ministry. In a notification on August 1 which reads, ‘In order to support exporters of garments and made-ups, the Government ...

The Dollar Business Bureau With the implementation of GST, the Customs Board has decided to reorganise the Customs functions which were previously handled by the Central Excise department. In this context it has been decided that in respect to supplies made by Domestic Tariff Area or Domestic Tariff Zone (DTA) unit to Special Economic Zone (SEZ) units or developers and where the SEZ unit or developer issues a disclaimer to the DTA supplier and drawback is claimed by the DTA supplier, the drawback going forward shall be processed and paid by the Principal Commissioner of Customs or Commissioner of Customs/Customs (Preventive) under whose jurisdiction the DTA occurs. Earlier the same was disbursed by the Central Excise Commissionerate under whose jurisdiction the manufacturing unit ...

Sneha Gilada The Central Board of Excise and Customs (CBEC) has called for inputs on duty drawback rates from Export Promotion Councils and other top-tier industry bodies. Just like every other year, major stakeholders are to send across their views on the crucial refund mechanism for exporters. But unlike every other year, this exercise must consider the disruptive effects of the new GST regime on exporters. The interested parties are expected to submit their opinions and suggestions to the revenue department by March 15, 2017. The duty drawback scheme currently helps exporters obtain a refund of the customs and excise duty paid on input materials used in manufacturing finished goods for export. GST has subsumed all the indirect taxes including service tax, excise and VAT. Only the basic customs duty remains out ...