Ready-made garment exporters in the northern region are apprehensive about the new rates of export incentive scheme as they fear the revised rates will significantly bring down the export abilities of the apparel sector, The Tribune has reported.
The exporters have expressed their concerns with the Centre and requested it to immediately review the new rates of export incentive scheme to boost business.
The Central Board of Indirect Taxes and Customs (CBIC) had, last week, cut the duty drawback rates on cotton, man-made and blended garments, which will take effect from 19 December.
The Apparel Export Promotion Council (AEPC), in a letter to the Finance Ministry, has termed the move a setback for the industry which, due to the implementation of GST, is already losing its share in the global market.
“Policy support for the industry after GST has significantly declined by around 5.5 per cent,” the letter stated.
The council has sought the enhancement of drawback rates like it was done in other important segments such as yarn, fabric and made ups, to benefit the entire value chain. It has also provided detailed cost analysis for enhancing the drawback rates to boost exports.
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