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Govt notifies revised rates duty drawback for exporters for FY2014-15

20 Nov 2014 Evaluate

In an attempt to rebound overseas shipments, which slipped into the red for the first time in six months in October, the government has notified revised duty drawback rates for exporters for the 2014-15 financial year.

Like earlier, the drawback rates have been determined on the basis of certain broad average parameters including, inter alia, prevailing prices of inputs, input-output norms, share of imports in input consumption, the applied rates of central excise and customs duties, used as input services in the manufacturing or processing of export goods. Further, drawbacks caps continue on most tariff items with All Industry Rates (AIRs) above 2%, however the caps have been revised at rates below 2%.

According to apex body FIEO, there are no major changes in the new rates, however small changes have been made in sectors like engineering, textiles, carpets and certain stationery items. Further, FIEO’s President, M Rafeeque Ahmed also lauded Drawback Committee for rationalizing several entries at four digit level, pointing this as move to benefit exporters in availing the drawback under the residuary sub-heading 'others' and help address their issues. Besides, Exports body Texprocil also termed ‘drawback rates’ as positive and growth oriented.

The new Drawback schedule has incorporated the additional categories of products such as flame retardant fabrics, Cotton Yarns below Counts 50 and above Counts 50, Cotton Lycra Yarn based on rising international demand.

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