Below are the revised duty drawback which has caused a big concern for the Indian Textile industry.
(i) Textiles and Textile Articles (Chapters 50-63)
a)
Silk: In the case of silk, the
drawback rate for higher quality silk fabrics has been decreased from 10.8% with
a drawback cap of Rs. 325/kg to 9.8% with a drawback cap of Rs.295/kg. The rate
for fabrics of noil silk has also been revised downwards.
b)
Wool: In the case of wool tops,
woollen yarn and fabrics the drawback rates have been decreased by 18% - 21%
approximately. The caps have also been revised downwards.
c)
Cotton Yarn and Fabrics: The earlier
drawback rate for grey cotton yarn of less than 60 counts was 6% (grey) / 7.1%
(dyed). The rate for cotton yarn of 60 counts and more was 9.5% (grey) /
10.6% (dyed). The new rate now is 4% for cotton yarn (grey) and 5% for cotton
yarn (dyed) irrespective of the counts of the yarn.
As for cotton fabrics, the new rate is 4.6% (grey) / 5.5% (dyed) with a
drawback cap of Rs.14per kg (grey) / Rs.20per kg (dyed).
The new drawback rate
for lungies and Real Madras Handkerchiefs is 5.5% with a cap of Rs.20/kg, the
same as applicable for dyed fabrics.
In the case of denim fabrics the new rate is 5.7% with a
cap of Rs.21.5/kg as against the earlier rate of 8.5% with a cap of Rs.32/kg.
d)
Man-made Filaments and Man-made Staple
Fibres: In the case of synthetic / artificial filament yarn (Chapter 54),
only customs component of Drawback rates has been prescribed. The drawback rate
for Synthetic Filament Yarn now is 2.2%
(grey) / 2.6% (dyed) and for
artificial filament yarn 2.1% (grey) / 2.5% (dyed) as against the earlier
customs rate of 3% (grey) / 3.5% (dyed) for both types of filament yarn. In the
case of woven fabrics of synthetic filament yarn, the new drawback rate is 8.4%
(grey) / 9.4% (dyed). Insofar as synthetic / artificial fibres (Chapter 55) are
concerned, again only the customs component of drawback rates has been fixed.
The new drawback rate is 2.4% for synthetic staple fibres and 2% for artificial
staple fibres. In the case of yarn of synthetic staple fibres, the rates fixed
are 10.2% (grey) and 12.1% (dyed). In case of woven fabrics of synthetic staple
fibres and/ or man-made filament yarn falling under drawback schedule tariff
item 5515 the new rates are 9.2% (grey)/10.3%(dyed).
e)
Carpets and Floor Coverings: The new
drawback rate for hand knotted woolen carpets is 11% with a cap of Rs.616 per
sqm. as against the earlier rate of 13.3% with a cap of Rs.745 per sqm. For silk
carpets, the new drawback rate is 14.5% with a cap of Rs.2573 per sqm. as
against the earlier rate of 17.5% with a cap of Rs.3105 per sqm. The drawback
rate on cotton durries is fixed at 10.5% with a cap of Rs.29/kg as against the
earlier rate of 11.5% with a cap of Rs.32/kg.
f)
Ready Made Garments: In the ready
made garment sector, the new drawback rate for knitted blouses/shirts/tops of
cotton is 8.8% with a cap of Rs.42 per piece as against the earlier rate of 11%
with a cap of Rs.53 per piece. The new rate for knitted blouses/shirts/tops of
man-made fibre is 10.5% with a cap of Rs.44 per piece as against the earlier
rate of 11.5% with a cap of Rs.48 per piece. For knitted blouses/shirts/tops of
cotton and man made fibre blend, the new drawback rate is 9.8% with a cap of
Rs.44 per piece as against the earlier rate of 11.2% with a cap of Rs.50 per
piece. The drawback rates on woven garments have been revised accordingly. As
for ready made garments made up of silk and wool, the rate provided is 8.8% with
varying caps.
g)
Made Ups: In the made up category,
the new drawback rate for bed linen, table linen, toilet linen, kitchen linen
and curtains of cotton is 8.2% with a cap of Rs.99 per kg as against the earlier
rate of 10.1% with a cap of Rs.122
per kg. The new drawback rates are fixed at 9.5% on made-ups of manmade fibres
and 8.8% on made-ups of silk/wool as against earlier rates of 10.4% and 9.8%.
ii) Leather and Leather Articles (Chapters 41-42 & 64)
a)
The new
drawback rate for finished leather is 6.3% with a cap of Rs.6.7 per sq.ft. as
against the earlier rate of 7.5%
with a cap of Rs.8 per sq.ft. Likewise, the new drawback rate for leather
footwear for adults is 10.5% with a cap of Rs.96 / 142 per pair as against the
earlier rate of 11.5% with a cap of Rs.105/155 per pair. In the case of leather
apparel the rate provided is 9.9% with a cap of
Rs.575
per piece as against the earlier rate of 11.4% with a cap of Rs.650 per piece.
The drawback rates on other leather items viz. suit cases, handbags and gloves
have also been revised downwards.
b)
The new
drawback rate for saddlery and harness made of leather is 9%. The corresponding
rate for saddlery and harness made of non-leather is 8.6%. A new entry has been
incorporated to include parts/components of harness and saddlery made of leather
or non leather including textiles or synthetic materials with a rate of 8.6%
with a cap of Rs.90 per pc.
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