On 16th November, the government has raised duty refund rates on a host of items, including iron, steel, garments and marine products to give a supporting hand to exporters. As exports drop for the 11th month in a row in October. “The Central Government has notified the Schedule of revised All Industry Rates of Duty Drawback effective from 23rd November, 2015,” informed Ministry of Finance in a press release on 16th November.
There are many products in its scope
As per the new schedule, iron and steel, tools and parts of base metal, machinery and appliances, electrical machinery, rolling stock and ships “have been provided with increased customs rate of 2 percent”, with certain exceptions, reports PTI.
Composite rates increased on these things
Further, the composite rates have been increased in many cases like frozen shrimps and prawns; perfumed agarbatti; finished/lining leather, leather hand bags, wallet, belts; industrial gloves; certain MMF yarn/ fabric; readymade garment made of cotton, wool and cotton with lycra; made-ups of cotton/ MMF and hand tools, among others.
Custom rates apply along with composite rates on these things:
Also, certain products earlier having only customs rates, have been provided with composite rates. These include bicycle tyres, bicycle tubes, woven fabrics of other vegetable textile fibres/woven fabrics of paper yarn, headgear, umbrellas, walking sticks, artificial flowers and acrylic blankets.
FIEO praised government’s step
As per the revised rates, AIR (All India Rates) has been fixed as Rs. 209.3/gm for gold jewellery/parts and Rs. 2790/kg for silver jewellery /articles.
Revised rates rely on average related to the manufacturing of export goods customs , central excise and service tax. These rates are extremely important in terms of exports . And believed that it would help to improve the falling exports . In addition to rate changes , several new items have also been included , so that the difference between the high export duty products and less export duty products could be understand better. Brand rate route has given to Wheat exportBrand rate route has given to wheat export. Under the brand rate of duty drawback, exporters have been created rules just after some exports to repay provisional drawbacks. Will also consider on exporters issues
Feedback will be considered from Export Promotion Council on new rates because rates soon to overcome the difficulties faced by exporters. After considering Feedback on expert panel January 2016, government will give its recommendations
What is duty drawback?
To pay duty is paid first on the Export Duty Drawback re- export the goods . Under the same conditions to export goods and sell is made possible in other countries, the conditions on which exports of those goods are sold in the country . The overall aim is to promote exports.