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Exporters appeal for zero excise duty for man-made fibres
June, 06th 2014

Tirupur Exporters' Association (TEA) has urged the Centre to make zero excise duty for man-made fibres and special machinery to manufacture synthetic garments.

In the memorandums submitted to Commerce and Industry Minister Nirmala Sitharaman and Textiles Minister Santhosh Kumar Gangwar, TEA President A Shaktivel said zero duty on man-made fibres will help increase its usage and production of garments and raise exports of man-made fibre garments.

The import of special machinery on zero duty will attract more investment to manufacture synthetic garments which are picking up globally, he said.

Giving details about Tirupur, a major export hub that contributes 45 per cent to total knitwear exports of India, Shaktivel urged the Centre to introduce Goods and Service Tax in this union budget, which would enhance the competitiveness in the global market.

Urging early signing of Free Trade Agreeement with European Union (EU), where 50 per cent of knitwear exports happen, to increase the market share, the memorandums said this would also help to import value added fabrics under zero duty basis and re-export it to EU as garments.

The association wanted the textile ministry to reduce the customs duty for import of synthetic/blended and speciality fabric of cotton, to flat five per cent equivalent to drawback rate on pilot basis with a restriction of imports to 10 per cent of total export carried out and realised in the preceding year by a garment exporter on actual user condition from 2014-15 onwards for re-export as garments.

In order to protect the export sector from the increasing credit rate, a separate chapter was required in monetary policy by delinking with base rate system being followed by the Banks, Shaktivel added.

 
 
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