MUMBAI, MAR. 27
The Apparel Export Promotion Council (AEPC) has urged Mr. Anand Sharma, Union Minister for Commerce, Industry & Textiles, to allow duty credit scrip @5% of garment exports for the export performance in the year 2012 -13, for issuance of duty credit scrip from the year 2013 - 14 and onwards.
In his proposal to the Commerce Minister, Chairman AEPC Dr. A Sakthivel said that the Scrip will be used for offsetting custom duties on the specialty fabrics of textile. The issue of scrip shall be subject to actual user and non-transferable. On Duty scrip for traditional & non-traditional market, Duty Scrip @ 5% on FOB value of exports to countries like Latin America, Australia and New Zealand, where freight charges to FOB are very high Nontraditional markets needs to be tapped & to reduce the dependence on EU/USA, Chairman AEPC has proposed increase of duty scrip from 3%- 4% to 5% for the non- traditional markets.
In traditional countries like EU and US, duty scrip may be increased from 2% to 3%. Under Status Holder Incentive Scheme, the duty scrip may be increased from 1% to 2%. Expansion of Market Linked Focus Product Scheme to certain countries like Singapore, Turkey, Taiwan, Norway, Canada, Hong Kong, Russia, Switzerland, Korea, UAE, and Malaysia. Incremental growth achieved in Apr-Dec 2012 over Apr-Dec 2011 may be qualified for incremental scrip. Thereafter, the same benefit may be given for entire year till 2015-16 for the incremental growth achieved in previous year.
AEPC noted that the garment exports in the above mentioned countries has been slipping continuously and to arrest the fall these measure are essential. Owing to the high rate of interest choking the availability of capital to the industry Dr. Sakthivel demanded separate chapter for getting export credit at fixed 7.5%, as it was done in the past. He also asked for 15% Investment Allowance is now available for Project of Rs. 100 cores and above. It is requested that for the apparel sector, the threshold limit may be reduced to Rs. 10 crores.
Further on items of import falling in Chapter 50,51,52,53,54,55,56,58,59 & 60, AEPC noted that the inputs sourced under scrip and used or export product would not lead or caused to deduction in permissible Duty Drawback (DBK) claimed as per all Industry DBK Schedule. The item of exports would fall under Chapter 61 & 62. With the implementation of this scheme, more domestic fabric manufacturers both for knitwear & woven will come forward and shall start production, Dr. Sakthivel added.
He also proposed Zero duty EPCG Scheme to be extended in XII Five year plan. Zero duty EPCG Scheme should be made available to Apparel Exporters who have availed benefit of TUFS. On the issue of advance licenses which facilitate duty free imports of inputs which is meant for exports, AEPC Chairman proposed clubbing of Advance licenses issued within 36 months be allowed for restoration of Public Notice No. 79 dated 13.10.2011.
Currently only such advance authorisations shall be clubbed which have been issued within 18 months from the date of the earliest authorisation that is sought to be clubbed. He also asked for the Gold card scheme for the diesel so as to reduce the input cost. On account of the proposal for Foreign Trade Policy Dr. Sakthivel recommended that the scheme announced in FTP may be extended by 3 years up to the year 2015-16, so that exporters can plan their marketing strategies on long term basis.
He commented that FTP should be more inclusive and flexible for garment exporters.Early finalization of FTA with EU, to announce all the benefits in Foreign Trade Policy for the year 2013 -14 and 2014 -15 and 2015- 16 (for three years), With regard to Service Tax, he said that on account of the service tax waiving of Service Tax on taxable service to in sub clause (zzze) of clause (105) of Section 65 of Finance Act on services to specified associations under (zzze) of Finance Act) for the period viz. 16.06.2005 to 06.07.2009.
Expansion of services under Notification No. 25/2012- Service Tax dated 20th June, 2012 and exemption of taxable services from the whole of the service tax leviable thereon under section 66B of the said Act.
AEPC also requested that Govt. may notify ATDC and AEPC respectively as VEC and Skill Assessment Body, recognized by the law, since they are operating out of grants provided under Modular Employable Skill Course and funds are released by the Ministry of Textiles under budgetary heads mentioned above. (Source: Tecoya Trend)