Imports hit footwear component cos hard
Domestic producers of footwear components appear to be at the receiving end when competing with cheaper imports.
By Ratna Ganguli, TNN |
KOLKATA: Domestic producers of footwear components appear to be at the receiving end when competing with cheaper imports. Which is why, they are blaming the government for allowing footwear exporters to import such products at zero custom duty up to 3% of freight on board (FOB) value of their exports.
Footwear components listed as duty-free products under the duty-free import scheme (DFIS), include poly-eutherine and thermo-plastic rubber soles, in-sole sheets, toe and counter sheets, linings, inter-linings and adhesives among others. These components otherwise attract an import duty of 15%.
The countervailing duty is also waived on their imports. Against this, domestic producers have to pay 16% excise duty and a 4% central sales tax (CST).
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