AEPC to CBEC: Release duty drawback benefit to exporters

NEW DELHI: Hurt by declining exports, apparel exporters today appealed to the revenue department to expeditiously release about Rs 500 crore duty drawback benefit to the exporters.

Under the duty drawback rate scheme, the government refund duties on imported inputs for export items.

In a letter to CBEC Chairperson Praveen Mahajan, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that all Industry Duty Drawback Rates for exports of garments have been withheld all over India.

"It may be noted that non-receipt of duty drawback, may impact on working capital requirements of the industry; including salaries to workers and payment of government dues like PF, electricity, ESI contribution besides purchase of raw-material, he said.

He said that amount would be in the range of about Rs 500 crore.

He said that non-release of duty drawback has led to substantial reduction in the manufacturing activities, leading to loss of exports.

"In view of this, it is requested that All Industry Duty Drawback Rates may be released without any further delay so that exporters may not fail in payment of dues, salaries to workers," he added.

During April-August 2012-13, apparel exports declined by 12.16 per cent to USD 5.26 billion.