DEPB scheme comes to cotton exporters' rescue
The govt will restore the benefit with retrospective effect on the ground that it was no longer its policy to disincentivise exports of commodity.
By ET Bureau | Updated:
NEW DELHI: Cotton and yarn exporters can now claim input duty reimbursement under the popular Duty Entitlement Pass Book (DEPB) scheme with the government. The government will restore the benefit with retrospective effect on the ground that it was no longer its policy to disincentivise exports of the commodity.
Cotton yarn exporters will get the benefit from April 1, 2011 while cotton exporters can claim DEPB from October 1, 2010. The government had discontinued the scheme for cotton and cotton yarn exporters since April 21, 2010 claiming that it was not the government's intention to encourage exports.
In the last cotton year, cotton exports were disincentivised by virtue of export tax which was dismantled on October 1, 2010, commerce, industry and textiles minister Anand Sharma pointed out. "The policy intention was not to disincentivise exports after that cut-off date and I have now taken a view to restore DEPB benefit on cotton with effect from October 1, 2010," he said.
Similarly, the decision to restore DEPB benefits from April 1, 2011 was taken as the commodity was placed on the open general licence for exports from that date, he explained.
Cotton yarn exporters will get the benefit from April 1, 2011 while cotton exporters can claim DEPB from October 1, 2010. The government had discontinued the scheme for cotton and cotton yarn exporters since April 21, 2010 claiming that it was not the government's intention to encourage exports.
In the last cotton year, cotton exports were disincentivised by virtue of export tax which was dismantled on October 1, 2010, commerce, industry and textiles minister Anand Sharma pointed out. "The policy intention was not to disincentivise exports after that cut-off date and I have now taken a view to restore DEPB benefit on cotton with effect from October 1, 2010," he said.
Similarly, the decision to restore DEPB benefits from April 1, 2011 was taken as the commodity was placed on the open general licence for exports from that date, he explained.
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