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Duty drawback rates partially rolled back

The government on Friday partially rolled back the sharp reduction in duty drawback rates, effected from June, that had evoked strong protests from textiles and leather industry on the ground that reduced rates could hamper exports from these sectors.

Announcing an average upward revision of three per cent in the duty drawback rates with effect from June 7, Minister of State for Finance Gingee Ramachandran told reporters that the revision had been undertaken after detailed discussions with Revenue department officials.

"The partial restoration has been undertaken after the examination of fresh data submitted by the various export councils and is expected to meet their demands," chairman of the Central Board of Customs and Excise Sukumar Shankar said.

"The new rates will be effective retrospectively from June 7 and exporters can obtain their arrears after filing supplementary claims," he said adding that the revision was the maximum possible on the basis of data submitted to the revenue department.

The government had on June 1 announced the new schedule of the All Industry Duty Drawback, which were around 4-4.5 per cent lower than the earlier rates leading to strong protests particularly by exporters of garment, leather and handicraft.

Justifying the reduction in drawback rates he said the rates were in consonance with the rationalisation in customs and excise duties effected in the Union Budget this year.

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