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Wool industry lauds hike in duty drawback

The partial increase in duty drawback rates, effective from June 7, is a step in the right direction to boost India's exports, which is already facing stiff competition from countries like China, Korea and Taiwan, Ashok Jaidka, chairman, Wool and Woollens Export Promotion Council, has said.

The woollen industry has to largely depend on import of apparel grade raw-wool from Australia as the indigenous production of this kind of wool is negligible as compared to its consumption both for domestic and export market, Jaidka said.

Taking this factor into consideration the ministry of textiles has already recommended to the ministry of finance to include apparel grade raw-wool as an item in 'deemed import list' of the Customs Act, 1962 (52 of 1962), he said.

The inclusion of apparel grade raw-wool in the 'deemed import list' would help the industry a lot as this will be a simplification and facilitation measure for fixing the duty drawback rates for all wool and wool blended products.

Jaidka said that the wool industry is looking for better drawback rates as has been done for other cotton items, for which the import angle of raw-material is negligible, while in the case of wool, the entire requirement is met from the imported apparel grade raw-wool.

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