Maxamillion Blick

Fashion Industry Ghost Writer ...  Freelance writer for the Apparel Search Company.  A contributor as well as inspiration to Apparel Search.  My goal is to make the Fashion Newspaper a leading resource for locating fashion news on the internet.

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®             The rate of interest on pre and post-shipment credit has been reduced by 2%.

            The matter regarding notification of exemption /refund of service tax for exports, as was announced in the Foreign Trade Policy 2007, is still under consideration.

With effect from 01.04-07 the new drawback rate for grey cotton yarn of less than 60 counts is 5.4% with a cap of Rs.11/kg as against the existing rate of 4% with a cap of Rs.8/kg. The new rate for dyed cotton yarn of less than 60 counts is 6.5% with a cap of Rs.18/kg. In respect of cotton yarn of 60 counts and more, a higher rate of 8.8% / 9.9% with a cap of Rs.26 per kg / Rs.33 per kg is being provided depending upon whether the yarn is grey or dyed. As for cotton fabrics, the new rate is 6.4% (grey) / 7.7% (dyed) with a drawback cap of Rs.19 per kg (grey) / Rs.28 per kg (dyed) as against the existing rate of 4.7% (grey) / 5.7% (dyed) with a cap of Rs.14 per kg (grey) / Rs.20.5 per kg (dyed).

The new drawback rate for hand knotted woolen carpets is 12.5% with a cap of Rs.700 per sqm. as against the existing rate of 9.4% with a cap of Rs.565 per sqm. For silk carpets, the new drawback rate is 15.5% with a cap of Rs.2750 per sqm. as against the existing rate of 11.8% with a cap of Rs.1600 per sqm. The drawback rate on cotton durries is fixed at 11.5% with a cap of Rs.26/kg as against the existing rate of 9.4% with a cap of Rs.20/kg.

In the ready made garment sector, the new drawback rate for knitted blouses/shirts/tops of cotton is 10% with a cap of Rs.48 per piece as against the existing rate of 7% with a cap of Rs.31 per piece. The new rate for knitted blouses/shirts/tops of man-made fibre is 11.5% with a cap of Rs.48 per piece as against the existing rate of 8.1% with a cap of Rs.34 per piece. For knitted blouses/shirts/tops of cotton and man made fibre blend, the new drawback rate is 10.7% with a cap of Rs.48 per piece as against the existing rate of 7.5% with a cap of Rs.32 per piece. The drawback rates on woven garments are being revised on similar lines.

In the made up category, the new drawback rate for bed linen, table linen, toilet linen, kitchen linen and curtains of cotton is 9.1% with a cap of Rs.110 per kg as against the existing rate of 6.4% with a cap of Rs.64 per kg. The new drawback rates on made-ups of manmade fibres and made-ups of silk/wool are also being revised upwards. The new rates are 10.4% and 9.8% respectively as against the existing rates of 7.5% and 6.9%.

The new drawback rate for finished leather is 7.5% with a cap of Rs.8 per sq.ft. as against the existing rate of 6.6% with a cap of Rs.7 per sq.ft. Likewise, the new drawback rate for leather footwear for adults is 11.5% with a cap of Rs.105 per pair as against the existing rate of 9.5% with a cap of Rs.85 per pair. In the case of leather apparels the rate provided is 11.4% with a cap of Rs.650 per piece as against the existing rate of 9.5% with a cap of Rs.533 per piece. The drawback rates on other leather items viz. suit cases, handbags and gloves are also being revised upwards.

The drawback rates on other items are also being revised upwards. Responding to requests from exporters some additional lines have been introduced in the Drawback Schedule. These include leather-cum-synthetic / textile footwear upper, coir mats.