Govt announces new incentives for garment exporters
The Dollar Business Bureau
The government will initiate the process of operationalising the Rs.5,500-crore Rebate of State Levies (ROSL) scheme from September 20.
Under this scheme, the revenue department will compensate exporters for state levies. Currently, the exporters get compensated for duty drawback during manufacturing of products for exports.
"The main objective of the scheme is to provide for remission of state levies in addition to the duty drawback scheme, through the scheme for ROSL on export of garments on an average basis only," the Central Board of Excise and Customs (CBEC) said in an announcement.
In order for the scheme to be effectively operationalised, CBEC said it would designate the office as the DDOs from their current designation as Drawback DDOs.
“ROSL scheme will come into operation from September 20, 2016 and will remain in force for three years. The scheme is in line with the recognised economic principle of "zero rating" of export products and in recognition of the fact that at present only central levies are rebated by way of the drawback scheme, according to the Textile Ministry’s notification..
The ROSL scheme is projected to enhance the country’s garment exports, while facilitating investments and employments in the garment industry.
The revenue department will disburse the rebate using the Customs EDI System.
Garment exports fell 6% to $1.45 billion in July over the corresponding period of last year.
Earlier this month, the government had announced Special Advance Authorisation Scheme to authorise duty-free imports on certain type of apparel imports. The decision was aimed at boosting export of apparel and clothing accessories.