TAMIL NADU

AEPC seeks fabric import policy

Apparel Export Promotion Council chairman A. Sakthivel, in a pre-budget memorandum, has forwarded a list of requisitions from the Council to Union Finance Ministry which include formulation of policy for import of fabrics and certain tax incentives, among others.

He pointed out that boosters in the form of policies and fiscal sops were essential for the garment sector if the exports of apparels from the country had to catapult from the present annual turnover of $ 13.69 billion to touch the targeted export figures of $ 30 billion in the next three years.

Drawback

rates

The Council was of the opinion that constitution of fabric import policy had become the need of the hour to facilitate import of ‘specialty fabrics’ in large quantities at ‘faster pace’.

Mr. Sakthivel pointed out that the ‘cut-to-ship ratio’ of imported specialty fabric was found to be around 99 per cent which means wastages were negligible.

Domestic suppliers

In the case of fabrics sourced from the domestic suppliers the cut-to-ship ratio, on an average, ranges between 90 per cent and 94 per cent only.

In this scenario, an import policy offering concessional customs duties that could be offset through duty drawback rates was essential to get fabrics from abroad which were consistent in its quality levels.

Zero duty

Another demand of the Council was to widen the list of trimmings and embellishments that could be imported on zero duty using export performance certificate.