TAMIL NADU

Exporters seek release of pending duty drawback

The knitwear exporters from Tirupur apparel cluster have appealed to the Union Government to release the pending duty drawback to them for the export of apparels during the last four months.

Dues

“The dues on this count for the Tirupur units have collectively been accumulated to Rs. 450 crore,” A. Sakthivel, president of Tirupur Exporters Association, pointed out in the memorandum which the exporters sent to Union Finance Minister P. Chidambaram.

The knitwear exporters here were entitled for duty drawback at the rate of 7.6 per cent of the Free On Board value for cotton-made knitwear products.

Cash flow

The release of the duty drawback amount, according to the exporters, is imperative to maintain the requisite cash flow in the business process.

“Ours is a capital intensive industrial sector and hence, any delay in the release of duty drawback means the entrepreneurs will have to rely on additional bank credit to offset the equivalent amount of working capital required to execute the fresh orders,” Raja M. Shanmugam, an apparel exporter and chief mentor of NIFT-TEA Knitwear Institute, said.

The exporters also sounded apprehensive in taking up new orders in the wake of the delay occurred to get the duty drawback in the last four months.