SIMA plea on duty-free imports

The Southern India Mills’ Association (SIMA) has appealed to the Union Government to include more accessories used by made-up (such as home furnishings) exporters to the list of duty-free imports.

In its pre-budget memorandum, the association chairman, S. Dinakaran, has said that accessories, including, embroidery and sewing thread, quilted wadding materials, and printed bags were imported by garment and made-up exporters to add value to their export goods.

Export value

Duty-free imports were permitted to the extent of three per cent of export value and the Union Government had a list of accessories that were covered under this. Some of the accessories included for garment exporters had been left out for made-up exporters.

Hence, the exporters of made-ups had to pay duty for these goods. These should be covered in the budget this year in the duty-free import list, he said.

The Confederation of Indian Textile Industry (CITI) and the SIMA have also said that the mandatory 12 per cent excise duty on branded garments and made-ups should be converted to eight per cent optional duty.

Garments and made-ups were the final products of the textile value chain.

While their suppliers had the option of duty exemption route, the end-product manufacturers had to pay the duty.

While natural fibres do not have excise duty, manmade fibres had 12 per cent duty. This should be reduced to eight per cent and the optional duty system should be continued for textile products.

Similarly, the customs duty on manmade fibres should be abolished.


This would help the domestic textile industry source fibres from the global market when there was a shortage or high price in the local market, it said.

The accelerated depreciation of 80 per cent was reduced to 15 per cent from April 2012 for those who had installed wind mills.

A majority of the wind mills in the country were installed by the textile industry. Restoration of 80 per cent accelerated depreciation would push up investments, the associations said.