Synthetic textile makers cheer DEPB rate hike

The Synthetic Rayon and Textile Export Promotion Council (SRTEPC) has welcomed the increase in the duty entitlement pass book (DEPB) rates for synthetic textile items announced by the central government on December 30.

"The increase in the DEPB rates has come as a big relief for man-made textile exporters. It is a new year's gift to exporters who were badly hit by the sharp reduction in DEPB rates from September 2004," a press release quoting SRTEPC chairman Rakesh Mehra said.

"There was a sudden reduction in DEPB rates for textiles in September to the tune of 45 per cent across the board. Since then, SRTEPC has been making continuous efforts for revision in the rates for the man-made textile sector," the release stated.

The DEPB scheme is an instrument which is intended to neutralise the incidence of basic customs duty on inputs for products to be exported.

The DEPB rates are fixed or revised taking into consideration the basic customs duty on the inputs.

The release pointed out that although there was no change in the rate of basic customs duty for man-made textiles in the Union Budget for 2004-05, the DEPB rates were drastically reduced.

The release stated that the increase in DEPB rates will boost the morale of man-made textile exporters, who are gearing up to face the challenges in the post-quota regime.

It will greatly help in maintaining the competitiveness of the textile products, and will go a long way in increasing exports, it stated.