Govt revises drawback schedule for apparel sector; exporters want more FTAs

The notification on revision of drawback schedule will come into effect from February 4, 2020

Ministry of Finance has issued a notification revising drawback schedule for apparel sector, which will come into effect from February.  

While for the cotton-based products it would be around 0.2 per cent increase, for man-made fiber and blended garments it would be around 0.4-0.6 per cent. While welcoming the announcement, exporters said that government should focus on signing FTA and clearing the ROSTL, which is affecting the working capital of the exporters.

The notification will come into effect from February 4, 2020. For cotton t-shirt after revision the drawback rate would be 2.1 per cent as against 1.9 per cent,