DBK revision for leather garments, goods urged

By Our Special Correspondent

CHENNAI, OCT. 7. The Council for Leather Exports (CLE), while welcoming the general thrust of the revision of all-industry rates of duty drawback, has expressed disappointment over the exclusion of leather goods and leather garments from the relief.

In a statement, the Chairman of the CLE, Mr. Irshad Mirza, said the council had represented for rationalisation of Entries in the Drawback Schedule for leather goods to remove certain anomalies and for notifying separate rates for leather goods and garments made out of imported finished leather as in the case of footwear items.

``Since these suggestions have not been considered in the latest revision, duty incidence suffered by leather goods and leather garments continues to be inadequately compensated.

There is a need to reconsider the matter in the interest of promoting export of these items'', Mr. Mirza said.

However, he said, the revision of rates announced was an improvement over previously prevalent ones, particularly in respect of shoe uppers, boot uppers, children's shoes and the like. Separate rates at lower levels had been announced for units operating under Sec. 65 of the Customs Act, 1962, which had been denied the facility earlier.

The drawback enhancement would provide considerable relief to exporters of footwear and footwear uppers and help them regain cost competitiveness in the extremely price-sensitive international market. ``Had the present revision been given retrospective effect, as was done on the previous occasion, it would have mitigated the financial hardship of exporters'', Mr. Mirza added.

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Section  : Business
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