Textile Industry And Duties In India
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ATextile and apparel is a privileged exports sector in India contributing 30 % of total exports. And it has valid reasons. A long history of fine textiles, easy availability of the finest raw material, natural or manmade, classic weaving, manual or mechanized, labor availability and flexible production capacity; Indias textile industry is vertically integrated from raw material to finished product, including fiber production, spinning, knitting and weaving, and apparel manufacture.
Government of India through export promotion councils is promoting the industry globally by holding fairs and exhibitions. Despite that, our study of the industry brought forth another fact. Not all the companies can afford to be a part of such promotional shows; not all the buyer organizations have a reach to them either. Further there are industries as garment accessories and technology, which some time back did not figure anywhere.
KEY FEATURES OF THE BUDGET 2006-07 FOR APPAREL EXPORT INDUSTRY
Ш The Textile industry having employment opportunities identified as one of the five sectors under manufacturing sector.
Ш The allocation for Technology Upgradation Fund enhanced from Rs. 435 crore to Rs. 535 crore. Rs. 189 cores provided integrated Textile Park Scheme.
Ш Provision for the handloom sector increased from Rs. 195 crore to Rs. 241 crore.
Ш Indirect tax, Customs – Peak rate for non-agricultural products reduced from 15% to 12.5%. Duty on packaging machines reduced from 15% to 5%.
Ш CVD of 4% to be imposed on all imports; full credit to be allowed to manufacturers of excisable goods.
Ш Rates on clearances by EOUs to DTA adjusted at 50% of Basic custom duty plus excise duty on like goods.
Ш The 3% duty free import of trimmings and embellishments (EPC Scheme) continued for the year 2006-07.
Ш Reduction of : excise duty on all man-made fibre yarn and filament yarn from 16% to 8%; import duty on all man-made fibres and yarns from 15% to 10%; import duty on raw materials such as DMT, PTA and MEG from 15% to 10%.
Ш Service Tax : Service tax rate