The drawback committee’s constituted by government of India visited Tirupur to assess the incidents of Customs Duty, Excise Duty and Service Tax component on the export of readymade garments. Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) made a presentation before the Drawback Committee under the Chairmanship of Dr. Saumitra Chaudhuri, Member Planning Commission on 3rd April 2013 at Tirupur.
The other members of the committee are Mr. Gautam Ray, Mr. T.R.Rustagi and Mr.SB Mohabatra, Former Secretary Textiles. Along with the delegation Mr.Vinod Kumar Agarwal, OSD – Drawback was also present.
During the presentation, Dr. A. Sakthivel demonstrated that due to adhere international market, the FOB prices from India have fallen in the period Oct – Dec, 2012 to 5.66% as compared to same period in 2011, although the cost of diesel, prices of inputs have gone up.
Dr. Sakthivel suggested simplification in the drawback schedule and recommend a new entry in drawback for TOPS. The committee appreciated the recommendation of Dr. Sakthivel.
It is to be noted that Chairman AEPC last month had written to Chairperson CBSE on the withholding of duty drawback all India.
The Drawback committee also visited Common Effluent Treatment Plant (CETP) at Arulpuram where the committee was shown as to how the Zero Discharge in effluent has been achieved by Tirupur, which is first of its kind in the world.
The Drawback Committee saw various complicated procedures involved in the operation in CETP. Subsequently, Dr. A.Sakthivel took them to knitting and garment manufacturing unit.
