The Indian government has revised the rates of duty drawback that came into force on June 1 (see Leather, July) to grant more concessions to the leather, garments and handicrafts sectors.
The drawback rates have been improved by around 2-3% and will be back-dated to June 7.
‘As a measure of export promotion, the government was of the view that a further concession would be factored into the rates announced earlier.
The rates have been worked out on the basis of fresh data obtained from export promotion councils’, said Gingee N Ramachandran, Minister of State for Revenue.
In the case of leather articles such as wallets and purses the drawback rate has been retained at 6.5%, but the value cap has been raised from Rs10 to Rs30 per piece. For leather bags, the duty drawback rate remains the same but the cap has been raised from Rs75 per piece to Rs215.
Similarly, for leather apparel, the cap has been increased from Rs140 per piece to Rs400. For leather boots, the duty drawback rate has been increased 9% to 11%, while the cap has been raised from Rs73.5 per pair to Rs85.
