Mumbai, April 24: The credit rates under the duty entitlement pass-book (DEPB) scheme, which was introduced last year for providing credit facility to the exporters to import raw materials at zero duty, have been revised upwards as per the current Exim policy.This is expected to benefit textile exporters who can now avail higher duty-free imports of raw materials compared to the last year.
Last year only basic custom duty was taken into account for calculation of DEPB credit rates. But now on, special custom duty will also be taken into account.
As a result, DEPB rates for woollen items have been raised from 10 per cent to 12 to 15 per cent. Thus, DEPB rate goes up to 15 per cent for 100 per cent woollen worsted yarn (grey as well as dyed) and blankets/blazer cloth/ woollen rags etc. It would be 12 per cent for 100 per cent wool fabric, knitted woollen mufflars, wool blazer, woollen blended cloth, woollen blended shawls, woollen blended yarn. For 100 per cent woollen shawls it would be 14 percent.
The DEPB credit rates were raised to 16 and 20 per cent for cotton textile items like blouses, children's sweat shirts, ladies garments, socks, sports vests, tracksuits, shirts, jackets, jeans, coats and suits.
Yet another sop was given to textile exporters by slashing the limit for export promotional capital goods (EPCG) scheme from Rs 20 crore to Rs 1 crore. With this, many small textile manufacturers could undertake expansion and modernisation programmes. Also, the large units can go in for capital expenditure in stages rather than a single time large commitment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
