Engineering exports will get hit if exporters don't get duty drawback - EEPC India
Updated: Jul 20, 2015 12:20:21pm
New Delhi, July 20 (KNN) The apex body for engineering exporters’, EEPC India, has said that India’s overseas shipment will get affected if exporters did not get duty drawback from the government. It cautioned that if immediate measures are not taken to help exporters, it would be difficult to achieve last year’s level of exports.
EEPC India has sought for increasing duty drawback rates to make up for the recent hike in basic customs duty on certain steel products.
“We are not against support to the domestic industry against imports from countries like China, but then, with the domestic prices being influenced by such levies, the drawback rates should simultaneously go up,” EEPC chairman Anupam Shah was quoted as saying in a media report.
The current duty drawback is around 1.9 per cent. The government has raised the import duty on both flat and long products by 2.5 per cent. However, no duty drawback rates were increased.
“On an average, steel accounts for about 50 per cent of total value of engineering products, the duty drawback rates for engineering products should have been raised by 1.25 per cent at the bare minimum,” Shah said.
“As it is, steel prices in India are among the highest in the world. It is for this reason it is attracting imports and it also for this reason the Indian steel industry wishes to block imports so that it can raise prices further. This goes against steel user industry and affects over national welfare adversely,” EEPC India said in its representation to the government.
The exports of engineering products fell by 10.5 per cent to USD 5.4 billion in May 2015 over May 2014.
“Going forward, it looks difficult to achieve the last year’s level if immediate measures are not taken to help exporters,” Shah said. (KNN Bureau)
EEPC India has sought for increasing duty drawback rates to make up for the recent hike in basic customs duty on certain steel products.
“We are not against support to the domestic industry against imports from countries like China, but then, with the domestic prices being influenced by such levies, the drawback rates should simultaneously go up,” EEPC chairman Anupam Shah was quoted as saying in a media report.
The current duty drawback is around 1.9 per cent. The government has raised the import duty on both flat and long products by 2.5 per cent. However, no duty drawback rates were increased.
“On an average, steel accounts for about 50 per cent of total value of engineering products, the duty drawback rates for engineering products should have been raised by 1.25 per cent at the bare minimum,” Shah said.
“As it is, steel prices in India are among the highest in the world. It is for this reason it is attracting imports and it also for this reason the Indian steel industry wishes to block imports so that it can raise prices further. This goes against steel user industry and affects over national welfare adversely,” EEPC India said in its representation to the government.
The exports of engineering products fell by 10.5 per cent to USD 5.4 billion in May 2015 over May 2014.
“Going forward, it looks difficult to achieve the last year’s level if immediate measures are not taken to help exporters,” Shah said. (KNN Bureau)
Loading...
