Govt extends sops for garment exports for next year
Updated: Mar 01, 2014 12:35:33pm
New Delhi, Mar 1 (KNN) Directorate General of Foreign Trade (DGFT) has extended two per cent duty credit scrip for export of products such as readymade garments (RMG) to the European Union and USA.
“Export of Products/Sectors of high export intensity/employment potential (which are not covered under present FPS List) would be incentivized @ 2 per cent of FOB value of exports (in free foreign exchange) under FPS when exported to the Linked Markets (countries), which are not covered in the present FMS list,” said a DGFT notification of February-27.
Apparel Exports Promotion Council (AEPC) has welcomed the move which will be extended under the Market Linked Focus Product Scrip (MLFPS) for RMG sector for exports from April-1.
Commenting on the sops offered, Chairman AEPC, Virender Uppal said, “The incentive to RMG products which have the highest employment intensity and potential was the need of the hour. I am sure that this decision of the government would go a long way to offset infrastructure inefficiencies and other associated costs involved in manufacturing and marketing of these products”.
DGFT (Directorate General of Foreign Trade) in its notification dated 27.02.14 amended the Chapter 3 of Foreign Trade Policy.
According to the AEPC chairman, the decision comes at the end of the fiscal year when industry captains are striving to reach the most ambitious target set for AEPC this year.
“With the current growth of over 16.4 per cent, I am hopeful we will be cruising past USD 15 billion. It is noteworthy that Chapter 61 and 62 cover all the garment products and our exports to EU and USA cover almost 65 per cent of our total garment exports,” he noted.
Uppal also applauded the DGFT for expanding the list of products for textiles and leather under the above scheme.
“It is a well-timed move, which will have far reaching benefits in terms of boosting the exports. High input costs and slowdown in global markets were adding to the stress. I am sure the present initiative of DGFT would certainly help in easing the pressure to a considerable extent to our sector,” he added. (KNN/ES)
“Export of Products/Sectors of high export intensity/employment potential (which are not covered under present FPS List) would be incentivized @ 2 per cent of FOB value of exports (in free foreign exchange) under FPS when exported to the Linked Markets (countries), which are not covered in the present FMS list,” said a DGFT notification of February-27.
Apparel Exports Promotion Council (AEPC) has welcomed the move which will be extended under the Market Linked Focus Product Scrip (MLFPS) for RMG sector for exports from April-1.
Commenting on the sops offered, Chairman AEPC, Virender Uppal said, “The incentive to RMG products which have the highest employment intensity and potential was the need of the hour. I am sure that this decision of the government would go a long way to offset infrastructure inefficiencies and other associated costs involved in manufacturing and marketing of these products”.
DGFT (Directorate General of Foreign Trade) in its notification dated 27.02.14 amended the Chapter 3 of Foreign Trade Policy.
According to the AEPC chairman, the decision comes at the end of the fiscal year when industry captains are striving to reach the most ambitious target set for AEPC this year.
“With the current growth of over 16.4 per cent, I am hopeful we will be cruising past USD 15 billion. It is noteworthy that Chapter 61 and 62 cover all the garment products and our exports to EU and USA cover almost 65 per cent of our total garment exports,” he noted.
Uppal also applauded the DGFT for expanding the list of products for textiles and leather under the above scheme.
“It is a well-timed move, which will have far reaching benefits in terms of boosting the exports. High input costs and slowdown in global markets were adding to the stress. I am sure the present initiative of DGFT would certainly help in easing the pressure to a considerable extent to our sector,” he added. (KNN/ES)
Loading...
