Policy change and technology upgradation are key to increase garment exports
Updated: Mar 13, 2013 03:33:48pm
Foreign Trade Policy (FTP) for making it more inclusive and flexible for garment exporters and manufacturers, recommendations on Technology Up-gradation Fund Scheme (TUFS), custom duty and service tax, said an official statement issued to the Union Minister for Commerce, Industry and Textiles, Anand Sharma.
Proposed at a meeting, just before the finalization of annual supplement to FTP to be announced shortly, the Chairmanhas also asked that duty credit scrip at 5 per cent on garment exports in 2012 -13 and issuance of duty credit scrip from 2013 -14 and onwards be allowed.
“The Scrip will be used for offsetting custom duties on the specialty fabrics of textile. The issue of scrip shall be subject to actual user and non-transferable,”Sakthive said, even as he thanked the Minister for removing excise duty on fabric and readymade garments.
Implementation of this scheme is expected to encourage both fabric manufacturers of knitwear and woven to come forward and increase production.
The Chairman also demanded extra wages for overtime under Section-59 of the Factories Act 1948. “The cap of 50 hours a quarter should be removed under Section-64 of the Factories Act, 1948,” he said, also recommending modifications to Section-59,that stipulated that when a worker works in a factory for more than nine hours a day or more than 48 hours in a week, he would be entitled to wages one and a quarter times, the regular rate.
With regard to the proposal for FTP, Sakthive recommended that the scheme announced be extended to three years, to enable exporters to plan long term marketing strategies.
Other recommendations of the Chairman include increase of duty scrip from 3-4 per cent to 5 per cent for the non- traditional markets and from 2 to 3 per centforcountries of the European Union and United States; and Market Linked Focus Product Scheme be expanded to countries like Singapore, Turkey, Taiwan, Norway, Canada, Hong Kong, Russia, Switzerland, Korea, UAE, and Malaysia.
Realising the importance of good infrastructure, AEPChas asked for 8 per cent interest subsidy for processing of Effluent Treatment plants, 25 per cent capital subsidy for process house, 50 per cent capital subsidy for Effluent Treatment Plants and a fresh look at pending cases of TUFS.
Recent increase in cottonprices has reduced competiveness because per unit cost of manufacturing has gone up. The chairman believes that consignmentsshould be delivered on time and not be stopped at the port as apparel products are perishable commodities. (KNN/Gunj)
Proposed at a meeting, just before the finalization of annual supplement to FTP to be announced shortly, the Chairmanhas also asked that duty credit scrip at 5 per cent on garment exports in 2012 -13 and issuance of duty credit scrip from 2013 -14 and onwards be allowed.
“The Scrip will be used for offsetting custom duties on the specialty fabrics of textile. The issue of scrip shall be subject to actual user and non-transferable,”Sakthive said, even as he thanked the Minister for removing excise duty on fabric and readymade garments.
Implementation of this scheme is expected to encourage both fabric manufacturers of knitwear and woven to come forward and increase production.
The Chairman also demanded extra wages for overtime under Section-59 of the Factories Act 1948. “The cap of 50 hours a quarter should be removed under Section-64 of the Factories Act, 1948,” he said, also recommending modifications to Section-59,that stipulated that when a worker works in a factory for more than nine hours a day or more than 48 hours in a week, he would be entitled to wages one and a quarter times, the regular rate.
With regard to the proposal for FTP, Sakthive recommended that the scheme announced be extended to three years, to enable exporters to plan long term marketing strategies.
Other recommendations of the Chairman include increase of duty scrip from 3-4 per cent to 5 per cent for the non- traditional markets and from 2 to 3 per centforcountries of the European Union and United States; and Market Linked Focus Product Scheme be expanded to countries like Singapore, Turkey, Taiwan, Norway, Canada, Hong Kong, Russia, Switzerland, Korea, UAE, and Malaysia.
Realising the importance of good infrastructure, AEPChas asked for 8 per cent interest subsidy for processing of Effluent Treatment plants, 25 per cent capital subsidy for process house, 50 per cent capital subsidy for Effluent Treatment Plants and a fresh look at pending cases of TUFS.
Recent increase in cottonprices has reduced competiveness because per unit cost of manufacturing has gone up. The chairman believes that consignmentsshould be delivered on time and not be stopped at the port as apparel products are perishable commodities. (KNN/Gunj)
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