The Government has restored export benefits for cotton yarn under the “incremental export incentivisation scheme” that was withdrawn in September 2013.
The scheme, introduced at the beginning of this fiscal, entitles an exporter to duty credits worth 2 per cent of the exported goods which could be used to import inputs duty free or sold in the market.
“Withdrawal of the benefits of the incremental export incentivisation scheme (IEIS) had dampened the enthusiasm of cotton yarn exporters and the restoration of these benefits will reflect in the export performance during the remaining part of the year,” said Prem Malik, Chairman, Confederation of Indian Textile Industry.
Exporters want the benefits for cotton yarn under the Focus Market Scheme (under which incentives are given for exporting to identified markets), which was also withdrawn last September, should be given back.
“Concerted efforts were being made by the industry to penetrate new markets, especially in South America and Africa, on the strength of the scheme and restoration of these benefits would encourage such efforts and help the industry to meet the high logistics costs in export of cotton yarn to these regions,” Malik said.
NotificationThe Directorate General of Foreign Trade, in a notification dated January 23, clarified that the ineligible category of cotton yarn inserted by a previous notification on September 25, 2013 stands deleted.