Export of garments gets one-time sop

Garments and made-ups exported between March 7 and December 31, 2019 will get a special one-time additional ad-hoc incentive of up to 1% of FoB (free on board) value.

The incentive will be implemented in the form of scrips, according to a Textiles Ministry notification.

The Textiles Ministry had notified a scheme for Rebate of State and Central Taxes and Levies (RoSCTL) on March 7, 2019 instead of the Rebate of State Levies (RoSL). The exporters were also getting nearly 4% benefit under the Merchandise Exports from India Scheme (MEIS).

According to the latest notification, the ad-hoc incentive is to offset the difference between RoSCTL and RoSL plus MEIS. Under this, incentive of up to 1% of FoB value for each line in a shipping bill will be provided for apparel and made up exports, during the specified period, that may receive lesser benefits under RoSCTL compared with RoSL+ MEIS.

According to Raja M. Shanmugham, president, Tiruppur Exporters’ Association, when the government announced the RoSCTL, exporters were under the impression this would be in addition to the MEIS. However, not all the exporters got the benefits under MEIS since March, 2019. This had affected the exporters. Now that the Ministry has announced the additional incentive it should be disbursed at the earliest. The government had announced that it would implement Remission of Duties or Taxes on Export Product (RoDTEP) from January this year. There is no clarity on it, he said.

A. Sakthivel, chairman of Apparel Export Promotion Council, said the MEIS is said to continue till the end of March this year. Hence, the government should consider extending benefits under it till April.