Handicraft exporters hopeful for hike in duty drawback

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SME Times News Bureau | 23 Mar, 2013
Handicraft exporters are looking for an increase duty drawback rates, as due to increase in duties and taxes levied on various types of raw materials, they are becoming uncompetitive in the International markets, a nodal agency for promotion of exports of handicrafts products said Friday.

In this regards a Drawback Committee, headed by Dr. Saumitra Chaudhuri, Member Planning Commission and Chairman, will visit Moradabad, the handicrafts hub, on Sunday to examine the drawback rates of various types of items being exported out of India to various destinations, informed Arvind Vadhera, Chairman, Export Promotion Council for Handicrafts (EPCH) in a press release.

The handicrafts made out of metals like Brass, Copper, Aluminum, Iron, Stainless, Glass etc are major product categories being exported from Moradabad to Europe and America. Exports of these items last year from Moradabad was around Rs.3000 crores. These products employ artisans and craftpersons belonging primarily to economically and socially weaker sections of the society, hence these product categories are considered important not only from the export point of view but also from the point of view of employment generation to a very important section of the society.

Of late, due to increase in duties and taxes levied on various types of raw materials end-products have become costly, thereby, resulting in these products becoming uncompetitive in the International markets. It is, therefore, necessary to re-examine the element of duties and tax forming part of the final cost of the products so that appropriate drawback can be decided for refund purpose, thereby, resulting in making the products competitive in the International markets.

Moradabad is an important centre for production of handicrafts made out of various types of metals. This region alone has over 1100 exporters registered with the Council and contributes more than 25% of the total exports of handicrafts from the country. With this background, the visit of drawback committee appointed by the Government of India to Moradabad acquires special importance.

Other members of the committee include S.B. Mohapatra, Secretary (Retired) to the Govt. of India, T.R. Rustagi, Chief Commissioner (Retired), Customs and Central Excise, Gautam Ray, Chief Commissioner (Retired) of Customs and Central Excise.

The Presence of two specialized members retired from the customs and central excise lends credence to the expertise of the committee to understand, examine and recommend revision in the drawback rates, said Vadhera.

This committee is scheduled to visit various units involved in manufacturing different product groups in the region of Moradabad to see for themselves the process and intricacies and other important elements involved in manufacturing so that they can appropriately make recommendations for revision of drawback rates.

During the visit, the committee will also utilize the opportunity of discussing details with prominent representative of manufacturers and exporters from Moradabad region.

Mr. Rakesh Kumar, Executive Director, EPCH said, "Moradabad which is centre for metal-based handicrafts is the first handicraft cluster to be visited by the Committee. This visit would help the Committee understand the needs of sector in a much better way and would lead to a favorable revision in the Duty Drawback rates."