Industry Issues
Sl. no.167 of Customs notification no. 21/2002 allows textile and leather garment exporters to import specified consumables duty free upto 3 percent of the FOB value of exports achieved during the preceding financial year.
Appropriate provision may be made by which garment exporters can procure required inputs out of their quota of 3 percent of the FOB value of exports from domestic manufacturers without payment of applicable duties and such supplies made by domestic manufacturers to be treated as deemed exports.
Spare parts for maintenance of specified textile machines in customs notification 21/2002 – sl. no. 250, 251 and 252 are allowed for import at 5 percent customs duty as applicable to the main machine. Similar benefit should be extended for spare parts for textile machines covered by sl. no. 425 and 426 of customs notification.
What CII wanted
Suitable provision may be made for sourcing specified consumables from domestic manufacturers by the textile and leather garment exporters within their duty free quota of 3 percent.
Include spare parts for maintenance of textile machines in sl.no.425 and 426 of customs notification 21/2002 to enable the users to import these at 5 percent customs duty.
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