In The News

SRTEPC concerned over DEPB scheme uncertainties

Mr R L Toshniwal, chairman of the Synthetic & Rayon Textiles Export Promotion Council has expressed grave concern over the uncertainty regarding the scheduled phase-out of the Duty Entitlement Passbook (DEPB) Scheme and introduction of a new alternate scheme.

Mr Toshniwal pointed out that in the prevailing uncertain situation, exporters were unable to quote prices and conclude export deals meant for shipment during December 2005. He added that the continuing uncertainty regarding an important scheme would have a serious adverse impact on the already declining exports of manmade fibre textiles.

There are apprehensions among the exporters that if an announcement is not made regarding the continuation of the DEPB scheme, all shipments made under this scheme after September 30 may become ineligible for consideration under other schemes such as advance licence, duty-free replenishment certificate (DFRC), etc. The SRTEPC chairman informed that the council had taken up the matter at various levels and urged the government to make an announcement immediately regarding the status of DEPB Scheme and the introduction of new alternate Scheme. He averred that the existing DEPB scheme should continue for sometime even after the introduction of the new Scheme so that the exporters get sufficient time to adjust and switch over to the new Scheme Meanwhile, the government has stated that the new duty entitlement passbook scheme may be notified by November 1. “The new scheme is based on the principle that duties, taxes and levies are not to be exported. The committee of secretaries has approved it...We are hopeful of notifying it by November,” the additional secretary, ministry of commerce, Mr G K Pillai said here at a CII function. A proposal in this regard will go to cabinet by mid-October, it is learnt.