30 Nov 2017
INDIA: Import Duty Exemption on Inputs Now Doubled for Exporters of Readymade Garments
The scheme to entitle Indian exporters of readymade garments (RMG) and made-ups to duty exemption on imported inputs for up to 2% of the total value of their exports has now been raised to 4%. The enhanced incentives will be applicable on all imports of inputs until 30 June 2018.
Under the terms of the Merchandise Export from India Scheme, RMG exporters based in India are allotted duty exemption certificates pegged to a certain value of their exports, which can in turn be used to pay taxes, including import duties on inputs.
The move comes as part of the government’s efforts to give an extra boost to India’s RMG export sector in the face of increasing competition from rival RMG exporting countries such as Bangladesh and Pakistan.