Commerce Ministry seeks restoration of duty free import of export inputs in certain sectors

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As the removal of duty free status in Budget 2021-22 has impacted exports worth Rs 5,000 crore, the Commerce Ministry has written to the Finance Ministry for immediate restoration of duty free import of export inputs used by the garment, leather and handicrafts sectors. In the communiqu, the Commerce Department has requested to consider restoring the provision of duty free import of essential embellishments, trimming tools and other consumables such as glue, polish, veneers, button, velcro, chatan, badges, beads, sewing thread, motif, hinges, wire rolls, hooks, rivets and certain electric parts used by the industry. The majority of items qualifying earlier for duty free imports are not manufactured in India. Besides, certain such foreign items are specified by overseas buyers to be used in the products to be exported to them for maintaining quality standards, as per a report.