INDIA: Rubber exporters asked to return duty drawback money
Source: Daily "The Hindu Business Line", New Delhi; 21 Nov 2006
Kottayam, Nov. 20
Natural rubber exporters, who received Rs 104 million
as one per cent duty drawback from the Centre for
exporting 1,28,000 tonnes of rubber during the last
two years, have been asked to return the amount
forthwith by the Central Excise Department.
"This is a severe blow to the block rubber producers
in the country," said Prof K. K. Abraham, Chairman
Indian Block Rubber Producers Association (IBRA) and
Member of the Rubber Board.
The Central Excise officers conducted raid a few days
ago in all the block rubber factories and important
exporting agency centres and collected relevant files.
The officers threatened the exporters and forced them
to remit the money, alleged Prof Abraham.
The exporters claimed the money only after enlisting
natural rubber in the schedule of eligible items for
duty drawback as per the orders issued by the Union
Following the withdrawal of subsidy for rubber exports
last year, the Centre had included rubber in the list
of exporting items eligible for duty drawback.
IBRA has demanded immediate intervention of the Union
Finance and Commerce Ministers.
(Syed Rashid Ali, Karachi, Pakistan)