In a bid that may result in the recalling of export subsidies, the Directorate-General of Foreign Trade (DGFT) may review all export incentives availed of by the technical textile sector before April 2012.
The DGFT had earlier sent a clarification which classified only 33 items, as opposed to over a hundred, that fall under technical textiles.
Technical textiles are made using high grade petrochemicals, polyester, viscose, nylon and polypropylene. They differ from other manmade fibres wherein they are manufactured primarily for their performance and are not meant to be aesthetic. Technical textiles are typically used for automobile applications, medical textiles, agro textiles, and for protective gear like bullet-proof vests, and radiation and space suits.
Sources claim the decision to review the export incentives came after it was discovered that many exporters took undue advantage of these subsidies even when exporting non-technical textiles.
An official source added that funds would be recovered from any exporter found guilty of misusing these subsidies for non-technical textiles as defined by the DGFT.
Source : Exim News Service - NEW DELHI, Nov. 8