The Tirupur Exporters Association (TEA) has asked the government to do away with the countervailing duty (CVD) and special import duty on specific textile machines that can be imported under concessional duty. The government has already brought down the customs duty on 159 textile machines from 15 per cent to five per cent.

However, the actual duty payable on import of these machines would still be more than 24 per cent as they continue to attract CVD at 16 per cent.

Since the government had reduced the import duty on these items in order to stimulate the modernisation of the textile sector under the technology upgradation fund scheme, the continuance of the CVD had defeated the very purpose of import duty reduction given to these items, the TEA, representing the knitwear exporters, said in a press release.