Policy Circular No 19 (RE 08) 2004-09
Dated 15.7.2008
Clarification regarding applicability of the instructions contained in PN. No.
52/2007, DT. 27/09/2007
1. Attention is invited to the aforesaid Public Notice
wherein it was stated that “in SIONs where import of relevant fabric is
permitted in terms of Square meters per Unit of an Export Product, the import of
relevant fabric be limited to (10% + actual utilization in Sq. meters) or
quantity permitted in SION, whichever is lower. Actual utilization in Square
Meters can be calculated from GSM declared on shipping bill and net weight of
export consignment using the formula Square Meter = Net weight * 1000 / GSM”.
2. Representations have been received from Trade and Industry that the aforesaid
methodology stated in Public Notice No. 52 was no where mentioned in the policy,
HBP vol. 1 or HBP Vol. 2 since the relevant SIONs under Textile Product Group
came into operation. Aggrieved by Public Notice No. 52 dated 27.9.07, a number
of petitions have been filed by the exporting community in various High Courts,
challenging its implementation for exports made prior to the issuance of this
Public Notice No. 52. As an alternative mechanism to consider such cases,
Petitioners approached the Grievance Redressal Committee(GRC), an
Inter-Ministerial Committee. GRC, after detailed examination, passed a direction
to DGFT to consider these cases for calculation of duty free import entitlement
based on the SION and the Appendix 23 Declaration, whichever is lower, and not
to apply the provisions of Public Notice No. 52 dated 27.9.2007 for those
shipments which have been affected prior to the issuance of this Public Notice.
3. The matter has been examined in this Directorate in the aforesaid background
and it has been decided that the restrictions imposed vide Public Notice No. 52
dated 27.9.2007 shall be made effective for exports on or after 27.9.07.
Regional Authorities (RAs) shall process and dispose off all such pending cases
accordingly.
This issues with the approval of Competent Authority.
Sd/-
(C. Gangadharan)
Deputy Director General of Foreign Trade
(Issued from F. No. 01/94/180/142/AM 08/PC 4)
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