In exercise of the powers conferred under Paragraphs 2.4 of the Foreign Trade Policy, 2004-09, and Paragraph 1.1 of Handbook of Procedures (Vol.1), the Director General of Foreign Trade hereby makes following amendment/additions in the Handbook of Procedures, Vol. 2, 2004 - 2009, as amended.

2. The General Note Nos.18 and 19 for Textiles (Product Code : J) are replaced as under:-

General Note No.18:- It is clarified that in SIONs where Import or relevant fabric is permitted in terms of square meters per unit of an export product, average wastage in the manufacturing process is already inbuilt in the said import quantity.

General Note No.19:- It is further clarified that in SIONs, where import of relevant fabric is permitted in terms of square meters per unit of an export product, the import quantity of the relevant fabric is to be limited by R.A. concerned to [ (1.20XActual Utilization in Square Meters) +/-5%)] or quantity permitted in SION, whichever is lower. In cases where the wastage for specific designs/patterns/styles is more than 25%, the exporter may submit specific proof of such higher wastage.

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 X 1000/GSM.

This shall also be applied in case of grant of DFIA benefits.

This issues in public interest.

F.No.01/84/162/572/AM-08/DES-V

Sd/-
(R.S. GUJRAL)
Director General of Foreign Trade

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