Penalty for failure to export cotton yarn in terms of Policy Circular No. 27 dated 01.04.2011 and Policy Circular No. 38 dated 10.08.2011

Trade Notice No. 19 dated 30^th August, 2011

To,

Members of Trade

All Regional Authorities of DGFT

Subject : Penalty for failure to export cotton yarn in terms of Policy Circular No. 27 dated 01.04.2011 and Policy Circular No. 38 dated 10.08.2011.

Attention is invited to Policy Circular No. 27 dated 01.04.2011 which stipulates conditions and modalities for registration of contracts of cotton yarn with DGFT. Para 4 of this Policy Circular deals with the consequences of failure to export the allowed quantity within stipulated time.

2. Subsequently, Policy Circular No. 38 issued on 10.08.2011 provided tolerance for variation of (–) 5% (negative five percent) in weight. Thus, exporters with a shortfall of (and upto) 5% in weight will not face any penal action.

3. It has been decided that shortfall beyond 5% can be regularised by the respective RAs if the defaulters pay a penalty of Rs. 10,000/ + 1% of value of shortfall in excess of the allowance of 5%. Such exporters will not be treated as defaulters for the purpose of future registrations.

(Daya Shankar)

Deputy Director General of Foreign Trade

E-mail: daya.shankar@nic.in

Related posts:

1. Final list of defaulters for failure to export of cotton in terms of Policy Circular No. 09 dated 29.12.2010 and Trade Notice No.01 dated 10.1.2011
2. DGFT – Defaulters for failure to export of cotton in terms of Policy Circular No.09 dated 29.12.2010 and Trade Notice No.01dated 10.1.2011
3. Amendment to Serial No. 3(ii) of Policy Circular No. 20(RE-2010)/2009-14 dated 14.02.2011 regarding issuance of licences for Value Added Special Yarn/Technical Yarn
4. DGFT circular on Amendment in Policy Circular No. 94 dated 16.6.2009 – Verification of new IEC
5. Restriction on export of Cotton yarn -DGFT Policy Circular No. 20 (RE-2010)/2009-14