Bombay HC quashed DGFT policy circular which was contrary to the provisions of Foreign Trade (Development and Regulation) Act

The Bombay high court last week quashed the office memorandum / press release dated November 11 and policy circular dated December 22 last year as they were not issued under the provisions of the Foreign Trade (Development and Regulation) Act, and, therefore, the restrictions contained in them were contrary to law.

The policy circular was issued by the Director General of Foreign Trade. The Central Government for the first time imposed restriction on export of cotton yarn by directing that the contracts for export of cotton yarn shall be registered with the Textile Commissioner prior to shipment and clearance for export of cotton yarn consignments shall be given by customs authorities after verifying that the contracts have been registered. Several textile exporters challenged the restrictions in the case, Eurotex Industries and Exporters Ltd vs Textile Commissioner. The high court ordered that those companies to whom Export Authorization and Restriction Certificate have not been granted are entitled to seek license for export of cotton yarn in respect of their contract with the foreign customers.

Eurotex Industries & Exports vs Union Of India, Through Ministry (Bombay High Court)

Order Dated:- 9 March, 2011

WRIT PETITION (L) NO. 2790 OF 2010

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