Government of India
Ministry of Commerce & Industry
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi 110 011
Policy Circular No. 04 (RE-2010)/2009-14
Dated: 29.11.2010
To
The Regional Authority /
Customs Authority /
Trade & Industry
Subject: Export of Cotton Yarn not entitled to
DEPB benefit under the DEPB Rate Schedule.
It was stated in the
DGFT Public Notice No. 57 dated 21.4.2010, that Export
of “Cotton yarn including Melange Yarn” appearing at DEPB entry Sl. No. 78 of
the Product Group “Textiles” shall not be entitled for DEPB benefit from
immediate effect. Thereafter references have been received from Trade and
Industry and Regional Authorities of DGFT seeking to know whether export of
cotton yarn shall be entitled for DEPB benefit @ 1.5% under DEPB entry Sl. No.
22D of the Misc. Products (Product code 90).
- Benefit of DEPB under Sl. No. 22D of the Misc. products is available
only when, Standard Input Output Norms (SION) exist for a product, but no
DEPB rate has been notified. In the case of Cotton Yarn, it is not that DEPB
Rate has not been notified but actually, the notified specific DEPB benefit
has been suspended as per Public Notice of 21.4.10, as described in para 1
above.
- Accordingly, it is clarified that exports of “Cotton Yarn” is not
entitled for any DEPB benefit either under entry 78 of Product Group
Textiles (as was notified already on 21.4.10), or even under the residual
entry at Sl. No. 22D of the Product Group “Misc. products” of the DEPB rate
schedule.
This issues with the approval of DGFT.
(Rita Mahna)
Deputy Director General of Foreign Trade
Tel. 011-23061562 /Ext. 288
E-mail: [email protected]
[Issued from F. No. 01/94/180/002/AM 11/PC 4(B) ]