Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Trade Notice No. 19
dated 30th 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.
- 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.
- 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: [email protected]
(F.No : 01/91/180/1843/AM11/EC)