Export Restriction on Cotton Yarn Relaxed on Imported Cotton Based Manufacturers – Excise Certification Necessary

[DGFT Notification No. 18 dated 24th January 2011]

Subject: Restriction on export of Cotton yarn- Exemption for export of cotton yarn manufactured out of imported raw material.

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 2.1 of the Foreign Trade Policy, 2009-14, the Central Government hereby makes the following amendments in Notification No. 14(RE-2010)/2009-14 dated 22.12.2010 read with Notification No. 15(RE-2010)/2009-14 dated 29.12.2010.

2. The following shall be exempted from the restriction imposed on export of cotton yarn vide above notifications:

“Export of cotton yarn by manufacturers who manufacture and export cotton yarn exclusively out of imported raw cotton shall be exempted from the restriction imposed on export of cotton yarn vide above notifications, subject to a certificate from the jurisdictional Central Excise Authority certifying that the yarn has been manufactured exclusively out of the imported raw cotton.”

3. Export of such consignment should be allowed by the customs after verifying that certificate to the above effect has been issued by the competent jurisdictional Central Excise Authority.

4. The effect of this notification:-

The manufacturers who manufacture and export cotton yarn out of the imported raw cotton shall be exempted from the restriction imposed on export of cotton yarn.