Cotton Yarn Exporters can Pay Penalty of Rs. 10K + 1% of Shortfall to Regularise Default

[DGFT Trade Notice No. 19 dated 30^th August 2011]

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.