No FMS for Cotton, Cotton Yarn

No Incentive for Export of Restricted Goods

[DGFT Notification 43 dated 25^th September 2013]

Subject: Amendment in Chapter 3 of Foreign Trade Policy

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes the following amendments in the Foreign Trade Policy (FTP) 2009-14 with immediate effect:

2. The following categories are added after serial no (x) in the list appended in paragraph 3.14.3 of Foreign Trade Policy bearing the Heading “Ineligible Exports Categories / Sectors for FMS”:

(xi) Export of Cotton.

(xii) Export of Cotton Yarn.

(xiii) Exports which are subject to Minimum Export Price or Export Duty.

3. The following sub-paragraphs are added below paragraph 3.14.5(c) as under:

“(i) Benefit of Incremental Export Incentivisation Scheme for the year 2013-14  will be limited to a scrip of a value not exceeding Rs. 1 Crore per IEC.

(ii) Claims in excess of this value will be subjected to greater scrutiny by Regional Authority.

4. The following ineligible categories are added after Sl. No. (xvi) in the eligibility criteria specified in Paragraph 3.14.5(d) of FTP:

(xvii) Cotton.

(xviii) Cotton Yarn.

(xix) Exports which are subject to Minimum Export Price or Export Duty.

Effect of this Notification

Category of ineligible exports has been expanded for certain benefits under chapter 3 of FTP as given at para 2 and 4 above. Para 3 restricts the entitlement for claiming IEIS benefit.