Amendment in Notification No. 5 dated 02.07.2012 regarding conditions for export of Carpets, Handicraft items and Silk items

 

On the Recommendation of Carpet Export Promotion Council (CEPC), DGFT issued Notification disallowing exports of Handmade Woollen Carpets including other floor coverings on “Documents against Acceptances” (D/A) basis

{It had come to the Notice of the CEPC that a large number of handmade carpet exporters exported their goods on D/A basis.  Out of such cases, many exporters did not receive the sale proceeds and some did not receive the payment at all.  This happened because exports of D/A basis gave the overseas buyer scope to raise disputes on many counts like quality of goods, goods not being as agreed upon and slight delay in delivery etc. CEPC recommended to DGFT to disallow such D/A basis exports}

To be published in the Gazette of India Extraordinary Part II Section 3, Sub Section (ii)

 

Government of India

Ministry of Commerce & Industry

Department of Commerce

Udyog Bhawan

 

Notification No. 14 (RE-2012)/2009-2014

New Delhi, the 28th August, 2012

 

Subject:     Amendment in Notification No. 5 dated 02.07.2012 regarding conditions for export of Carpets, Handicraft items and Silk items.

 

S.O.(E)        In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) as amended, read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes following amendments in Notification No. 5 (RE-2012)/2009-14 dated 02.07.2012:

 

(i)            The provisions in the “Nature of Restriction” of Notification No. 5 (RE-2012)/2009-14 dated 02.07.2012 in respect of S. No. 8B (relating to Handicraft Items) will come into effect from 01.01.2013.

 

(ii)         S. No. 8C of Notification No. 5 (RE-2012)/2009-14 dated 02.07.2012 relating to Silk garments, Made ups, Fabrics and Accessories is deleted.

 

2.         Accordingly, the revised table will be as under:

 

S. No.

Chapter

Item Description

Export Policy

Nature of Restriction

8 A 57 Handmade Woolen Carpets including other floor coverings like Woolen Durries, Druggets, Gabbas, Namdhas and Shaggy Free Export shall not be permitted on the basis of Documents against Acceptance (D/A)

unless

(a) Such export is covered either by Bank Guarantee or ECGC Guarantee

or

(b) Such export is to own Subsidiaries/ own Trading Companies / own Office-cum-warehouses.

8 B Any chapter Handicraft items Free/

Restricted

(as applicable)

Export shall not be permitted on the basis of Documents against Acceptance (D/A)

unless

(a) Such export is covered either by Bank Guarantee or ECGC Guarantee

or

(b) Such export is to own Subsidiaries/ own Trading Companies / own Office-cum-warehouses.

This will be with effect from 01.01.2013

8 C

Deleted

 

3. Effect of this notification:

           

 Notification No. 5 of 02.07.2012 imposed certain restrictions.  S. No. 8 A pertained to export of Handmade carpet etc., for which there is no change. S. No. 8 B pertained to export of Handicraft items, the effective date of which has been shifted to 01.01.2013.  S. No. 8 C pertained to export of Silk items, which stands deleted. 

(Anup K. Pujari)

Director General of Foreign Trade

E-mail:- dgft[at]nic[dot]in

 

(Issued from F. No. 01/91/180/510/AM 12/Export Cell)