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India - DGFT Eases Restrictions on Cotton Yarn Exports.


Date: 29-01-2011
Subject: India - DGFT Eases Restrictions on Cotton Yarn Exports
Bringing some relief to the country's spinning industry, the Director General of Foreign Trade (DGFT) recently eased restrictions on exports of cotton yarn manufactured from imported raw cotton.

In a notification on Monday, DGFT said that export of cotton yarn by manufacturers who produce and export cotton yarn exclusively out of imported raw cotton would be exempted from the restriction imposed on export of cotton yarn.

However, it is subject to a certificate from the jurisdictional Central Excise Authority certifying that the yarn has been manufactured exclusively out of the imported raw cotton.

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.

The spinning industry has for some time been demanding the government to remove the quantitative restrictions on cotton yarn exports, which is to the tune of 720mn kg. for the current year.

The Northern India Textile Mills Association (NITMA) had recently condemned the government for the export restrictions, adding that the decision is responsible for putting lakhs of crores of investment and millions in employment in the spinning industry in jeopardy.

Source : yarnsandfibers.com

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