Prior Import of Raw Cotton for Export of Cotton Yarn under Duty Exemption Scheme - Customs - F. No. 3/1/94-IPC-II

Prior Import of Raw Cotton for Export of Cotton Yarn under Duty Exemption Scheme F. No. 3/1/94-IPC-II Dated 4-4-1994 Government of India Central Board of Excise Customs New Delhi Subject : Prior Import of Raw Cotton for Export of Cotton Yarn under Duty Exemption Scheme. The Government has observed that the prices of Cotton have been increasing abnormally in domestic market and that this price increase is artificial due to speculative hoarding by some traders. To check such an increase in domestic Cotton prices in past also, instructions have been issued from time to time that the export of Cotton Yarn under Advance Licences should be allowed with a condition of prior import of Cotton. It has been observed that some Regional Licensing Authorities have not been following such instructions while issuing Advance Licences for Export of Cotton Yarn. All Licensing Authorities are therefore requested to adhere to such instructions strictly and issue the Duty Free Licences both quantity and value based for Export of Cotton Yarn only with a specific condition on the licence that import of Raw Cotton should precede export of Cotton Yarn by the licencee towards the fulfilment of EO undertaken by the Exporter. In other words the exporters shall not be allowed the facility of replenishment for import of Raw Cotton under Duty Exemption Scheme. This may be brought to the notice of all concerned. Besides the ALC Circular No. 4/94, dated 28-3-1994 issued regarding revalidation of Duty Free Licences against which premium has been claimed/paid may be corrected to read as ALC Circular No. 4A/94.