Import of New trim Cutting Waste for use in manufacture of Chindi rugs - CBEC Clarification
AS per Board's Circular No.40/2007-customs dated 29.10.2007, trim cutting waste or fabric trims of continuous length with maximum width restriction of two inches (2”) falling under heading 6310, required for manufacture of Chindi rugs shall not be subjected to restrictions imposed by the present policy of ITC (HS) Code 6310 and shall be cleared without an import licence.
Board received representations from manufacturers of Chindi rugs that the requirement of trim cuttings waste or fabric trims of continuous length with a maximum width restriction of up to two Inches (2”) for manufacture of their final product should be relaxed and maximum width restriction of upto 10 Inches (10”) may be allowed.
The matter was referred to Director General of Foreign Trade (DGFT) for necessary clarification. DGFT has recommended the import of trim cuttings waste or fabric trims of continuous length with maximum width restriction up to ten inches (10”). It was also intimated by DGFT that CBEC may issue instruction to the field formations for exemption from the requirement of licence for such goods.
Accordingly, Board has now clarified that import of trim cutting waste or fabric trims of continuous length with maximum width restriction of ten inches (10”) falling under heading 6310, required for manufacture of Chindi rugs shall not be subjected to restrictions imposed by the present policy of ITC (HS) Code 6310 and shall be cleared without an import licence.
CBEC Circular No. 20/2011-Customs, Dated: 15 th April, 2011