Penalty for Failure to Export Cotton Yarn

By Vijay Kumar

POLICY Circular No. 27 dated 01.04.2011 in para 4 deals with the consequences of failure to export the allowed quantity within stipulated time. Subsequently, Policy Circular No. 38 issued on 10.08.2011 provided tolerance for variation of (–) 5% (negative five percent) in weight. Thus, exporters with a shortfall of (and up to) 5% in weight will not face any penal action.

Now DGFT has decided that shortfall beyond 5% can be regularised by the respective RAs if the defaulters pay a penalty of Rs. 10,000/ + 1% of value of shortfall in excess of the allowance of 5%. Such exporters will not be treated as defaulters for the purpose of future registrations.

DGFT Trade Notice No. 19., Dated: August 30, 2011