DGFT PN 52 dated 27.9.2007 not to have retrospective application
By the above PN, DGFT stipulated that, “in SIONs where import of relevant fabric is permitted in terms of Square meters per Unit of an Export Product, the import of relevant fabric be limited to (10% + actual utilization in Sq. meters) or quantity permitted in SION, whichever is lower. Actual utilization in Square Meters can be calculated from GSM declared on shipping bill and net weight of export consignment using the formula Square Meter = Net weight * 1000 / GSM”.
It was argued that the above methodology was nowhere mentioned either in the Policy or the Handbook of Procedures.
Aggrieved by Public Notice No. 52 dated 27.9.07, a number of petitions have been filed by the exporting community in various High Courts, challenging its implementation for exports made prior to the issuance of this Public Notice No. 52. As an alternative mechanism to consider such cases, Petitioners approached the Grievance Redressal Committee ( GRC ), an Inter-Ministerial Committee. GRC , after detailed examination, passed a direction to DGFT to consider these cases for calculation of duty free import entitlement based on the SION and the Appendix 23 Declaration, whichever is lower, and not to apply the provisions of Public Notice No. 52 dated 27.9.2007 for those shipments which have been affected prior to the issuance of this Public Notice.
So DGFT now clarifies that “it has been decided that the restrictions imposed vide Public Notice No. 52 dated 27.9.2007 shall be made effective for exports on or after 27.9.07. Regional Authorities (RAs) shall process and dispose of all such pending cases accordingly.”
DGFT Policy Circular No. 19 (RE-2008) 2004-09, Dated: July 15, 2008