SALC POL CIR No. 04/1999-2000 Dated 07-09-1999

Grant of Advance Licences under Duty Exemption Scheme for import of Silk Fabric against export of Silk Made-ups and/or Silk Fabrics.

Representation has been received by DGFT from Central Silk Board, Bangalore, informing that even though presentlyno standard norms are in existence in the Hand Book of Procedure (Vol.2) 1997-2002 permitting import of silk fabric against the export of silk fabrics / silk made-ups, Regional Licensing Authorities have been issuing advance licences for the import of silk fabric in respect of advance licensing applications involving the export of silk fabrics/silk made-ups.

2. This matter has been examined and considered in the Special Advance Licensing Committee (SALC) in consultation with the technical authorities. The SALC noted that in General Note No.4 for Textile Groups of the Hand Book of Procedures(Vol.2) 1997-2002, as amended from time to time, mention has been made thatminimum value addition requirement shall be 50% for the export of silk made-ups/silk garments from the stage of silk fabric. Notwithstanding this aspect,the Committee decided that hence forth import of silk fabric shall not be allowed either for the export of silk made-ups or for the export of processed silk fabric. This view has been taken by the Committee to avoid any possibility of misuse of Duty Exemption Scheme. These instructions shall be equally applicable while considering the cases under Paragraph 7.5 of the Hand Book of Procedure (Vol. 1), 1997-2002 on self-declaration basis.

Sd/-
(Ashutosh Mishra)
Dy. Director General of Foreign Trade

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