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DGFT POLICY CIRCULAR NO. 1/2002-2007 Dated: 31.3.2002

Subject: Condition on import of textile and textile articles as per paragraph 11 of chapter 1A: General notes regarding import policy of ITC(HS) Classifications of Export and Import Items, 2002-2007.

Representations have been received requesting to provide exemption from the above mentioned conditions on import of such textile and textile articles which are imported exclusively for export production.

2. In this regard, it is hereby clarified that the condition on import of textile and textile articles as per the aforementioned notification, shall not be applicable on imports made by units operating under the conditions of section 65 of Customs Act, 1962. However, the condition regarding testing shall be made applicable if any consignment using the imported textile material is released for home consumption. Similarly, the above mentioned condition shall not be applicable on imports made as per the conditions of paragraph 2.35 of the Exim Policy, 2002-2007. However, the condition regarding testing has to be made applicable on such consignments which are released for home consumption.

This issues with approval of Director General of Foreign Trade.

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