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Tuesday, Apr 04, 2006


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Government - Policy


Worn clothing sales: SEZ units get relief

K.R. Srivats

New Delhi , April 3

The Government has given leeway to special economic zone (SEZ) units for sale of worn clothing in domestic tariff area (DTA). Such units have now been allowed to sell worn clothing in DTA (domestic market) to the extent of 15 per cent of the cost, insurance and freight (CIF) value of imports made in the previous year.

Trade experts pointed out that SEZ units were earlier allowed to sell worn clothing in DTA only against an import licence. Now they have been permitted to sell without any import licence.

Imports of `worn clothing and other worn article' have been on the restricted list since October 2004. This meant that imports of such items could be undertaken only after obtaining a licence from the concerned authorities.

The Commerce Ministry's move of October 2004 to place worn clothing under `restricted list' came at the behest of the Union Textiles Ministry, which had expressed domestic industry's concerns over imports of low priced worn clothing.

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