Eligibility of tufted cotton bathmats/cotton tufted bathrugs covered under ITC (HS) Codes 5703 or 5705 for grant of duty credit scrip under VKGUY/FPS of FTP.

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....To All Regional Authorities. Sub: Eligibility of tufted cotton bathmats/cotton tufted bathrugs covered under ITC(HS) Codes 5703 or 5705 for grant of duty credit scrip under VKGUY/FPS of FTP. Policy Circular 21/2009-14 dated 12.1.2010 clarified how the cases of exports of cotton bathmats/rugs covered under ITC (HS) Codes 5703 or 5705 would be treated as hand-made category for grant of benefit ....

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.... therefore, requested to issue necessary clarification that benefit of Chapter 3 of FTP may also be granted to such shipments. 3. The matter has been examined. There is merit in the contention of the Trade and Industry. Policy Circular 21/2009-14 dated 12.1.2010 has already explained how such products would fall in the hand-made category. The entire process requires elaborate manual handling by a....

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....d bath rugs", for the reasons given in 3 above. This is in consonance with clarification given in Policy Circular 21/2009-14 dated 12.1.2010. As these products are handmade category, they will be eligible for grant of the benefit of duty credit scrip at the rate of 5% under the Focus Product Scheme for exports made from 23.2.2009 onwards, and earlier under VKGUY/FPS, at the applicable rates. Howev....