Commerce Ministry draws norms for import of used clothes

The Commerce Ministry has proposed norms for

import of used clothes by SEZ units to ensure that consignments are free of toxic or hazardous substances. In case of mis-declaration by importers regarding the material being free of such substances, action would be taken as per the Foreign Trade (Development & Regulation) Act, 1992, it has said. The ministry has circulated the draft guidelines to regulate functioning of worn and used clothing units in Special Economic Zones (SEZs).

“Each consignment of used clothing imported by unit shall be accompanied with a certificate from the exporter/agency in which it was generated regarding dis-infection and fumigation of the containers from an agency licensed in the state of origin of worn clothing with import documents,” it said. The SEZ units should also fulfil export obligations while shipping products made out of the imported clothes.

“To ensure that used clothing units in SEZ fulfil their export obligations, the sale of domestic tariff area (DTA) by such units will be restricted to 50 per cent of the free on board (FOB) value of the goods physically exported by the SEZ unit,” the proposed guidelines said.

The ministry has sought stakeholders' views on the draft guidelines by April 18. The comments and suggestions would help in the finalisation of the policy to regulate functioning of worn and used clothing units in SEZs.