The Head/Principal Offices of all

Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,

6% R & D SUPPORT TO TEXTILE UNITS OF EXPORT PROCESSING ZONE (EPZS)

Attention of Authorized Dealers is invited to FE Circular No. 06 dated June 18, 2005 on the subject in terms of which 6% R&D Support was allowed to the garment industry.

Subsequently, in accordance with MoC’s decision 6% R&D Support was also allowed on export of readymade textile garments from EPZ Units vide FE Circular No. 04 dated April 14, 2006.

In this regard, it is advised that MoC has clarified that the facility of 6% R&D for textile units operating in EPZ is available prospectively i.e. with effect from April 14, 2006 as per rules & regulations.

They are, therefore, advised to adjust the claims of Textile Units operating in EPZ if entertained prior to April 14, 2006, under intimation to this Department on priority basis.

Authorized Dealers are advised to bring the above to the notice of all their constituents.