The government today notified the removal of cap on cotton exports for the remaining period of the fibre season in the wake of abundant availability and a crash in prices. In October last year, the government had capped cotton exports at 55 lakh bales (170 kg each) to protect the domestic textiles industry in the face of rising raw material prices. An additional 10 lakh bales were permitted for export in June, after prices had corrected sharply.
“The cap on export of cotton has been removed. However, condition regarding registration of contracts with DGFT would continue to apply,” Directorate General of Foreign Trade (DGFT) said vide Notification No. 62 (RE-2010)/2009-2014. It said that a new procedure of registration is being separately notified for export of cotton.
Notification No. 62 (RE-2010)/2009-2014, Dated- 02 August 2011
Subject: Export of Cotton [ITC (HS) Code 5201 & 5203], amendment in nature of restriction
S.O. (E) In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 2.1 of the Foreign Trade Policy, 2009-14, the Central Government hereby amends the “Nature of Restriction” as appearing in para 2 of Notification No. 12(RE-2010)/2009-14 dated 16.12.2010, read with (i) Notification No. 32(RE-2010)/2009-14 dated 14.03.2011, (ii) Notification No. 57(RE-2010)/2009-14 dated 09.06.2011, and (iii) Notification No. 58(RE-2010)/2009-14 dated 01.07.2011, as under:
“Nature of Restriction”
“The contracts for export of cotton, during the Cotton Season 2010-11(up to 30.09.2011), shall have to be registered with the Directorate General of Foreign Trade prior to shipment. Customs would clear such cotton export consignments [ITC (HS) codes 5201 & 5203] only after verifying that the contracts have been so registered.”
2. The procedure for obtaining Registration Certificate (RC) for the purpose is being separately notified.
3. Effect of this Notification
The cap on export of cotton [ITC (HS) Code 5201 & 5203] has been removed. However, condition regarding registration of contracts with DGFT would continue to apply. A new procedure of registration is being separately notified for export of Cotton [ITC (HS) Code 5201 & 5203]. In respect of cotton waste including yarn waste and garneted stock [ITC (HS) Code 5202] there is no change even in the procedure to obtain registration.
(Anup K. Pujari)
Director General of Foreign Trade
(Issued from F.No.01/91/180/1194/AM10/Export Cell)