FTP - Restriction on export of Cotton yarn - DGFT Clarifies

By Vijay Kumar

EXPORT of cotton yarn was restricted by Notification No. 14(RE-2010)/2009-14 of 22.12.2010 and therefore its export is now permitted under licence to be issued by DGFT. Vide Policy Circular No. 07(RE-2010)/2009-14 Dated: 22.12.2010, it was informed that the Government has put a quantity ceiling of 720 million Kgs. for export of cotton yarn during the year 2010-11(i.e. upto 31.03.2011).

Subsequently, through Notification No. 18(RE-2010)/2009-14 of 24.01.2011, export of cotton yarn by manufacturers who manufacture and export cotton yarn exclusively out of imported raw cotton was exempted from the restriction imposed on export of cotton yarn subject to a certificate from the jurisdictional Central Excise Authority certifying that the yarn has been manufactured exclusively out of the imported raw cotton.

DGFT has now clarified that the quantity ceiling of 720 million Kgs. for export of cotton yarn during the year 2010-11 shall not be applicable on following:

1. Export of Cotton Yarn manufactured exclusively out of imported raw cotton.

2. Export of Value Added Special Yarn and Technical Yarn by the original manufacturers of such yarn.

3. Export of Cotton Yarn by the 100% Export Oriented Units(EOUs) in the cotton yarn sector.

DGFT Policy Circular No. 20 (RE-2010)/2009-14 Dated: February 14, 2011.