Export of cotton - Conditions and modalities
NOTIFICATION No. 57(RE-2010)/2009-2014 dated 9th June, 2011 has now permitted export of 65 lakh bales of cotton during the current Cotton Year 2010-11 (01.10.2010 to 30.09.2011) subject to registration of contracts with Directorate General of Foreign Trade for export of cotton under ITC(HS) Code 5201 & 5203.
Out of the above quantity of 65 lakh bales, allocation of 55 lakh bales has already been made by the Textile Commissioner, Mumbai in October 2010 and subsequently by DGFT in January, 2011. Accordingly, for balance export of 10 lakh bales (1,70,000 MTs) of cotton, applications are invited for grant of registration certificates, as per the procedure prescribed. Such applications may be sent between 12 noon of Monday 20th June 2011 and 5 pm of Saturday 25th June 2011.
Allocation will be made as per the following criteria:-
++ An applicant must have exported cotton in either of the two previous cotton years (1st October to 30th September) 2008-09, 2009-10;
++ Allocation will be done on a pro-rata basis with a ceiling of 4,250 MTs per IEC (equal to 25, 000 bales) and floor of 100 MTs per IEC. (100 MTs would come to 4 container load; if a standard bale of cotton contains 170 kgs, then 150 such bales would constitute approximately 25 MTs or 1 container load; so 600 bales would be 4 container load);
++ An applicant can apply for a quantity which is the higher of its export of cotton in the two previous cotton years (2008-09 and 2009-10) subject to a quantity ceiling of 4,250 MTs. All applications must be in Metric Tons (MTs) only.
Failure to export the allocated quantity within the stipulated time would invite debarment from further allocation. In addition, penal action as per Section 11(2) of the Foreign Trade (D&R) Act would also be initiated.
Section 11(2) reads as:-
11(2). Where any person makes or abets or attempts to make any export or import in contravention of any provisions of this Act or any rules or order made there under or the Foreign Trade Policy, he shall be liable to a penalty of not less than ten thousand rupees and not more than five times the value of the goods or services or technology in respect of which any contravention is made or attempted to be made, whichever is more .
DGFT Public Notice No. 55/(RE-2010) /2009-2014, Dated: June 17, 2011