Cotton Export - DGFT Clarifies
THROUGH Notification No. 40 (RE-2010)/2009-14 dated 31.03.2011, export of cotton yarn was made “Free” subject to registration of export contracts with DGFT. Procedure for registration of contracts of cotton yarn was notified through Policy Circular No. 27 of 01.04.2011. Thereafter, Trade Notice No. 19 dated 30.08.2011 stipulating procedure for imposition of penalty for failure to export cotton yarn in terms of Policy Circular No. 27 was issued.
Notification No. 62 (RE-2010)/2009-14 dated 02.08.2011, removed the cap on export of cotton for the remaining part of cotton year 2010-11 (October-September) and export of cotton was made “Free” subject to registration of export contracts with DGFT. Procedure for registration of contracts of cotton was notified through Notification No. 63 of 04.08.2011. This procedure continues for the current cotton year w.e.f. 01.10.2011 except that the performance guarantee is no longer required in terms of Notification No. 74 (RE-2010)/2009-14 dated 12.09.2011.
Many representations have been received from RAs and exporters seeking clarification about revalidation, cancellation or partial modifications of RCs as well as about imposition of penalty in case of failure to export full quantity of cotton and cotton yarn in terms of the above notifications/Policy Circulars.
DGFT has given clarifications on ten issues like:
++ Whether request for amendment of quantity (either enhancing or reducing) may be accepted: It is permitted with the condition that export has to be completed within the validity of RC.
++ Whether loading of cargo meant for export (by rail/road) at any place in the country within the validity of RC should be accepted as fulfilment of export: No. The goods which have been physically handed over to the customs at relevant ports and Let Export Order(LEO) issued within the validity of RC can only be treated as fulfilment of export against RC.
DGFT Policy Circular No. 51/2009-2014 (RE 2010), Dated: December 28, 2011