Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhavan, New Delhi
Policy Circular No. 15 (RE-2010)/2009-14
Dated : 01.02.2011
To
All Customs Authorities
All Regional Authorities
Members of Trade
Subject:- Conditions and modalities for
applications for grant of quota for export of cotton yarn.
Attention is invited to
Notification No. 14 (RE-2010)/2009-14 dated
22.12.2010 whereby export of cotton yarn under ITC(HS) codes 5205 , 5206 & 5207
was placed under the restricted category with export allowed subject to
licensing. The data for export made from 1/4/2010 to 15/1/2011 is being
collected and allocation will be made for the balance quantity keeping in view
the decision of GoM to limit the export of cotton yarn to 720 Million Kg. during
the year 2010-11. Accordingly, it has been decided to invite applications for
allocation of quota for export of cotton yarn from 02.02.2011 to 07.02.2011
(till 5.00 PM).
- All applications for grant of quota shall be sent only through E-mail at
[email protected]. Annexure-1 of this Policy Circular gives a sample
email for the purpose.
- Allocation will be made after scrutiny of applications, as per the following
criteria:-
- Allocation will be done on a prorata basis. The maximum that an applicant
can apply is 100,000 Kg. per IEC or what has been exported by such IEC holder
during 2009-10, whichever is more.( Example : if an applicant has exported
120,000 kg in 2009-10, then such applicant can apply for a maximum amount of
120,000 kg only ; similarly an applicant who has not exported at all in 2009-10
can apply upto 100,000 kg)
- Only one application per IEC will be accepted and any subsequent
application made by the same IEC holder will be rejected and not considered for
allocation.
- After the allocation is made, the applicants will be required to submit
applications in prescribed format (i.e. ANF 2D) to concerned RAs from 11th
February 2011 to 18th February 2011. The concerned RAs will then issue the
export authorizations for the allocated quantities after scrutiny of the
documents. The following documents will be submitted by allottees to the RA’s:
- Application form (ANF 2D) duly filled and signed,
- Copy of Export Contract alongwith :
either (i) A copy of irrevocable Letter of Credit(LC) duly authenticated by
an Indian Bank.
Or (ii) FIRC showing receipt of remittance from the concerned foreign buyer as
proof of having received 100% Advance Payment.
Or (iii) FIRC showing a minimum of 25% Advance Payment and balance Cash Against
Delivery(CAD),
- Copy of IEC (against which the original application to DGFT has been
sent)
The process of issuance of authorizations would be completed by 18th
February, 2011. The export under such authorizations would need to be completed
before 31st March, 2011 so as to ensure export of 720 Million Kg. of cotton yarn
as per GoM decision.
- Applicants who fail to submit the stipulated documents within prescribed
time or where documents are found to be incorrect or erroneous, that applicant
shall be declared ineligible. They will forfeit their right to seek further
allocation.
- 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 be initiated. For ready
reference Section 11(2) is extracted below:-
“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
thereunder 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.”
- Calendar for process of applications, issue of Export Authorizations and
export is provided in Annexure-2 to this Policy Circular.
- This issues with the approval of Commerce Secretary.
(Hardeep Singh)
Joint Director General of Foreign Trade
Email: [email protected]
(File No. 01/91/180/1843/AM11/EC)
Annexure-1 to Policy Circular No. 15 (RE-2010)/2009-14 Dated : 01.02.2011
SAMPLE FORMAT FOR SENDING APPLICATION BY E-MAIL TO ([email protected])
Subject header of E-mail : IE Code- Name of the Firm/Applicant-Quantity
applied for
(Example : 0500030001-ABC Exports-10,000 Kg.)
(Fill this in the “Subject” field)
| Message Body |
(Content of E-mail) |
| Line 1 : |
IE Code (Example : 0500030001) |
| Line 2 : |
Name (Example : ABC Exports) |
| Line 3 : |
Quantity applied for (In Kgs., both in figure and words).(Example
10,000 Kg., Ten Thousand Kilograms) |
| Line 4 : |
ITC(HS) Code (Example : 5205 or 5206 or 5207) |
| Line 5 : |
Blank |
| Lines 6-7 :
|
Export of cotton yarn made by applicant in 2009-10. |
|
Line 6 : |
Export quantity in Kg. in figures (Example : 250,000 Kg.) |
| Line 7 : |
Export quantity in Kg. in words (Example : Two hundred fifty
thousand Kg.) |
| Lines 8-15 : |
Any other information that the applicant wishes to submit. |
| Lines 16-26 :
|
Details of Applicant |
|
Line 16 : |
Name of the Applicant (in whose name IEC has been issued) (Example :
ABC Exports) |
| Line 17 : |
I Exact Postal Address |
| Line 18 : |
I (Example: D-402, 1st Floor, Karim Nagar, New Delhi- 110010) |
| Line 19 : |
I |
| Line 20 : |
Phone Number(s) with STD Code (Example: 011-23456789) |
| Line 21 : |
Fax Number (Example: 011-23456793) |
| Line 22 : |
E-mail (Example : [email protected]) |
| Line 23 : |
Alternative E-mail (Example : [email protected]) (Application
must be from one of these two E-mails) |
| Line 24 : |
Name of the authorised person sending the application
(Example : Ashok Bhalla) |
| Line 25 : |
E-mail of the authorised person(Example : [email protected]) |
| Line 26 : |
Phone No of the authorized person (Landline & Cell phone) |
End of E-mail
Annexure -II
CALENDAR OF EVENTS
| 1. |
Policy Circular to be issued on |
1st February 2011 |
| 2 |
Receipt of Application by E-mail |
|
| |
Start Date: |
1200 hours, 2nd February 2011 |
| |
Close Date: |
1700 hours, 7th February 2011 |
| 3 |
Compilation Work |
8th, 9th & 10th February 2011 |
| 4 |
Declaration of Allocation |
Thursday, 10th February 2011 |
| 5 |
Document submission, Scrutiny &
Issue of Export Authorizations
(with
the respective Regional Authorities) |
|
| |
Start Date: |
1000 hours, Friday 11.02. 2011 |
| |
Close Date: |
1700 hours, Friday 18.02.2011 |
| 6 |
Date by which Exports must be completed |
Thursday, 31st March 2011 |