Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhavan, New Delhi.
Policy Circular No. 34 (RE-2010)/2009-14
Dated the 1st July, 2011
To
All Customs Authorities / All Regional Authorities / Members of Trade.
Subject:- Conditions and modalities for registration of contracts of cotton
waste including yarn waste and garneted stock [ITC(HS) Code 5202] with DGFT.
Notification No. 57 (RE-2010)/2009-14 dated 09.06.2011 has raised the cap on
export of cotton for the cotton season 2010-11 (upto 30.09.2011) to 65 lakh
bales, thereby allowing export of additional 10 lakh bales of cotton, upto
30.09.2011. Through Notification No. (RE-2010)/2009-14 dated .06.2011, it has
been notified that the cap of additional 10 lakh bales, on export of cotton
during the cotton season 2010-11 (upto 30.09.2011), will apply only to Tariff
codes 5201 and 5203. This cap shall not apply to export of cotton waste
including yarn waste and garneted stock(Tariff code 5202).
- Thus, Export of cotton waste including yarn waste and garneted stock [ITC(HS)
Code 5202] is “Free” subject to registration of export contracts with DGFT.
Procedure for registration of contracts for export of cotton waste including
yarn waste and garneted stock(Tariff code 5202), which are to be registered with
the Regional Authorities of DGFT, is described below. This is similar to
Policy
Circular No. 27 of 01.04.2011 relating to export of cotton yarn except that
period of shipment against the RCs will be 45 days for export of cotton waste.
It is 30 days for export of cotton yarn.
- All applications for grant of registration certificate shall be submitted to
the concerned RAs along with the following documents:
- Copy of Export Contract along with,
- A copy of irrevocable Letter of Credit(LC) duly authenticated by an Indian
Bank,
or
- FIRC from Bank showing receipt of remittance from the concerned foreign
buyer as proof of having received 100% Advance Payment
or
- a minimum of 25% Advance Payment and balance Cash Against Delivery(CAD).
- Declaration/Undertaking as given in Annexure-I of this Policy Circular, on
the letter head of the firm.
- Copy of IEC
- If the documents received are found in order, the applicant shall be issued a
Registration Certificate. Export against this registration certificate shall be
completed within a period of 45 days from the date of issuance of such
certificate. The firms would be required to submit proof of export to the
concerned RA within 10 days of last shipment.
- Failure to export the allowed quantity within the stipulated time would
invite debarment from further registration. 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
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.”
6. This issues with the approval of Director General of Foreign Trade.
(L.B. Singhal)
Joint Director General of Foreign Trade
Email: lb.singhal@nic.in
(Issued from F.No 01/91/180/1194/AM10/Export Cell)
Annexure-1 to Policy Circular No. 34(RE-2010)/2009-14
Dated : 1st July,2011
DECLARATION / UNDERTAKING
- I / We hereby declare that the item exported by me/us is cotton waste / yarn
waste /garneted stock [ITC(HS) Code 5202].
- I / We hereby further declare that the particulars and the statements made in
this application are true and correct to the best of my / our knowledge and
belief and nothing has been concealed or held there from.
- I / We fully understand that any information furnished in the application if
found incorrect or false will render me / us liable for any penal action or
other consequences as may be prescribed in law or otherwise warranted.
- I / We undertake to abide by the provisions of the FT (D & R) Act, 1992, as
amended, the Rules and Orders framed there under, FTP, HBP v 1 and HBP v2 and
ITC (HS). I also undertake that in the event of non-performance after grant of
Registration Certificate by the Directorate General of Foreign Trade for export
of cotton waste / yarn waste /garneted stock, I shall be liable to Penal Action
under Section 11(2) of Foreign Trade(Development & Regulation) Act, 1992, (as
amended), including debarment from future allocations.
- I hereby certify that I am authorized to verify and sign this declaration.
Signature of the Applicant |
Place |
Name |
Date |
Designation
Official Address(if different than given in the letter head):
Line 1: Number of the office premises.
Line 2: Street name.
Line 3: City name.
Line 4: Pin code.
Telephone No.(with STD code):
Cell Phone No.:
Fax No.:
E-mail of the firm/company: |
E-mail of the signatory: |
Residential Address of the signatory:
Line 1: House Number.
Line 2: Street name.
Line 3: City name.
Line 4: Pin code.
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