Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Policy Circular No. 20 (RE-2010)/2009-14
Dated 14th February, 2011
All Regional Authorities
All Customs Authorities
Member of Trade
Subject: Restriction on export of Cotton yarn- Exemption from the quantity
ceiling of 720 million Kg for export of (i) cotton yarn manufactured out of
imported raw cotton (ii) cotton yarn by 100% EOUs and (iii) Value Added Special
Yarn and Technical Yarn upto 31.03.2011.
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.
- It is 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:
- Export of Cotton Yarn manufactured exclusively out of imported raw cotton
Procedure to obtain export licence:- Concerned manufacturers only can apply for
licence to the concerned RA alongwith (a) ANF 2D (b) Proof of import of raw
cotton having been imported on or after 01.10.2010 (c) Details of cotton yarn
manufactured by using the cotton so imported (d) Quantity exported already out
of cotton yarn so manufactured. Export against the licences so issued must be
completed by 31.03.2011.
- Export of Value Added Special Yarn and Technical Yarn by the original
manufacturers of such yarn
Procedure to obtain export licence:- Concerned manufacturers only can apply.
Licence to be obtained from concerned RA. Applications must contain (a) ANF 2D
(b) Proof of export of such yarn during the previous two years i.e. FY, 2008-09
and FY, 2009-10 (c) certificate from the concerned Export Promotion Council
certifying that the yarn is Value Added Special Yarn/Technical Yarn. Export
against the licences so issued must be completed by 31.03.2011.
- Export of Cotton Yarn by the 100% Export Oriented Units(EOUs) in the
cotton yarn sector
Export of cotton yarn by 100% EOUs in the cotton yarn sector is exempted from
the restriction imposed on export of cotton yarn vide above notifications in
terms of para 6.2(a) of Foreign Trade Policy, 2009-14 which stipulates that an
EOU unit may export all kinds of goods and services except items that are
prohibited in ITC (HS).
- The RAs are requested to send a weekly report of the licences issued for the
above categories addressed to hardeep.singh@nic.in and daya.shankar@nic.in.
- This issues with the approval of Director General of Foreign Trade.
(Daya Shankar)
Deputy Director General of Foreign Trade
E-mail: daya.shankar@nic.in
(Issued from File No.01/91/180/1843/AM11/Export Cell)