Cotton Yarn Export Freed, Quota System Dropped

[DGFT Notification No. 40 dated 31st March 2011]

Subject: Removal of restriction on export of cotton yarn.

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 2.1 of the Foreign Trade Policy, 2009-14, the Central Government amends Notification  No. 14(RE-2010) dated 22.12.2010 relating to export of Cotton Yarn with effect from 01.04.2011.

2. The entries of Table in Para 2 of Notification No. 14(RE-2010) dated 22.12.2010 will now read as follows:-

S. No.	Tariff Item Code	Unit	Item of Description	Export Policy	Nature of Restriction
161 B	5205	Kgs	Cotton yarn (other than sewing thread), containing 85% or more by weight of cotton not put up for retail sale	Free	The contracts for export of cotton yarn shall be registered with the Directorate General of Foreign Trade prior to shipment. Clearance of cotton yarn consignments shall be given by Customs after verifying that the contracts have been registered.
	5206	Kgs	Cotton yarn (other than sewing thread), containing less than 85%  by weight of cotton not put up for retail sale
	5207	Kgs	Cotton yarn (other than sewing thread), put up for retail sale

3. The effect of this notification:-

The export of cotton yarn (Tariff Codes 5205, 5206 & 5207) was earlier “Restricted” with export allowed against licence.  Now,  the export of cotton yarn is “Free” subject to registration of export contracts with DGFT.