Cap of 10 Lakh Bales is not Applicable to Cotton Waste Exports

[DGFT Notification No. 58 dated 1st July 2011]

Subject: Exemption for export of cotton waste including yarn waste and garneted stock [ITC (HS) Code 5202] from the quantity restriction on export of cotton during Cotton Season, 2010-11.

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 hereby amends Notification No. 57 (RE-2010)/2009-14 dated 09.06.2011 read with Notification No. 32(RE-2010)/2009-14 dated 14.03.2011 and Notification No. 12(RE-2010)/2009-14 dated 16.12.2010.

2. Notification No. 12(RE-2010)/2009-14 dated 16.12.2010 stipulated that export of cotton under chapter 52, serial number 161 A (Tariff codes 5201, 5202 and 5203) of ITC (HS) classification of export and import items, will be “free”. In this notification, nature of restrictions against all the three codes was that “the contracts for export of cotton shall be registered with the Directorate General of Foreign Trade prior to shipment. Clearance of cotton consignments by customs should be after verifying that the contracts have been registered”. The “Nature of Restrictions” as appearing in Notification No. 12(RE-2010)/2009-14 dated 16.12.2010 was amended through Notification No. 32(RE-2010)/2009-14 dated 14.03.2011. In the nature of restrictions it was added that export of cotton for the cotton season 2010-11 (upto 30.09.2011) will be subject to a cap of 55 lakh bales or as notified by DGFT from time to time. Subsequently, through Notification No. 57 (RE-2010)/2009-14 dated 09.06.2011, the cap on export of cotton for the cotton season 2010-11 (upto 30.09.2011) was raised to 65 lakh bales, thereby allowing export of additional 10 lakh bales of cotton, upto 30.09.2011.

3. It has been decided 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).

4. The effect of this notification:-

Cap of 10 lakh bales will not be applicable to export of cotton waste including yarn waste and garneted stock [ITC(HS) Code 5202]. However, condition regarding registration of contracts with DGFT will continue to apply.