Cotton Export Capped at 55 lakh Bales for Current Season

Assam Comillas Excluded

Subject: Quantity restriction of 55 lakh bales on export of cotton during Cotton Season, 2010-11- Exemption for export of 5000 bales of Assam Comilla cotton.

[Ref: DGFT Notification No. 32(RE-2010)/2009-14 dated 14^th March, 2011]

S.O. (E) 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 makes the following amendments in Notification No. 12(RE-2010)/2009-14 dated 16.12.2010.

2. Notification No. 12(RE-2010)/2009-14 of 16.12.2010 had stipulated the export policy for cotton(Tariff Code 5201, 5202 and 5203) under Serial Number 161 A. In respect of all these three tariff codes the existing entry in the column “Nature of Restriction” shall be substituted, with immediate effect, as under:

“Nature of Restriction”

“The contracts for export of cotton shall be registered with the Directorate General of Foreign Trade prior to shipment. During the Cotton Season, 2010-11 (upto 30.09.2011) the export of cotton will be subject to a cap of 55 lakh bales or as notified by DGFT from time to time. Clearance of cotton consignments by Customs should be after verifying that the contracts have been registered.”

3. However, export of 5,000 bales of Assam Comillas Cotton (Tariff Code 5201 00 12) is exempted from the ceiling of 55 lakh bales imposed on export of cotton during the Cotton Season, 2010-11 (upto 30.09.2011). Such export will also be required to be registered with DGFT.

4. The effect of this notification:-

The export of cotton is free subject to registration of export contracts with DGFT. The cap on export during the Cotton Season, 2010-11 (01.10.2010 to 30.09.2011) will be 55 lakh bales or as notified by DGFT from time to time. But, export of 5,000 bales of Assam Comillas Cotton (Tariff Code 5201 00 12) is exempted from the cap, but not from registration.