TMI BlogClarification regarding registration of contracts of cotton and cotton yarn with DGFT.X X X X Extracts X X X X X X X X Extracts X X X X ..... contracts with DGFT, for ITC(HS) Code 5205, 5206 5207. Procedure for registration of contracts of cotton yarn was notified through Policy Circular No. 27 of 01.04.2011. Thereafter, Trade Notice No. 19 dated 30.08.2011 stipulating procedure for imposition of penalty for failure to export cotton yarn in terms of Policy Circular No. 27 was issued. 2. Notification No. 62 (RE-2010)/2009-14 dated 02.08.2011, removed the cap on export of cotton for the remaining part of cotton year 2010-11 (October-September) and export of cotton (HS codes-5201 5203) was made Free subject to registration of export contracts with DGFT. Procedure for registration of contracts of cotton was notified through Notification No. 63 of 04.08.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally utilized (ii) Completely unutilized alongwith request for RC with another buyer. (iii) Completely unutilized and requested for surrender/cancellation of RCs. In terms of Notification No. 62 dated 02.08.2011, the exporters have the option to obtain more than one RCs. Therefore, in case any exporter wants to surrender some RCs as unutilized/partially utilized, a penalty of Rs. 10,000/- plus 1% of the FOB value of shortfall quantity in excess of allowance of -5% should be imposed. 3 A variation of -5% in weight against RCs for cotton yarn has been allowed. Whether the same is applicable for raw cotton and cotton waste also. Yes. The same dispensation will also apply in case of cotton(HS codes 5201 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions should be invoked. 8 In case of cotton yarn/yarn waste in the event of surrender of RC within validity or after expiry of validity, RC surrendered shall be treated as non-fulfillment of quantity and the case is to be regularized as per Trade Notice No. 19 dated 30.08.2011. Such cases should be regularized by way of imposition of penalty. 9 Whether request for amendment of quantity (either enhancing or reducing) may be accepted. The same is permitted with the condition that export has to be completed within the validity of RC. 10 Whether loading of cargo meant for export(by rail/road) at any place in the country within the validity of RC should be accepted as fulfillment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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