Department
of Commerce vide
Notification No.12 dated 16/12/2010 stipulated that export contracts for cotton
would be registered with DGFT.
DGFT
has issued Policy Circular on 29/12/2010 stipulating modalities and conditions
for registration of export contract by DGFT office, and uploaded the Circular
on www.dgft.gov.in.
The
salient features of modalities are:
a.
The Calendar of Events showing the stipulated dates
has also been put on the DGFT website along with Policy Circular.
b.
In order to avoid human interface, applications
will be obtained on-line only at designated e-mail address i.e. cottonexport@nic.in (from 1200
hours on 31/12/2010 to 1700 hours on 6/1/2011).
c.
The format for application to be sent by e-mail has
been prescribed and displayed at the DGFT website along with the Policy
Circular.
d.
Based on scrutiny of applications received, the
available quantity of cotton for export will be allocated on pro-rata
basis.
e.
There will be a ceiling of 1 lakh
bales per IEC and a floor of 500 bales per IEC for registration of contracts.
f.
Exporters who had obtained registration of export
contracts in the month of October, 2010, but did not export the full quantity
will be dis-incentivised, by reducing their pro-rata
allocation to the extent of default in exports.
g.
For ease of comprehension by trade, an illustrative
example of the method of allocation has been given on the DGFT website along
with the Policy Circular.
h.
After allocation, the applicant will be given 15
days time to deposit export contracts, confirmed irrevocable Letter of Credit
(LC) or Foreign Inward Remittance Certificate (FIRC) from the bank showing a
minimum of 25% Advance Payment and balance Cash Against Delivery (CAD) or 100%
Advance Payment, along with other prescribed documents.
i.
Those applicants who furnish stipulated documents
within the time limit will be granted Registration
Certificates. Atleast
30 days time will be availabe for export against
Registration Certificate.
j.
If an applicant fails to submit documents in time,
he will be declared ineligible and he will forfeit his right to future
allocations.
k.
Those exporters who fail to export the registered
quantity within the stipulated period, (the last date is 25/2/2011), will be
debarred from future allocations. In addition, penal action will be initiated
against them under the Foreign Trade (Development & Regulation) Act.
******
DS