To be published in the Gazette of India Extraordinary Part II Section 3, Sub Section (ii)
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan
Notification No. 63 (RE-2010)/2009-2014
New Delhi, 04 August 2011
Subject: Export of Cotton [ITC (HS) Code 5201 & 5203]: obtaining of Registration Certificate
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 notifies the modalities and procedure for obtaining Registration Certificate (RC) in pursuance of Notification No. 62 (RE-2010)/2009-14 dated 01.08.2011, as under:
| 2. | Registration Certificate (RC) for Export of Cotton [ITC (HS) Code 5201 & 5203] |
| Exporters intending to export cotton [ITC (HS) Codes 5201 and 5203] will apply to the Regional Authority (RA) for grant of Registration Certificate (RC) subject to the following conditions: |
(i) The applicant should not be a defaulter / must not be in the Denied Entities List (DEL).
(ii) An applicant shall submit a performance guarantee in the form of a Bank Guarantee (in the format given in Annexure 2) for 2.5% of the value equivalent of the quantity for which
RC is being applied, or for Rs 1 lakh, whichever is more.
(iii) Each application for RC shall be accompanied with either an irrevocable letter of credit (LC), duly authenticated by a bank in India, or proof of receipt of 100 % advance payment
(FIRC), or proof of receipt of 25 % advance payment (FIRC) and payment of rest (75 %) cash against document (CAD).
(iv) Applicant will contact any of the designated RAs with an application (format given in Annexure 1 to this notification) along with a copy of IEC and documents as at (ii) & (iii)
above for obtaining RC. RA’s designated for this purpose are: Ahmedabad, Bengaluru, CLA (New Delhi), Chennai, Kolkata, Hyderabad, and Mumbai.
3. Time to Export (Validity of RC)
Export must be completed within 30 days from the date of issuance of the RC. The validity of the RC would expire after 30 days. Failure to complete export of the full quantity (with a tolerance level of -5 % by weight) for which RC was obtained would entail (a) forfeiture of performance Bank Guarantee submitted to DGFT and (b) debarment from obtaining any Registration Certificate in future, in addition to initiation of penal action under Section 11(2) of Foreign Trade (Development & Regulation) Act, 1992, (as amended).
4. Reporting
Holders of the RC would observe a two stage reporting system, sending two reports to the RA from whom the RC was obtained: (a) a simple first report only about the quantity of export, to whom exported, and when exported, in respect of each consignment immediately on obtaining the Let Export Order (LEO) and (b) a consolidated second report within 35 days of the issue of RC in detail (EP copy of shipping bill required) about all exports done in respect of the complete quantity for which the RC was obtained.
5. RCs obtained till now
Holders of any valid RC that was obtained before 1st August 2011, in respect of which any balance quantity is still to be exported, has the option of getting the RC revalidated or applying afresh under this new dispensation. Thus any RC obtained before 1st August would lose its validity unless revalidated by the RA from whom it was obtained.
(Anup K. Pujari)
Director General of Foreign Trade
e-mail: dgft@nic.in
(Issued from F.No.01/91/180/1194/AM10/Export Cell)