Notification No- 58/2010 dated 01.07.2011
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
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
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.
(Anup K. Pujari)
Director General of Foreign Trade
(Issued from File No.01/91/180/1194/AM10/Export Cell)