Conditions and modalities for registration of contracts of cotton with DGFT

Quota allocation for cotton exports on pro rata basis with documentary proof required and penalties for non performance.

Registration of export contracts for raw cotton requires e mail applications in the prescribed format; allocations are made pro rata with a per IEC ceiling and minimum floor, and prior non performance against EARCs reduces pro rata entitlement. Post allocation applicants must submit the export contract plus either a confirmed irrevocable Letter of Credit or bank FIRC evidencing required advance payment, IEC copy, and a signed declaration within a specified period, failing which they are declared ineligible and their allocation is reallocated. Non export within the stipulated time invites debarment and penal action under Section 11(2) of the FT(D&R) Act.