Registration certificate for export of cotton yarn

[kamal chordia]

Dear Sir

 

We have obtained registration certificate for export of cotton yarn from DGFT, while exporting we have made excess qty of export (+5%) with respect to qty allowed in registration certificate.

Please clearify is there any provision to amend the RC for enhance the qty or any relaxation by DGFT.

Please provide related notification / circular

 

[YAGAY andSUN]

It may help you out.

01/91/180/1194/AM10/EC

Government of India

Ministry of commerce & Industry

Department of Commerce

Directorate General of Foreign Trade

Udyog Bhavan, New Delhi

 

Trade Notice No. 03 /2012 Date : 24^th May, 2012

 To,

 All Custom Authorities / All RAs / Cotton Association of India / FIEO

Sub: Clarification regarding standard weight and tolerance in weight of 1 bale of cotton.

Notification Number 113 issued on 4^th May, 2012 deals with registration of contracts for export of cotton. Para 2(iii) of this notification clearly mention that 1 bale = 170 kgs. [ Thus 1 standard bale would be of 170 Kg weight]

2. It has been brought to our notice that some exporters find it convenient to have bales of lesser weight, and also that various bales may contain different quantity of cotton depending on local condition. Thus a bale of cotton may weigh more or less than the exact 170 Kg. A similar clarification was issued last year to Cotton Association of India on 04.02.2011 and this should have settled the issue. For greater clarity the following be noted:

(i) Presumption is that 1 bale would contain 170 Kgs. Hence if the allotment is 10 bales, then the exporter is permitted to export a maximum of 1700 Kgs or 1.7 MT. But if bales are of smaller weight it may be more than 10 bales, or if they are of greater weight, it may be less than 10 bales. Thus when the permission is for 10 bales, the implication is that there are 10 standard bales, each weighing 170 Kg. If the bales are non-standard, then it would be important to watch the weight which must not exceed 1.7 MT irrespective of the number of such non-standard bales.

(ii) RC holders who are found to have defaulted in exporting the quantity allowed would be liable for penal action as mentioned in Policy Circular No. 51 dated 28.12.2011. Here critical test on “quantity” would be weight (taking 1 bale = 170 Kg) and not number of bales. Any shortfall upto 5% in weight, however, will not invite penal action.

3. This issues with the approval of DGFT.

AI Summary

DGFT Rules: No Amendments to Cotton Yarn Export Limit; Exceeding 5% Penalty as per Policy Guidelines. A query was raised regarding the export of cotton yarn exceeding the quantity allowed in the registration certificate by 5%. The individual sought clarification on whether the Directorate General of Foreign Trade (DGFT) could amend the registration certificate to accommodate this excess or provide any relaxation. The response referenced a government notification clarifying that a standard bale of cotton is presumed to weigh 170 kg. Exporters are permitted a shortfall of up to 5% in weight without penalty, but exceeding the allowed weight could lead to penal action as per policy guidelines.