Clarification regarding registration of contracts of cotton and cotton yarn with DGFT.

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....;  Through Notification No. 40 (RE-2010)/2009-14 dated 31.03.2011, export of cotton yarn was made "Free" subject to registration of export contracts with DGFT, for ITC(HS) Code 5205, 5206 & 5207. Procedure for registration of contracts of cotton yarn was notified through Policy Circular No. 27 of 01.04.2011.  Thereafter, Trade Notice No. 19 dated 30.08.2011 stipulating procedure for imposition of penalty for failure to export cotton yarn in terms of Policy Circular No. 27 was issued. 2.         Notification No. 62 (RE-2010)/2009-14 dated 02.08.2011, removed the cap on export of cotton  for the remaining part of cotton year 2010-11 (October-September)  and export of cotton (HS co....

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....xport of cotton should be accepted by RAs without invoking any penalty clause. 2 Can the request for cancellation of RCs issued for cotton, cotton yarn and cotton waste  under following categories be accepted: (i) Partially utilized (ii) Completely unutilized alongwith request for RC with another buyer. (iii) Completely unutilized and requested for surrender/cancellation of RCs. In terms of Notification No. 62 dated 02.08.2011,  the exporters have the option to obtain more than one RCs.    Therefore, in case any exporter wants to surrender some RCs as unutilized/partially utilized, a penalty of Rs. 10,000/- plus 1% of the FOB value of shortfall quantity in excess of allowance of -5% should be impos....

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....ntered into with the foreign buyers having addresses in different countries whereas the consignee is of different countries.  If such is the case, as per the contract and LC, then it should be accepted.  But, in cases other than this penal provisions should be invoked. 8 In case of cotton yarn/yarn waste in the event of surrender of RC within validity or after expiry of validity, RC surrendered shall be treated as non-fulfillment of quantity and the case is to be regularized as per Trade Notice No. 19 dated 30.08.2011. Such cases should be regularized by way of imposition of penalty. 9 Whether request for amendment of quantity (either enhancing or reducing) may be accepted. The same is permitted with the conditio....