Recently, the Directorate General of Foreign Trade (DGFT) had issued a notification making export of cotton yarn free, but subject to registration of export contracts with DGFT for ITC (HS) Code 5205, 5206 & 5207.
In continuation, DGFT has informed that, all applications, for grant of registration certificate shall be submitted to the concerned RAs along with a copy of export contract and a copy of irrevocable Letter of Credit (LC) duly authenticated by an Indian Bank.
If the LC is not available, exporters may provide a FIRC from bank showing receipt of remittance from the concerned foreign buyer as proof of having received 100% advance payment or a minimum of 25% advance payment and balance cash against delivery (CAD).
Along with the above, a declaration/undertaking as given in Annexure-I of the Policy Circular, on the letter head of the firm and a copy of IEC, will have to be submitted.
If the documents received are found in order, the applicant shall be issued a Registration Certificate. Export against this registration certificate shall be completed within a period of 30 days from the date of issuance of such certificate, adds the circular.
The notification further informs that, failure to export the allowed quantity within the stipulated time would invite debarment from further registration. In addition, penal action as per Section 11(2) of the Foreign Trade (D&R) Act would be initiated.
Click here to view and read DGFT notification.
Fibre2fashion News Desk - India
marketing@alchempro.com
