DGFT amends export policy of cotton yarn, removes registration rule
Updated: Dec 12, 2014 01:09:21pm
New Delhi, Dec 12 (KNN) The Directorate General of Foreign Trade in a recent notification has amended the export policy of cotton yarn, removing the registration rule which is likely to give a boost to cotton yarn exporters.
On the effect of the notification, “The registration requirement for export of cotton yarn (Tariff Codes 5205, 5206 and 5207) has been dispensed with,” the DGFT said on December-8.
The amendment applies to cotton yarn (other than sewing thread), containing 85 per cent or more by weight or cotton not put up for retail sale; Cotton yarn (other than sewing thread), containing less than 85 per cent by weight or cotton not put up for retail sale; and Cotton yarn (other than sewing thread), put up for retail sale.
The move to abolish mandatory registration of cotton and yarn export is expected to make exports more competitive and reduce transaction costs.
According to media reports, globally, cotton prices have fallen sharply while it has been holding steady in India as the government has announced a remunerative Minimum Support Price to protect farmers’ interests. The imbalance in cotton prices has rendered Indian yarn exports uncompetitive as other producers are dumping yarn in the market at a lower price.
Previously, exports of cotton yarn were subject to a registration procedure laid down by DGFT, under which certificates are issued by the regional offices of DGFT to the exporters of cotton yarn specifying the quantity of goods to be exported. In case the exports fall short by over five per cent of the registered quantity, then a penalty is levied on the exporter.
The amendment will contribute to ease of doing business and simplification of procedures, the media report said. (KNN/ES)
On the effect of the notification, “The registration requirement for export of cotton yarn (Tariff Codes 5205, 5206 and 5207) has been dispensed with,” the DGFT said on December-8.
The amendment applies to cotton yarn (other than sewing thread), containing 85 per cent or more by weight or cotton not put up for retail sale; Cotton yarn (other than sewing thread), containing less than 85 per cent by weight or cotton not put up for retail sale; and Cotton yarn (other than sewing thread), put up for retail sale.
The move to abolish mandatory registration of cotton and yarn export is expected to make exports more competitive and reduce transaction costs.
According to media reports, globally, cotton prices have fallen sharply while it has been holding steady in India as the government has announced a remunerative Minimum Support Price to protect farmers’ interests. The imbalance in cotton prices has rendered Indian yarn exports uncompetitive as other producers are dumping yarn in the market at a lower price.
Previously, exports of cotton yarn were subject to a registration procedure laid down by DGFT, under which certificates are issued by the regional offices of DGFT to the exporters of cotton yarn specifying the quantity of goods to be exported. In case the exports fall short by over five per cent of the registered quantity, then a penalty is levied on the exporter.
The amendment will contribute to ease of doing business and simplification of procedures, the media report said. (KNN/ES)
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