As cotton prices have remained barely above the support price in open market at a time when new crop arrivals have started, Government has decided to liveralise export procedures. According to notification issued by the Director General of Foreign Trade (DGFT), maximum limit for obtaining Registration Certificate (RC) has been increased to 30,000 bales. At present an exporter can get certificate only for quantity upto 10,000 bales(1 bale=170kg).
DGFT has also been allowed to issue Multiple RCs within this eligibility. To help more exporters to participate and make procedure to apply for RCs simple, DGFT has added three more centers for applying. Exporters can now apply for RCs with Registration Authorities at Ludhiana, Rajkot and Vishakhapatnam. Another change in the policy is to allow new comer exporter.
Notification issued by the DGFT said, “an exporter can apply for RC for a maximum quantity of 30,000 bales or actual quantity exported in the previous cotton season, whichever is less. Exporters who have exported upto 3,000 bales during previous cotton season and new comers (a new comer is an exporter who has not exported cotton in the previous cotton season) can apply upto 3,000 bales”.
Multiple RCs can be obtained within this eligibility. Eligibility to apply for a subsequent RC will be on completion of at least 50% of the exports against individual RC obtained and not on completing 50% exports against total eligibility of the exporter.
