Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan
Notification No. 63 (RE-2010)/2009-2014
New Delhi, 04 August 2011
Subject: Export of Cotton [ITC (HS) Code 5201 &
5203]: obtaining of Registration Certificate
S.O. (E) In exercise of the powers conferred by Section 5 of the Foreign
Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 2.1 of
the Foreign Trade Policy, 2009-14, the Central Government hereby notifies the
modalities and procedure for obtaining Registration Certificate (RC) in
pursuance of
Notification No. 62 (RE-2010)/2009-14 dated 01.08.2011, as under:
2. Registration Certificate (RC) for Export of Cotton [ITC (HS) Code 5201 &
5203]
Exporters intending to export cotton [ITC (HS) Codes 5201 and 5203] will
apply to the Regional Authority (RA) for grant of Registration Certificate (RC)
subject to the following conditions:
- The applicant should not be a defaulter / must not be in the Denied
Entities List (DEL).
- An applicant shall submit a performance guarantee in the form of a Bank
Guarantee (in the format given in Annexure 2) for 2.5% of the value equivalent
of the quantity for which RC is being applied, or for Rs 1 lakh, whichever is
more.
- Each application for RC shall be accompanied with either an irrevocable
letter of credit (LC), duly authenticated by a bank in India, or proof of
receipt of 100 % advance payment (FIRC), or proof of receipt of 25 % advance
payment (FIRC) and payment of rest (75 %) cash against document (CAD).
- Applicant will contact any of the designated RAs with an application
(format given in Annexure 1 to this notification) along with a copy of IEC and
documents as at (ii) & (iii) above for obtaining RC. RA’s designated for this
purpose are: Ahmedabad, Bengaluru, CLA (New Delhi), Chennai, Kolkata, Hyderabad,
and Mumbai.
3. Time to Export (Validity of RC)
Export must be completed within 30 days from the date of issuance of the RC.
The validity of the RC would expire after 30 days. Failure to complete export of
the full quantity (with a tolerance level of -5 % by weight) for which RC was
obtained would entail (a) forfeiture of performance Bank Guarantee submitted to
DGFT and (b) debarment from obtaining any Registration Certificate in future, in
addition to initiation of penal action under Section 11(2) of Foreign Trade
(Development & Regulation) Act, 1992, (as amended).
4. Reporting
Holders of the RC would observe a two stage reporting system, sending two
reports to the RA from whom the RC was obtained: (a) a simple first report only
about the quantity of export, to whom exported, and when exported, in respect of
each consignment immediately on obtaining the Let Export Order (LEO) and (b) a
consolidated second report within 35 days of the issue of RC in detail (EP copy
of shipping bill required) about all exports done in respect of the complete
quantity for which the RC was obtained.
5. RCs obtained till now
Holders of any valid RC that was obtained before 1st August 2011, in respect
of which any balance quantity is still to be exported, has the option of getting
the RC revalidated or applying afresh under this new dispensation. Thus any RC
obtained before 1st August would lose its validity unless revalidated by the RA
from whom it was obtained.
(Anup K. Pujari)
Director General of Foreign Trade
e-mail: [email protected]
(Issued from F.No.01/91/180/1194/AM10/Export Cell)
Annexure I to Notification No: 63 (RE-2010)/2009-2014 dated
04 August 2011
SAMPLE FORMAT FOR APPLICATION FOR OBTAINING REGISTRATION
CERTIFICATE
(In the official letter head of the Applicant Company / Firm)
IE Code (Example : 0500030001)
Name (Example : ABC Exports)
Quantity intended for export (In MT, both in figure and in words).
(Example 3,400 MT, Three Thousand Four Hundred MT)
DECLARATION / UNDERTAKING
1. I / We hereby declare that the particulars and the statements made in this
application are true and correct to the best of my / our knowledge and belief
and nothing has been concealed or held there from.
2. I / We hereby declare that in the name of this applicant firm, (a) no other
application is being submitted or has been submitted for obtaining RC to export
cotton to any office of DGFT (either before the present RA or any other RA); and
(b) that in respect of RC obtained earlier, if any, the proof of having
completed exports in full has been submitted to the concerned RA.
3. I / We fully understand that any information/document furnished with the
application if found incorrect or false will render me / us liable for any penal
action or other consequences as may be prescribed in law or otherwise warranted.
3. I / We undertake to abide by the provisions of the FT (D & R) Act, 1992, as
amended, the Rules and Orders framed there under, FTP, HBP v 1 and HBP v2 and
ITC (HS). I / We also undertake that in the event of non-performance after grant
of Registration Certificate for export of cotton by the Directorate General of
Foreign Trade, I / We shall be liable to Penal Action under Section 11(2) of
Foreign Trade(Development & Regulation) Act, 1992, (as amended), including (a)
forfeiture of performance Bank Guarantee submitted to DGFT and (b) debarment
from obtaining any Registration Certificate in future..
4. I hereby certify that I am authorised to verify and sign this declaration.
Signature of the Applicant Place ……………… Date …………..
Name:
Designation:
Official Address (Complete):
Telephone Number(s):
Cell Phone Number(s):
Fax Number(s):
Email(s):
________________________________________________________________________
Required documents for submission for obtaining RC
(a) Performance Guarantee in the form of Bank Guarantee(BG) for 2.5% of the
applied value, or Rs 1 lakh whichever is more
(b) Proof of payment (either Letter of Credit duly authenticated by a Bank in
India, or 100 % advance payment (FIRC), or 25 % advance payment (FIRC) and rest
75 % against document
(c) Copy of IEC
Annexure-II to Notification No: 63 (RE-2010)/2009-14 Dated 04 August, 2011
FORMAT OF BANK GUARANTEE
To,
The President of India
In consideration of the President of India, acting through the Director General
of Foreign Trade (which
expression shall be deemed to include the Joint Director General of Foreign
Trade / Deputy Director General of
Foreign Trade, or any other authority for the time being authorised to perform
the duties of Joint Director General of Foreign Trade / Deputy Director General
of Foreign Trade), Department of Commerce, Government of India, New Delhi
[hereinafter referred to as the Government] having agreed to grant to
_______________________ (full expanded name of the Exporter) having Importer
Exporter Code (IEC) Number ______________________, [hereinafter referred to as
Exporter], a Registration Certificate for export of __________ MTs of cotton for
a value of Rs._____________ (Rupees ___________________ only) which requires
production of performance guarantee in the form of a Bank Guarantee for 2.5% of
the value of export or for Rs 1 lakh whichever is higher.
2. We ____________________ (indicate the name and full address and other
particulars of the Bank, including IFSC Number), [hereinafter referred to as
Bank], at the request of the Exporter do hereby unconditionally and irrevocably
undertake to pay the Government an amount not exceeding Rs.____________ against
non completion of export in full or any failure on the part of the said Exporter
in fulfilling any of the terms or conditions contained in the said Registration
Certificate .
3. We ___________________ (indicate the name of Bank) do hereby undertake to pay
the amounts due and
payable under this guarantee without any demur or protest, merely on a demand
from the Government stating
that the amount claimed is due to non completion of export in full or breach by
the Exporter of any of the terms or conditions of the said Registration
Certificate. Any such demand made on the Bank shall be conclusive as regards the
amount due and payable by the Bank under these presents.
4. We ___________________ (indicate the name of Bank) undertake to pay to the
Government any money so demanded notwithstanding any dispute or disputes raised
by the Exporter in any suit or proceeding pending before any court or Tribunal
relating thereto and our liability under these presents being absolute and
unequivocal.
5. We,_________________(indicate the name of Bank) further agree that the
guarantee herein contained shall
remain in full force and effect during the period that would be taken for the
performance under the said Registration Certificate, and that it shall continue
to be enforceable till all the obligations of the Exporter under or by virtue of
the said Registration Certificate have been fully discharged to the satisfaction
of the Government or till Jt.DGFT/Dy.DGFT, or any Licensing authority for the
time being authorised to perform the duties of Jt.DGFT/Dy.DGFT, Department of
Commerce, New Delhi, certifies that the terms and conditions of the said
Registration Certificate have been fully and properly carried out by the
Exporter and accordingly discharges this guarantee. Provided, however, unless a
demand or claim under this guarantee is made on us in writing on or before
30
November 2011, we shall be discharged from all liability under this guarantee
thereafter.
6. We ____________________ (indicate the name of bank), further agree with the
Government that the
Government shall have the fullest liberty without our consent and without
affecting in any manner our obligations
hereunder (i) to vary any of the terms and conditions of the said Registration
Certificate and modify the said scheme from time to time or (ii) to extend time
of performance by the said Exporter from time to time or to postpone for any
time or (iii) from time to time any of the powers exercisable by the Government
against the said Exporter and to forbear or enforce any of the terms and
conditions relating to the said Registration Certificate and we shall not be
relieved from our liability by reason of any such variation, or extension being
granted to the said Exporter for any forbearance, act or omission on the part of
the Government or any indulgence by the Government to the said Registration
Certificate holder or by any such matter or thing whatsoever which under the law
relating to sureties would, but for this provision, have effect of so relieving
us.
7. That this shall be a continuing Bank Guarantee and shall not be discharged by
any change in the
constitution of the Exporter or of the Bank.
8. That the guarantor will not revoke the guarantee without prior written
consent of the Government.
"Dated the_______________day of____________year_________ for
______________________ (indicate
the name of the Bank)"
Signature of Authorised officer of the Bank with stamp/seal
Note: “The Bank Guarantee shall be valid till 30th November 2011