Government outlines procedure for scrutinisation of cotton RCs

NEW DELHI: The government has outlined the procedure for scrutinisation and revalidation of registration certificates given to cotton exporters.

On March 12, the government has lifted ban on cotton exports but had said the commerce ministry would come out with these procedures for providing registration for outward shipments and submit a report to the group of ministers ( GoM) for consideration.

The GoM is expected to meet soon. The Directorate General of Foreign Trade (DGFT) has said that applications for scrutiny and revalidation would be for only registration certificates (RCs) that were valid as on March 5, 2012.

"Applications be submitted to concerned registration authority, where RC was obtained. Separate application shall be made for each valid RC. Last date for submission of application (is) March 22," it said.

The applicant would have to specify the quantum that it has already exported against a RC, with details of date of export, invoice amount and details of importer.

It said that scrutiny of documents would be undertaken at the DGFT office here and then respective RAs would revalidate the RCs as per DGFT's instructions.

These decisions followed meeting of the GoM, headed by Finance Minister Pranab Mukherjee, on March 9, which took place in the wake of Agriculture Minister Sharad Pawar's protest over the cotton export ban.

Some Chief Ministers, including those from Congress-ruled Maharashtra and BJP-ruled Gujarat, had also conveyed their resentment over the move, stating it would hurt farmers.

Defending the ban, the Commerce Ministry has said that more than 85 per cent of shipments have been made to China and there were also evidences of stockpiling abroad.