The Directorate General of Foreign Trade (DGFT), in two separate notifications, said mandatory registration of cotton and cotton yarn for exports are being done away with immediately. The textile industry welcomed the move.
Southern India Mills’ Association (Sima) Chairman T. Rajkumar said that the government brought in quantitative restriction and mandatory registration for export of cotton in the 2010-11 cotton season when there was a global shortage of cotton. Later, the government removed the quantitative restrictions on both cotton and cotton yarn exports but continued with mandatory registration and other complicated export procedures, including time restriction, penalty clauses for defaulters, etc. Now, cotton and cotton yarn have been brought under the free list.
When registration was mandatory, mills had to export the registered quantity within 30 days and furnish data with various documents. Removal of mandatory export registration was a step towards achieving the Make in India mission, he said.
Cotton Textiles Export Promotion Council Chairman R. K. Dalmia said that removal of mandatory export registration was a proactive and progressive step, which would reduce transaction costs for the exporters of cotton yarn.