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DGFT asked to consider applications of Maharashtra cotton ginners
Jul '11
Maharashtra cotton ginners, who were denied the permission to export cotton from the additionally sanctioned quota of one million bales (1 bale = 170 kg), now have a reason to rejoice, as the Bombay High Court has directed the Directorate-General of Foreign Trade (DGFT) to consider their plea.

While ruling on the civil applications and writ petitions filed by five companies, the High Court directed the DGFT to allow a floor limit of 100 tons per import export code (IEC) to all the ginners.

A two-judge bench ruled that all the exporters who filed applications for additional exports during June 25 to July 6, 2011 period would be allowed to export an additional quota, and directed the DGFT to make allocations before July 27.

As per the ruling, ginners who filed an application prior to June 25 would be allowed a quota of minimum 100 tons, while the quantity remaining after such allocation would be divided between the ginners on a pro-rata basis subject to an upper cap of 4,250 tons per IEC.

The ginners, who had previously made an application for export of below 100 metric tons, would also be considered at par with those who had applied for 100 metric tons.

After the pro-rata allocation, the ginners would be allowed to adjust their cotton bales quantity to one container load, i.e. 25 metric tons or 150 cotton bales. If the pro-rata allocation quantity happens to be a fraction of one container load, it would be rounded off to closest numeral.

The High Court elucidated that its directions are even applicable to those exporters who applied for additional allocation on or before June 25, irrespective of whether they had moved the court or not.

Fibre2fashion News Desk - India

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