CORE PURPOSE AND MISSION: To assist cotton farmers in improving yield & quality, helping cotton users locate regular sources of quality cotton at nominal prices and to prevent the arbitrary use of paper and plastic objects where cotton can easily be replaced as a ‘renewable resource’ (e.g. cotton handkerchief vs. tissue paper, cotton bags vs. plastic/paper bags), thereby saving the environment. ======================================================================
Date: 15/07/2017
Quote: I never think of the future - it comes soon enough. - Albert Einstein
IndiaNew Season Arrivals as on 11/07/2017:
State wise
Arrivals
Just Agri
(Lakh Bales)
2016-17
Just Agri
(Lakh Bales)
2015-16
Punjab 9.00 5.50
Haryana 21.00 14.75
Rajasthan 18.00 15.40
Gujarat 82.10 76.50
Maharashtra 96.05 67.30
M. P. 20.75 18.30
A.P. 18.60 57.25
Telegana 49.40 21.75
Karnataka 16.06 17.20
Orissa 3.00 3.00
Other 2.40 6.50
Total 336.36 303.45
Cotton Sowing Report as on 13/07/2017
Weather Report:
IMD weekly weather report 1stto 12th July 2017
State wise
Arrivals
Central Agri Ministry
(Lakh hact.)
2017-18 2016-17
Punjab 03.850 02.560
Haryana 06.560 04.980
Rajasthan 04.900 03.680
Gujarat 19.900 13.650
Maharashtra 31.360 29.910
M. P. 04.880 05.000
A.P. 02.850 02.030
Telengana 13.650 09.410
Karnataka 02.410 03.100
Tamilnadu 00.050 00.030
Other 01.340 00.970
Total 91.750 75.320
Domestic Market Summary:
Gujarat S6 price chart 1st July to 15th July2017
Starting from mid-June, most textile mills had reduced their cotton procurement to
maintain minimum inventory before the Goods and Services Tax (GST) came into
force on 1st July 2017.Since then, the mills have not been able to cover mush cotton
due to various reasons.
1) Because of insufficient rains in many cotton growing centres of India (parts of
Gujarat, M.P., Maharashtra, Telangana, A.P., Karnataka, etc), the sellers were
not very keen to off load quality cotton stocked in ware houses. As a result,
prices of good quality varieties ruled stronger.
2) Fall in yarn demand since March has weakened the mills purchasing capacity.
The situation has worsened post GST as the yarn prices have fallen by Rs 5 to
Rs 8 per kg in many counts.
3) Mills with lower reserves/lower cotton stocks and high interest burden have
started facing cash losses.
All of the above may compel some of the mills to cut down on production if the
current situation does not improve. Prospects for the new season 2017-18 seem good
as of now, but the last quarter of season 2016-17 is going to be very challenging for
the mills as the physical cotton stocks in India are quite low. This may put substantial
pressure on the closing stocks which is estimated by some supplier groups to be as
low as 2-3 million bales.
42000
42500
43000
43500
44000
1-Jul-17 3-Jul-17 5-Jul-17 7-Jul-17 9-Jul-17 11-Jul-17 13-Jul-17 15-Jul-17
Shankar - 6 (in INR)RATE
PER
CANDY PERIOD
The USDA estimates regarding India‘s closing stock are a matter of debate and
controversy, In 2015-16, USDA estimated ending socks at 14 million whereas it was
actually 3.3-4.3 million bales. Even in 2016-17, USDA has ignored the facts and
estimated the ending stocks at 15.67 million bales. Either it is an overlooked error,
which is quite unlikely, or it is something more serious and sinister. COTTONGURUTM
would like to ask a simple question to the USDA statisticians, where is the cotton?
Yarn: EAR Cotton Yarn Update: It is striking how share of Indian cotton yarn in the
Chinese monthly imports has come down! From being supplier of 37% of total cotton
yarn imports in June 2015, India is now supplying only 8.5%! India is now the third
largest supplier of cotton yarn to China, Vietnam being the top supplier capturing
42% of the Chinese market followed by Pakistan at 19% and just above Uzbekistan
7.8%!
Readymade Garment (RMG): Matter of concern for India
In overall textile trade globally, India has a share of merely 5%, against China‘s 39%.
In the sub-segment of synthetic fibres, India‘s share is just 2%, against China‘s
66%.Bangladesh‘s garment exports exceeded India‘s in absolute terms back in 2003.
Today it exports more than $35 billion worth of garments, twice that of India. Even
late starter Vietnam overtook India in 2011, and now exports garments worth $32
billion. The fact that these two smaller nations have preferential access to the
European Union and US markets is not the only reason to justify their huge lead over
India. Their growth in exports has been at 20% per year, against India‘s 8%.
International Market Summary:
China:
US:
In 2017, total cotton planted is estimated at 12.1 million acres, 20% above last year.
Upland area is estimated at 11.8 million acres, up 19% from 2016. American Pima
area is estimated at 252,000 acres, up 30% from 2016.
Pakistan:
Cotton has been sown on 6.778 million acres against the target of 7.68 million acres.
Thus, Pakistan has missed the cotton sowing target by a wide margin of 12 % in the
current crop season. Uncertainty of cotton prices, increased sugarcane cultivation in
the cotton areas, and shortage of water in cotton sowing areas were some of the main
factors responsible for failure to meet the target.
Cotton crop prospects for the current season (2017-18) are not very bright and the
production is expected to remain at around 13 million bales as against the target of
14.04 million bales. The government revised the cotton production target downward
and set it at 14.04 million bales for 2017-18, after missing the production target of 14.1
million bales for 2016-17 by around 25 %.
Upcoming Conferences:
COTTONGURUTM Media is the official Media Partner for themost of the
Conferences.
India Textile Sourcing Exhibition,Gandhinagar:
Post Event Report of Seminar / Conference:
TEXATHON 2017
COTTONGURU™ & Cotton farmers create History
Historic Event: 1st ever Textile Marathon in the World.
Unique Event: 1st ever Farmer Run in any Marathon in the World.
When COTTONGURU™ first mooted the idea of bring cotton growing farmers for
Texathon, the Organisers said "Wow! But is it possible?". Some of the Friends said
"Not possible. Such a thing has never happened before. Farmers will never come in
the peak sowing season."
But the cotton farmers came...
And they conquered...the hearts of One & All.
The rest is History!
First time ever in history of any Marathon of any size, COTTONGURU™ was able to
initiate and mobilise 50 genuine & progressive Cotton farmers from 25 villages of
Buldhana to participate in the historic "Texathon" , the 1st ever Textile Marathon with
a National cause of getting them accepted as an integral part of the cotton textile
supply chain. The farmers ran carrying a banner with the slogan "FARMER IS THE
KING OF COTTON" and participated with full zeal and enthusiasm.
After the rally, all the farmers were invited in Sasmira Research Institute, Worli where
two legendary personalities from the cotton trade, Shri Sureshbhai Kotak and Shri
Atulbhai Ganatra gave them guidance about the cotton and textile market and
answered all the questions to their complete satisfaction.
COTTONGURU™ gave a Power Point Presentation of cotton sowing & monsoon
status, MSP and price trend scenario for the new season. The farmers were given
most important tips in marketing and value addition of cotton. Farmers were
extremely happy after attending this event and appreciated this sincere effort by the
stalwarts of the cotton industry from the bottom of their heart.
It was most challenging to bring farmers to participate such events especially in the
peak sowing and rainy season, but COTTONGURU™ and its entire team had worked
very hard and in a very professional manner to make this unique event fully
successful.
Special thanks to
1) Texathon Chief Guest: Smt (Dr) Kavita Gupta, Textile Commissioner of India.
2) Farmer participation Sponsor: Shri Atulbhai Ganatra, Shree Radhalakshmi Cotton
Private Limited,Mumbai.
3) Texathon Organisor: Shri Sharad Tandon (President, SASMIRA Alumini Foundation)
4) Facilitators: Shri Gyanoba Mundhe, Sanket Kapadnavis, Deepak Ware.
5) Guidance & Blessings: Shri Sureshbhai Kotak
The entire event (Farmer participation in Texathon and farmer awareness seminar) is
covered by most of India's leading News channels and Newspaper Media.
CITI-CDRA: Brief report on CITI & CITI CDRA’s Participation in the Textiles India 2017 at
Gandhinagar, Gujarat
(In the Picture (from Left to
Right) Hon‘ble Agriculture
Minister, Dr. Radha Mohan
Singh, Dr. R. S. Tripathi,
Project Coordinator, CITI
CDRA and Mr. Atul Mishra,
Economist, CITI)
CITI & CITI CDRA
participated in the Textiles
India 2017 organised by
Ministry of Textiles during
30th June 2017 – 2nd July
2017 at Gandhi Nagar, Gujarat. CITI took a 12 sq.mtr booth in the Cotton Corporation
of India‘s Pavilion in Hall No. 8 and displayed its services. CITI CDRA also displayed
its cotton research activities and promos along with CITI. Hon‘ble Agriculture
Minister, Dr.Radha Mohan Singh, Mr. Ajay Tamta, Hon‘ble Minister of State for
Textiles and Mr. Anant Kumar, Secretary (Textiles) visited CITI and CITI CDRA stall
on 1st of July 2017.
Mr. J. Thulasidharan, Chairman, Mr. Sanjay Jain, Vice Chairman, CITI Mr. B.K. Patodia,
Past Chairman, and Mr. P.D. Patodia, Chairman, Standing Committee on Cotton of
CITI CDRA also marked their presence at CITI Stall. Apart from above good number
of visitors visited the CITI and CITI CDRA stall. From CITI, Dr. S. Sunanda, SG, Mr.
Atul Mishra, Economist, Mr. Ravinder Rawat, ES and Mr. Manoj Sharma, ES attended
and represented CITI at Textiles India 2017.CITI officials attended various
Roundtables and Conferences organised at the Textiles India 2017. From CITI‘s point
of view it was a good networking opportunity keeping in view the forthcoming 9th
ATEXCON.
Dr. R.S. Tripathi represented CITI CDRA at the Textiles India 2017. He answered
various queries raised by the visitors regarding activities and current projects of CITI
CDRA. CITI CDRA also showcased a special video film in CITI CDRA Stall for visitors.
Booklets and leaflets disseminating detailed information on the activities of the CITI
CDRA was distributed to the visitors at the event.
Coinciding with Textiles India 2017 CITI signed two MOUs with ITMF and Wakefield
Inspection Services for long term business cooperation and trade promotion.
Something Different:
COTTONGURUTM CSR Management Services:
Pursuant to the Green Initiative in Corporate Governance issued by the Ministry of
Corporate Affairs, we invite you to utilise your CSR obligation such that it
serves the Society,
protects the environment,
enhances your Social/equity image and
Strengthens your Supply value chain. Call: +91 22 25679871/72
Mail: [email protected].
Risk Management Add template
COTTONGURUTM Mobile APP:
For daily updated cotton news and Buy/Sell offers, download the COTTONGURU APP
from your Android Mobile Play store:
https://play.google.com/store/apps/details?id=com.websqour.cottonguru
Coming Soon
Coming Soon
Reports: ICE COTTON UPDATES:
ICE cotton futures hit their lowest in over two weeks on 13.07.2017 after federal data
showed that 2016-2017 U.S. exports dropped sharply to a marketing-year low.
―The investors were disappointed by the exports, and then we had technicals that
look kind of negative," said Peter Egli, director of risk management at British
merchant Plexus Cotton.
U.S. Agriculture Department (USDA) data showed that U.S. exporters sold 13,000
running bales of upland cotton in the week ended July 6, touching a marketing-year
low for 2016/2017.
-Reuters
ICAC: World cotton production is expected to grow for the second consecutive season
by 7% to 24.6 million tons in 2017-18.
World cotton area is projected to expand by 7% to 31.8 million hectares, which
remains below the average of 32.3 million hectares of the previous ten years
despite prices above their long-term average.
World cotton consumption is expected to increase by 2% to 24.7 million tons
based on expectations of growth in the global economy.
World ending stocks are forecast to decline by 1% to 17.1 million tons in 2017-18.
China‘s stocks are expected to decline by 18% to 7.6 million tons, and its share of
world stocks is expected to decline to 44%, which would be the first time since
2011-12 that it held less than half of global stocks.
Stocks held outside of China are expected to rise by 17% to 9.6 million tons. This
would be one of the highest volumes on record and indicates that prices should
fall.
PRODUCTION ESTIMATES (2017-18):
INDIA: To rise by 6% to 6.1 million tons
USA: To rise by 12% to 4.2 million tons
CHINA: To rise to 5 million tons.
PAK: To rise by 11% to 2 million tons
CONSUMPTION ESTIMATES (2017-18):
INDIA: To rise by 3% to 5.2 million tons
CHINA: To remain stable at 7.7 million tons
PAK: To rise by 3% to 2.3 million tons
VIETNAM: To rise by7% to 1.3 million tons,
BANGLADESH: To rise by 5% to 1.5 million tons
IMPORTS (2017-18):
CHINA: To rise by 1% to 1.1 million tons
BANGLADESH: To rise by 5% to 1.5 million tons
VIETNAM: To rise by7% to 1.3 million tons,
STOCKS WITHIN CHINA (2017-17): To fall by 18% to 7.6 million tons.
STOCKS OUTSIDE CHINA (2017-18): To to rise by 17% to 9.6 million tons.
WORLD COTTON SUPPLY AND DISTRIBUTION
2015/16 2016/17 2017/18 2015/16 2016/17 2017/18
Million Tons Changes from previous month
Million Tons
Production 21.30 22.93 24.57 0.00 0.03 0.04
Consumption 24.28 24.31 24.73 -0.01 0.05 0.13
Imports 7.55 7.93 7.84 0.00 -0.12 -0.24
Exports 7.55 7.93 7.84 0.00 -0.12 -0.24
Ending Stocks 18.68 17.30 17.15 0.06 0.04 0.47
Cotlook A
Index 70 82* 69**
*The price projection for 2016/17 is based on the ending stocks/consumption ratio in the world-less-
China in 2014/15 (estimate), 2015/16 (estimate) andin 2016/17 (projection); on the ratio of Chinese net
imports to world imports in 2015/16 (estimate) and 2016/17 (projection). The price projection is
themid-point of the 95% confidence interval: 81 cts/lb to 83 cts/lb.
** The price projection for 2016/17 is based on the ending stocks to mill use ratio in the world-less-
China in 2015/16 (estimate), 2016/17 (projection) and 2017/18 (projection); on the ratio of Chinese net
imports to world imports in 2016/17 (projection) and 2017/18 (projection); and on the price projection
of 2016/17. The price projection is the mid-point of the 95% confidence interval: 53 cts/lb to 85 cts/lb.
USDA: World Agricultural Supply and Demand Estimates
(WASDE): The U.S. 2017-18 cotton projections show production is 200,000 bales lower
than last month.
With no change in domestic use or exports, ending stocks are also revised
down 200,000 bales.
The projected range of 54 to 68 cents per pound for the marketing year
average price received by producers is unchanged on the lower end and
reduced 6 cents on the upper end; the midpoint of 61 cents is reduced 3 cents
from last month.
The world carrying for 2017-18 is increased 934,000 bales owing in large part
to an upward revision of 500,000 bales for India‘s estimated 2016-17 crop.
World 2017-18 production is increased 636,000 bales, despite the lower
expected U.S. crop, mainly on increased area expectations for India.
World consumption is also forecast higher in both 2016-17—up nearly 200,000
bales— and 2017-18—up more than 500,000 bales.
World 2017-18 ending stocks are now projected at 88.7 million bales, an
increase of 1 million from the June forecast.
Government Policy: GST on fibres, yarns textiles & machines: According to textile industry representatives, differed rates for different parts of the
textile value chain with some being taxed and some being exempt has led to tax
evasion and flourishing of the unorganised sector. While fabrics do not attract excise
duty or sales in most states in India, branded apparels are subject to both excise duty
and sales tax. On the fibre front, natural fibre like cotton is exempt from any tax while
man-made fibre draws a 10 % excise duty. This gains significance amidst
unorganised sector forming a large part of the textile industry, creating a gap in flow
of input tax credit.
The textile industry's other concern is compliance issue which may get aggravated in
case of a higher rate fixed, especially at the end of the value chain. Exporters may
have refund issues, increasing their investment.
In the long run, GST will be beneficial to the cotton and textile trade, as it will remove
the unreasonable ‗state benefit‘ advantage with no issues of Tax forms (C, E1-E2, H).
State Codes in GST
01 – Jammu & Kashmir
02 – Himachal Pradesh
03 – Punjab
04 – Chandigarh
05 – Uttranchal
06 – Haryana
07 – Delhi
08 – Rajasthan
09 – Uttar Pradesh
10 – Bihar
11 – Sikkim
12 – Arunachal Pradesh
13 – Nagaland
14 – Manipur
15 – Mizoram
16 – Tripura
17 – Meghalaya
18 – Assam
19 – West Bengal
20 – Jharkhand
21 – Orissa
22 – Chhattisgarh
23 – Madhya Pradesh
24 – Gujarat
25 – Daman & Diu
26 – Dadra & Nagar Haveli
27 – Maharashtra
28 – Andhra Pradesh
29 – Karnataka
30 – Goa
31 – Lakshdweep
32 – Kerala
33 – Tamil Nadu
34 – Pondicherry
35 – Andaman & Nicobar Islands
Ministry of Finance has issued Notification No. 15/2017 – Central Tax New Delhi last
night (the 1st July, 2017) making rules further to amend the Central Goods and
Services Tax Rules, 2017. These rules are known as the Central Goods and Services
Tax (Third Amendment) Rules, 2017. The Rules have prescribed the procedure for
exporters availing the option to supply goods or services for export without payment
of integrated tax. Such exporters shall furnish, prior to export, a bond or a Letter of
Undertaking in FORM GST RFD-11 (Click here) to the jurisdictional Commissioner.
The relevent Rule as incorporated under 96A is reproduced below:
96A Refund of integrated tax paid on export of goods or services under bond or Letter
of Undertaking.- (1) Any registered person availing the option to supply goods or
services for export without payment of integrated tax shall furnish, prior to export, a
bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional
Commissioner, binding himself to pay the tax due along with the interest specified
under sub-section (1) of section 50 within a period of — (a) fifteen days after the
expiry of three months from the date of issue of the invoice for export, if the goods are
not exported out of India; or(b) fifteen days after the expiry of one year, or such
further period as may be allowed by the Commissioner, from the date of issue of the
invoice for export, if the payment of such services is not received by the exporter in
convertible foreign exchange. (2) The details of the export invoices contained in
FORM GSTR-1 furnished on the common portal shall be electronically transmitted to
the system designated by Customs and a confirmation that the goods covered by the
said invoices have been exported out of India shall be electronically transmitted to
the common portal from the said system. (3) Where the goods are not exported within
the time specified in sub-rule (1) and the registered person fails to pay the amount
mentioned in the said sub-rule, the export as allowed under bond or Letter of
Undertaking shall be withdrawn forthwith and the said amount shall be recovered
from the registered person in accordance with the provisions of section 79. (4) The
export as allowed under bond or Letter of Undertaking withdrawn in terms of subrule
(3) shall be restored immediately when the registered person pays the amount due.
(5) The Board, by way of notification, may specify the conditions and safeguards
under which a Letter of Undertaking may be furnished in place of a bond. (6) The
provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated
supply of goods or services or both to a Special Economic Zone developer or a
Special Economic Zone unit without payment of integrated tax.‖;
Exporters are required to furnish the following information and execute Bond/LUT
(Click here) containing the information as given in the attachment.
In case you have any query, please revert back to us.
Export procedure and sealing of containerized cargo-regarding
Goods and Service Tax has become operational from 01-07-2017. In the GST regime,
the governing provisions related to exports are contained in section 16 of the
Integrated Goods and Service Tax Act, 2017 (IGST Act). Supplies of goods and
services for exports have been categorized as 'Zero Rated Supply' implying that
goods could be exported under bond or Letter of Undertaking without payment of
integrated tax followed by claim of refund of unutilized input tax credit or on payment
of integrated tax with provision for refund of the tax paid.
2. With the onset of GST, extant procedures relating to export of goods viz. claim of
rebate/refund, stuffing of containers at the factory, warehouse or any other place
from where the goods are intended to be exported etc. would require review of the
existing procedures. In this regard, attention is drawn to notification No's 42/2001-
CE (N.T.) to 45/2001-CE (N.T.) both dated 26.6.2001 detailing the procedure to be
followed for the export of goods on payment of terminal excise duty and 19/2004-CE
(N.T.) and 20/2004-CE (N.T.), both dated 06.09.04, without payment thereof.
A. Procedure of Export
3. Any person making zero rated supply (i.e. any exporter) shall be eligible to claim
refund under either of the following options, namely: - (a) He may supply goods or services or both under bond or Letter of Undertaking,
subject to such conditions, safeguards and procedure as may be prescribed, without
payment of integrated tax and claim refund of unutilized input tax credit;
or (b) He may supply goods or services or both, subject to such conditions, safeguards
and procedure as may be prescribed, on payment of integrated tax and claim refund
of such tax paid on goods or services or both supplied, in accordance with the
provisions of section 54 (Refunds) of the Central Goods and Services Tax Act or the
rules made there under (i.e. the Central Goods and Service Tax Rules, 2017).
4. For the option (a) above, procedure to file refund has been outlined in the Central
Goods and Service Tax Rules, 2017. The exporter claiming refund of unutilized input
tax credit will file an application electronically through the Common Portal, either
directly or through a Facilitation Centre notified by the GST Commissioner. The
application shall be accompanied by documents as prescribed in the said rules.
Application for refund shall be filed only after the export manifest or an export report,
as the case may be, is delivered under section 41 of the Customs Act, 1962 in respect
of such goods. The formats for furnishing bond or LUT for export of goods have been
separately notified under COST Rules, 2017. The said formats are attached herewith
for easy reference.
5. For the option (b), broadly the procedure is that a registered person shall not be
required to file any application for refund of integrated goods and services tax paid
on supply of goods for exports. The shipping bill, having inter-alia GST invoice
details, filed by an exporter shall be deemed to be an application for refund of
integrated tax paid on the goods exported out of India and such application shall be
deemed to have been filed only when the person in charge of the conveyance
carrying the export goods duly files an export manifest or an export report covering
the number and the date of shipping bills or bills of export and the applicant has
furnished a valid return in FORM GSTR-3. The details of the relevant export invoices
contained in FORM GSTR-1 shall be transmitted electronically by the common portal
to the Customs system and the said system shall in turn electronically transmit back to
the common portal a confirmation that the goods covered by the said invoices have
been exported out of India. Upon receipt of information regarding furnishing of valid
return in FORM GSTR-3 from the common portal, the Customs system shall process
the claim for refund and an amount equal to the integrated tax paid in respect of each
shipping bill or bill of export shall be electronically credited to the bank account of
the applicant mentioned in his registration particulars. Government has allowed a
grace period to the registrants to file returns under the new GST Law. Therefore, this
refund procedure shall as a consequence come into operation only when the
registrants file the above mentioned returns. Further, the exporters are free to avail
option (a) or option (b). The refund shall be governed by the provisions of the section
16 of the IGST Act.
6. In order to ensure smooth transition from the earlier export procedure to the
procedure being laid down for export of goods under the GST regime, the existing
Shipping Bill formats (both manual/ electronic) have been modified to make them
compliant with the IGST law. New formats of the Shipping Bill have been made
applicable already. ARE-1 procedure which was being followed is dispensed with
except in respect of commodities to which provisions of Central Excise Act would
continue to be applicable.
B. Sealing of Containers
7. Board has in the past issued various circulars both on the Excise and Customs side
on the issue of sealing of containers. A gist of these Circulars and the subject matter
dealt in them is given in the annexure to this circular. At present, there are three
categories of containers which arrive at the port/ICD: a. Containers stuffed at factory premises or warehouse under self-sealing procedure.
b. Containers stuffed / sealed at factory premises or warehouse under supervision of
central excise officer. c. Containers stuffed and sealed at Container Freight Stations/ Inland Container
Depot.
8. For the sake of uniformity and ease of doing business, Board has decided to
simplify the procedure relating to factory stuffing hitherto carried out under the
super vision of the Central Excise officers. It is the endeavor of the Board to create a
trust based environment where compliance in accordance with the extant laws is
ensured by strengthening Risk Management System and Intelligence setup of the
department. Accordingly, Board has decided to lay down a simplified procedure for
stuffing and sealing of export goods in containers.
9. It has been decided to do away with the sealing of containers with export goods by
CBEC officials. Instead, self-sealing procedure shall be followed subject to the
following: i. The exporter shall be under an obligation to inform the details of the premises
whether a factory or warehouse or any other place where container stuffing is to be
carried out, to the jurisdictional customs officer. ii. The exporter should be registered under the GST and should be filing GSTRI and
GSTR2. Where exporter is not a GST registrant, he shall bring the export goods to a
Container Freight Station/Inland Container Depot for stuffing and sealing of
container. However, in certain situations, an exporter may follow the self-sealing
procedure even if he is not required to be registered under GST Laws. Such an
exception is available to the Status Holders recognized by DGFT under a valid status
holder certificate issued in this regard. iii. Any exporter desirous of availing this procedure shall inform the jurisdictional
Custom Officer of the rank of Superintendent or Appraiser of Customs, at least 15days
before the first planned movement of a consignment from his/her factory/
premises, about the intention to follow self- sealing procedure to export goods from
the factory premises or warehouse. The jurisdictional Superintendent or an appraiser
or an Inspector of Customs shall visit the premises from where the export goods will
be stuffed & sealed for export. The jurisdictional Superintendent or Inspector of
Customs shall inspect the premises with regard to viability of stuffing of container in
the premises and submit a report to the jurisdictional Deputy Commissioner of
Customs or as the case may be the Assistant Commissioner of Customs within 48
hours. The jurisdictional Deputy Commissioner of Customs or as the case may be the
Assistant Commissioner of Customs shall forward the proposal, in this regard to the
Principal Commissioner/Commissioner of Customs who would grant permission for
self sealing at the approved premises. Once the permission is granted, the exporter
shall furnish only intimation to the jurisdictional Superintendent or Customs each time
self-sealing is carried out at approved premises. The intimation, in this regard shall
clearly mention the place and address of the approved premises, description of
export goods and whether or not any incentive is being claimed. iv. Where the visit report of the Superintendent or an Appraiser or an Inspector of
Customs regarding viability of the stuffing at the factory/ premises is not favorable,
the exporter shall bring the goods to the Container Freight Station/Inland Container
Depot/Port for sealing purposes. v. Self-Sealing permission once given by a Principal Commissioner/Commissioner of
Customs shall be valid for export at all the customs stations. The customs formation
granting the selfsealing permission shall circulate the permission along with GSTIN of
the exporter to all Custom Houses/Station concerned. vi. Transport document for movement of self-sealed container by an exporter from
factory or warehouse shall be same as the transport document prescribed under the
GST Laws. In the case of an exporter who is not a GST registrant, way bill or transport
challan or lorry receipt shall be the transport document. vii. The exporter shall seal the container with the tamper proof electronic-seal of
standard specification. The electronic seal should have a unique number which
should be declared in the Shipping Bill. Before sealing the container, the exporter
shall feed the data such as name of the exporter, IEC code, GSTIN number,
description of the goods, tax invoice number, -qname of the authorized signatory (for
affixing the e-seal) and Shipping Bill number in the electronic seal. Thereafter,
container shall be sealed with the same electronic seal before leaving the premises. viii. The exporter intending to clear export goods on self-clearance (without
employing a Customs Broker) shall file the Shipping Bill under digital signature. ix. All consignments in self-sealed containers shall be subject to risk based criteria
and intelligence, if any, for examination / inspection at the port of export. At the
port/ICD as the case may be, the customs officer would verify the integrity of the
electronic seals to check for tampering if any enroute. The Risk Management System
(RMS) is being suitably revamped to improvise the interdiction / examination norms.
However, random or intelligence based selection of such containers for examination /
scanning would continue.
10. Board has decided that the above revised procedure regarding sealing of
containers shall be effective from 01.09.2017. A future date has been prescribed since
the returns under GST have been permitted to be filed by 10.09.17 and also with the
purpose to give enough time to the stakeholders to adapt to the new procedures.
Therefore, as a measure of facilitation, the existing practice of sealing the container
with a bottle seal under Central Excise supervision or otherwise would continue. The
extant circulars shall stand modified on 01.09.2017 to the extent the earlier procedure
is contrary to the revised instructions given in this circular. 11. Suitable public Notices may be issued in this regard. Difficulty faced, if any, may
be brought to the notice of the Board
Top Interviews: Exclusive Interview with Dr. Kavita Gupta, +IAS, Textile
Commissioner of India.
https://www.youtube.com/watch?v=rz6BS_g9Msk
Exclusive Interview with Mr. Jose Sette, Ex.Exe Direc, ICAC
https://www.youtube.com/watch?v=Y8h_yvxvaDE
Exclusive interview with thought leader Mr. Suresh Kotak,
Chairman of Kotak & Co.
https://www.youtube.com/watch?v=GBJL-gfzLRc
COTTONGURU™ Fortnightly Newsletter is a cotton market analysis newsletter with a global outlook
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About the author: Mr. Manish Daga popularly referred by the cotton industry as COTTON
GURU™ is a qualified textile technologist.
He is India’s only Cotton Valuer registered by the Indian Institution of Valuers, India. He is the
fourth generation in cotton trade, advisory and broking services from his family. The P. R. D.
Cottons Group is 113 year old in cotton business uninterrupted.
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