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: info@cottonguru.org.

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

committed to authenticated and sustainable content. It revolves around cotton and textile industry as a

concept in terms of trade, research and knowledge. The newsletter is circulated to over 10,000 Textile

companies, Textile & Research Associations, professionals, Government Offices worldwide.

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.

Call or mail for any information, suggestion, feedback or to know how your Company can

benefit from the knowledge and experience of COTTON GURU™.

Call on +91 9820072705 or mail to manish@cottonguru.org

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reproduction, dissemination, copying, disclosure, modification, distribution and/or publication

of this Newsletter is strictly prohibited. The contents of this Newsletter are solely meant to inform

and is not a substitute for professional advice.

FIRST AND ONLY REGISTERED―COTTON VALUER‖ IN INDIA

MEMBERSHIP

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2. CAI (Cotton Association of India)

3. ISCI (Indian Society for Cotton improvement)

4. IFS ( Indian Fibre Society)

5. TAI (Textile Association of India)

COTTONGURU™

Mr. Manish Daga

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