The Ministry of Commerce (MoC) has instructed Trade Development Authority of Pakistan (TDAP) to restrict the export of cotton yarn to 50 million kg per month aimed to facilitate the value-added textile sector. Through an order SRO.26 (1) 2010 dated January 14, TDAP was asked to register and monitor the export of cotton yarn to restrict its volume with immediate effect till June 30.
In this connection, the authority has also started the registration through issuing new application and registration forms to the exporters of the textile raw items. According to a notification issued by TDAP, the authority would also issue electronically generated "Cotton Yarn Export Monitoring Certificate" for the yarn export capping at the level fixed by the cabinet committee on textile on January 8, 2010.
These fresh measures have been taken after the meeting of the Committee, which reviewed the prevailing situation in the domestic market and export of cotton yarn and other factors including the export trends, the availability of cotton yarn for domestic industry and the prevalent prices.
According to the notification, the yarns like lycra, dyed, heather grey/mélange, slub, and bleached/singed would be excluded from the cap, which will only be exported by units registered with the Ministry of Textile Industry after producing proper certificates from accredited laboratories for each consignment.
It said TDAP, during the current crop season, would register the export contracts on first-come-first-served basis. This measure would stand terminated on June 30, 2010. The Chief Executive, TDAP, it said, had also held meetings with various stakeholders, including representatives of downstream industries as well as Aptma and others to evolve a system of registration and a monitoring mechanism for the quantitative monthly cap on the exports of cotton yarn.
It said that the relevant data and particulars are incorporated in the new application and registration form that would be entertained on a first-come first-served basis at all the designated TDAP Registration and Monitoring Cells. According to the notification each application must be accompanied with duly bank attested LC document, complete shipment schedule, specifying number of shipments to be made in a specific month, enabling the TDAP to issue the electronically generated Cotton Yarn Export Monitoring Certificates on a per shipment basis.
On achieving the quantitative cap of 50 million kg for a specific month, no further applications will be entertained by the TDAP for shipments to be made in that particular month. Customs authorities will only allow shipments in the specific month for which the Cotton Yarn Export Monitoring Certificate has been issued.
The daily monitored position and the remaining quantities available from the respective monthly quantitative capping would be displayed through a link in the official website of the TDAP, for transparency purposes. These measures will be in force for the shipments to be made in January to June 2010. These measures would stand terminated on June 30 2010.