REGISTERED No D. (D.)-72
The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No 151] NEW DELHI, MONDAY, JULY 28, 1980/SRAVANA 6, 1902
Separate paging is given to this Part in order that it may be filed as a separate compilation
512 GI/80
(597)
598 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]599
600 THt, GAZETTE OF INDIA : EXTRAORDINARY [PART I ^ S t c. 1]MINISTRY OF COMMERCE
EXPORT TRADE CONTROL
(iii) FCFS Ready goods 20 pcr cent,
(for small orders)
(iv) Central/State Govt. Corporations 5 per cent,
(v) Manufacturers-Exporters 20 per cent. of past performance quota.
(11) Allocation of quotas under FCFS Ready goods shall be made only in the case of small orders. For fhc purpose of allocation under this system, small orders are. those where the orders for garment quota items do not exceed quantities in different country-categories to be specified by the Textile Commissioner.
(iii) Government reserves the right to use flexibility pro- vided under the various biatcral agicements in a suitable manner.
Public Notice No. 46-ETC(PN)/80
Now Delhi, the 28th July, 1980
Sub : Scheme for exports under OQL. 3 of Garments and Knitwears made from Cotton, Wool and man-made fibres to USA, EEC Member-Slates, Norway, Finland, Austria and Canada from 1-1-1981 to 31-12-1981.
F. No. 2/54/80-EI.—This scheme relates to the export of
certain ready-made garments and knitwear items of (i) cotton, wool and man-made fibres to U.S.A., EEC Member-States (Federal Republic of Germany, France, Italy, Benelux, United Kingdom, Irish Republic and Denmark), Norway Canada (ii) cotton and man-made fibres la Finland and (iii) cotton to Austria for the period 1-1-1981 to 31-12-1981.
2. The list of categories of textile products covered under the scheme are available with the Apparels Export Promo- tion Council and the Wool and Woollens Export Promotion Council. Unless otherwise directed, the Apparels Export Pro- motion Council, New Delhi (AEPC) will allocate quotas and do necessary certification for all garments End knitwear excluding woollen knitwear and quota allocation for woollen knitwear will bi done by the wool & woollen EPC, New Delhi (W&WEPC). However, in respect of woollen knitwears necessary certification as outlined in the following paragraphs will be done by the Apparels Export Promotion Council. The Government reserves the right to make changes as considered appropriate with regard (o the agencies for quota allocation and certification and with regard to transfer of any part of the work to any other agency.
3. (i) For the purpose of quota allocation in FCFS Con- tract Reservation and FCFS ready goods for small orders, the quota year, 1981 will be divided into three periods viz (i) January to April, (ii) May to August, and fiii) September to December. 50 per cent of the annual quota will be allo- cated for the first period from January to April, 35 per cent for the second period, May to August and 15 per cent for the third period, September to December,
(ii) In the case of knitwears (Hosiery items) to be specified by Textile Commissioner, Bombay, the quota year shall be reckoned in two spells, the fir.-.t fmm January to August and the second from September to December. $<• per cent of the quota allocablc for knitwear shall be made available for shipment during the period January to August and 15 per cent during September, to December.
(iii) The above percentages may be readjusted from time
to time by Government depending upon trends of denun:"!.
(iv) The above divisions, of the year and the percentages of allocations will be subject to modifications in rcenrd to Past Performance quota as indicated jn paragraphs 4 & 5.
4, (i) The annual quotas will be allotted in the following
n manner :
fi) Past Performance Basis 40 per cent,
(ii) FCFS Firm Contract Reservation 35 p cr c e nt 5. (0 In the case of allotment ol quotas on the bajis of pait performance, the quota entitlement will be determined for each country-category combination on the basis of average exports for the years 1977, 1978 and 1979. If an exporter so wishes, he could include for purposes of computation his exports during the first six. months of 1980, treating such ex- ports as a full year's exports for this purpose. In their cases the exports for 1977, 1978 and 1979 alongwith the exports ot the first six months of 1980 would be taken together and divided by four. The annual entitlement of an exporter will be determined in the manner indicated above and the quota available for past-performance will be distributed among the exporters pro-rata, i.e. in the ratio of their past-performance. The work relating to the determination of past-perlormancc quota will be carried out by the office of CCI&E and the entitlements communicated to the appropriate authorities for the purpose of allotment. In case ot any subsequent change in tho entitlement of an individual exporter, the entire exer- cise of pro-rata calculation need not be reopened but suit- able adjustment would bo made in the entitlement of the exporter concerned. A separate Public Notice will be Issued On the subject,
(ii) The quota under this system will be transferable to another registered exporter with the stipulation that for the purpose of performance- it may be counted as the exports ot the transferee. Tn other words, if an exporter, on the basis of past performance gets an allotment and finds that he is not in a position to export, he can transfer this quota to another registered exporter. The transferred quota will pet add-ed on to the transferee and will be counted against hig performance for that year. The quota in the hands of the transferee will be subject to the same terms and conditions as those applicable to it in the hands of the transferor.
(iii) In the utilisation of quota allotted to him, an ex- porter will have the choice to utilise hU entire quantity without regard to categorisations such as children's garments He may utilise his entire quota for export of handlooms and will also have the choice to surrender that portion of hand- loom quota, which he may not be able to export But all surrcndeis shall have to be made before 31-5-1981.
• 6' F*°ri -k n i t w < mr hosiery items), there shall be n reserva- t-^j 1 p cr c c nt of t he q u o ta in r c l c vant categories. For
children s garments reservation on the terminal dale will be 10 pcr cent in all categories. 1 lL
l ri t he C^S: w h c rc hnndloom ""d mil' made items are clubbed together, the ratio of handlooms TO others will be 2:1 in the case of U.S.A. whereas it will bo 1 : 1 in case of other countries. An exporter may be allowed to utilise his entire quota on handlooms if hr so dasircs, Government reserves the right to make changes in these ratios .Icnendine ' s upon the derrmnd trends.
B 8. There shall be only one floor-price for each category of garments. There shall be no separate floor price for children s garments. The Textile Commissioner, will pres- cribe the floor puces and communicate them to the parties concerned. In determining the floor prices regard will be paid to all relevant factors including the fact" whether a particular garment item has been identified as •> slow movint one or not.
9 In the rase of FCFS contract reservation and FCFS ready-goods (for small orders) a choice among offers may have to be made on the terminal date. For this purpose selection will be made on the basis of unit pri<*, higher mit price being the criterion in such eventuality
KXi) The quota allocation for all garments and knitweais cotton, woollen and man-made will be made on L/C terms. L/Cs should be operative, valid and irrevocable. In the case of FCFS contract reservation and ready-jjoods (for small orders) L/Cs should be submitted alongwith the application. In tho case of past performance quota, L/Cs would have to be opened just before shipment during (he first quarter ending 30-4-1981. For shipments after this dale, L.C. for the cntiie periods M;>y to August or Sept. to December should be given 15 days prior to the commencement of the relevant period.
(ii) Performance Bond for a value of 10 per cent of the value of quota allotment 'will have to be submitted by the applicant alongivilh thj application for quota allotment on FCFS firm contract basis. In the case of FCi-S ready yoods (for small orders) earnest money at the rate of 10 per cent of the f.o.b. value, will have to be deposited by the appli- cant at (he time of quota endorsement, shipment to be effected within 10 days from the date of such endorsement. In the case of slow moving items no bank guarantees will be accessary.
(iii) In the case of Past Performance quota an exporter need not furnish Bank Guarantee for quantity actually shipped during the first period i.e. 1-1-1981 to 30-4-1981. He can s/urreuder thereafter in past or full by 30-5-1981. For the quantity retained he will have to furbish bank guarantee at the rate of 10 per cent of f.o.b, value.
(iv) An exporter, who exports not less than 90 per cent of the quota allotted to him, under FCFS contract reserva- tion or FCFS ready-goods (for small orders), in a particular period, or within the whole year, under pait-p ;rformnnce will not be liable for payment of penalty. An ex.]>ortcr who pcrfo-ms not less than 75 per cent will have to r^iy propor- tionate penalty. If the utilisation of quota allocation is less than 75 per cent the exporter will be liable for forfeiture of his performance bond/earnest money deposit in full. This will be subject to conditions of force majcure, wherever they arise.
(v) In cases where the utilisation of quota allocation is not le'.s than 75 per cent within the validity period, the ex- porter may be given the option to seek extension for the next allotment period within the quota year. In such cases, the exporter will have to execute a bond, supported by a Bank Guarantee, to the extent of 20 per cent of the f.o.b. value of tho balance quantity. In c;"e of his failure to export fully, the Bond and the Bank Guarantee will be liable to the forfeited in full.
11. (i) Tn line with the practice followed during the current ante-year (Calendar year 1980) Bank Guarantees and de- posits will be dispensed within the case of the slow-moving items, specially identified for that purpose by the Textile Commissioner. For the identified slow-moving items, a nomi- nal deposit, as prescribed by the Textile Commissioner, would only be required. Besides anybody who comes for allocation cither on FCFS contract reservation basis or FCFS ready goods (for small orders) basis will get the allocation subject to availability. If in any case, an exporter wants to reserve any quantity, he will be permitted to do so on production of a firm contract, supported by irrevocable- L/C. Restric- tion regarding shipment period will not apply in respect of slow moving items as such.
(ii) For identification of slow moving items performance
V ™g ^ J ™ * ,4 m o n t h si °f 1 9 8" and performance during 1979 will be taken into account. An item could be termed slow-moving if during the period under reference its ex- ports have not exceeded 60 per cent of the quota earmarked for the first period of 1980 or during the entire year 1979 If the movement of an item has shown improvement during the 1st period of 1980, it will be deemed to be fast movin8 Government however reserves the right to change the crite- ria during the course of the quota year if warranted by the demand trend.
12 For corporations under the control of State or Cen- tral Governments there will be a special allocation not ex- ceeding 5 per cent of the annual level. The allocation will however, be made only for direct exports of
S-MblT'Jh60 /C and' °fher ^m] W^™ will be applicable in the same manner as in the case of other private
601
exporters. This scheme (of allocation to Centra!/State Cor- porations) will be administered by the Textile Commissioner, Bombay.
13. In case of manufacturer-expoUcrs, an additional quota of 20 per cent over and above the past performance entitle- ment would bo allotted in keeping with the policy of provid- ing maximum encouragement for this purpose.
14. Unless, specified to the contrary, the Textile Commi- ssioner, Bombay, will continue to have day-to-day supervi- sion over Ihe matters relating to quota allocation. A Co- ordination Committee, with the Textile Commissioner as Chairman, and representatives of various Councils concerned will review the situation at least once a month. In case of difference of opinion, the matter will be decided by the Textile Commissioner.
15. Government reserves the right to make ameudment in any of the provisions of these quota distribution guidelines without giving prior information.
16. Shipment will be allowed by the Customs authorities at Ihe ports of shipment on the basis of quota endorsement on the original and duplicate of the shipping bills for indi- vidual consignments issued by the Export Promotion Council or any other appropriate body designated for this purpose. In respect of USA, however, before, allowing shipments, tho Customs authorities would also verify the visa endorsement on the special customs invoice No. 5515 issued by the Ex- port Promotion Council concerned or any authorised body prescribed for this purpose, including their representatives. In respect of exports to EEC Member States and Canada alongwith the quota endorsement, the Export Promotion Council concerned or, any other body, duly authorised in this behalf will issue export certificate and certificate of origin for categories having individual category limts, and certifi- cate of origin in respect o£ other categories not having indi- vidual category limits for forwarding these certificates to im- porters for obtaining clearance at the destination.
17. In so far as exports to USA, EEC and Canada of handloom fabrics, made-up articles made from haridloom fabrics and woven garments made from handloom fabrics falling under categories other than categories 7, 8, 26 and 27 in respect of EEC and items 1, 2, 3 and 4 in respect of Canada, shipments will be permitted by the Cus- toms on the basis of the certification by the Textile Com- mittee without the requirements of quota endorsement by the Export Promotion Council or other authorised bodied concerned. In the case of handloom garments falling under categories 336, 340, 341, 347 and 348 for exports to USA, certification by the Textiles Committee will be issued on the basis of the quota allotment by the Apparels Export Pro- motion Council or any other authorised body designated for this purpose.
18. Tn respect of 'India Items' which are typically Indian traditional folklore textile products, shipments will be per- mitted by the Customs for exports to USA, EEC and Canada on the basis of appropriate certificates issued by the All India Handicrafts Hoard or the Textile Committee. For items speci- fied ac 'India Items' no quota endorsement by the Export Promotion Council concerned or by any other duly authorised body will be required, for endorsement of the snipping bills by the Customs authorities.
19. Whenever the consignment is ready for shipment, the exporter shall submit the necessary shipping documents (In- cluding shipping bills in duplicate) and proforma application in duplicate covering the details of goods under shipment to the Export Promotion Council designated for this purpose or to its up-country port representatives alongwith quota certificate, for obtaining quota endorsement and for issuing the necessary export certificate. Thereafter the documents shall be submitted to the Customs for completion of the shipping bills and other formalities, In the case of ready- made garments the shipping documents including shipping bills will also be submitted to tho Export Promotion Council designated for this purpose or its up-country port represen- tatives for quota endorsement before the shipping bills am noted by the Customs at the port of shipment. In all these cases the shippers will be required to inform the Export Promotion Council concerned or its up-country port repre- sentatives from whom the quota endorsement is obtained, tho
602 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]-number and the date of shipping bills after the 3amc are collected from the Customs.
20. The Export Certificate is meant for the buyer and hence the same after obtaining from the Council has to be forwarded by the shipper to his buyer alongwith other re- lative documents^.
21. Export will be allowed from any port in India,
22. The addresses of Export Promotion Councils are as
follows :—
1. The Cotton Textiles Export Promotion Council, 'Engineering Centre', 9, Mathiw Road, 5th Floor Bombay-400004.
2, Apparels Export Promotion Council, Sahayog Build- ing, 4th Floor, 58, Nehru Place, New Dclhi-110019. 3. Wool and Woollens Export Promotion Council, 714, Ashoka Estates, 24, Barakhamba Road, New Delhi-110001.
23, Persons to whom quotas arc allowed in accordance with the above arrangements but who do not utilise th"m fully would be liable to disqualification from getting future quotas without prejudices to any other action that may be taken in this behalf.
MANI NARAYANSWAMI, Chief Controller of
Imports & Exports