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REGISTERED No. D. (D.N.)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 157] NEW DELHI, WEDNESDAY, SEPTEMBER 14, 1983/BHADRA 23, 1905 Separate Paging is given to this Part in order that it may be filed as a separate compilation

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MINISTRY OF COMMERCE

New Delhi, the 14th September. 1983

EXPORT TRADE CONTROL

Public Notice No. 41-ETC(PN) [83

Subject :—Scheme for exports under OGL-3 of Garments and Knitwear to USA, EEC Member-States, Austria, Finland and Canada from 3-1-1984 to 31-12-1984.

F. No. 2|57|83-E.I.—This Scheme relates to the exports of certain readymade garments and knit- wear items to USA, EEC Member States (Federal Republic of. Germany, France, Italy, Benelux, United Kingdom, Irish Republic, Denmark and Greece), Austria, Finland and Canada for the period 1st January, 1984, to 31st December, 1984.

2. Agencies for Administration of the Scheme.-—Unless otherwise directed, the Apparels Export Promotion Council, (A.E.P.C), New Demi, will allocate export entitlements and do the necessary certification for export of all garments and knitwear covered by this Scheme, except that the entitlements for woollen knitwear would be allocated by the Wool and Woollens Export Pro- motion Council (W&WEPC), New Delhi. How- ever, in respect of woollen knitwear, necessary cer- tification would continue to be done by the Appa- rels Export Promotion Council. Lists of catego- ries of Textile Products covered under the Scheme are available with the Apparels Exports Promotion Council and Wool and Woollens Export Promotion Council. Government reserves the right to make changes, as considered appropriate, with regard to the agencies for the administration of the Scheme.

3. Systems and Quantum of Allotment :

(i) Quantities for export will be allotted accord- ing to the following systems at rates indicated against each of them :—

Systems % of the Annual level 1984

(a) Past Performance 50

(b) FCFS Small Orders 35

(c) Manufacturer Exporters 10

(d) Central | State Corporations 5

(ii) Government reserves the right to use flexi- bilities provided in the bilateral Agreements as con- sidered appropriate.

4. Division of the Allotment Year ana Appor- tionment of Quantities Among Periods :

(i) In the case of Past Performance and Manu- iacturcr Exporters Systems, Ihc full calendar year will be considered as one period for the purpose of allotment of quantities for export. In the case of Central|State Corporation and • FCFS Small Orders Systems the year will be divided into 3 four-monthly periods namely January-April, May- August and September-December in the case of woven items and into two periods namely Janu- ary-August, September-December for knitted items. In these two systems quantities for woven items will be distributed among the three periods in the ratio of 50 : 35 : 15, whereas the quantities for knitted items will be distributed bet- ween the two periods in the ratio of 85 : 15.

(ii) The above percentage may> be re-adjusted from time to time by Government depending upon trends in the overseas market.

5. Reservation of Segments

(i) In the case of FCFS Small Orders and Central (State Corporations systems wherever knit- ted garments are clubbed with woven garments for

allocation, 10% of the quantity available will be reserved for knitted garments.

(ii) For childrens' garments, 10% of the quah- tities available in all categories at the terminal dates will be reserved.

(iii) For woollen garments there will be reserva- tion in terms of quantity in specified countries and categories. This will be announced by the Tex- tile Commissioner.

6. Past Performance System

Agency for calculation of Past Performance Entitle-

ment :

(i) The Agency for calculation of the entitle- ment of quantities under Past Performance Systems in respect of each exports will be the Apparels Ex- port Promotion Council (AEPC) New Delhi. Tex- tile Commissioner will supervise this work of the AEPC.

Eligiblity for Past Performance Entitlement

(ii) An exporter will be eligible for allotment of quantities under the Past Performance System for 1984 only if he has export performance in the relevant country|category during 1982 or January- June 1983.

Base Period

(iii) The Past Performance Entitlement will be determined for each country]category combina- tion pro rata on the basis of average annual exports during the base period of 1981, 1982 and January- June, 19£^. The pro rata allotment of Past Per- formance Entitlement will be subjeel to a maximum ceiling equivalent to the average annual export performance of the exporter during the base period in the relevant country[category. In the case of any subsequent change in the entitlement of any individual exporter the entire exercise of pro rata quantity need not be re-opened but suitable adjust- ments will be made in the entitlement of the ex- porters concerned.

Transferability of Past Performance Entitlement

(iv) Past Performance Entitlement will be trans- ferable either in full or in part to another registered exporter of garments at any time during the year subject to the following terms and conditions :—

(a) Shipments against such transferred enti- tlement will be counted as the exports of the transferee;

(b) The transferred entitlements in the hands of the transferee will be subject to the same terms and conditions as those ap- plicable to the transferer.

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(c) An exporter who has transferred his en- titlement in a particular countrylcatcgory to another exporter either in full or in part, will not be eligible for seeking a transfer of Past Performance Entitle- ment from any other exporter to him- self in the same country]category.

(d) An exporter who obtains entitlement by transfer from any other exporter in a par- ticular country[category, either in full or in part, will not be eligible to transfer any entitlement to another exporter in the same countryjeategory.

(e) A Past Performance Entitlement holder who obtains any entitlement under FCFS Small Orders System in a particular country|category will not be eligible to effect any transfer from the Past Per- formance Entitlement in that country| ca'egory after he obtains such Small Orders Entitlement.

7. First-come, First-served Small Orders Sys- tem.—Under this system, quantities will be allotted on firsf-come, first-served basis against applications supported by firm contracts and letters of credit. Letters of Credit should be valid, operative and irrevocable. Allotment of quantities shall be made only for Small Orders. Small Orders are those which are within the quantitative limits fixed by the Textile Commissioner for different country] category. Such quantitative limits will be announ- ced in due course. The allotment under this system will be subject to the following conditions:—

(i) The exporter should be registered with the AEPC (or W&WEPC for woollen knitwear) for at least a period of six months before the date of submission of ihe application for allotment.

(ii) Only one application will be admissible from one exporter for one country[category on one d^/. However, mere ilnn one application can b" mo^e provided that the total quantity covered b" such applications is within the stipulated quan- titative ceiling.

(iii) Allotment under this system will be valid for a period of 35 days, subject to the condition that (he validity of all allotments shall expire after 10 days of the concerned allotment period. In the last period -illotments will be valid only upto De- cember 31, 1984.

(iv) Allotment will be granted on FCFS basis, and on a day when available quantities are over- subscribed, the eligibility will be decided on the basis of higher Unit price realisation.

(v) An exporter with Past Performance Entitle- ment will be eligible for applying under this Sys- tem after exporting at least 50 per cent of his Past

Performance Entitlement for the relevant country] category as worked out according to para 6(iii). He will also have the option of .surrendering the entire balance of Past Performance Entitlement that he holds in the relevant country|category and then applying under FCFS Small Orders, provided he has not effected any transfer from his Past Performance Entitlement in that countryjeategory.

(vi) A Manufac'urer-Exporter entitlement hold- er will have to utilise his full such entitlement before becoming eligible to apply under the FCFS Small Orders System.

8. Manufacturer-Exporters System.—In this sys- tem quantities to the extent of 10 per cent of the annual level will be allotted to Manufacturer-Ex- porters. The Textile Commissioner will decide the eligibility for allotment under this system for which he will issue detailed instructions.

9. Ccntral|State Corporations Systems.—For Corporation under the control of the Central¹ Stale| Union Territory Governments and Apex Co-ope- rative Handloom Marketing Societies at the Cent- ral |State Levels, there will be a special allocation not exceeding 5 per cent of annual level. The allocation will, however, be made only for direct exports by these Corporations]Apex Societies. The Corporations jApex Societies will also be eligible for allotment of quantities under other Systems of allotment subject to fulfilment of conditions laid down in the Policy. The Textile Commissioner will determine the entitlement of the Corporations! Apex Societies.

(iv) The quantitative ceiling stipulated in the case of FCFS Small Orders application shall not be enforced. There shall also not be any restric- tion on the number of application that can be sub- mitted in one a day in one country|category.

(v) Certification of shipping bills under FCFS Small Order? System for slow moving it;ms will be valid upto the end of the allotment period during which the application has been submitted subject to the condition that validity of all allotments shall expire after 10 days of the concerned allotment period.

(vi) There may he separate floor prices for

childrens' garments in slow moving items,

11. Minimum Export (Floor) Price,—Normally there shall be only one floor-price for each country! category. The Textile Commissioner will pres- cribe the floor prices. In determining them he will take into account all relevant factors, includ- ing the fact whether a particular garment item has been identified as a slow-moving one or not.

12. Validity period of Certification of Export Entitlement.—A certification on the shipping bill shall be valid for a period of 21 days except in the case of FCFS Small Orders Systems, where the va- lidity period will be as stipulated in para 7.

13. Letter of Credit.—The allocation for all garments and knitwear will be made on L.C. terms, L.C. should be operative, valid Orders and irrevocable. In the case of FCFS Small Orders and Central|State Corporations Systems, L.C. should be submitted alongwith the application. In the case of Past Performance and Manufacturer-Ex- porters Systems L.Cs. should be produced at the time of obtaining endorsements. L.Cs. will not be required for slow moving items declared as such in terms of para 10.

50 per cent of the EMDs|Bank Guarantee furnish- ed by him for quantities so surrendered.

(ii) In the case of FCFS Small Orders and Cent- raljState Corporations Systems, an exporter shall be required to give Earnest Money Deposit|perfor- mancc bond backed by Bank Guarantees at the rate of 5 per cent of the FOB value of the quan- tities applied for.

(iii) For the slow moving items identified as such under the provisions of the Scheme a per- formance bond tor payment of 1 per cent of the F.O.B. value, in case of shortfall in performance, would be required in place of EMDJBank Guar- antees as mentioned above.

(iv) An exporter, who exports not less than 90 per cent of the export entitlement allotted to him within the whole year under Past Performance or Manufacturer Exporter Systems, or in a particular period under other Systems of allotment, will not be liable to forfeiture of EMD|Bank Guarantees. An exporter who performs not less than 75 per cent but less than 90 per cent will be liable to propor- tionate forfeiture. If the utilisation of export en- titlement allocation is less than 75 per cent the exporter will be liable for forfeiture of EMD|Bank Guarantee in full. This will be subject to condi- tions of force majenre, where these arise.

(v) In the case of Central [State Corporations where the utilisation is not less than 75 per cent within the validity period, the exporter will have the option to seek extension for the next allotment period within the export entitlement year. Appli- cations for such extension should be filed within one month of the end of the relevant allotment period. In such cases, the exporter will have to furnish EMD|Bank Guarantee at double the normal rate for the balance quantity. Fn case of his failure to export fully the EMD|Bank Guarantee will be liable to be forfeited in full,

(vi) Persons to whorj export entitlements are allotted but who do not utilise them fully would render themselves liable to disqualification from getting entitlements in future without prejudice to any other action that may be taken in this behalf.

15. Appeal Against Forfeiture of EMDsjBank Guarantees.-—For the purpose of giving due con- sideration to representation made by" exporters against forfeiture of EMDs|Bank Guarantees for non-utilisation of allotted export entitlements, the following procedure will apply. On forfeiture of EMDsjBank Guarantees by the Apparels Export Promotion Council, the exporters concerned may appeal against such forfeiture to the Textile Com- missioner, Bombay within fifteen days of receipt of the communication regarding the forfeiture. The Textile Commissioner shall, upon receipt of the representation give a ruling as early as possible. If, m any case, the exporter is not satisfied with the

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decision of the Textile Commissioner, he may prefer an appeal against the decision within 15 days of receipt of the communication conveying the decision. The Second appeal will be with the Department of Textiles and will be dealt with by an Appellate Committee constituted by the Gov- ernment.

16. Merger of available-Quantities from 1st October, 1984.—Notwithstanding anything con- tained elsewhere in this Public Notice all balance of qualities awailable as on 1st October. 1984, from unallocated levels or surrenders shall stand merged into a common pool and shall be allocated under the FCFS SMALL ORDER SYSTEM with- out any reservation for different segments.

17. Supervision of Allocation of Export Entitle- ments.—The Textile Commissioner, Bombay, will continue to exercise day-to-day supervision over the matters relating to allocation of export entitle- ments. A co-ordination Committee with tne Textile Commissioner as Chairman and with the representatives of the concerned EPCs as Mem- bers will review the operation of the policy perio- dically. On matters where there is difference of opinion, the decision of the Textile Commissioner will be final.

18. Clearance by Customs :

A. Products under restraint.—Shipments will be allowed by Customs authorities at the ports of Shipment after verifying the certification of export entitlement on the original and duplicate of ship- ping bills for individual consignments issued by the Apparels Export Promotion Council or any other appropriate agency designed by this purpose.

B. Handloom Garments.—-In so far as exports of all handloom garments corresponding to rest- rained items to Canda and Cotton handloom gar- ments to Austria are concerned, shipments will be permitted by the Customs on the basis of "Inspec- tion Endorsement" by the Textile Committee in Part 2 of the combination form. In the case of Expjrts of handloom garments to USA, EEC and Finland, Customs will permit shipments after veri- fication of certification by the Textile Committee as to the handloom origin of the goods.

C. Garments falling under "India Items".—In respect of "India Items" which are traditional folk- lore handicraft textile product of India, shipments will be permitted by the Customs for exports to EEC, USA, Finland, Austria and Canada on the basis of appropriate Certificates issued by the Office of the Development Commissioner (Handi- crafts) or the Textile Committee.

19A. Export Certificate, Certificate of Origin and VISA.—The following certificate required under the relevant bilateral textile agreement will

be issued by the Apparels Export Promotion Gnu cil or any other duly authorised in this behalf !

(i) EEC—(a) Export Certificates and Certifi- cate of Origin for all garment[knitwear items under restrained.

(b) Certificates of Origin for all non-restrain-

ed garments [knitwear items.

(ii) Finland.—Export Certificates for restrain-

ed items.

(ui) Austria—Export Certificates for cotton powerloom [mill-made garments subject to restrained or surveillance.

(iv) Canada.—Export Certificates for gar- ments of knitted powerloom and miJl- made origin which are subject to restraint except for consignments valued at Cana- dian $ 500 or less.

(v) U.S.A.—(a) VISA for all garment|knit- wear consignment valued over US $ 250.

(b) Exempt Certification for consignments

valued at US $ 250 or less.

19B. Handloom Certificates.—Tii the case of export of all handloom garments corresponding to restrained items to Canada and of Cotton hand- loom garments to Australia, the Textile Committee will issue the certificates as prescribed in the bila- teral Agreements for such products.

20. Government reserves the right to make amendments to any of the foregoing provisions without giving prior notice.

21. The address of the concerned Export Pro- motion Council and of the offices of the Textile Commissioner, Textile Committee and Develop- ment Commissioner (Handicrafts) are as follows;—

1. The Apparels Export Promotion Council, Sahyog Bhavan, 4th Floor, 58, Nehru Place New Delhi-! KM)19.

2. The Wool and Woollen Export Promotion Council, 612)714, Ashoka Estate, 24, Barakhamba Road, New Delhi-110001.

3. Office of the Textile Commissioner, Post Box No. 11500, Bombay-400020.

4. Textile Committee 'Crystal' 79, Dr. Annie

Basant Road, Bombay-400018.

5. Development Commissioner (Handicrafts), West Block VII, R. K. Puram, New Delhi-110022.

ANAND SARUP, Addl. Secy.

PRINTED BY THE MANAGLR, GOVT. OF INDIA PRESS, RING ROAD, NliW F)ELHl-] [ 0 0 64

AND PUBLISHED DY THE CONTROLLER OF PUULICA1 IONS, DXLHI-110054, 1983