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Full text of "Extraordinary Gazette of India, 1986, No. 81"

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©aieette of JJwctia 


sT^rT'STR^Tr ® 

EXT RAORDINARY 


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PART I-^ection 1 

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PUBLISHED BY AUTHORITY 


fto 222 ] 5Tf 6, ISSe/wrff^PT 14,1908 

No. 222] NEW DELEH, MONDAY, OCTOBER 6,1986/ASVINA 14, 1908 


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Separate Paging Is given to this Part In order that it may be filed as 
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9.'4 GI/86 


( 1 ) 






2 


THE GAZETTE OF IFJpIA : EXTRAORDINARY 


[Part ITSec, 1] 


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«I,Tft, 



4 


THE GAZETTE OF INDIA : EXTRAORDINARY 


[Part I— Sec. I] 


'Tt^Tmr4. 1 1500,TI^4-400020 

2. q-RT fJrq?q qqflq qnc'Tq, 

s^fJTpT^, 

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3. feqj 3 tH fqq% qftqq, 

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wwr^T ^^jr, 24 qmia-fq! ^>7, 35 fq-Tl-i 10001 

5 . ^^42: ?iq(}3 3. 3-115, 

^^TTT-IS, Tte wrfw fq5rT-3TfqTTqrq I 

6 . fq^nq npjqr (^afsrpq), ht^:, 

7 , wri:. j-rq. 35 fq^-l 10022 I 

7. 313 3f3r3,"ft.W 79-Tr. l^ot qT^'I Tf?, 
3(55,3135-400018 

TT^ftq 3^33 fqiT, ^ Pr33<3, wnrT3-f30f3 

MINISTRY OF COMMERCE 
EXPORT TRADE CONTROL 
PUBLIC NOTICE NO. 19-ETC(PNjj86 
New Delhi, the 6th October, 1986 

% 

Subject ;—Scheme of exports under OGL-3 of certain 
fabrics andjor made-up items made from 
cotton, wool and man-made fibres, to USA, 
European Economic Community Member 
States, Canada, Austria, Finland, Sweden 
and Norway from 1-1-1987 to 31-12-1987. 

F. No. 2|65(85|E-I.—This scheme relates to the 
exports of certain fabrics and|or made-up items of 
cotton, wool and man-made fibres to USA, European 
Economic Community Member-States (Federal Re¬ 
public of Germany, France, Italy, Benelux, U.K. 
Ireland, Denmark, Greece, Spain and Portugal), 
Austria, Canada, Finland, Sweden and Norway for the 
period 1-1-1987 to 31-12-1987. 

2. Agencies for the Administration of the Scheme 

2(i) Unless otherwise directed, the Cotton Textiles 
Export Promotion Council (TEXPROCIL) will allo¬ 
cate export entitlements for all fabrics and made-ups 
except woollen fabrics and made-ups for which ex¬ 
port entitlement allocation will be done by the Wool 
& Woollen Export Promotion Council fW&WEPC). 
However, necessary certification for all fabrics and 
madc-ups including the woollen fabrics and made-ups 
will be done by the Cotton Textiles Export Promotion 
Council Lists of categories of the Textile products cov¬ 
ered under the scheme are available with the Cotton 
Textdes Fxnort Promotion Council an'd the Wool & 
Woollen Ejfnort Promotion Council, Government re¬ 
serves the rieht' to make changes as considered ap- 
pronrlate. with regard to the agencies for the ad¬ 
ministration of the scheme. 


2(ii) Export Entitlements wiU be allotted only to 
exporters registered with the Competent Registering 
Authorities. 

3. Systems and quanutm of allotment and divisions 
of the allotment year. 

Tliere will be three systems of allocation of quan¬ 
tity for export :■— 

3 (i) 40 per cent of the annual level will be allo¬ 
cated on the basis of past performance, 40 per cent’ 
on the basis of First-comc, First-served (FCFS) Con¬ 
tract Reservation and 20 per cent on FCFS Ready- 
goods basis. 

3 (ii) In the case of past performance system, there 
will be a single period of allocation from 1-1-1987 to 
30-9-1987. For FCFS Contract Reservation system 
and FCFS readygood system, the year will be divided 
into three four monthly periods i.e. 1-1-1987 to' 
30-4-1987, 1-5-1987 to 31-8-1987 and 1-9-1987 
to 31-12-1987. 

3 (iii) 50 per cent of the quantity available under 
the system of FCFS Contract Reservation and FCFS 
Readygoods will be allocated for shipment during the 
first period January|April, 1987, 25 per cent for ship¬ 
ment during the second period May|August', 1987, 
and the remaining 25 per cent for shipment during the 
third period, Septembcr|December, 1987. The above 
periods anci|or systemwke ratios mav, however, be 
modified by the Government depending upon the de¬ 
mand patfems and other parameters. 

4. Reservation for segments. 

Wherever export entitlements for cotton, woollen 
and man-made fibres are combined, the reservation 
for woollen and synthetic it'ems will be done in terms 
of specific quantities. The actual quantities will be 
determined by the Textile Commissioner after ascer¬ 
taining the firm requirements from t’hc respective 
Councils keeping in view the past pattern and prevail¬ 
ing, trends. 

5. Past Performance Entitlement System, 

5 (i) Agency for determining entitlement's.—The 
Agency for calculation of the entitlement under the 
past performance system in respect of each exporter 
will be the Cotton Textiles Export Promotion Coun¬ 
cil, Bombay (TEXPROCIL), The Textile Commis¬ 
sioner will lay down procedures in this regard and 
supervise the work of the TEXPROCH.. 

5 (ii) Base Period and Ceiling.—^Thc entitlement 
shall be determined pro-rata for each countryl cate- 
gorv combination on the basis of the average of ex¬ 
ports during 1984, 1985 and January|June, 1986 for 
each exporter. The allotment will be made on pro¬ 
rata basis. No exporter shall, however, be entitled to 
more than his annual average exports in the base 
period in each category [country. 

5 (iii) .Performance bond.—^The exporters quali¬ 
fying for past perfortnance entitlement will be allowed 
to utilise their entitlement without executing perfor¬ 
mance bond upt'o 31-3-1987. 



l] 


51 traro; 5^Tsrr<<ii 


5 


5 (iv) The exporters will be given the option to 
surrender the unutilised entitlements by 31-3-1987 
or retain such quantity as they may desire by giving 
performance bond backed either by Bank Guarantee 
or cash deposit on or before 31st March, 1987, at 
the rate of Re. 1 per kg. where the unit of allotment 
is in terms of kgs., 24 paise per dozen for handker¬ 
chiefs, to EEC countries, 48 paise per dozen for teriy 
towels arid 10 pai^e per s;q. yafd lor fabrics to IJSrk 
and 10 paise per Sq. metre for woollen worsted fab¬ 
rics to Canada. 

5 (v) Exporters will be given an option to surren¬ 
der their unutilised entitlements at 50 per cent of the 

rates at 5 (iv) above as on 30-6-1987. 

5 (vi) Where the utilisation is not less than 75 per 
cent before 30th September, 1987 the exporter will 
be given an option to seek extension for shipment 
upt'o 31st December, 1987, by executing a perfor¬ 
mance bond at double the rates specified in paragraph 
5(iv). 

5 (vii) Transferability.—Past Performance En¬ 
titlement shall be transferable subject to the follow¬ 
ing conditions. 

(a) An exporter will have the option to trans¬ 
fer any portion of his entitlement to any 
other registered exporter at any time upto 
30-9-1987. 

(b) The quantity transfered shall be counted as 
exports of the transferee, who actually ships 
the goods. 

(c) The entitlement in the hands of the trans¬ 
feree shall be subject I'o the same terms and 
conditions as those applicable to it in the 
hands of the transferee. 

(d) An exporter who obtains entitlement by 

transfer from any other exporter in a parti¬ 
cular country [category, either in full or in 
part, will not be eligible to transfer 
any enlitlernent to another exporter in 
the saihe country [category. 

(e) Transfer of Past Performance Entitlement' 
in a particular country [category shall not 
be allowed to the exporters who have ECFS 
contract reservation quota in the same 
category[Country. 

6. FCFS Contract Reservation System 

6. (;) For afiotincit on FCFS Contrr'ct Resewation 

basis, the exporter will have to submit alongwith the 
application, performance bond backed by bank gua¬ 
rantee or by cash deposit calculated at the rate of 
Re. 1[- per kg. where allotment is in kgs., 12 paise 
per dozen for handkerchiefs to EEC, 24 paise per 
dozen for terry towels, 5 paise per Sq. yard for fabrics 
to USA and 5 paise per Sq. meter for woollen worst¬ 
ed fabrics to Canada. 

6 (ii) The exporter may seek extension for the rexf 
nfiofment ncriofi bv oxeenting performance bend at. 
double the rates specified in nara 6(i) above, provided 
he has utilised not less than 75 per cent of his entitle¬ 
ment by 30th June, 1987. 


6 (iii) If on any particular day the total-quantity 
applied for is more than the quantity available for 
distribution in any country [category, the allotment 
will be made on high price basis. 

7. FCFS Readygoods System 

7 (i) Allocation of quantity on the basis of FCFS 
Readygoods will be made only against the goods 
which are physically ready for shipment. The exporter 
will have to submit along with the application, ship¬ 
ping documents, the Textiles Committee’s Inspection 
Certificate, AR4 or AR5[AR3 forms and a cheque 
towards earnest money deposit calculated at the rate 
of 50 paise per kg., which shall be forfeited if proof 
of actual shipment is not produced within the pres¬ 
cribed time limit'. 

7 (ii) If on any particular day the total quantity 
applied for is more than the quantity available for 
distribution in any country [category, the allotment 
will be made on high price basis. 

8. Certification [Shipment 

Certification by Texprocil under all the three 
systems of allotment will be valid for shipment for 
a period of 21 clear days from the date of certification 
subject to the condition that no certificate shall be 
Valid beyond 31st December, 1987 in any case. 

9. Slow Moving Items. 

The Textile Commissioner will identify and an¬ 
nounce a list of slow moving items on the basis of 
past exports and prevailing' trends. Such items will 
be eligible for the following relaxations : 

(a) The provisions regarding security against 
performance guarantee would be dispensed 
with in the case of slow moving items, spe¬ 
cially identified for this purpose, by the 
Textile Commissioner on the basis of past 
exports and prevailing trends. 

(b) For the identified slow moving items, appli¬ 
cants will have to submit only the perfor¬ 
mance bond in the proforma prescribed by 
Texprocil without any Bank guarantee or 
cash deposit. 

10 Earnest Money Deposit[Bank Guarantee & for¬ 
feiture thereof. 

10 (i) An exporter, who performs not less than 
50 per cent of the export entitlements allotted to him 
under post performance entitlement and FCFS Con¬ 
tract Reservation Systems in a particular export en- 
tit’-'uier.t period will not be liable to ferfei-'nre. of 
performance bond. An exporter who performs not 
less than 75 per cent but less than 90 per cent will 
have to pay proportionate forfeiture. If the export 
entitlement utilisation is less than 75 per cent the ex¬ 
porter will be liable to forfeiture of his performance 
bond^ in full. This will be subject to force majeure 
cemditions wherever these 'arise. 

^10 (ii) Application for extension shall be filed 
within one month of the relevant period. 





6 


[Part I—Sec. I] 


The gazette of india : extraordinary 


10 (iii) Exporters to whom export' entitlements are 
allotted in terms of this policy but who do not utilise 
them would render themselves liable to disqualifica¬ 
tion from future aUofment without prejudice to any 
other action that may be taken in this behalf. 

11. Appeal against forfeiture of EMD’s|Bank 

Guarantees; 

For the purpose of giving consideration to repre¬ 
sentations made by exporters against forfeiture of 
EMD’s|Bank Guarantees for non-utilisation of allott¬ 
ed export entitlements, the following procedure will 
apply. On i'orleiturc ol EMD’s[Bank Guarantees by 
the Tcxprocil, the exporters concerned may appeal 
against such forfeiture to the Textile Commissioner, 
Bombay within fifteen days of receipt of the com¬ 
munication regarding the forfeiture. The Textile Com¬ 
missioner shall upon receipt' of the representation give 
a ruling as early as possible. If, in any case, the ex¬ 
porter is not satisfied with the decision of the Textile 
Commissioner, he may prefer an appeal against the 
decision within 15 days of receipt of the communica¬ 
tion conveving the decision. The second appeal will 
lie with Ministry ol Textiles and will be dealt with 
by an Appellate Committee constituted by the Govern 
ment. 

12. Supervision of allocation of export entitlements: 

The Textile Commissioner, Bombay will continue 
to exercise day to day supervision over the matters 
relatmg to allocation of export entitlement. A co¬ 
ordination Committee with the Textile Commissioner 
as Chairman and with the representatives of the con¬ 
cerned EPCs as members will review the operation 
of the policy periodically. On matters where there is 
difference of opinion, the decision of the Textile Com¬ 
missioner will be final. 

13. Clearance by Customs : 

A Products under restrain 

Shipments will be allowed by Customs authorities 
at the ports of shipment after verifying the certifica¬ 
tion of export entitlement of the original and dupli¬ 
cate of shipping bills for individual consignments 
issued by the Cotton Textiles Export Promotion 
Council or any other appropriate agency designated 
for this purpose. 

B. Handlooin proJucst^— 

In so far as exports of all handloom fabrics|made- 
ups, corresponding t'o restrained items arc concerned, 
shipments will be permitted by the Customs on the 
basis of ‘Inspection Endorsement’ by the Textile 
Committee in Part-2 pf the combination form. 

C, Made-ups falling under India Items—i 

In respect of ‘India Items’ which are traditional 
folklore handicraft textile products of India,ship- 
m^ts will be permitted by the Customs for exports 
to EEC, USA, Finland, Austria, Sweden, Canada and 
Norway on the basis of appropriate certificate issued 


by the Office of the Development Commissioner 
(Handicrafts). 

14(A). Export Certificate, Certificate of origin and 
Visa: 

The following certification, required under the re¬ 
levant Bilateral Textile Agreements, will be issued by 
the Cotton Textiles Export' Promotion Council or any 
other body duly authorised in this behalf : 

(i) EEC : 

(a) Export Certificate and certificate of origin 
for all restrained items of powerlooralmTu- 
made] knitted origin. 

(b) Certificate of origin for non-restrained items 
of powerloom|millmade|knitted origin. 

(ii) AUSTRIA : 

Export Certificates for fabricslmade-ups of 
powerloom|millmadc origin subject to res¬ 
traint or surveillance. 

(iii) CANADA : 

Export certificate of fabrics and madc-ups of 
mill-madeIpowerloom[knitted origin which 
are subject to restraint except for consign¬ 
ments valued at less than Canadian $ 500. 

(iv) USA: 

(a) Visa for all millmade|powcrloom fabrics and 
madc-ups consignments valued above US 
$2501-. 

(b) Exempt certificate for consignments valued 
at US $250|- or less. 

(v) SWEDEN : 

Export certificate for all madc-ups of mill-niadcl 

powcrloom|handloom|knitte(JIcrocheted ori¬ 
gin under quantitative restraint, 

(vi) NORWAY : 

Export certificate I Certificate of Origin in respect 
of bed linen of powcrloom and mill-made 
under category 7. 

14(B). Handloom exempt certificate: 

In the case of export of all handloom fabricslmade- 
ups corresponding to restrained items to Canada, 
Cotton Handloom Textile Fabrics | Made-ups to 
Austria, aU handloom and fabrics and made-ups to 
EEC and the USA and handloom bcd-lincn to Noiw^ay 
the Textiles Committee wiU issue the certificate as 
prescribed in the Bilateral Agreements for such 
products. 

15. Government reserves the right to make amend¬ 
ments to any of the foregoing provisions without 
giving prior notice. 


WTO '!JT TTsrm: sraniRor 


1 


[wT’iI- 


16. The addresses of the concerned Export Pro* 
motion Councils and of the offices of the Textile 
Commissioner, Textiles Committee and Development 
Cbmmissioner (Handicrafts) are as follows :— 

1. Office of the Textile Commissioner, 

New C. G. O. Building, 

New Marine Lines, 

Post Box No. 11500, 

Bombay'400020. 

2. The Cotton Textiles Export Promotion 
Council, 

Engineering Centre, 

5 th Floor, 

Qth-Mathew Road, 

Borabay^00004. 

3. Silk & Rayon Textiles Export Promotion 
Council, 

Resham BhaVan, 

Veer Nariman Road, 

Bombay-400020. 


4. The Wool & Woollen Export Promotion 
Council, 

6121714, Ashoka Estate, 

24, Barakhamba Road, 

New Delhi-!lOOOl. 

5. Carpet Export Promotion' Council, 

Shop No. B-115, 

Sector-XVlir, 

Post Office Noida, 

Distt, Ghaziabad. 

6. Development Commissioner (Handicrafts), 
West Block, 

VII, R. K. Puram, x 

New Delhi-110022. 

7. Textiles Committee, 

“Crystal”, 

79-Dr. Ajinic Besant Road, 

Worli, 

Bombay-400018. 

R. L. MISRA, Chief Controller of 
Imports and Exports 


PRINTED UV HIE MANAGER, COVT. OF INDIA PRESS, RING ROAD, NEW DEf.HI-n0064 
AND rUBLISllED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054, 1986