DGFT Committee Minutes

Directorate General of Foreign Trade Udyog Bhawan DES-V Section Minutes of the Meeting NC-V held on 20.12.2007 The Meeting No. 37/AM-08 for the licensing year 2007-08 to consider the cases under Duty Exemption Schemes (Chapter-4) of Foreign Trade Policy 2004-09 pertaining to Textiles and Leather was held on 20.12.2007 in Room No.4 of DGFT under the Chairmanship of Shri A.K.Singh, Jt. DGFT. The following officers were present: - Sl. No. Name of the representatives & their designation Department 1. Sh. Shaish Kumar, I.A DIPP 2. Sh. B.B.Bharti, Director. R.O, TC, Noida 3. Sh. Ashok Kumar Arora, Dy.DGFT DGFT 4. Sh.Kuldeep Singh, Asstt.Director O/o DC(MSME) 5. Sh. Pradip Kumar, F.T.D.O DGFT (TEXTILES AND LEATHER ITEMS) The Agenda for individual cases for Meeting No. 37/AM08 was taken up for discussion and the decision taken in respect of each case is enumerated below: - MEETING NUMBER : 37/84-ALC3/2007 MEETING DATE : 20.12.2007

Online agenda cases 1

Case No.:2/34/84-ALC3/2007 Party Name:KITEX

GARMENTS LIMITED Meet No/Date:37/84- ALC3/2007 20.12.2007 Status: Withdrawn HQ File : 01/84/050/00203/AM08/ RLA File : 10/24/040/00134/AM08/ Lic.No/Date:1010027855 09.11.2007

Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that this case has already been considered and approved in NC meeting held on 29.11.2007. It was therefore decided to withdraw the case from agenda. 2

Case No.:1/37/84-ALC3/2007 Party Name:CELEBRITY

FASHIONS LTD., Meet No/Date:37/84- ALC3/2007 20.12.2007 Status: Withdrawn HQ File : 01/84/050/00209/AM08/ RLA File : 04/24/040/00284/AM08/ Lic.No/Date:0410092109 15.11.2007

Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that this case has already been considered and approved in NC meeting held on 06.12.2007. It was therefore decided to withdraw the case from agenda. 3

Case No.:2/37/84-ALC3/2007 Party Name:CELEBRITY

FASHIONS LTD., Meet No/Date:37/84- ALC3/2007 20.12.2007 Status: Withdrawn HQ File : 01/84/050/00210/AM08/ RLA File : 04/24/040/00285/AM08/ Lic.No/Date:0410092111 15.11.2007

Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that this case has already been considered and deferred for re-listing on 03.01.2008 in NC meeting held on 06.12.2007. It was therefore decided to withdraw the case from agenda.

4

Case No.:3/37/84-ALC3/2007 Party Name:MADURA COATS

PRIVATE LIMITED, Meet No/Date:37/84- ALC3/2007 20.12.2007 Status: Approved HQ File : 01/84/050/00211/AM08/ RLA File : 35/24/040/00036/AM08/ Lic.No/Date:3510022228 16.11.2007

Decision: The Committee considered the case as per agenda and in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case by allowing 1% wastage on import item as detailed below: - Export product Export Qty. Import item Qty. allowed 100%

Polyester texturised

thread made out of 100% polyester texturised yarn 3780 Kgs. Polyester texturised yarn 3817 Kgs The R.A shall be advised to take necessary action subject to compliance of other usual conditions. They shall be advised to issue Advance Authorization under this category and accordingly adhoc norms shall be allowed for one year.
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Case No.:4/37/84-ALC3/2007 Party Name:MADURA COATS

PRIVATE LIMITED, Meet No/Date:37/84- ALC3/2007 20.12.2007 Status: Approved HQ File : 01/84/050/00212/AM08/ RLA File : 35/24/040/00040/AM08/ Lic.No/Date:3510022229 16.11.2007

Decision: The Committee considered the case as per agenda and in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case by allowing import item no. 1 with 1% wastage and import item no.2 with 5% wastage as detailed below: - Export product Export Qty. Import item Qty. allowed Polyester/Polyester corespun yarn/Sewing thread (55/45) made out of 55% polyester filament yarn 45% polyester staple fibre blend 75000 Kgs. Polyester filament yarn Polyester Staple Fibre 41662.50 Kgs 35437.5 Kgs The R.A shall be advised to take necessary action subject to compliance of other usual conditions. They shall be advised to issue Advance Authorization under this category and accordingly adhoc norms shall be allowed for one year.

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Case No.:5/37/84-ALC3/2007 Party Name:MADURA COATS

PRIVATE LIMITED, Meet No/Date:37/84- ALC3/2007 20.12.2007 Status: Approved HQ File : 01/84/050/00213/AM08/ RLA File : 35/24/040/00041/AM08/ Lic.No/Date:3510022230 16.11.2007

Decision: The Committee considered the case as per agenda and in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case by allowing import item with 22% wastage taking cue from SION at S.No. J-27 as detailed below: - Export product Export Qty. Import item Qty. allowed 100% cotton sewing thread made out of Raw Cotton 400000 Kgs. Raw cotton raw material 488000 Kgs. The R.A shall be advised to take necessary action subject to compliance of other usual conditions. 7

Case No.:6/37/84-ALC3/2007 Party Name:MADURA COATS

PRIVATE LIMITED, Meet No/Date:37/84- ALC3/2007 20.12.2007 Status: Approved HQ File : 01/84/050/00214/AM08/ RLA File : 35/24/040/00042/AM08/ Lic.No/Date:3510022231 16.11.2007

Decision: The Committee considered the case as per agenda and observed that firm have not given the specific name of Lubricating Agent mentioned in the import item no. 2. Hence, Committee decided to not allow Lubricating Agent against the subject A/A. As regards import item no.1 i.e Raw cotton, Committee in consultation with the representative of technical authorities present in the meeting decided to allow with 12.50% wastage as detailed below: - Export product Export Qty. Import item Qty. allowed Lubricated cotton yarn made out of raw cotton 200000 Kgs Raw cotton Lubricating Agent 225000 Kgs Not allowed. The R.A shall be advised to take necessary action subject to compliance of other usual conditions. 8

Case No.:7/37/84-ALC3/2007 Party Name:MADURA COATS Meet No/Date:37/84-

Status:

PRIVATE LIMITED, ALC3/2007 20.12.2007 Approved HQ File : 01/84/050/00215/AM08/ RLA File : 35/24/040/00043/AM08/ Lic.No/Date:3510022232 16.11.2007

Decision: The Committee considered the case as per agenda and in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case by allowing import item no. 1 with 1% wastage and import item no.2 with 5% wastage as detailed below: - Export product Export Qty. Import item Qty. allowed Polyester/Polyester corespun yarn/Sewing thread (60/40) made out of 60% polyester filament yarn 40% polyester staple fibre blend 320000 Kgs. Polyester filament yarn Polyester Staple Fibre 193920 Kgs 134400 Kgs The R.A shall be advised to take necessary action subject to compliance of other usual conditions. They shall be advised to issue Advance Authorization under this category and accordingly adhoc norms shall be allowed for one year.
Manually generated agenda cases

Case No.805

M/s. SAS International, Chennai. NC 37/08 dt. 20.12.2007 F.No. 01/84/50/026/AM-08/DES-V Ratification of input output norms against Advance Authorisation No.0410090458 dated 8.8.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009. Decision: The Committee considered the case as per agenda and in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case as per written comments of TC, Mumbai conveyed vide their letter No. 18/2849/07/EP.II/38 dated 06.11.2007 as detailed below: - Export Product Export Qty. Import Item Import Qty. Shawls/Scarves Mufflers made of 100% Cashmere. 3000 Kgs. Yarn of Fine Animal Hair of Cashmere (Carded). 1.10 Kg. per Kg of export product. The quality of fabric used in the export products should conform with the quality of fabric imported in terms of GSM, fibre composition and special finish (if any) imparted to the fabric. The R.A shall be advised to take necessary action subject to compliance of other usual conditions. They have to find out the Style No. from firm and check/monitor the same by imposing Style No. on export side.

Case No.806

M/s. Richa Global Exports P. Ltd., New Delhi. F.No. 01/84/50/026/AM-08/DES-V Re-fixation of input output norms against Advance Licence No. 0510202679 dt. 19.4.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009 Decision: The Committee considered the case as per agenda and heard Sh. Prabir Samanta, an import executive of the firm who appeared for P.H. It was observed that no additional information/documents was submitted by the representative of the firm to justify the enhancement in the Qty. of inputs. In view of this Committee decided to maintain status quo in this case and reject firm’s request. Firm may be informed accordingly.

Case No.807

M/s. Richa Global Exports P. Ltd., New Delhi. NC 21/08 dt. 30.08.2007 F.No. 01/84/162/584/AM-08/DES-V Ratification of input output norms against Advance Authorisation No.0510207013 dated 31.7.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009. Decision: The Committee considered the case as per agenda and heard Sh. Prabir Samanta, an import executive of the firm who appeared for P.H. During discussion, representative explained that some export products are rejected on account of quality product checking. Committee clarified that the wastage involved in quality product checking cannot be allowed as per existing Policy. It was also observed that no additional information/documents was submitted by the representative of the firm to justify the enhancement in the Qty. of inputs. In view of this Committee decided to maintain status quo in this case and reject firm’s request. Firm may be informed accordingly.

Case No.808

M/s. Richa Global Exports P. Ltd., New Delhi. F.No. 01/84/162/587/AM-08/DES-V Re-fixation of input output norms against Advance Licence No. 0510207010 dt. 31.7.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009 Decision: The Committee considered the case as per agenda and heard Sh. Prabir Samanta, an import executive of the firm who appeared for P.H. It was observed that no additional information/documents was submitted by the representative of the firm to justify the enhancement in the Qty. of inputs. In view of this Committee decided to maintain status quo in this case and reject firm’s request. Firm may be informed accordingly.

Case No.809

M/s. Shahi Export House, New Delhi. F.No. 01/84/50/185/AM-06/DES-V Re-fixation of input output norms against Advance Licence No. 0510159281 dt. 7.6.2005 – under Para 4.7 of HBP (Vol.I) 2004-2009 Decision: The Committee considered the case as per agenda and observed that firm have requested for extension of time for personal hearing before NC. Committee granted extension and decided to call the applicant firm for P.H on 17.01.2008. The case stands deferred for re-listing on 17.01.2008.

Case No.810

M/s. Bang Overseas Ltd., Bangalore. F.No. 01/84/50/026/AM-08/DES-V Ratification of input output norms against Advance Authorization No.0710050740 dated 20.3.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009. Decision: The Committee considered the case as per agenda and observed that export product is 100% Linen woven Men’s half Sleeve Shirts is covered under SION at S.No. J-175 and for which import items at S.No. 1 and 2 i.e relevant fabrics may be allowed as inputs. The Committee perused Para No. 3.9.1 and 3.9.2 of Policy Circular No. 20 dated 05.12.2007, which provide that “ Wherever, a SION exists and an application under Para 4.7 is made for higher quantity of imported inputs (than the same fixed under SION), such requests can be entertained for SION revision only and in cases where a SION exists and an application is made for additional inputs, other than those specified in SION, AA may be issued under para 4.7”. In view this Committee in consultation with representatives of technical authorities present in the meeting decided to ratify the advance authorization issued in this case as detailed below: - (a) The relevant fabric of import items at S.No.1 and 2 may be allowed @ 2.15 Sq mtrs./Pc. (As per SION at S.No. J-175) (b) The additional inputs i.e import item at S.No.3 i.e Plastic Butterfly may be allowed on net to net with accountability clause; (c) The additional inputs i.e import item at S.No.4 i.e 100% cotton woven fusible interlining may be allowed @ 0.17 mtrs./Pc (d) The additional inputs i.e import item at S.No.5 i.e Plastic Sealer may be allowed on net to net with accountability clause; (e) The additional inputs i.e import item at S.No.6 i.e Polyester Threads may be allowed @ 4 mtrs./Pc The quality of fabric used in the export products should conform with the quality of fabric imported in terms of GSM, fibre composition and special finish (if any) imparted to the fabric. The R.A shall be advised to take necessary action subject to compliance of other usual conditions. They have to find out the Style No. from firm and check/monitor the same by imposing Style No. on export side.

Case No.811

M/s. Scorpios Apparels Pvt. Ltd., Faridabad. F.No. 01/84/162/849/AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0510208849 dt. 12.9.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009 Decision: The Committee considered the case as per agenda and observed that export product No.1 i.e Ladies Jacket is covered under SION at S.No. J-196 and for which relevant fabrics are allowed @ 2.20 Sq mtrs/Pc. The description of export product at S.No 2, 3 and 5 is not covered under any SION. Further, description of export product No.4 i.e Ladies Pant is covered under SION at S.No. J-275 and for which relevant fabrics is allowed @ 2.25 Sq mtrs/Pc. The Committee perused Para No. 3.9.1 and 3.9.2 of Policy Circular No. 20 dated 05.12.2007, which provide that “ Wherever, a SION exists and an application under Para 4.7 is made for higher quantity of imported inputs (than the same fixed under SION), such requests can be entertained for SION revision only and in cases where a SION exists and an application is made for additional inputs, other than those specified in SION, AA may be issued under para 4.7”. In view this Committee in consultation with representatives of technical authorities present in the meeting decided to ratify the advance authorization issued in this case as detailed below : - Export Product Export Qty. Import Item Qty. allowed per Pc of export product Ladies Jacket made of 100% Linen Solid Dyed Woven Fabric GSM 130 +/- 10%. 1200 Pcs. 100% Linen Yarn Dyed Woven Fabric GSM – 130 +/- 10%. @ 2.20 Sq.Mtrs/Pc Ladies other outer Garments (Top) made of 100% Linen Yarn Dyed Woven Fabric GSM 130 +/- 10%. 250 Pcs. 100% Cotton Woven Printed

Schiffly Fabric GSM 71+/- 10% Variation. DC (MSME) have sought some information from firm and will be decided on receipt of technical comment Ladies Divided Skirt made of 100% Linen Yarn Dyed Woven Fabric GSM 130 +/- 10%. 500 Pcs. DC (MSME) have sought some information from firm and will be decided on receipt of technical comment Ladies Pant made of 100% Linen Yarn Dyed Woven Fabric GSM 130 +/- 10%. 850 Pcs. 100% Linen Solid Dyed Woven Fabric GSM – 230 +/- 10%. @ 2.25 Sq.Mtrs/Pc Ladies other outer Garments (Top) made of 100% Linen Solid Dyed Woven Fabric GSM 230 +/- 10%. 500 Pcs. DC (MSME) have sought some information from firm and will be decided on receipt of technical comment The GSM should match in both import & export. The R.A shall be advised to take necessary action subject to compliance of other usual conditions. They have to find out the Style No. from firm and check/monitor the same by imposing Style No. on export side.

Case No.812

M/s. Reliance Dyeing Works, Tirupur. F.No. 01/84/162/832/AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 3210036398 dt. 11.10.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009 RLA, Coimbatore. Ref. No.32/24/40/046/AM08. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that applicant firm have not given information/documents called for by DC(MSME) vide their letter dated 29.11.2007. In view of this Committee decided to reject the case. RLA may take suitable consequential action accordingly.

Case No.813

M/s. Bombay Rayon Fashion

F.No. 01/84/162/123/AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0310426252 dt. 11.04.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009 Decision: The Committee considered the case as per agenda and observed that description of export product No.1 i.e Men’s long sleeve shirts is covered under SION at S.No. J-272 and for which relevant fabric is allowed @ 2.90 Sq mtrs/Pc. Similarly, description of export product at S.No 2 i.e Men’s short sleeve shirts is covered under SION at S.No. J-175 and for which relevant fabric is allowed @ 2.15 Sq mtrs/Pc. Further, description of export product No.3 i.e Ladies shirts is covered under SION at S.No. J-270 and for which relevant fabrics is allowed @ 2.75 Sq mtrs/Pc. The Committee perused Para No. 3.9.1 and 3.9.2 of Policy Circular No. 20 dated 05.12.2007, which provide that “ Wherever, a SION exists and an application under Para 4.7 is made for higher quantity of imported inputs (than the same fixed under SION), such requests can be entertained for SION revision only and in cases where a SION exists and an application is made for additional inputs, other than those specified in SION, AA may be issued under para 4.7”. In view this Committee in consultation with representatives of technical authorities present in the meeting decided to ratify the advance authorization issued in this case as detailed below: - S. No Export item Import item Qty. allowed. 1 Men’s Long Sleeves shirts

1. Pure linen fabrics PFD, GSM-140
2. Interlining fabric
3. Basosoft SMS
4. Siligen SIA
5. Siligen PEP
6. Remazol Brill blue BB grain
7. Remazol yellow RR grain
8. Remazol Ultra Red RGB
9. Cibacron yellow NP
10. Cibacron Red C-2BL
11. Cibacron Blue C-R
12. @ 2.90 Sq mtrs/Pc
13. 0.23 Sq mtr./Pc
14. 4.65 grms per kg.
15. 11.62 grms per kg.
16. 11.62 grms per kg. (6) to (11) - 15 gms per kg of export product (all put together) 2 Men’s short Sleeves shirts
17. Pure linen fabrics PFD, GSM-140
18. Interlining fabric
19. Basosoft SMS
20. Siligen SIA
21. Siligen PEP
22. Remazol Brill blue BB grain
23. Remazol yellow RR grain
24. Remazol Ultra Red RGB
25. Cibacron yellow NP
26. Cibacron Red C-2BL
27. Cibacron Blue C-R
28. @ 2.15 Sq mtrs/Pc
29. 0.19 Sq mtr./Pc
30. 4.65 grms per kg.
31. 11.32 grms per kg.
32. 11.32 grms per kg. (6) to (11) - 15 gms per kg of export product (all put together) 3 Ladies full Sleeves shirts
33. Pure linen fabrics PFD, GSM-140
34. Interlining fabric
35. Basosoft SMS
36. Siligen SIA
37. Siligen PEP
38. Remazol Brill blue BB grain
39. Remazol yellow RR grain
40. Remazol Ultra Red RGB
41. Cibacron yellow NP
42. Cibacron Red C-2BL
43. Cibacron Blue C-R
44. @ 2.75 Sq mtrs/Pc
45. 0.11 Sq mtr./Pc
46. 4.65 grms per kg.
47. 11.62 grms per kg.
48. 11.62 grms per kg. (6) to (11) - 15 gms per kg of export product (all put together) Committee also decided that the import of Dyes and Chemicals allowed above shall not exceed 14% of FOB value within the overall CIF value of the licence in terms of General Note for Textiles at S.No.5.The GSM should match in both import & export. The R.A shall be advised to take necessary action subject to compliance of other usual conditions. They have to find out the Style No. from firm and check/monitor the same by imposing Style No. on export side.

Case No.814

M/s. Network Clothing Company Pvt. Ltd. NC37/08 dt.20.12.2007 F.NO.1/84/50/ 407/AM06/DES-V Ratification of input – output norms against Advance Licence No.3210030312 dt.21.09.2005 – under Para 4.7 of HBP(Vol1)2004-2009. RLA Ref.No.32/80/040/0035/AM06 Decision: The Committee considered the case as per agenda and in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case on the basis of written comments of DC (MSME) conveyed vide their U.O NO. 37(5)/138/05-06/Hosy. dated 19.12.2007 as detailed below: - Export item Export Qty. Import item Qty. allowed Girls Top Style No. 448775 6267 Kgs. 93% Royan 7% Spandex Lycra, Jersey Fabric, GSM - 240 100% cotton 1x1 Rib, GSM - 240 0.110 Kgs/Pc 0.007 Kgs./Pc The GSM should match in both import & export. The R.A shall be advised to take necessary action subject to compliance of other usual conditions. They have to check/monitor the same by imposing Style No. on export side. @@@@@