DGFT Committee Minutes

Directorate General of Foreign Trade Udyog Bhawan DES-V Section Minutes of the Meeting NC-V held on 03.01.2008 The Meeting No. 39/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 03.01.2008 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. Ashok Kumar Arora, Dy.DGFT DGFT 3. Sh. Pramod Kumar, Tech. Officer DOR 4. Sh. Kuldeep Singh, Assistant Director DC (MSME) 5. Sh. Pradip Kumar, F.T.D.O DGFT (TEXTILES AND LEATHER ITEMS) The Agenda for individual cases for Meeting No. 39/AM08 was taken up for discussion and the decision taken in respect of each case is enumerated below: - MEETING NUMBER : 39/84-ALC3/2007 MEETING DATE : 03.01.2008

Online agenda cases 1

Case No.:4/29/84-

ALC3/2007 Party Name:G. D. ENTERPRISE Meet No/Date:39/84- ALC3/2007 03.01.2008 Status: Deferred HQ File : 01/84/050/00186/AM08/ RLA File : 02/24/040/00193/AM08/ Lic.No/Date:0210105068 09.10.2007 Defer Date:31.01.2008 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that information/documents called for from firm vide DGFT letter 16.11.2007 is still awaited. It was therefore decided to remind them and defer the case for re-listing on 31.01.2008. 2

Case No.:1/39/84-ALC3/2007 Party Name:MODEL EXIMS

Meet No/Date:39/84- ALC3/2007 03.01.2008 Status: Deferred HQ File : 01/84/050/00233/AM08/ RLA File : 06/24/040/00029/AM08/ Lic.No/Date:0610012664 19.12.2007 Defer Date: 31.01.2008 relevant papers and observed that the case is under examination of DIPP. It was therefore decided defer the case for re-listing on 31.01.2008. Manually generated agenda cases

Case No.833

M/s.Pemi Exports NC 39/08 dt.03.01.2008 F.NO.1/84/50/284/AM05 -DES-V Export of 100% Polyester Knitted ladies dresses. Advance Authorization No No.0410062410 dt.28.09.2004 – under Para 4.7 of HBP(Vol1)2004-2009. R.A, Chennai Ref.No.04/24/040/170/AM05 relevant papers and observed that firm have requested for 3 weeks time in submission of information/documents called for vide DGFT letter 04.12.2007. The Committee therefore decided to defer the case for re-listing on 07.02.2008.

Case No.834

M/s. Bombay Rayon Fashions Ltd. F.NO.1/84/50/253/AM07 -DES-V Advance Authorization No No.0310397792 dt.01.09.2006 – under Para 4.7 of HBP(Vol1)2004-2009. relevant papers and perused comments of TC, Mumbai sent vide their letter dated 02.11.2007. The Committee observed that as per study report the width- wise shrinkage is 11.11% and GSM percentage increase is 14.04%. This dimensional change in width is comparable to 120 GSM fabrics processed under study, whereas the increase in GSM of the fabric under study was higher at 14.04% as against 10.34% in 145 GSM fabrics mainly due to lower EPI & PPI and GSM of the fabric processed under study. Therefore, Committee felt that change in GSM & width is due to processing and finishing of the fabric, which is based on properties of the fibre and quality of the fabric. In view of this Committee decided to ratify the Advance Authorization issued in this case on net to net basis with accountability clause, as ordinarily there is no wastage in the minor process of dying. The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.835

M/s. BSL Ltd. F.NO.1/84/50/131/AM08 -DES-V Advance Authorization No No.1310024819 dt.08.08.2007 – under Para 4.7 of HBP(Vol1)2004-2009. relevant papers and perused reply of R.A, Jaipur sent vide their letter dated 14.12.2007. It was observed that firm have mentioned import item as Dupion Silk Yarn (gummed and twisted). The Committee felt that technically, from Dupion Silk Yarn, the process of twisting is not possible, if yarn is twisted and gummed. In other word, without degumming, it is not possible to twist the yarn. Moreover, firm have not given the specification of made-ups mentioned in the export product. In view of this Committee decided to reject the case. RLA may take suitable consequential action accordingly.

Case No.836

M/s.Best Sellers apparels Pvt. Ltd. F.NO.1/84/162/882/AM08 -DES-V Export of cotton woven dress – infants/Girsl Advance Authorization No No.0710053916 dt.17.10.2007 – under Para 4.7 of HBP(Vol1)2004-2009. R.A, Bangalore Ref.No.04/24/040/220/AM08 relevant papers and observed that case is under examination of TC, Mumbai/DC(MSME). It was therefore decided to defer the case for re-listing on 07.02.2008.

Case No.837

M/s.Celebrity Fashions Ltd. F.NO.1/84/162/982/AM08 -DES-V Export of Ladies Capri made of 100% cotton dyed canvas woven fabrics Advance Authorization No No.0410092111 dt.15.11.2007 – under Para 4.7 of HBP(Vol1)2004-2009. R.A, Chennai Ref.No.04/24/040/285/AM08 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)/108/07-08/Hosy. dated 02.01.2008 as detailed below: - Export item Export Qty. Import Item Qty. allowed Ladies Capri made of 100% cotton dyed canvas woven fabric GSM-250+/-10% (Style No. D1861131) 45994 Pcs 100% cotton dyed canvas woven fabric GSM-250+/-10% 2.69 Sq mtrs.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.

Case No.838

M/s.RR Leather Products Pvt. Ltd. F.NO.1/84/50/87/AM08 -DES-V Advance Authorization No No.0410090091 dt.25.06.2007 – under Para 4.7 of HBP(Vol1)2004-2009. R.A, Chennai Ref.No.04/24/040/114/AM08 relevant papers and observed that case is under examination of DC (MSME). It was therefore decided to defer the case for re-listing on 17.01.2008.

Case No.839

M/s.Chinar Forge Ltd. F.NO.1/84/162/618/AM08 –DES-V Export of Synthetic Printed Tufted Carpets /Mat. Advance Authorization No No.3010052707 dt.10.08.2007 – under Para 4.7 of HBP (Vol1)2004-2009. R.A, Ludhiana Ref.No.30/24/040/25/AM08 relevant papers and perused re-vised application submitted by the firm and written comments of TC, Mumbai conveyed vide their letter dated 21.11.2007. The Committee in consultation with the representative 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 Synthetic

Printed Tufted Carpets/Mats 167400 Sq mtrs (191523.620 Kgs) BCF Nylon Yarn 1.05 kg/kg content in the export product. Polypropylene BCF Yarn 1.03 kg/kg content in the export product. Polypropylene Primary backing 1.04 kg/kg content in the export product. Natural Rubber Latex compound containing dry rubber 62% 1.06

kg/kg

solid content in the export product. Acid Dyed/Cationic dyes 0.02 kg/kg BCF Nylon Yarn in the export product. Chemicals 0.02 kg/kg of resultant product. Dyes and Chemicals as inputs against the subject advance authorization shall be restricted to 14% of FOB value within the overall CIF value of the licence in terms of General Note for Textiles at S.No.5. The Regional Authority shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.840

M/s.Chinar Forge Ltd. F.NO.1/84/162/243/AM08 –DES-V Export of Synthetic Printed Tufted Carpets /Mat. Advance Authorization No No.3010051673 dt.01.05.2007 – under Para 4.7 of HBP(Vol1)2004-2009. R.A, Ludhiana Ref.No.30/24/040/05/AM08 relevant papers and perused re-vised application submitted by the firm and written comments of TC, Mumbai conveyed vide their letter dated 21.11.2007. The Committee in consultation with the representative 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 Synthetic

Printed Tufted Carpets/Mats 404253.270

Sq mtrs (470178.330 Kgs) BCF Nylon Yarn 1.05 kg/kg content in the export product. Polypropylene BCF Yarn 1.03 kg/kg content in the export product. Polypropylene Primary backing 1.04 kg/kg content in the export product. Natural Rubber Latex compound containing dry rubber 62% 1.06

kg/kg

solid content in the export product. Acid Dyed/Cationic dyes 0.02 kg/kg BCF Nylon Yarn in the export product. Chemicals 0.02 kg/kg of resultant product. Dyes and Chemicals as inputs against the subject advance authorization shall be restricted to 14% of FOB value within the overall CIF value of the licence in terms of General Note for Textiles at S.No.5. The Regional Authority shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.841

M/s.Chinar Forge Ltd. F.NO.1/84/162/619/AM08 –DES-V Export of Synthetic Printed Tufted Carpets /Mat. Advance Authorization No No.3010052707 dt.10.08.2007 – under Para 4.7 of HBP(Vol1)2004-2009. R.A, Ludhiana Ref.No.30/24/040/25/AM08 relevant papers and perused re-vised application submitted by the firm and written comments of TC, Mumbai conveyed vide their letter dated 21.11.2007. The Committee in consultation with the representative 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 Synthetic

Printed Tufted Carpets/Mats 547600 Sq mtrs (625811.310 Kgs) BCF Nylon Yarn 1.05 kg/kg content in the export product. Polypropylene BCF Yarn 1.03 kg/kg content in the export product. Polypropylene Primary backing 1.04 kg/kg content in the export product. Natural Rubber Latex compound containing dry rubber 62% 1.06

kg/kg

solid content in the export product. Acid Dyed/Cationic dyes 0.02 kg/kg BCF Nylon Yarn in the export product. Chemicals 0.02 kg/kg of resultant product. Dyes and Chemicals as inputs against the subject advance authorization shall be restricted to 14% of FOB value within the overall CIF value of the licence in terms of General Note for Textiles at S.No.5. The Regional Authority shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.842

M/s.Beena Coir Works F.NO.1/84/162/985/AM08 –DES-V Export of PVC backed natural bleached stenciled coir mat in size 35 CMX60CM Advance Authorization No No.3010051673 dt.01.05.2007 – under Para 4.7 of HBP(Vol1)2004-2009. R.A, Cochin Ref.No.10/24/040/128/AM08 relevant papers and observed that information/documents called for by DGFT vide letter dated 26.12.2007 is still awaited. It was therefore decided to defer the case for re-listing on 07.02.2008.

Case No.843

M/s.Narottamdas Exports F.NO.1/84/162/435/AM08 -DES-V Export of Ladies Trouser Advance Authorization No No.0310434637 dt.02.07.2007 – under Para 4.7 of HBP(Vol1)2004-2009. .R.A Mumbai Ref.No.03/95/040/292/AM08 relevant papers and observed that case is under examination of DC(MSME). It was therefore decided to defer the case for re-listing on 07.02.2008.

Case No.844

M/s.Ponn Sanger Exports F.NO.1/84/162/981/AM08 -DES-V Export of Ladies Zip; Advance Authorization No No.3210036607 dt.05.11.2007 – under Para 4.7 of HBP(Vol1)2004-2009. R.A Coibatore Ref.No.31/24/40/51/AM08 relevant papers and decided to refer the case to DC(MSME) for their examination and comments and defer the case for re-listing on 07.02.2008.

Case No.845

M/s.Scorpios Apparels Pvt. Ltd. F.NO.1/84/162/291/AM08 –DES-V Advance Authorization No No.0510203031 dt.27.04.2007 – under Para 4.7 of HBP(Vol1)2004-2009. R.A, CLA Ref.No.5/24/040/067/AM08 relevant papers and observed that applicant firm have neither forwarded calculation sheet nor CAD/CAM/Laymarker/Measurement, in absence of which it is not possible to compute the requirement of inputs for the changed export product asked for i.e from ‘Ladies Jacket’ to ‘Ladies other outer garments (top)’ in this case. Further, additional export products i.e other outer garments (top) has also been not specified. Therefore, Committee was constrained to reject the request of firm. RLA may take suitable consequential action accordingly.

Case No.846

M/s.Baliga Fishnets NC39/08 dt.03.01.2008 F.NO.1/84/162/764/AM08/DES-V Ratification of input – output norms against Advance Licence No.0710052729 dt.06.08.2007 – under Para 4.7 of HBP(Vol1)2004-2009. RLA Ref.No.07/24/040/00303/AM08 relevant papers and heard (1) Sh. K.Muralidhar Baliga, Managing Director and (2) Sh. Sabibullah, a technical representative of the firm, who appeared for Personal Hearing. They explained the logical background for wide variation in denierage of Nylon multifilament yarn both at import & export side alongwith sample. The fishnet manufacturer has a wide range of constructions starting from 2 ply (210 D X 2) to 72 ply (1890 D X 9) and so on. It was also observed that in the existing SION at S.No, H-158 only knitted nets or other relevant knitted nets has been mentioned. Knotted nets, as output has not been mentioned in the existing SION. In view of this, Committee after detailed deliberations in consultation with representative of technical authorities present in the meeting decided to ratify the advance authorization issued in this case taking cue from SION at S.No. H-158 by allowing 5% wastage in this case with condition that no repeat advance authorization can be issued under this input output norms. It was also decided to advise the firm to apply for amendment / modification in existing SION at S.No. H-158 for necessary corrections pointed out therein. The Regional Authority shall be advised to take necessary action subject to compliance of other usual conditions.

Outside agenda case: Case No.1 M/s.Ashima Dyecot Pvt. Ltd. NC39/08 dt.03.01.2008 F.NO.1/84/50/ 676/AM03/DES-V Fixation of norms and waiver of General Condition – 5 against Advance Authorization No.081002532 dt. 07.03.2003 and deletion of condition of value restriction in subsequent 17 Advance Licenses issued by R.A, Ahmedabad
relevant papers and observed that this case was discussed in the GRC meeting held on 31.12.2007 and decided to check value restriction in respect of all odd 30 A/L involved in this case. The Committee decided to call the applicant firm on Personal Hearing alongwith following details in its meeting to held on 31.01.2008:- (1) Details of all Advance Licences involved under this case; (2) Catalog & Price list of all Chemicals involved in these Advance Licences; and (3) Certificate of test report justifying the consumption/usage of Chemicals in manufacture of export product in respect of these Advance Licences in question. The case stands deferred for re-listing on 31.01.2008. @@@@@@