DGFT Committee Minutes

Directorate General of Foreign Trade Udyog Bhawan DES-V Section Minutes of the Meeting NC-V held on 28.02.2008 The Meeting No. 47/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 28.02.2008 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. Ashok Kumar Arora, Dy.DGFT DGFT 2. Sh. Kuldeep Singh, Assistant Director DC (MSME) 3. Sh. Pradip Kumar, F.T.D.O DGFT (TEXTILES AND LEATHER ITEMS) At the outset the Minutes of NC meeting No. 46/AMO8 held on 21.02.2008 were ratified. Thereafter Agenda for individual cases for Meeting No. 47/AM08 was taken up for discussion and the decision taken in respect of each case is enumerated below: - MEETING NUMBER : 47/84-ALC3/2007 MEETING DATE : 28.02.2008

Online agenda cases 1

Case No.:4/29/84-ALC3/2007 Party Name:G. D.

ENTERPRISE Meet No/Date:47/84- ALC3/2007 28.02.2008 Status: Rejected HQ File : 01/84/050/00186/AM08/ RLA File : 02/24/040/00193/AM08/ Lic.No/Date:0210105068 09.10.2007

Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that applicant firm have not submitted the information/documents called for by DGFT vide letter dated 16.11.2007, in absence of which it is not possible to compute the requirement of inputs for the export product asked for. In view of this, Committee was constrained to reject the case. RLA may take suitable consequential action accordingly. 2

Case No.:21/40/80-

ALC2/2007 Party Name:GUPTA ENTERPRISES Meet No/Date:47/84- ALC3/2007 28.02.2008 Status: Rejected HQ File : 01/80/050/00606/AM08/ RLA File : 04/24/040/00269/AM08/ Lic.No/Date:0410092439 30.11.2007

relevant papers and observed that this case has been transferred from NC-II because of the fact that ITC (HS) code of export product is 67. Committee observed that firm have not given stage-wise wastage justifying their claim for total 20% wastage, in absence of which it is not possible to compute the requirement of inputs for the export product asked for. In view of this, Committee was constrained to reject the case. It was also decided to seek comments of Import Division as to whether ‘Un worked and unwashed human hair’ is allowed under restrictive item or OGL Scheme.
RLA may take suitable consequential action accordingly.

3

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

Meet No/Date:47/84- ALC3/2007 28.02.2008 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: 27.03.2008 relevant papers and observed that case is under examination of DIPP and comments are awaited from them. It was therefore decided to remind them and defer the case for re-listing on 27.03.2008. 4

Case No.:1/47/84-ALC3/2007 Party Name:VIRAJ SYNTEX

(P) LTD. Meet No/Date:47/84- ALC3/2007 28.02.2008 Status: Deferred HQ File : 01/84/050/00372/AM08/ RLA File : 06/24/040/00036/AM08/ Lic.No/Date:0610012861 14.02.2008 Defer Date: 27.03.2008 relevant papers and observed that in this case application has not been received so far. It was therefore decided to await the same from R.A and defer the case for re-listing on 27.03.2008. 5

Case No.:2/47/84-ALC3/2007 Party Name:ADAM EXPORTS Meet No/Date:47/84-

ALC3/2007 28.02.2008 Status: Deferred HQ File : 01/84/050/00373/AM08/ RLA File : 06/24/040/00037/AM08/ Lic.No/Date:0610012875 15.02.2008 Defer Date: 27.03.2008 relevant papers and observed that case is under examination of DIPP and comments are awaited from them. It was therefore decided to remind them and defer the case for re-listing on 27.03.2008. 6

Case No.:3/47/84-ALC3/2007 Party Name:MADURA COATS

PRIVATE LIMITED, Meet No/Date:47/84- ALC3/2007 28.02.2008 Status: Deferred HQ File : 01/84/050/00374/AM08/ RLA File : 35/24/040/00051/AM08/ Lic.No/Date:3510022904 15.02.2008 Defer Date: 27.03.2008 relevant papers and observed that in this case application has not been received so far. It was therefore decided to await the same from R.A and defer the case for re-listing on 27.03.2008.

Manually generated agenda cases

Case No.977

M/s. Gaurav International NC 47/08 dt. 28.02.2008 F.No. 01/84/50/341/AM-03/DES-V Ratification of input output norms against Advance Authorisation No. 0510068057 dt. 12.09.2002 – 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 on the basis of written comments of DC (MSME) conveyed vide their U.O. No.37 (5)/123/07-08/Hosy. Dated 26.02.2008 as detailed below: - Export Product Export Qty. Import Product Qty. allowed Ladies trouser made in linen/rayon solid dyed fabrics. (Style No. 1008275) 19418 Pcs Linen/rayon solid dyed fabrics 2.58 Sq mtrs./Pc Ladies trouser made in linen/rayon yarn dyed fabrics. (Style No. 1008257) 5208 Pcs Linen/rayon yarn dyed fabrics 2.68 Sq mtrs./Pc 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.978

M/s. Youngman Woollens Mills Pvt. Ltd., Ludhiana. F.No. 01/84/162/369/AM07/DES-V Redemption against of Advance Licence No.3010030502 dt.23.12.2003. relevant papers and observed that comments called for from TC, Mumbai are still awaited. It was therefore decided to remind them and defer the case for re-listing on 10.04.2008.

Case No.979

M/s. Frontier Textile Pvt. Ltd. F.No. 01/84/162/ 374 /AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0210101624 dt. 15.06.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009. relevant papers and observed that applicant firm have requested for extension of time for personal hearing granted to them. Committee taking lenient view decided to grant another P.H to the firm on 27.03.2008. Hence, case stands deferred for re-listing on 27.03.2008.

Case No.980

M/s. Aditya Birla Nuvo Ltd. F.No. 01/84/50/206/AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0210105954 dt. 13.11.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009. Decision: The Committee considered the case as per agenda and after detailed deliberations in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case by allowing Acrylic Fibre with 6% wastage and Raw Cotton with 33% wastage on repeat basis as detailed below: - Export Product Export Qty. Import Product Qty. allowed Dyed /grey finished modacrylic blended fabrics containing modacrylic

and cotton modacrylic 754.50 kgs cotton 560.10 kgs 1395 Kgs 1 Acrylic Fibre modacrylic staple fibre up to 3.00 denier 2. Raw Cotton 799.77 Kgs. 744.930 Kgs. The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.981

M/s. Alok Industries Ltd. F.No. 01/84/162/ 1209 /AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0310458303 dt. 18.01.2008 – under Para 4.7 of HBP (Vol.I) 2004-2009. Decision: The Committee considered the case as per agenda and after detailed deliberations 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 Product Import Qty.

1. 95% Organic cotton 5% spandex single jersey dyed or yarn dyed or printed

bio-finish knitted fabrics. 159000 Kgs

1. Organic Raw Cotton
2. Spandex Yarn
3. Poly Vinyl Alcohol
4. Sodium Hydro Sulphite
5. Reactive Dyes (100% Strength)
6. Furnace Oil

1. 200896.5 Kgs (by allowing 33% wastage)
2. 8347.5 Kgs
3. 4090.5 Kgs
4. 8181 Kgs
5. 6135.75 Kgs
6. Not allowed under Para 4.7 of HBP(Vol.I)
7. 100% organic cotton 1x1 rib dyed or yarn dyed bio- finish

knitted fabrics. 18000 Kgs

1. Organic Raw Cotton
2. Poly Vinyl Alcohol
3. Sodium Hydro Sulphite
4. Reactive Dyes (100% Strength)
5. Furnace Oil

1. 23940 Kgs (by allowing 33% wastage)
2. 4090.5 Kgs
3. 8181 Kgs
4. 6135.75 Kgs 5)Not allowed under Para 4.7 of HBP. (Vol.I)
5. 100% organic cotton 2x2 rib dyed or yarn dyed bio- finish

knitted fabrics. 240000 Kgs

1. Organic Raw Cotton
2. Poly Vinyl Alcohol
3. Sodium Hydro Sulphite
4. Reactive Dyes (100% Strength)
5. Furnace Oil

1. 319200 Kgs (by allowing 33% wastage)
2. 4090.5 Kgs
3. 8181 Kgs
4. 6135.75 Kgs 5)Not allowed under Para 4.7 of HBP. (Vol.I) The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.982

M/s. RR Leather Products Pvt. Ltd., Chennai. F.No. 01/84/50/087/AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0410090091 dt. 25.6.2007. RLA, Chennai. Ref. No.04/24/40/114/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)/109/07-08/Hosy. Dated 25.01.2008 as detailed below: - Export Product Export Qty. Import Item Qty. allowed/Pc Ladies Woollen Jacket made from

100% Wool Vesta fabric colour black for 4650 pieces only Style

No. 711000 11150 Pcs. 100% wool vesta fabric colour black 4.11 Sq mtrs Outer lining 100% Polyester twill fabric white 2.41 Sq mtrs Non-woven interlining fusible, 100% polyester 1.85 Sq mtrs Tape-1 ¼ “ colour graphite & ant brass 2.70 mtrs Bias Tape –1 ¼ “ 2.95 mtrs Shoulder Pads One pair/Pc Sleeve Head One pair/Pc Thread black colour 386 mtrs. Poly bags One piece /Pc Ladies Woollen Jacket made from

80% Wool,

20% Nylon Lindsey fabric colour white for 1300 Pieces only Style

No. 709801 80% wool, 20%Nylon Lindsey fabric colour white 3.50 Sq mtrs Outer lining 100% Polyester twill fabric white 2.29 Sq mtrs Non-woven interlining fusible, 100% polyester 1.85 Sq mtrs Tape-1 ¼ “ colour graphite & ant brass 2.70 mtrs/Pc Tape-6 mm, colour white 4.66 mtrs/Pc Shoulder Pads One pair/Pc Thread 386 mtrs. Poly bags One piece/Pc Ladies Woollen Jacket made from

80% Wool,

20% Nylon Lindsey fabric colour white for 3100 Pieces only Style

No. 708200 Outer lining 100% Polyester twill fabric white 2.29 Sq mtrs Non-woven interlining fusible, 100% polyester 1.85 Sq mtrs Bias Tape-1 ¼ “ 2.95 mtrs/Pc Tape-1 ¼ “ colour graphite & ant brass 2.70 mtrs/Pc Tape-6 mm, colour white 4.66 mtrs/Pc Shoulder Pads One pair/Pc Thread 386 mtrs. Poly bags One piece/Pc 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.983

M/s. Chelsea Mills F.No. 01/84/50/1170/AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0510215322 dt. 23.01.2008 – under Para 4.7 of HBP (Vol.I) 2004-2009. Decision: The Committee considered the case as per agenda and in consultation with the representatives of technical authorities present in the meeting decided to ratify the advance licence issued in this case as detailed below: - Export Product Export Qty. Import Item Qty. allowed 98.5%

Cotton

1.5% Spandex

Stretch Denim womens boot cut long jeans (Style No. 210078479) 16230 Pcs.

98.5% Cotton 1.5% Spandex dyed denim Fabric, GSM-375+/-10%

3.06 Sq. Mtrs/Pc 65% Polyester 35% Cotton lining fabric, GSM: 105 +/- 10% 3059.79 Sq. Mtrs. Snap Fastners of relevant size) 1 Set (Net to net with accountability clause) Rivets 6 Sets (Net to net with

accountability clause) Zip Fastners of relevant size 1 No. (Net to net with accountability clause) Studs of relevant sizes 60 Sets (Net to net with

accountability clause) Pumice Stone 300 gms./kg. of export product Polyester Thread of relevant length 300 mtrs./Pc of export product 98% Cotton 2% spandex stretch

Denim Womens Boot cut long jeans (Style No. 3811 & 3812) 20675 Pcs 98% Cotton 2% spandex dyed Denim fabric, GSM-345+/-10% 2.63 Sq. Mtrs/Pc 100% Cotton dyed lining fabric GSM: 200 +/- 10% . 5295 Sq. Mtrs. Snap Fastners of relevant size 1 Sets (Net to net with

accountability clause) Rivets 6 Sets (Net to net with

accountability clause) Zip Fastners of relevant size 1 Set (Net to net with accountability clause) Pumice Stone 300 gms./kg. of export product Polyester Thread of relevant length 300 mtrs./Pc of export product The GSM of import and export shall match. 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.984

M/s. Chelsea Mills F.No. 01/84/50/1214/AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0510216518 dt. 15.02.2008 – under Para 4.7 of HBP (Vol.I) 2004-2009. Decision: The Committee considered the case as per agenda and in consultation with the representatives of technical authorities present in the meeting decided to ratify the advance licence issued in this case as detailed below: - Export Product Export Qty. Import Item Qty. allowed 98% Cotton 2% Spandex Stretch

Denim womens boot cut long jeans 32678 Pcs.

98% Cotton 2% Spandex Stretch dyed Denim Fabric, GSM-345+/-10% 2.63 Sq. Mtrs/Pc
100% Cotton dyed lining fabric GSM: 200 +/- 10% . 8371.200 Sq. Mtrs. Snap Fastners of relevant size) 1 Set (Net to net with accountability clause) Rivets 6 Sets (Net to net with

accountability clause) Zip Fastners of relevant size 1 Set (Net to net with accountability clause) Pumice Stone 300 gms./kg. of export product Polyester Thread of relevant length 300 gms./Pc of export product The GSM of import and export shall match. 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.985

M/s. Scorpios Apparels Pvt. Ltd., Faridabad. F.No. 01/84/162/291/AM-08/DES-V Ratification of input output norms against Advance Authorisation No. 0510203031 dt. 27.4.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009 RLA, CLA, New Delhi. Ref. No.5/24/40/067/AM08. relevant papers and decided to call the applicant firm for Personal Hearing in its meeting to be held on 27.03.2008. Hence, case stands deferred for re-listing on 27.03.2008.

Case No.986

M/s. Stanchart Impex Pvt. Ltd., Noida. F.No. 01/84(85)/50/258/AM-06/DES-V Ratification of input output norms against Advance Licence Nos.0510177293 dated 24.2.2006. relevant papers and observed that case is under examination of DIPP and comments are awaited from them. It was therefore decided to remind them and defer the case for re-listing on 27.03.2008.

Case No.987

M/s. Color Lines Incorporated. NC 45/08 dt. 14.02.2008 F.No. 01/84/50/165/AM-06/DES-V Ratification of input output norms against Advance Authorisation No. 0710038241 dt. 01.06.2005 – under Para 4.7 of HBP (Vol.I) 2004-2009. relevant papers and observed that case is under examination of DC (MSME) and comments are awaited from them. It was therefore decided to remind them and defer the case for re-listing on 13.03.2008.

Case No.988

M/s. BSL LTD., F.No. 01/84/050/00131/AM08/DES-V Ratification of input output norms against Advance Authorization No. 1310024819 Dated:08.08.2007 – under Para 4.7 of HBP (Vol.I) 2004-2009. RLA File Number No. 13/24/040/00011/AM08/ Dated:01.08.2007 relevant papers and heared Sh. Sanjay S. Mehra, General Manager (Commercial) and Sh. P.C.Garg, Dy. General Manager (Marktg.), who appeared for personal hearing in this case. They explained the case showing sample of export and import items alongwith other relevant papers. Committee perused tests report of Central Silk Board and SASMIRA and written comments of TC, Mumbai vide their letter dated 03.12.2007 pertaining to the instant case submitted by the representative of the firm. Committee observed that as per Central Silk Board report, undegummed dupion silk can be twisted without any difficulty if the dupion silk is uniform in nature and degumming loss of Dupion silk yarn 100/120D 2ply Z 192 TPM is 24.86%. Further, SASMIRA have also informed that degumming loss of Dupion silk yarn is 27.4%. They have also certified that Dupion Silk yarn produced in China is twisted in gummed form and exported as gummed and twisted yarn. In view of the above, Committee after detailed deliberations in consultation with representatives of technical authorities present in the meeting decided to ratify the advance authorization issued in this case on the basis of recommendations of TC, Mumbai conveyed vide their letter dated 03.12.2007 as detailed below: - Export Item Export Qty. Import Item Qty. allowed 100% Natural Silk Fabrics containing one or more than one specified constituent raw silk/silk

yarn. Dupion Silk Yarn - 4550 Kgs. Noil Silk Yarn - 130 Kgs. Spun Silk Yarn - 420 Kgs. 5100 Kgs Dupion Silk Yarn (gummed and twisted) 1.39 kg/kg content in the export product Noil Silk Yarn 1.05 kg/kg content in the export product Spun Silk Yarn 1.05 kg/kg content in the export product It was also decided to delete the word ‘made-ups’ from the description of export item. The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.989

Ref. Federation of Indian Export Organizations, New Delhi NC 45/08 dt. 14.02.2008 F.No. 01/84/162/35/AM-06/DES-V Provision of duty free fuel for power generation for exporters over and above duties remitted under DEPB/Duty Drawback Scheme. relevant papers and decided to check as to whether any Public Notice has been issued 0n this subject matter or not and accordingly examine the case on file.

Case No.990

M/s. Raj Exports, Ahmedabad. F.No. 01/84/162/ /AM-08/DES-V Regarding Endorsement of inputs on Target Plus Licence Nos.0510198608 dt. 29.1.2007; 0510198609 dt.29.1.2007; 0510198610 dt.29.1.2007; 0510198611 dt.29.1.2007; 0510198612 dt.29.1.2007; 0510198613 dt.29.1.2007; and 0510198614 dt.29.1.2007. relevant papers and observed that as per SION, F-8, Thickner and Synthetic Latex Compound are not permitted as inputs for the export of Carpets. It was observed that earlier only hand woven carpets were manufactured and exported, but now there is demand for printed carpets as they are cheaper and more lucrative. Machine made Carpets are made of grey/bleached yarn, which is printed on printing machine with different colours/designs. Therefore, practically, Thickner, which is a substitute of Dyes, is required as a printing ink used in printing of Carpets. Further, Committee also felt that Latex Compound, which is a binding material to bind the base with the material is required as input of all type of Carpets. As regards Cotton Dhurries, which are covered under SION, J-112, Nylon Fibre/Polyester Staple Fibre/Poly propylene fibre (Man made firbres) is not permitted as inputs. In view of this, Committee in consultation with representatives of technical authorities present in the meeting decided as detailed below: - (1) Thickner, which is a substitute of Dyes, may be allowed for only printed Carpets. (2) Synthetic Latex Compound may be allowed for all types of Carpets. (3) Nylon Fibre/Polyester Staple Fibre/Poly propylene fibre (Man made firbres) may not be allowed for Cotton Dhurries. Firm may be informed accordingly. @@@@@@@