DGFT Committee Minutes

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Minutes of the Meeting NC-V held on 29.10.2009

The Meeting No. 31/AM-10 for the licensing year 2009-10 to consider the cases under Duty Exemption Schemes (Chapter-4) in Room No.213 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, Industrial Advisor DIPP 2. Sh. Ashok Kumar Arora, Dy.DGFT DGFT 3. Sh. Kuldeep Singh, Asstt. Director DC (MSME) 4. Sh. Pradip Kumar, F.T.D.O DGFT

(TEXTILES AND LEATHER ITEMS)

MEETING NUMBER : 31/84-ALC3/2009 MEETING DATE : 29.10.2009

Online agenda cases

Case No.:9/15/84-ALC3/2009

Party Name:KE-TECHNICAL TEXTILES PVT.LTD. Meet No/Date:31/84-ALC3/2009 29.10.2009 Status: Approved HQ File :01/84/050/00063/AM10/ RLA File :02/24/040/00055/AM10/ Lic.No/Date:0210128560 02.07.2009

PRO version 1 Decision: The Committee considered the case as per agenda and went through the stage-wise wastage involved in the entire process for manufacture of this export product. The Committee after detailed deliberations in consultation with representatives of technical authorities present in the meeting felt that a total 6% wastage is adequate in this case. Hence, it was decided to ratify the Advance authorization issued in this by allowing 6% wastage on item of import as detailed below:- Export Item Export Qty. Import Item Qty. allowed Tubular Bags (Gauntlet) containing Polyestesr Yarn (2522.69 Kgs) 93433 Nos. Polyestesr Yarn, T/C: 500 Denier High Tenacity 2674.05 Kgs The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

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Case No.:10/15/84-ALC3/2009

Party Name:KE-TECHNICAL TEXTILES PVT.LTD. 29.10.2009 Status: Approved HQ File :01/84/050/00064/AM10/ RLA File :02/24/040/00056/AM10/ Lic.No/Date:0210128564 02.07.2009

Decision: The Committee considered the case as per agenda and went through the stage-wise wastage involved in the entire process for manufacture of this export product. The Committee after detailed deliberations in consultation with representatives of technical authorities present in the meeting felt that a total 6% wastage is adequate in this case. Hence, it was decided to ratify the Advance authorization issued in this by allowing 6% wastage on item of import as detailed below:- Export Item Export Qty. Import Item Qty. allowed Tubular Bags (Gauntlet) containing Polyestesr Yarn (1743.49 Kgs) 64574 Nos. Polyestesr Yarn, T/C: 500 Denier High Tenacity 1848.09 Kgs

PRO version

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Case No.:8/27/84-ALC3/2009

Party Name:CHELSEA MILLS 29.10.2009 Status: Approved HQ File :01/84/050/00129/AM10/ RLA File :05/23/040/00008/AM10/ Lic.No/Date:0510247595 12.08.2009

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 authorization issued in this case on the basis of written comments of DC (MSME) conveyed vide their U.O NO. 37(5)/49/2009-10/Hosy. dated 29.10.2009 as detailed below: - Export Product Import Item Qty. allowed. 100% cotton denim Infants & Girls Boot cut jeans (Style No.-708009) 100% cotton denim fabric, GSM- 300+/-10% 1.15 Sq mtrs./Pc Snap fastners Net to net with accountability clause Elastic 0.55 mtrs./Pc 65% polyester 35% cotton dyed fabric, GSM-105+/-10% 0.20 Sq mtrs./Pc Zip fastners

Net to net with accountability clause Fusible interlining 0.22 Sq mtrs./Pc Pumice stone 300 gms./Kg content of cotton denim fabric in the export. 100% cotton denim Infants boot cut Jeans (Style No.-706182) 100% cotton denim fabric, GSM- 300+/-10% 1.05 Sq mtrs./Pc 65% polyester 35% cotton dyed fabric, GSM-105+/-10% 0.20 Sq mtrs./Pc Fusible interlining 0.20 Sq mtrs./Pc Snap fastners Net to net with accountability clause Elastic 0.55 mtrs./Pc Zip fastners

Net to net with accountability clause Pumice stone 300 gms./Kg content of cotton denim fabric in the export. 100% cotton denim 100% cotton denim fabric, GSM- 2.30 Sq mtrs./Pc

PRO version Infants & Girls Boot cut jeans (Style No.-707923) 300+/-10% 65% polyester 35% cotton dyed fabric, GSM-105+/-10% 0.35 Sq mtrs./Pc Fusible interlining 0.20 Sq mtrs./Pc Snap fastners Net to net with accountability clause Elastic 0.70 mtrs./Pc Zip fastners

Net to net with accountability clause Pumice stone 300 gms./Kg content of cotton denim fabric in the export. The GSM should match in both import & export.

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Case No.:2/27/84-ALC3/2009

Party Name:VEEKAY POLYCOATS LTD. 29.10.2009 Status: Deferred HQ File :01/84/050/00123/AM10/ RLA File :05/24/040/00317/AM10/ Lic.No/Date:0510249493 17.09.2009 Defer Date: 26.11.2009 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that information/documents called for from firm is still awaited. It was therefore decided to await the same and defer the case for re-listing on 26.11.2009.

Case No.:4/27/84-ALC3/2009

Party Name:ORIENT FASHION EXPORTS(INDIA) PVT.LTD. 29.10.2009 Status: Approved HQ File :01/84/050/00125/AM10/ RLA File :05/24/040/00312/AM10/ Lic.No/Date:0510249513 17.09.2009

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 authorization issued in this case as detailed

PRO version 5 below: - S. No Export Product Import Item Qty. allowed. 1 Infant dress with diaper cover in 100% cotton printed plain weave woven fabric, GSM- 79+/-10% (Style No. 706304) 100% cotton printed plain weave woven fabric, GSM-79+/- 10% Not allowed as no drawing, design, calculation, measurement & justification available. 2 Infant dress with diaper cover in 100% cotton printed plain weave woven fabric, GSM- 79+/-10% (Style No. 709979) 100% cotton printed plain weave woven fabric, GSM-79+/- 10% 8074 Sq mtrs. 3 Infant Top in 100% cotton printed plain weave woven fabric, GSM-79+/-10% (Style No. 705969) 100% cotton printed plain weave woven fabric, GSM-79+/- 10% 4264 Sq mtrs. 4 Infant Romper in 100% cotton printed plain weave woven fabric, GSM-79+/-10% (Style No. 705967) 100% cotton printed plain weave woven fabric, GSM-79+/- 10% 9306 Sq mtrs. The GSM should match in both import & export.

Case No.:10/27/84-ALC3/2009

Party Name:SCORPIOS APPARELS PVT.LTD., 29.10.2009 Status: Approved HQ File :01/84/050/00131/AM10/ RLA File :05/24/040/00316/AM10/ Lic.No/Date:0510249781 23.09.2009

Decision: The Committee considered the case as per agenda and in consultation with the representatives of technical

PRO version 6 authorities present in the meeting decided to ratify the Advance authorization issued in this case as detailed below: - S. No Export Product Import Item Qty. allowed. 1 Ladies Bathrobe made of 100% cotton yarn dyed woven fabric, GSM-246+/-10% and 100% cotton printed woven fabric, GSM-75+/- 10% (Style No. 5S4225)

1. 100% cotton yarn dyed woven fabric, GSM-246+/- 10%

2. 1836 Sq mtrs.

100% cotton printed woven fabric, GSM-75+/- 10% 2) 1113.5 Sq mtrs. The GSM should match in both import & export.

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Case No.:9/27/84-ALC3/2009

Party Name:JIWANRAM SHEODUTTRAI INDUSTRIES PVT.LTD. 29.10.2009 Status: Approved HQ File :01/84/050/00130/AM10/ RLA File :02/24/040/00122/AM10/ Lic.No/Date:0210131920 23.09.2009

Decision: The Committee considered the case as per agenda and observed that as regards export item at S.No. 1, 2, 3, 10, 11, 12 and 13 i.e ‘Ladies Kasack’ applicant firm have not given drawing, design, calculation, measurement and justification, in absence of which it is not possible to compute the quantitative requirement of inputs. Further, as regards export item at S.No. 7 & 8 i.e ‘Men’s Chef’s Jacket’ firm have also not given drawing, design, calculation, measurement and justification, in absence of which it is not possible to compute the quantitative requirement of inputs. In view of this

PRO version 7 Committee in consultation with the representatives of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case as detailed below: - (I) The items of import at S.No. 4, 5 and 6 against export items at S.No.4, 5 and 6 may be allowed as applied by the firm. (II) The items of import against export items at S.No. 1, 2, 3, 10, 11, 12 and 13 i.e ‘Ladies Kasack’ is disallowed. (III) The items of import against export items at S.No. 7 and 8 i.e ‘Men’s Chef’s Jacket’ is disallowed. The GSM should match in both import & export.

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Case No.:2/31/84-ALC3/2009

Party Name:J.J. EXPORTERS LTD., 29.10.2009 Status: Approved HQ File :01/84/050/00148/AM10/ RLA File :02/24/040/00079/AM10/ Lic.No/Date:0210132664 15.10.2009

Decision: The Committee considered the case as per agenda and observed that export item is Silk yarn only. The process of degumming & twisting would require not more than 28% wastage in this case. Thus, Committee after detailed deliberations in consultation with the representatives of technical authorities present in the meeting decided to ratify the advance authorization issued in this case by allowing 28% wastage on item of import as detailed below: - S. No Export item Export Qty. Import item Qty. allowed 1 Dyed twisted dupion silk yarn (degummed & twisted) 4380 Kgs Dupion Silk yarn (gummed & untwisted) 5606 Kgs

PRO version 9

Case No.:1/31/84-ALC3/2009

Party Name:MERIDIAN APPARELS LIMITED, 29.10.2009 Status: Approved HQ File :01/84/050/00147/AM10/ RLA File :04/24/040/00171/AM10/ Lic.No/Date:0410108743 21.10.2009

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 authorization issued in this case as applied by the firm as detailed below: - Export Product Export Qty. Import Item Qty. allowed. Ladies Tank Top made out of 95% viscose 5% elasthane jersey knitted fabric, GSM-180+/-10% (Style No. 5S4225) 20000 Pcs. 95% viscose 5% elasthane jersey knitted fabric, GSM- 180+/-10%

20222 Sq mtrs.

The GSM should match in both import & export.

Manually generated agenda cases

Case No. 495

M/s Inyati Footwears Ltd., Kanpur NC31/10 dt. 29.10.2009 F.NO.1/84/50/445/AM07 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0610011561 dt. 21.12.2006 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda and observed that this case was decided by NC as per SION, G-45 by allowing the Finishing Chemicals 7 Sq Ft., but subsequently, SION, G-45 has been modified to allow the Finishing Chemicals 8 Sq Ft. vide Public Notice No. 185 dated 09.06.2009. In view of this Committee in consultation with the representatives of technical authorities present in the meeting decided to allow the Qty. of Finishing Chemicals

PRO version 8 Sq Ft. in partial modification of earlier decision in this case irrespective of amendment of SION, G-45. R.A may calculate the Qty. of Finished Chemicals accordingly.

Case No. 496

M/s Maccaferri Environmental Solutions Pvt. Ltd., Pune F.NO.1/84/50/445/AM09 -DES-V Ratification of input output norms in respect of Advance Authorization No. 3110037216 dt. 03.02.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and decided to link the earlier relevant file of the applicant firm wherein similar input output norms have been fixed and defer the case for re- listing on 26.11.2009.

Case No. 497

M/s Estocorp (India) Pvt. Ltd., New Delhi F.NO.1/84/162/939/AM08 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0510211183 dt. 26.10.2007 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that case is under examination of DC (MSME) for their examination and comments. It was therefore decided to await the same and defer the case for re-listing on 26.11.2009.

PRO version

Case No. 498

M/s Modi International, Faridabad F.NO.1/84/50/226/AM06 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0510160468 dt. 22.06.2005 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that applicant firm have not given the complete details pertaining to this case mentioning that which excess imported fabrics will be used for which export item alongwith their quantitative requirement and justification thereon. It was therefore decided to call for the same from firm and defer the case for re-listing on 26.11.2009.

Case No. 499

M/s Bannari Amman Apparel Pvt. Ltd., Chennai F.NO.1/84/162/361/AM10 -DES-V Ratification of input output norms in respect of Advance Authorization No. 0410107598 dt. 08.09.2009 – under Para 4.7 of HBP (Vol1) 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 authorization issued in this case as detailed below: - (i) The item of import at S.No.1 (for export item No.1) and 3 (for export item No.2) may be allowed as applied by the firm. (ii) The item of import at S.No.2 (for export item No.1) and 4 (for export item No.2) may be allowed as per Packing Policy.

The GSM should match in both import & export.

PRO version

Case No. 500

M/s Madura Coates Pvt. Ltd., Bangalore F.NO.1/84/162/363/AM10 -DES-V Ratification of input output norms in respect of Advance Authorization No. 3510027768 dt. 24.09.2009 – under Para 4.7 of HBP (Vol1) 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 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 made out of 55% polyester filament yarn 45% polyester staple fibre blend 125000Kgs.

1. Polyester filament yarn

2. Polyester Staple Fibre

3. 69437.5 Kgs

4. 59062 Kgs The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 501

M/s Madura Coates Pvt. Ltd., Bangalore F.NO.1/84/162/364/AM10 -DES-V Ratification of input output norms in respect of Advance Authorization No. 3510027767 dt. 24.09.2009 – under Para 4.7 of HBP (Vol1) 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 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: -

PRO version Export product Export Qty. Import item Qty. allowed Polyester/Polyester corespun yarn/Sewing thread made out of 65% polyester filament yarn 35% polyester staple fibre blend 200000Kgs.

1. Polyester filament yarn

2. Polyester Staple Fibre

3. 131300 Kgs

4. 73500 Kgs The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 502

M/s Madura Coates Pvt. Ltd., Bangalore F.NO.1/84/162/362/AM10 -DES-V Ratification of input output norms in respect of Advance Authorization No. 3510027766 dt. 24.09.2009 – under Para 4.7 of HBP (Vol1) 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 authorization issued in this case by allowing import item with 1% wastage as detailed below: - Export product Export Qty. Import item Qty. allowed CF Polyester Thread 30000Kgs. Polyester filament yarn

30300 Kgs

The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 503

M/s A.S.Marimuthu, Tamil Nadu.

PRO version F.NO.1/84/162/365/AM10 -DES-V Ratification of input output norms in respect of Advance Authorization No. 3210027635 dt. 09.09.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that as per application FOB value is more than 66% of CIF value in this case, which is a violation of condition mentioned in General Note for Textiles at S.No.5 whereby import of dyes and chemicals be restricted to 14% of FOB value within the overall CIF value of the licence.

RLA may take suitable consequential action accordingly.

Case No. 504

Reference from CAPEXIL in respect of M/s Ke-technical Textiles, Kolkata F.NO.1/84/162/11/AM08 -DES-V Fixation of SION for Tubular Bag. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that comments/reply called for from TEXPROCIL are still awaited. It was therefore decided to remind them and defer the case for re-listing on 26.11.2009.

Case No. 505

M/s Kitex Childrenswear Ltd., Kochi F.NO.1/84/50/26/AM10 -DES-V Ratification of input output norms in respect of Advance Authorization No.

PRO version 1010033569 dt. 04.05.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and relevant details available in the file handed over to the representative of DC (MSME) for their examination and comments. It was therefore decided to defer the case for re-listing on 26.11.2009.

Case No. 506

Reference from Silk Association of India, Kolkata & Commissioner of Customs, Kolkata F.NO.1/84/162/338/AM10 -DES-V Regarding difficulties faced by exporters in shipments due to withdrawal of samples by Customs authorities to establish the grade and Denier of input content in the resultant product to match with grade & denier of the yarn imported duty free. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that Silk Association of India, Kolkata has drawn attention towards the difficulties being faced by exporters in shipments due to withdrawals of samples by Customs authorities to establish the grade & denier of input content in the resultant export product to match with grade and denier of the yarn imported duty free. The Committee also perused the comments of Central Silk Board conveyed vide their letter dated 11.09.2009 informing that grade & denier tests of Mulberry Silk/Dupion Silk are categorized & applicable for Raw silk yarn & Dupion Silk Yarn only. Since, the finished fabric is made out of processed Raw Silk/Dupion Silk in degummed, twisted, Twisted & woven, these tests are neither relevant for fibres nor possible to pass the fabrics for these tests. Grade & Denier test are possible for the raw silk yarn before it is processed and in any case it should not be disturbed from its raw state & packed condition of the bales. Hence, it is not possible to determine the denier and grade of the Mulberry Raw Silk & Dupion Silk yarn from the finished fabric sample swatches. In this context, Policy Division have also sought views in this matter. The Committee also perused SIONs at S.No. J-123, J-124 and J-129 whereby import of Mulberry Raw Silk of any grade is allowed. Further, Committee on perusal of General Note No. 4 of the Textile Product, which clearly stipulates that “ while a license can be issued covering different constituent of Raw Silk/Silk Yarn, the nexus in accordance with their constituents i.e Mulberry/Dupion/Tussar/Noil etc and the specified input output ratio has to be maintained. For this purpose, the export obligation shall specifically mention the total Qty. content of each constituent of Silk/other yarn in exports”. Thus, Committee felt that relevant SIONs allow the constituent of Raw Silk/Silk Yarn in Kg terms irrespective of grade & denier of it.

PRO version

Therefore, Committee after detailed deliberations in consultation with the representatives of technical authorities present in the meeting observed that for manufacture of export product made out of Silk yarn of any grade, technically it is not possible to determine the grade & denier of the input yarn (Mulberry Raw Silk & Dupion Silk Yarn) used in the export product, once the raw silk yarn is processed endorsing the views of Central Silk Board. Accordingly, it was decided to inform the Policy Division for taking further necessary action at their end.

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