DGFT Committee Minutes

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Minutes of NC-V Meeting held on 11.02.2010

The Meeting No. 46/AM-10 for the licensing year 2009-10 to consider the cases under Duty Exemption Schemes (Chapter-4) held on 11.02.2010 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. R.A.Lal, Deputy Director R.O, TC, Noida 3. Sh. Ashok Kumar Arora, Dy.DGFT DGFT 4. Sh. Kuldeep Singh, Asstt. Director MSME 5. Sh. Pradip Kumar, F.T.D.O DGFT

(TEXTILES AND LEATHER ITEMS)

MEETING NUMBER : 46/84-ALC3/2009 MEETING DATE : 11.02.2010

PRO version

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Case No.:2/42/84-ALC3/2009

Party Name:KEENWIN APPARELS PVT. LTD., Meet No/Date:46/84-ALC3/2009 11.02.2010 Status: Approved HQ File :01/84/050/00220/AM10/ RLA File :04/24/040/00209/AM10/ Lic.No/Date:0410109420 17.11.2009

Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that firm have submitted the details viz. measurement, Sketch pertaining to only two export items whereas there are four total export items in this case. Further, They have neither given style Nos. of export items nor justification for asking higher Qty. more than SION. Therefore, 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 as detailed below:- S.No Export item Export Qty. Import item Qty. allowed 1 Cotton woven Mens Shorts 1826 Pcs 100% cotton yarn dyed sheeting @ 2.90 Sq mtrs./Pc (As per SION J-272) 2 Cotton woven Mens Shorts 968 Pcs 100% cotton yarn dyed @ 1.55 Sq mtrs./Pc (As applied by the

PRO version sheeting firm) 3 Cotton woven Mens Trousers 683 Pcs 100% cotton yarn dyed sheeting @ 2.25 Sq mtrs./Pc (As per SION J-275) 4 Cotton woven Mens Shorts 3630 Pcs 100% cotton yarn dyed sheeting @ 1.60 Sq mtrs./Pc (As per SION J-292) The GSM should match in both import and export. The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

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Case No.:1/46/84-ALC3/2009

Party Name:ADITYA BIRLA NUVO LIMITED., Meet No/Date:46/84-ALC3/2009 11.02.2010 Status: Deferred HQ File :01/84/050/00252/AM10/ RLA File :02/24/040/00212/AM10/ Lic.No/Date:0210137055 28.01.2010 Defer Date: 11.03.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that copy of application has not been received in this case. It was decided to await and defer the case for re- listing on 11.03.2010.

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Case No.:2/46/84-ALC3/2009

Party Name:GAURAV INTERNATIONAL Meet No/Date:46/84-ALC3/2009 11.02.2010 Status: Deferred HQ File :01/84/050/00253/AM10/ RLA File :05/23/040/00168/AM10/ Lic.No/Date:0510257144 29.01.2010 Defer Date: 11.03.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that copy of application has not been received in this case. It was decided to await and defer the case for re- listing on 11.03.2010.

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Case No.:3/46/84-ALC3/2009

Party Name:MERIDIAN APPARELS LIMITED, Meet No/Date:46/84-ALC3/2009 11.02.2010 Status: Deferred HQ File :01/84/050/00254/AM10/ RLA File :04/24/040/00285/AM10/ Lic.No/Date:0410111240 02.02.2010 Defer Date:11.03.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that copy of application has not been received in this case. It was decided to await and defer the case for re- listing on 11.03.2010.

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Case No.:4/46/84-ALC3/2009

Party Name:MERIDIAN APPARELS LIMITED, Meet No/Date:46/84-ALC3/2009 11.02.2010 Status: Deferred HQ File :01/84/050/00255/AM10/ RLA File :04/24/040/00284/AM10/ Lic.No/Date:0410111241 02.02.2010 Defer Date:11.03.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that copy of application has not been received in this case. It was decided to await and defer the case for re- listing on 11.03.2010.

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Case No.:5/46/84-ALC3/2009

Party Name:MACCAFERRI ENVIRONMENTAL SOLUTIONS PVT. LTD. Meet No/Date:46/84-ALC3/2009 11.02.2010 Status: Deferred HQ File :01/84/050/00256/AM10/ RLA File :31/24/040/00224/AM10/ Lic.No/Date:3110041785 02.02.2010 Defer Date:11.03.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed

PRO version that copy of application has not been received in this case. It was decided to await and defer the case for re- listing on 11.03.2010.

Manually generated agenda cases

Case No. 658

M/s GHCL Ltd., Ahmedabad NC46/10 dt. 11.02.2010 F.NO.1/84/162/481/AM10 -DES-V Request to amend the Licenses by substituting the export product by a value added product in respect of three Advance Authorization No. (i) 03010426378 dt. 11.04.2007 (ii) 03010421938 dt. 05.03.2007 and (iii) 3510019814 dt. 31.10.2006. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. Neeraj Jalan, Sr. General Manager and Sh. Subhash Poddar, authorized representative of the firm, who appeared for personal hearing before NC. They explained the case alongwith relevant details and sample. In this case firm had obtained three advance authorization Nos. (i) 03010426378 dt. 11.04.2007 (ii) 03010421938 dt. 05.03.2007 and (iii) 3510019814 dt. 31.10.2006 for the export of ‘PC Blended Made-ups (Bed Sheet Sets & Pillow Covers) made from PC blended Yarn Polyester 40% Cotton 60%’ and Norms Committee had cleared these three advance authorization by allowing 7% wastage. But, due to global recession, firm could not export the goods in this case. Now, firm have order to supply for the changed export item with higher value addition made out of the same input. Accordingly, firm have requested to amend the export product against these three advance authorizations i.e instead of earlier export product ‘PC Blended Made-ups’, firm have now requested to amend the export product to read as ‘Processed Fabric i.e Dyed /or Printed Fabric’. The Committee after detailed deliberations in consultation with representatives of technical authorities present in the meeting felt that as in the changed export product only dying and printing is involved, 5% wastage would be adequate in this case. Therefore, Committee decided to allow the amended export product i.e ‘Processed Fabric i.e Dyed /or Printed Fabric’ with 5% wastage on pro-rata Qty. basis against all the three advance authorization in question as under:-
S. No Adv. Authorization No. & Date Import as per License Actual import as per BOE Balance to import Export EO as per License Balance EO as per actual import Qty. CIF Qty. CIF Qty. CIF Qty. FOB Qty. FOB

PRO version o & ate Qty. (in Kg) CIF (in Rs.) Qty. (in Kg) CIF (in Rs.) Qty. (in Kg) CIF (in Rs.) Qty. (in Kg) FOB (in Rs.) Qty. (in Kg) FOB (in Rs.) 1 3510019814 dt. 31.10.2006 91,185.4 9,971,500 53,978.28 5,500,850.13 37,207.12 4,470,649.88
85,220 10,641,521 50,446.99 6,299,374.68 2 03010421938 dt. 05.03.2007 200,000.0 25,508,000 194,266.68 22,729,852.37 5,733.32 2,778,147.63 186,916 28,037,400 181,557.75 27,233,663.07 3 03010426378 dt. 11.04.2007 200,000.0 25,508,000 191,338.7 22,396,498.55 8,661.30 3,111,501.45 186,916 28,037,400 178,821.32 26,823,198.34 The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 659

M/s Arvind Products Ltd., Gujrat F.NO.1/84/50/143/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0810083511 dt. 12.10.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and handed over the relevant details to DC (MSME) for their examination and comments. It was therefore decided to defer the case for re- listing on 11.03.2010.

Case No. 660

M/s Garden view Impex Pvt. Ltd., Mumbai F.NO.1/84/50/244/AM07 -DES-V 0310395371 dt. 21.08.2006 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and went through the sketch submitted by the firm it was observed that this is ¾ Pant. Firm have simply given the Style No. F CB 4047XGF34 of the export item. They have neither given any justification, calculation sheet etc for asking higher Qty. of input. In view of this Committee after detailed deliberations in consultation with representatives of technical

PRO version authorities present in the meeting decided to ratify the advance authorization issued in this case @ 1.80 Sq mtrs/Pc taking cue from SION, J-275. The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

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Case No. 661

M/s Lastolite Imaging Solution Pvt. Ltd. F.NO.1/84/50/466/AM10 -DES-V 0410102678 dt. 04.03.2009 – 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 firm have not submitted the complete details of all the similar advance authorizations issued earlier to them. Further, it was also observed that size-wise specification of earlier case is not the same as in the instant case, hence cannot be considered as similar case. It was therefore, decided to reject the request of the firm and maintain status quo in this case. Firm may be informed accordingly.

Case No. 662

M/s Alpha Corporation, Ludhiana F.NO.1/84/162/146/AM09 -DES-V 3010060658 dt. 04.03.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and went through the

PRO version details and Process Chart submitted by the firm. It was felt that from Cashmere yarn to warping 1.5% wastage is adequate. For weaving – 3%, for mending/clipping –0.5%, for fringing –3% and upto milling –5% wastage may be justified. Accordingly, it was felt that total 13% wastage as against 17% wastage asked by firm is adequate in this case. Accordingly, Committee in consultation with representatives of technical authorities present in the meeting decided to ratify the advance authorization issued in this case by allowing 13% wastage in this case.

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

Case No. 663

M/s Lastolite Imaging Solution Pvt. Ltd. F.NO.1/84/50/173/AM10 -DES-V 0410096702 dt. 24.06.2008 – 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 firm have not submitted the complete details of all the similar advance authorizations issued earlier to them. Further, it was also observed that size-wise specification of earlier case is not the same as in the instant case, hence cannot not be considered as similar case. It was therefore, decided to reject the request of the firm and maintain status quo in this case. Firm may be informed accordingly.

Case No. 664

M/s Aarbur, Kolkata F.NO.1/84/50/153/AM10 -DES-V 0210133093 dt. 29.10.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and also went through

PRO version the drawing submitted by the firm and observed that firm have not given justification for the quantitative requirement of resin to be used in the export item, in absence of which Committee was constrained to maintain its earlier decision of rejection.

Firm may be informed accordingly.

Case No. 665

M/s G.P.L Polyfils, Kanpur F.NO.1/84/50/196/AM10 -DES-V 0610010945 dt. 24.07.2006 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. Rahul Gupta, Manager Taxation and Sh.Alok Beswal, authorized representative of the firm, who appeared for personal hearing before NC. They explained the case alongwith relevant details. It was observed that indeed there was some mistake in recording of earlier decision of other ALC in this case. As per application firm have asked two items of import (i) Waste of polyester staple fibre, Poly tow waste, poly waste, pet chips, pet flakes, waste of filament, yarn waste and (ii) Dyes, Colours, Chemicals, Master batches & Pigments, whereas ALC had fixed the norms for Optical Brightener and Silicon Emulsions & Catalyst, which were not asked for in this case. In view of this Committee after detailed deliberations in consultation with representatives of technical authorities present in the meeting decided to rectify the norms in this case as detailed below: - S.No Export item Import item Qty. allowed 1 Polyester Staple fibre Waste of polyester staple fibre, Poly tow waste, poly waste, pet chips, waste of filament, yarn waste @ 1.05 Kgs/Kg Dyes/Colours/Chemicals/Pigments or Master batches 2% weight of polyester content in the export.

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

Case No. 666

M/s Kanti Floor Furnishers, Alleppey F.NO.1/84/50/465/AM09 -DES-V 1010032942 dt. 16.03.2009 – 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 rectify the earlier decision of NC by allowing 5% wastage in this case on the basis of report of team, who visited the unit of firm in partial modification of its earlier decision. A copy of said report of team is also enclosed. The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.667

M/s Chelsea Mills, New Delhi F.NO.1/84/50/52/AM10-DES-V Ratification of input output norms in respect of Advance Authorization No.0510243874 dt. 17.06.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and in consultation with representatives of technical authorities present in the meeting decided to rectify the earlier minutes of NC meeting held on 12.11.2009 as requested by the firm as detailed below: - S.No Export item No. Import item No. Description Qty. allowed/amended 1 3 14 98% cotton 2% spandex stretch denim fabric, GSM-430+/- 10% 98% cotton 2% spandex stretch denim fabric, GSM- 380+/-10% The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

PRO version

Case No. 668

M/s Network Clothing Company (P) Ltd., Tirupur F.NO.1/84/50/188/AM10 -DES-V 3210041606 dt. 28.10.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and handed over the relevant details to DC (MSME) for their examination and comments. It was therefore decided to defer the case for re- listing on 11.03.2010. Outside agenda case

Case No. 1 The Indian Silk Export Promotion Council, Mumbai F.NO.1/84/162/300/AM10 -DES-V Request for allowing flexibility for import of any alternative import items of Silk from the permissible inputs of SION - reg. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that this case was considered by NC in its meeting held on 10.12.2009. As per said NC decision draft Public Notice was put up for approval. DGFT has desired to know as to whether by testing of export samples would specifically be able to find out the type of silk i.e Mulberry Raw Silk, Dupion, Tussar/Spun and Noil category, if required. Accordingly, case was placed before Norms Committee. The issue was discussed at length in consultation with the representatives of technical authorities present in the meeting. It was felt that type/category of Silk viz., Mulberry Raw Silk, Dupion, Tussar/Spun and Noil contained in the export product can be easily distinguished either by test report or by over visual inspection. Hence, the possibility of misdeclaration at the time of export in respect of type of Silk in the export product is remote. As regards, Qty. allowed for imports, the same is ensured by taking into consideration of the Qty. of inputs allowed in the relevant SIONs. Therefore, Committee decided to recommend a suitable Public

PRO version Notice for incorporation in the SION Book as detailed below: -

“In the General Note No. 4 for Textiles (Product Code: J) the following is incorporated for allowing flexibility for import of any alternative import items of Silk from the permissible inputs of SION: - S.No Export Product Alternative inputs allowed 1 Made out of Mulberry Raw Silk Dupion Silk/Tussar Silk/Spun Silk/Noil Silk 2 Made out of Dupion Silk Tussar Silk/Spun Silk/Noil Silk 3 Made out of Tussar Silk/ Spun Silk Spun Silk/Noil Silk In case the export product is made out of more than one variety of Silk then, the alternate inputs will be allowed (as in table above) in proportion to the ratio of constituents of Silk or in proportion to the ratio of Spun Silk blended with other fibres like Cotton/Viscose etc.”

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