DGFT Committee Minutes

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Minutes of NC-V Meeting held on 18.02.2010

The Meeting No. 47/AM-10 for the licensing year 2009-10 to consider the cases under Duty Exemption Schemes (Chapter-4) held on 18.02.2010 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. J.D.Giri, Vice President, AEPC Nominee of AEPC 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 : 47/84-ALC3/2009 MEETING DATE : 18.02.2010

PRO version 1

Case No.:2/47/84-ALC3/2009

Party Name:LASTOLITE IMAGING SOLUTIONS PRIVATE LIMITED, Meet No/Date:47/84-ALC3/2009 18.02.2010 Status: Deferred HQ File :01/84/050/00258/AM10/ RLA File :04/24/040/00008/AM10/ Lic.No/Date:0410104218 24.04.2009 Defer Date: 18.03.2010 Decision: The Committee considered the case as per agenda and decided to call the applicant for Personal Hearing alongwith sample & supporting documents and technical person to explain the case before the Committee. Case stands deferred for re-listing on 18.03.2010.

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Case No.:8/36/84-ALC3/2009

Party Name:LOYAL TEXTILE MILLS LTD Meet No/Date:47/84-ALC3/2009 18.02.2010 Status: Deferred HQ File :01/84/050/00181/AM10/ RLA File :35/24/040/00028/AM10/ Lic.No/Date:3510028338 27.11.2009 Defer Date: 18.03.2010 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 18.03.2010.

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Case No.:1/39/84-ALC3/2009

Party Name:LOYAL TEXTILE MILLS LTD Meet No/Date:47/84-ALC3/2009 18.02.2010 Status: Deferred HQ File :01/84/050/00199/AM10/ RLA File :35/24/040/00029/AM10/ Lic.No/Date:3510028513 14.12.2009 Defer Date: 18.03.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that visit has been completed and report is under preparation. It was decided to re-list the case on submission of report.

Case No.:1/47/84-ALC3/2009

Party Name:RICHA & CO Meet No/Date:47/84-ALC3/2009 Status:

PRO version 4 Case No.: / 7/8 C3/ 009 a ty Na e: C & CO eet No/ ate: 7/8 C3/ 009 18.02.2010 Status: Deferred HQ File :01/84/050/00257/AM10/ RLA File :05/24/040/00467/AM10/ Lic.No/Date:0510257647 03.02.2010 Defer Date: 18.03.2010 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 18.03.2010.

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Case No.:3/47/84-ALC3/2009

Party Name:SHRI GOVINDARAJA MILLS LIMITED, Meet No/Date:47/84-ALC3/2009 18.02.2010 Status: Approved HQ File :01/84/050/00259/AM10/ RLA File :35/24/040/00033/AM10/ Lic.No/Date:3510029141 11.02.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and went through the details and Process Chart submitted by the firm. The Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to ratify the advance authorization issued in this case by allowing 5% wastage in this case as detailed below:- Export item Export Qty. Import item Quantity allowed Yarn NE 80/1 made from 70% cotton blended with 30% artificial staple fibre 9026 Kgs Artificial staple fibre (sea cell pure) 1.7 DTEX/38 MM 2844 Kgs. The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

Manually generated agenda cases

PRO version

Case No. 669

M/s Kesh Knitwears Pvt. Ltd., Pune NC47/10 dt. 18.02.2010 F.NO.1/84/162/278/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 3110038685 dt. 05.06.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and went through the flow chart submitted by the firm. It was observed that export item in this case is fully fashioned garment made out of yarn. Hence, the earlier decision of NC with 2% wastage is adequate in this case. Therefore, Committee decided to maintain status quo in this case.

                    Firm may be informed accordingly.

Case No. 670

M/s Lumens India, Kolkata F.NO.1/84/50/352/AM09 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0210118753 dt. 22.10.2008 – 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. Mitesh Bagaria, Partner, who appeared for personal hearing in this case. It was observed that out of total three export items, the input output norms in respect of one i.e 5 finger gloves/mittens made of para aramid fabric were not fixed in this case. The sample and paper pattern pertaining to 3rd export item were shown. The earlier sample received in this office was also returned to the representative of the firm. The Committee after deliberations in consultation with

PRO version representatives of technical authorities present in the meeting decided to allow the input i.e Para aramid re- generated twaron/Kevlar fabric, GSM-480+/-10% @ 0.45 Sq mtrs/Pc against export item No. 3. The earlier sample received in this office was also returned to the representative of the firm.

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.

Case No. 671

M/s Loyal Textiles Mills, Kovilpatti F.NO.1/84/50/176/AM09 -DES-V Re-fixation of input output norms for import of Dyes & Chemical for export of technical garments. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that visit has been completed and report is under preparation. It was decided to re-listing the case on submission of report.

PRO version

Case No. 672

Ref. from Jt. DGFT, Kolkata in respect of M/s Kamdev Prasad Yadav, Kolkata F.NO.1/84/162/416/AM10 -DES-V Clarification in respect of export product 100% Natural Silk Floor covering (Silk made-ups) – reg. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. Vikash Kumar Agarwal, an authorized representative of the firm, who appeared for personal hearing in this case. He explained the case alongwith relevant details and sample. It was observed that applicant firm have obtained DFIA license No. 0210131239 dated 09.09.2009 for export of 100% Natural Silk made-ups (other than those covered under SION, J-123) containing Mulberry Raw Silk. As per shipping bill, the item has been shown as ‘Hand made 100% Natural Silk Floor covering made-up covered under ITC (HS) code 63079012, whereas as per application, the same is 57023920 in this case. The Committee also perused description of export item under SION, J-124 i.e 100% Natural Silk Fabrics/made-ups/sarees (other than those covered by Sl.No. J.123 above)/garments containing one or more than one specified constituent raw silk/silk yarn. The Committee felt that ITC (HS) code 63079012 clearly covers the item of export in question, whereas ITC (HS) code 57023920 contradicts it. Hence, it was observed that this difference is due to incorrect mentioning of ITC (HS) code of the export item. Therefore, Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to advise the representative of the firm to approach Customs authority to get the ITC (HS) code corrected and submit a test report of the export item before taking a final view in the matter. Firm may be informed accordingly for necessary action.

The case stands deferred for re-listing on 18.03.2010.

PRO version

Case No. 673

M/s Bhadresh Trading Corporation Ltd., Mumbai F.NO.1/84/162/717/AM09 -DES-V Fixation of SION for Raw Cotton not carded or combed Decision: The Committee considered the case as per agenda alongwith other relevant papers and perused written comments of ICAR vide their letter dated 20.10.2009 and DC (MSME) vide their U.O dated 20.01.2010.

Now, taking into consideration the requisite data received from ICAR and their recommendations after deliberations in consultation with the representative of technical authorities present in the meeting, Committee decided to incorporate in the SION, J-373 as detailed below for every 1000 Kg of export product.

S. No. Import item Quantity allowed 5 Seeds 4.76 Kgs 6 Fertilizers 3.76 Kgs 7 Pesticides(Biocides/Fungicides/ Herbicides/insecticides) 11.16 kgs Note 3: - Seeds/Fertilizers allowed herein should be suitable for use in the crop.

Note 4: -For import item at Sr. No. 7, General Note No.2 of Chemicals and
allied products shall apply.

 On the above lines, the Committee recommends modification of SION, J-373.

PRO version

Case No. 674

M/s A.S.Marimuthu, Rajapalayam F.NO.1/84/162/365/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 3510027365 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 visit has been completed and report is under preparation. It was decided to re-listing the case on submission of report.

Case No. 675

M/s Aditya Birla Nuvo Ltd., Kolkata F.NO.1/84/50/109/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0210131548 dt. 15.09.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. Rohit Raina, General Manager, Sh. Shiv Shanker Gupta, Dy G.M and technical representative of the firm, who appeared for personal hearing in this case. They explained the case alongwith relevant details and sample. It was informed that so far no exports have been made against this advance authorization. The detailed stage-wise wastage for worsted spinning process submitted by the representatives was also perused and discussed at length. The Committee

PRO version observed that as per stage-wise wastage detail submitted, the minimum total wastage comes to 9.50% and maximum total wastage comes to 12.75% for the entire process of worsted spinning. In view of this, Committee after deliberations in consultation with representatives of technical authorities present in the meeting felt that average total wastage of 10% would be justified. Hence, it was decided to allow 10% wastage as against earlier 5% wastage allowed in this case. Further, applicant has been advised to apply for fixation of SION Norms within 3 months. Committee also decided that before finalizing SION, Norms Committee team would visit the unit to study the manufacturing processes involved in this process in order to update their knowledge of advanced technical development and modern process which is the latest as informed by the representatives of the company. It was also informed by them that there is lot of scope of export of the product i.e Worsted Woollen Blended Yarn in the near future.

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

Case No. 676

M/s J.M.A Manufacturing Pvt. Ltd. Noida F.NO.1/85/50/9/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No.

PRO version 0510239832 dt. 16.04.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda and alongwith other relevant papers and observed that this case has been transferred from NC-VI. The Committee went through the details submitted by the firm. Accordingly, Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to ratify the advance authorization issued in this case on repeat basis as detailed below: - S. No Export item Export Qty. Import item Qty. allowed. Qty. to be accounted for in the export product 1 Benches covered with fabric 700 Pcs Fabric-Barrico 1461.60 Sq mtrs. 1432.37 Sq mtrs. 2 Stool fabric mounted 500 Pcs Fabric- Implosion 1447.80 Sq mtrs 1316.16 Sq mtrs. 3 Cushions made of fabric 1200 Pcs The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 677

M/s Entremonde Polyecoaters Ltd., Mumbai F.NO.1/84/162/365/AM10 -DES-V Clarification regarding difference in description of Import item in respect of Advance Authorization No. 0310464295 dt. 10.03.2008 – 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 this case was cleared by NC in its meeting held on 23.04.2009 with amendment in the description of import item. Now, firm have informed that they have already imported the inputs as per description of import item mentioned in the advance authorization prior to the communication of NC decision in this case. With the amendment in the

PRO version description of import item as per NC decision, R.A did not accept the same. In view of this, Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided that as imports have taken place prior to communication of NC decision, R.A may be advised to regularize the case (without the change in description of import item) for import prior to date of communication of NC decision and for import that have taken place after the communication of NC decision the description of item must tally with the NC decision.

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

Case No. 678

M/s Alok Industries Ltd., Mumbai F.NO.1/84/50/103/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0310535945 dt. 31.03.2009 – 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 the firm have sought extension of time for personal hearing in this case. It was therefore decided to give another personal hearing to the firm as per their convenience. Firm may be informed accordingly.

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