DGFT Committee Minutes

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Minutes of NC-V Meeting held on 25.02.2010

The Meeting No. 48/AM-10 for the licensing year 2009-10 to consider the cases under Duty Exemption Schemes (Chapter-4) held on 25.02.2010 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. Ashok Kumar Arora, Dy.DGFT DGFT 3. Sh. R.A.Lal, Director R.O, TC, Noida 4. Sh. Kuldeep Singh, Asstt. Director MSME 5. Sh. Pradip Kumar, F.T.D.O DGFT

(TEXTILES AND LEATHER ITEMS)

MEETING NUMBER : 48/84-ALC3/2009 MEETING DATE : 25.02.2010

Case No.:3/36/84-ALC3/2009

Party Name:MACCAFERRI ENVIRONMENTAL SOLUTIONS PVT. Meet No/Date:48/84-ALC3/2009 25.02.2010 Status: Deferred

PRO version 1 NV ON N SO U ONS V . LTD. 5.0 . 0 0 e e ed HQ File :01/84/050/00176/AM10/ RLA File :31/24/040/00165/AM10/ Lic.No/Date:3110040756 24.11.2009 Defer Date: 11.03.2010 Decision: The Committee considered the case as per agenda and observed that information/details called for from applicant firm is still awaited. It was therefore decided to await the same and defer the case for re-listing on 11.03.2010.

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Case No.:9/48/84-ALC3/2009

Party Name:MACCAFERRI ENVIRONMENTAL SOLUTIONS PVT. LTD. 25.02.2010 Status: Deferred HQ File :01/84/050/00268/AM10/ RLA File :31/24/040/00164/AM10/ Lic.No/Date:3110040806 24.11.2009 Defer Date:08.04.2010 Decision: The Committee considered the case as per agenda and decided that a team Norms Committee comprising officers of DGFT, DIPP, DC (MSME) and R.O of TC, Noida will visit the unit of applicant firm to study the manufacturing process for taking final view in the matter. Firm may be informed accordingly.

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Case No.:6/44/84-ALC3/2009

Party Name:NARASIMHA MURTHY.MR(PROP.TECHNO FLEX INDUSTRIES) 25.02.2010 Status: Rejected HQ File :01/84/050/00239/AM10/ RLA File :07/24/040/00386/AM10/ Lic.No/Date:0710069324 08.01.2010

PRO version Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that firm have failed to furnish information/documents called for by DGFT vide letter dated 09.02.2010. The Committee was therefore constrained to reject the case. RLA may take suitable consequential action accordingly.

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Case No.:5/48/84-ALC3/2009

Party Name:SKY INDUSTRIES LIMITED 25.02.2010 Status: Approved HQ File :01/84/050/00264/AM10/ RLA File :03/95/040/00628/AM10/ Lic.No/Date:0310555449 15.01.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and 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 item Export Qty. Import item Quantity allowed Printed Cable Tie Tapes (size-20 MM) made out of knit loop fabric laminated with nylon sheet, GSM- 480+/-10% 78000 Mtrs. Knit loop fabric laminated with nylon sheet, GSM-480+/- 10% Net to net with accountability clause. The GSM shall match on both side of export and import. The Regional Authority shall be advised to take necessary action subject to compliance of other usual conditions.

Case No.:2/44/84-ALC3/2009

Party Name:M.M.EXPORTS (INDIA) Status:

PRO version 5 Case No.: / /8 C3/ 009 a ty Na e: . . O S ( N ) eet No/ ate: 8/8 C3/ 009 25.02.2010 Status: Deferred HQ File :01/84/050/00235/AM10/ RLA File :05/24/040/00447/AM10/ Lic.No/Date:0510256548 18.01.2010 Defer Date: 25.03.2010 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 25.03.2010.

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Case No.:11/44/84-ALC3/2009

Party Name:BOMBAY RAYON FASHIONS LIMITED 25.02.2010 Status: Approved HQ File :01/84/050/00244/AM10/ RLA File :03/94/040/00921/AM10/ Lic.No/Date:0310556438 21.01.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and went through the sketch submitted. It was observed that firm have not given calculation sheet and justification for higher wastage asked for. Therefore, Committee in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case taking cue from SION, J- 272 and considering with hood by allowing the item of import @ 3.15 Sq mtrs./Pc as detailed below:- Export item Export Qty. Import item Quantity allowed Men’s Full Sleeve Shirts with hood made from 100% cotton Y/D fabrics, GSM-175+/-10% (Style No. 3D0479) 10359 Pcs 100% cotton Y/D fabrics, GSM-175+/- 10% 32602.50 Sq mtrs. The GSM shall match on both side of export and import.

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

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Case No.:8/48/84-ALC3/2009

Party Name:GANGA ACROWOOLS LIMITED 25.02.2010 Status: Approved HQ File :01/84/050/00267/AM10/ RLA File :30/24/040/00028/AM10/ Lic.No/Date:3010065120 28.01.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and after 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 item Import item Quantity allowed Acrylic dyed yarn (under worsted system) (i) Acrylic Fibre (1 –3 D) 610500 Kgs (ii) Cationic Dyes 11000 Kgs (iii)Chemical Retarder/Lev.Agent/Softner 35200 Kgs. Dyes and Chemicals mentioned in items of import at S.No. 2 and 3 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.:6/48/84-ALC3/2009

Party Name:VERSATILE ENTERPRISES PVT.LTD; 25.02.2010 Status: Approved

PRO version 8 HQ File :01/84/050/00265/AM10/ RLA File :30/24/040/00030/AM10/ Lic.No/Date:3010065247 04.02.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and after deliberations in consultation with the representative of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case with nil wastage as detailed below:- Export item Import item Quantity allowed Fusible Interlining material (parts of foot wear) cotton fabric coated with EVA containing 40 gm per sq mtrs. Ethylene Vinyl Acetat 9600 Kgs The Regional Authority shall be advised to take necessary action subject to compliance of other usual conditions.

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Case No.:7/48/84-ALC3/2009

Party Name:AUGUSTAN KNITWEAR PVT LTD 25.02.2010 Status: Rejected HQ File :01/84/050/00266/AM10/ RLA File :32/24/040/00049/AM10/ Lic.No/Date:3210042762 05.02.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that applicant firm have neither forwarded calculation sheet nor CAD/CAM/Laymarker/Measurement/Style No. in terms of Policy Circular No. 34/(RE-07)/2004-2009 dated: 24th March, 2008., in absence of which it is not possible to compute the requirement of inputs more than the Qty. higher than that of norms fixed for the export product. Therefore, Committee was constrained to reject the request of firm.

           RLA may take suitable consequential action accordingly.

PRO version

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Case No.:1/48/84-ALC3/2009

Party Name:INDO COUNT INDUSTRIES LTD., 25.02.2010 Status: Approved HQ File :01/84/050/00260/AM10/ RLA File :03/94/040/00966/AM10/ Lic.No/Date:0310560054 12.02.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and after deliberations in consultation with the representatives of technical authorities present in the meeting decided to advise R.A to finalize the case as per relevant Packing Policy. The Regional Authority shall be advised to take necessary action subject to compliance of other usual conditions.

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Case No.:2/48/84-ALC3/2009

Party Name:ORIENT FASHION EXPORTS(INDIA) PVT.LTD. 25.02.2010 Status: Deferred HQ File :01/84/050/00261/AM10/ RLA File :05/24/040/00471/AM10/ Lic.No/Date:0510258621 16.02.2010 Defer Date: 25.03.2010 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 25.03.2010.

PRO version

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Case No.:3/48/84-ALC3/2009

Party Name:MERIDIAN APPARELS LIMITED, 25.02.2010 Status: Deferred HQ File :01/84/050/00262/AM10/ RLA File :04/24/040/00296/AM10/ Lic.No/Date:0410111592 16.02.2010 Defer Date:25.03.2010 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 25.03.2010.

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Case No.:4/48/84-ALC3/2009

Party Name:FASHION KINGDUM 25.02.2010 Status: Deferred HQ File :01/84/050/00263/AM10/ RLA File :04/24/040/00297/AM10/ Lic.No/Date:0410111602 16.02.2010 Defer Date: 25.03.2010 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 25.03.2010.

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Case No.:10/48/84-ALC3/2009

Party Name:MACCAFERRI ENVIRONMENTAL SOLUTIONS PVT. LTD. 25.02.2010 Status: Deferred HQ File :01/84/050/00269/AM10/ RLA File :31/24/040/00227/AM10/ Lic.No/Date:3110041993 18.02.2010 Defer Date: 25.03.2010

PRO version 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 25.03.2010.

Manually generated agenda cases

Case No. 679

M/s Textrade International (P) Ltd., Mumbai NC48/10 dt. 25.02.2010 F.NO.1/84/50/440/AM08 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0310350200 dt. 04.10.2005 – 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 this case cleared by ALC in its meeting held on 27.07.2006 and subsequently, the width of fabric was also amended from 60” to 90” by NC in its meeting held on 21.08.2008 without change in weight of import item allowed in Kg. Now, firm have requested for amendment in the Qty. of import item due to amendment of width of fabric from 60” to 90”. The Committee after deliberations in consultation with the representatives of technical authorities present in the meeting felt that due to change of width of fabric, the total weight of GSM do not change. Hence, it was decided to maintain status quo in this case. Firm may be informed accordingly.

Case No. 680

M/s SRG Apparels Pvt. Ltd., Tirupur NC48/10 dt. 25.02.2010 F.NO.1/84/50/63/AM07 -DES-V Re-fixation of input output norms in respect of Advance Authorization No.

PRO version 3210032506 dt. 15.05.2006 – 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. K.T.I.Babukumar, Manager (Shipping), who appeared for personal hearing in this case. It was observed that however, there are total 4 export items in this case but two items are more or less same. The Style No. of these two different products are C2418 & C2378. The Committee after deliberations in consultation with the representatives of technical authorities present in the meeting felt that quantitative requirement of fabric against both the different style No. of export items as asked by the firm i.e @ 1.515 Sq mtrs/Pc and @ 1.495 Sq mtrs/Pc respectively is justified. Hence, Committee decided to ratify the Advance authorization issued in this case as applied by 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. They may also monitor the Style No. mentioned in this case on the export side.

Case No. 681

M/s Ginni Filaments Ltd., Noida NC48/10 dt. 25.02.2010 F.NO.1/84/162/487/AM10 -DES-V Request for fixation of DEPB rate for Non-Woven fabric – Ref. from PC-IV(B) Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. S.Singhvi, Director (Finance) and Sh. Ashok Gupta, Sr. Manager of the firm, who appeared for personal hearing in this case alongwith relevant details. The Committee also perused the SRTEPC letter dated 9th December, 2009 addressed to DGFT informing that total exports of Non-woven fabrics from our Country during the period from April 08 to February, 2009 was Rs. 76.40 crores, out of which, exports by M/s Ginni Filaments Ltd. was to the tune of Rs. 73.40 crores accounting for a share of over 90% of the total exports in the Country. It was also observed that export item i.e Non-woven fabrics is covered under SION, J-370. The following details submitted by the firm were also went through:- Details of Average Export of Non Woven from 01.04.2008 to 31.03.2009

Quantity of Per unit

PRO version S No. Item(s) of Export Shipping Bill Qua t ty o Export FOB Value e u t FOB Value

No. Date Kg/Mt. etc. (in Rs.) (in Rs.) 01- Non Woven Fabrics 622918018/04/2008 8972.18 1075741.92 119.90 02-

624736524/04/2008 8688.00 1124686.55 129.45 03-

628357807/5/2008 8938.35 1069917.70 119.70 04-

627300104/5/2008 9576.72 1235067.89 128.97 05-

642230424/6/2008 9732.20 1193640.13 122.65 06-

643842428/6/2008 8755.20 1124738.70 128.47 07-

646285607/07/2008 9382.40 1246188.83 132.82 08-

652451428/07/2008 9688.16 1286550.00 132.80 09-

656518509/08/2008 9397.80 1374818.54 146.29 10-

662784201/09/2008 23990.60 3405789.37 141.96 11-

665022709/09/2008 8499.20 1300909.01 153.06 12-

673148307/10/2008 8413.20 1201944.60 142.86 13-

676646620/10/2008 8458.42 1228510.39 145.24 14-

679572831/10/2008 8818.20 1353530.13 153.49 15-

683102214/11/2008 9062.40 1090343.17 120.32 16-

687916601/12/2008 8448.00 1340156.18 158.64 17-

689203305/12/2008 9247.20 1348130.94 145.79 18-

695033226/12/2008 9073.80 938967.04 103.48 19-

700337215/01/2009 9138.27 1185551.26 129.73 20-

705553803/02/2009 8597.00 1150246.33 133.80 21-

706827306/2/2009 8639.30 1130473.96 130.85 22-

713679903/03/2009 8937.20 1037520.04 116.09 23-

718366119/03/2009 8614.60 1179230.36 136.89 24-

718407819/03/2009 8066.87 936483.21 116.09

229135.27 30559136.25 128.53 Average FOB value = 128.53/kg

Details of Import effected during the past 12 months of input allowed under Standard Input Output Norms (HBP v2) (01.04.08 to 31.03.09)

PRO version

S No. Item(s) of Import Bill of Entry Quantity of Import CIF Value Per unit CIF Value

No. Date Kg/Mt. etc. (in Rs.) (in Rs.) 01- Viscose (without 87632618/06/2008 23122.08 2312023.02 99.99

duty) under adv. Lic

26480.23 2647811.16 99.99 02-

8626200'7/6/2008 49444.07 5263667.24 106.46 03-

87473417/6/2008 18120.96 1847017.74 101.29

18137.49 1837055.18 101.29

18099.23 1833180.49 101.29

18118.79 1835161.80 101.29

18201.59 1843547.76 101.29 04-

93726531/07/2008 49619.40 5294588.54 106.70 05-

97669326/08/2008 99147.81 9494748.27 95.74 06-

60952218/09/2008 49517.51 4549421.19 91.88 07-

62698230/09/2008 49508.47 4548590.81 91.88 08-

62698330/09/2008 99242.28 9117884.56 91.88 09-

66330631/10/2008 49819.32 5641664.35 113.24 10-

66926504/11/2008 99350.52 11266348.97 113.40 11-

68607918/11/2008 49752.04 5265755.71 105.84 12-

69443725/11/2008 49699.73 5134976.28 103.32 13-

69449425/11/2008 49536.65 5492623.75 110.88 14-

75318119/01/2009 49738.41 4435174.09 89.17 15-

76288228/01/2009 31863.00 2610854.22 81.94 16-

81246413/03/2009 74863.60 5836740.57 77.97

916519.58 92272095.13 100.68

Viscose (with Duty)

17-

91003312/07/2008 99680.53 9990381.02 100.22 18-

72360822/12/2008 24421.00 2270237.21 92.96 19-

72507023/12/2008 49801.44 4629666.17 92.96 20-

76307228/01/2009 49912.87 4089860.62 81.94 *

76288228/01/2009 18013.82 1476052.41 81.94 21-

78374416/02/2009 49998.53 4181877.00 83.64

PRO version 22-

79287924/02/2009 49741.65 4160391.85 83.64 23-

79288024/02/2009 49943.16 4177245.80 83.64

391513.00 34975712.08 89.33

GRAND TOTAL 1308032.58 127247807.21 97.28 24- Polyester (without 92471422/07/2008 103471.00 6593172.34 63.72 25- duty) under adv. Lic 95781013/08/2008 96000.00 6739920.00 70.21 26-

94417705/08/2008 103356.00 6640674.68 64.25

302827.00 19973767.01 65.96

Based on the above details, following are the relevant inputs for calculation of DEPB rate: -

Average composition 70% Polyester + 30% Viscose. FOB value per unit of export product (Kg.) – Rs. 128.53 Kg. CIF value per unit of Polyester – Rs. 65.96/Kg CIF value per unit of Viscose – Rs. 97.28/Kg

CIF value of each of the input allowed for import in SION (in Rs.) Polyester- 1.17 Kgx70%x65.96 = 54.02 + CIF value of each of the input allowed for import in SION (in Rs.) Viscose - 1.17 Kgx30%x97.28 = 34.15 CIF value of inputs = 98.17 FOB value of export item = 128.53 Kg.

Value Addition (V.A) work out to 31%, Norms Committee recommends higher side i.e 35% V.A in this case.

PRO version Export product SION No. Value Addition Non-woven fabrics J-370 35%

In view of the above, Committee decided to recommend the case alongwith all relevant documents to DEPB Committee for fixation of DEPB rate of this product.

Case No. 682

M/s Nav Engineers (P) Ltd., Noida NC48/10 dt. 25.02.2010 F.NO.1/84/50/44/AM09 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0510217778 dt. 12.03.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. Navin K.Gupta, Managing Director of the firm, who appeared for personal hearing alongwith sample of export/import item in this case. The Committee felt that in order to assess the actual quantitative requirement of printing Ink involved in this process, it was decided that a team comprising officers of DGFT, DIPP, DC (MSME) and R.O of TC, Noida will visit the unit of the applicant firm for study the manufacturing process and submit its report to Committee for taking final view in this case. Hence, case stands deferred for re-listing on 08.04.2010.

Case No. 683

M/s Kitex Garments Ltd., Kochi NC48/10 dt. 25.02.2010 F.NO.1/84/162/173/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No.

PRO version 1010034423 dt. 09.07.2009 – 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 per written comments of DC (MSME) conveyed vide their U.O No. 37(5)/66/2009-10/Hosy. dated 24.02.2010 as detailed below: - Export item Import item Quantity allowed per piece of export item Infantwear Blanket sleeper boys/girls (Style No. G8G21) 100% Polyester fleece fabric, GSM-175-185 0.140 Kg 100% Polyester spun fabric, GSM-165-175 0.007 Kg 100% Polyester 1x1 fabric, GSM-185-195 0.013 Kg Snap Fastners Net to net with accountability clause. Polyester Sewing thread 215 Mtrs. Polyester embroidery thread 22 Mtrs. Zipper Net to net with accountability clause. 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.

PRO version

Case No. 684

M/s Meridian Apparels Ltd., Chennai NC48/10 dt. 25.02.2010 F.NO.1/84/50/96/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0410106949 dt. 18.08.2009 – 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 per written comments of DC (MSME) conveyed vide their U.O No. 37(5)/66/2009-10/Hosy. dated 24.02.2010 as detailed below: - Export item Import item Quantity allowed/Pc Lady Tank Top made out of 95% Viscose 5% Spandex jersey knitted fabric, GSM-180+/-10% (Style No. TEE 0850, TEE 0541) 95% Viscose 5% Spandex jersey knitted fabric, GSM- 180+/-10% 1.00 Sq mtrs. Lady Yoga Pant made out of 95% Viscose 5% Spandex jersey knitted fabric, GSM-205+/-10% (Style No. SDE 0005) 95% Viscose 5% Spandex jersey knitted fabric, GSM- 205+/-10% 1.82 Sq mtrs. Lady ¾ Pant made out of 95% Viscose 5% Spandex jersey 95% Viscose 5% Spandex jersey 1.63 Sq mtrs.

PRO version knitted fabric, GSM-200+/-10% (Style No. SDE 0040) knitted fabric, GSM- 200+/-10% Lady Bermuda made out of 95% Viscose 5% Spandex jersey knitted fabric, GSM-205+/-10% (Style No. SDE 0061) 95% Viscose 5% Spandex jersey knitted fabric, GSM- 205+/-10% 1.59 Sq mtrs. 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.

Outside agenda case

Case No. 1 M/s Precise Seamless Apparels (Pvt) Ltd., New Delhi NC48/10 dt. 25.02.2010 F.NO.1/84/50/440/AM08 -DES-V Fixation of input output norms in respect of Advance Authorization No. 0510248399 dt. 26.08.2009 – under Para 4.7 of HBP (Vol1) 2004-2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and perused the report of Norms Committee team of officers, who had visited the unit of the applicant firm to study the manufacturing process. The report of NC team has been taken on record. It was also observed that since ‘Polyester’ used in the export item procured indigenously, hence description of export item has been amended accordingly in this case. The committee after deliberations felt that the claim of 25% wastage for Nylon Yarn by applicant firm is justified in this case. Accordingly, Committee decided to ratify the input output norms against the advance authorization issued in this case as detailed below: - Export item Export Qty. Import item Qty. allowed per piece of export

PRO version item Sports Bra made out of Nylon/ spandex yarn 220000 Pcs.

Nylon Yarn 66, 33/34/2 0.086 kgs. Nylon Yarn 66, 44/34/2 0.0069 kgs. CR Nylon Yarn 66, 22/22/14/Z Twist 0.016 kgs. CR Nylon Yarn 66, 22/22/14/S Twist 0.016 kgs.) Metal Adjusters 6.06 pieces Brushed Elastic (width 15mm) 0.50 mtrs. Folded Elastic (width 16mm) 2.54 mtrs. The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

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