IN FORCE Norms Committee — Textiles & Leather (NC-V) Advance Authorisation 2010-04-01

DGFT Committee Minutes

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Minutes of NC-V Meeting held on 01.04.2010

The Meeting No. 01/AM-11 for the licensing year 2010-11 to consider the cases under Duty Exemption Schemes (Chapter-4) held on 01.04.2010 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. Kuldeep Singh, Asstt. Director MSME 4. Sh. Pradip Kumar, F.T.D.O DGFT

(TEXTILES AND LEATHER ITEMS)

At the outset the Minutes of NC Meeting upto Meeting No. 52/AM10 held upto 25.03.2010 were ratified. Thereafter, Agenda for individual cases for Meeting No. 01/AM11 was taken up for discussion and the decision taken in respect of each case is enumerated below: -

MEETING NUMBER : 1/84-ALC3/2010 MEETING DATE : 01.04.2010 Online agenda cases

Case No.:5/40/84-ALC3/2009

Party Name:AARBUR Meet No/Date:1/84-ALC3/2010 01.04.2010 Status: Rejected HQ File :01/84/050/00204/AM10/ RLA File :02/24/040/00182/AM10/ Lic.No/Date:0210135533

PRO version 1 Q e :0 /8 /050/00 0 / 0/ e :0 / /0 0/00 8 / 0/ c.No/ ate:0 0 35533 17.12.2009 Decision: The Committee considered the case as per agenda and perused letter dated 24.02.2010 received from firm. It was observed that the changed ITC (HS) code is now 54075290. As per ITC (HS) Book, code No. 54075290 relates to – “Other than Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404”. The Committee felt that description of export item in question is Hand Bags not fabric. In view of this Committee observed that ITC (HS) code quoted by the applicant firm is not correct, hence, decided to reject the case. Applicant firm may be advised to mention correct ITC (HS) code to reconsider their case.

        RLA may take suitable consequential action accordingly.

Case No.:6/45/84-ALC3/2009

Party Name:GANGA ACROWOOLS LIMITED 01.04.2010 Status: Approved HQ File :01/84/050/00251/AM10/ RLA File :30/24/040/00026/AM10/ Lic.No/Date:3010064694 30.12.2009

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 repeat basis as detailed below: - S. No Export item Export Qty. Import item Qty. allowed 1 Acrylic Nylon blended Yarn (under worsted system) 40000 Kgs

  1. Acrylic Fibre (1-3 D)

Nylon Tops 100% Polyamides (2-4 D) 3) Cationic Dyes 4) Mis. Chemical

  1. 39960 Kgs

  2. 4320 Kgs.

  3. 720 Kgs.

  4. 6.4% by weight of

PRO version 2

  1. Mis. Dyes export product.
  2. 2% by weight of export product. 2 Acrylic Nylon blended Yarn (under worsted system) 10000 Kgs
  3. Acrylic Fibre (1-3 D)

Nylon Tops 100% Polyamides (2-4 D) 3) Nylon Fibre (14-16D) 4) Cationic Dyes

  1. Mis. Chemical

  2. Mis. Dyes

  3. 8880 Kgs

  4. 1080 Kgs.

  5. 1110 Kgs.

  6. 160 Kgs

  7. 6.4% by weight of export product.

  8. 2% by weight of export product. The Dyes and Chemicals in respect of import item No. 4, 5, 10 and 11 against the subject advance authorization 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.:2/49/84-ALC3/2009

Party Name:SB J-VON COMPOUNDERS PVT.LTD., 01.04.2010 Status: Deferred

PRO version 3 HQ File :01/84/050/00271/AM10/ RLA File :08/24/040/00324/AM10/ Lic.No/Date:0810086680 19.02.2010 Defer Date:29.04.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that information/detail called for from applicant firm vide DGFT letter dated 22.03.2010 is still awaited. It was therefore decided to defer the case for re-listing on 29.04.2010.

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Case No.:3/49/84-ALC3/2009

Party Name:LOYAL TEXTILE MILLS LTD 01.04.2010 Status: Deferred HQ File :01/84/050/00272/AM10/ RLA File :35/24/040/00038/AM10/ Lic.No/Date:3510029268 24.02.2010 Defer Date: 15.04.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that visit report of NC team is at final stage. It was therefore decided to defer the case for re-listing on 15.04.2010. It was also decided to re-list all the pending case(s) of applicant firm on 15.04.2010.

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Case No.:4/49/84-ALC3/2009

Party Name:BOMBAY RAYON FASHIONS LIMITED 01.04.2010 Status: Deferred HQ File :01/84/050/00273/AM10/ RLA File :03/94/040/01027/AM10/ Lic.No/Date:0310561832 24.02.2010 Defer Date: 29.04.2010 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

PRO version the case for re-listing on 29.04.2010.

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Case No.:5/49/84-ALC3/2009

Party Name:RICHA & CO 01.04.2010 Status: Approved HQ File :01/84/050/00274/AM10/ RLA File :05/24/040/00493/AM10/ Lic.No/Date:0510259474 25.02.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and went through the details submitted by the firm. The Committee in consultation with the representatives of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case by allowing the item of import @ 0.83 Sq mtrs./Pc as detailed below:- Export item Export Qty. Import item Quantity allowed Ladies smocked tank top made of 100% rayon printed woven fabric, GSM- 120+/-10% (Style No. CB200156CT) 2300 Pcs 100% rayon printed woven fabric, GSM- 120+/-10% 1909 Sq mtrs. 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.

PRO version

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Case No.:2/1/84-ALC3/2010

Party Name:SKY INDUSTRIES LIMITED 01.04.2010 Status: Deferred HQ File :01/84/050/00294/AM10/ RLA File :03/95/040/00746/AM10/ Lic.No/Date:0310565484 19.03.2010 Defer Date: 29.04.2010 Decision: The Committee considered the case as per agenda alongwith other relevant papers and decided to link up the similar case of the firm wherein input output norms have been fixed by NC and defer the case for re- listing on 29.04.2010.

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Case No.:1/1/84-ALC3/2010

Party Name:MATRIX CLOTHING PVT. LTD. 01.04.2010 Status: Approved HQ File :01/84/050/00293/AM10/ RLA File :05/24/040/00527/AM10/ Lic.No/Date:0510260908 22.03.2010

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 ratify the Advance authorization issued in this as detailed below:- Export item Export Import item Quantity allowed

PRO version 8 Qty. Mens under pant (Boxer shorts) made of 100% cotton yarn dyed fabric, GSM-135+/-10% 28350 Pcs 100% cotton yarn dyed fabric, GSM- 135+/-10% 29484 Sq mtrs. 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.

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Case No.:3/1/84-ALC3/2010

Party Name:MERIDIAN APPARELS LIMITED, 01.04.2010 Status: Rejected HQ File :01/84/050/00295/AM10/ RLA File :04/24/040/00326/AM10/ Lic.No/Date:0410112538 22.03.2010

Decision: The Committee considered the case as per agenda and observed that applicant firm have neither given style No. of export items nor calculation sheet measurement etc justifying the quantitative requirement of each inputs, in absence of which it is not possible to compute the requirement of inputs in this case. Therefore, Committee was constrained to reject the case. Firm may be advised to get the style No. endorsed in each export item to reconsider this case. RLA may take suitable consequential action accordingly.

Case No.:4/1/84-ALC3/2010

Party Name:MACCAFERRI Status:

PRO version 10 ENVIRONMENTAL SOLUTIONS PVT. LTD. 01.04.2010 Deferred HQ File :01/84/050/00296/AM10/ RLA File :31/24/040/00243/AM10/ Lic.No/Date:3110042496 24.03.2010 Defer Date: 13.05.2010 Decision: The Committee considered the case as per agenda and observed that in similar case of the firm NC has decided to visit the unit of firm. It was therefore decided to defer the case for re-listing after visit report is submitted.

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Case No.:5/1/84-ALC3/2010

Party Name:ORIENT FASHION EXPORTS(INDIA) PVT.LTD. 01.04.2010 Status: Approved HQ File :01/84/050/00297/AM10/ RLA File :05/24/040/00533/AM10/ Lic.No/Date:0510261256 26.03.2010

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 ratify the Advance authorization issued in this as detailed below:- Export item Export Qty. Import item Quantity allowed Girls dress Style No.762811 & 766361. 27583 Pcs

  1. 100% cotton corduroy 21 W printed woven fabric, GSM- 156+/-10%.

  2. 100% Polyester woven lining, GSM-64+/-10%.

  3. 33465 Sq mtrs.

  4. 29019 Sq mtrs. Girls dress Style No.762811 &

19638 Pcs 100% cotton corduroy 21 W printed woven fabric, GSM- 156+/-10%. 26064 Sq mtrs.

PRO version

Infant Dress Style No.759129, 781971 & 782457. 1570 Pcs 100% cotton corduroy 21 W printed woven fabric, GSM- 156+/-10%. 1512 Sq mtrs. Girls Dress Style No.759129, 781971 & 782457. 5257 Pcs 100% cotton corduroy 21 W printed woven fabric, GSM- 156+/-10%. 5520 Sq mtrs. 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.

Manually generated agenda cases

Case No. 01 M/s Lanova Silks Ltd., Bangalore NC01/11 dt. 01.04.2010 F.NO.1/84/162/588/AM10 -DES-V Ratification of input output norms in respect of Advance Authorization No. 0710016371 dt. 26.09.2002. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that although advance authorization in question has been issued by R.A in September, 2002, this case has been considered by NC for the first time. The Committee with the available details and after deliberations in consultation with the representatives of technical authorities present in the meeting decided to ratify the Advance authorization issued in this as detailed below:- Export item Export Qty. Import item Quantity allowed Dyed twisted dupion silk yarn 5000 Kgs Dupion Silk yarn (Gummed & untwisted) 6450 Kgs. The Regional Authority shall be advised to take necessary action subject to compliance of other usual conditions.

PRO version

Case No. 02 M/s Cliovenus Inc, Bangalore F.NO.1/84/50/242/AM10 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0710069116 dt. 30.12.2009. Decision: The Committee considered the case as per agenda and observed that this case was cleared by NC in its meeting held on 28.01.2010 by allowing inputs with 28% wastage. Now firm have clarified that they are exporting dyed/twisted 100% Mulberry Raw silk yarn, which is degummed and twisted and only one process before manufacture of Silk fabrics. Hence, Committee in consultation with the representatives of technical authorities present in the meeting decided to re-fix the norms from earlier 28% wastage to 34% wastage in this case. R.A may work out the Qty. of inputs accordingly. The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 03 M/s Sky Industries Ltd., Mumbai F.NO.1/84/162/424/AM07 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0310385209 dt. 19.06.2006.

PRO version Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that this case was decided by NC in its meeting held on 04.01.2007. The item of imports at S.No. 3 & 4 i.e Hot melt adhesive glue & Release paper were disallowed therein as justification for the use of these items in the export product was not explained. Without having complete manufacturing process pertaining to the case, Norms Committee is unable to decide the inputs technically. Now, firm informed that prepared adhesive based on plastic (two component laminating adhesive consisting of (A) Adhesive (polyurethane solution 66% Resin content and 34% solvent and (B) Additive (Poly Isocynate solution containing 50% solid and 50% solvent) is coating material sued during the process of conversion from yarn to tape whereas the Hot melt adhesive glue is altogether a different item and cannot be used at the stage of conversion of yarn to tap but is required to be used to affix the release paper on back surface of the Hook Tape and Loop Tape. Accordingly, Committee in consultation with the representatives of technical authorities present in the meeting decided to call for the following information from applicant firm before taking final decision in this case: - (i) GSM of glue content in the hook tape & loop tape (ii) Width of loop tape & hook tape (iii) Area of Release paper, hook tape & loop tape.

It was therefore decided to defer the case for re-listing on 29.04.2010.

Case No. 04 Reference from Jt. DGFT, Kolkata F.NO.1/84/162/187/AM10 -DES-V Policy relaxation of General Note No. 14 of Textiles Product of DFIA licences issued to seven different firms – reg. Decision: The Committee considered the case as per agenda and observed that case is still under examination of AEPC, hence decided to defer the case for re-ling in 29.04.2010. Further, it was also decided to remind the nominee of AEPC to NC on telephone.

PRO version

Case No. 05 M/s Kitex Garments Ltd., Kerala F.NO.1/84/50/222/AM09 -DES-V Ratification of input output norms in respect of Advance Authorization No. 1010030279 dt. 21.07.2008. Decision: The Committee considered the case as per agenda and observed that the request of applicant firm seeking quantitative norms on repeat basis in terms of Para 4.7.1 of the HBP (2004-2009) is not applicable in this case. The advance authorization under reference on which repeat norms have been asked was issued on 09.11.2007 i.e prior to the Policy Circular No. 34 dated 24.03.2008. Further, Para 4.7.1 of HBP referred by the applicant firm for seeking repeat norms cannot be applicable in the instant case as the same was published vide Public Notice No. 1(2009-2014) dated 27th August, 2009 which is quite after the issue of advance authorization in question i.e 21.07.2008. The Public Notice is applied with immediate effect from the date of issue. In view of this Committee decided to reject the request of the firm maintaining status quo in this case. Firm may be informed accordingly.

Case No. 06 M/s SRV Knit Tech Pvt. Ltd., Bangalore F.NO.1/84/162/637/AM08 -DES-V Ratification of input output norms in respect of Advance Authorization No. 0710052947 dt. 20.08.2007. Decision: The Committee considered the case as per agenda and observed that this case was earlier rejected by NC in its meeting held on 06.09.2007. Now firm have informed that they have completed export obligation in this case as per details mentioned in their application i.e Mens knitted Pullovers with hood with 50% Acrylic 45% Wool and 5% Nylon, which is clearly covered under SION, J-141, hence, norms may be fixed accordingly. The Committee felt that the export items in question is Mens Knitted Pullovers, which is Articles of Hosiery/ knitwears made of woollen blended yarn, hence, clearly covered under SION, J-141. Therefore, Committee in consultation with the

PRO version representatives of technical authorities present in the meeting decided to advise R.A to finalize this case as per SION, J-141 and issue EODC accordingly. The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 07 M/s Shahi Exports Pvt. Ltd., Bangalore F.NO.1/84/162/124/AM08 -DES-V Re-fixation of input output norms in respect of Advance Authorization No. 0710051178 dt. 10.04.2007. Decision: The Committee considered the case as per agenda and handed over the relevant details available in the case file to the representative of DC (MSME) for their examination and comments. It was therefore decided to defer the case for re-listing on 29.04.2010.

Case No. 08 M/s Veekay Polycoats Ltd., New Delhi F.NO.1/84/50/205/AM10 -DES-V Ratification of input output norms in respect of Advance Authorization No. 0510254833 dt. 17.12.2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and went through the details submitted by the firm. The Committee after detailed deliberations in consultation with representatives of technical authorities present in the meeting decided to ratify this case on repeat basis in partials modification of its earlier decision taken on 04.02.2010 as detailed below:- Export item Export Qty. Import item Quantity allowed. PP Spun Bonded Non Woven fabric 300000 Kgs PP Granules fibre grade @ 1.07 Kg/Kg) Relevant additive/colour Master Batch @ 0.05 Kg/Kg)

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

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