Garment and Knit Wear Export Policy

Garment and Knit Wear Export Entitlement (Quota) Policy

To Be Published In Part-I, Section-I, Of The Gazette Of India Extraordinary,
Government Of India
Ministry Of Textiles
New Delhi,
Dated 12th November, 99

NOTIFICATION No. 1/128/99 Exports-I

Subject - Garments and Knitwears export entitlement (quota) policy (2000-2004) - in respect of countries where such exports are covered by restraints under the provisions of the Agreement on Textiles and Clothing.

1. INTRODUCTION
Pursuant to provisions contained in Item No.8 of Appendix I, schedule 2 of ITC (HS) classifications of Export and Import published under the Export and Import Policy (1997-2002) in respect of export of readymade garments and knitwear to the USA, Canada and the European Union, the Policy for Allotment of Entitlements (hereinafter referred to as the Allotment Policy) for the years 2000 to 2004 shall be as hereinafter detailed.

2. ADMINISTRATION
i. Unless otherwise directed, the Director General, Apparel Export Promotion Council, New Delhi (DG, AEPC) shall allocate export entitlements. The DG, AEPC shall also do the necessary certification for exports of all readymade garments and knitwear covered in this Notification. DG, AEPC shall also function as 'Quota Administering Authority' as mentioned elsewhere in this Notification.

ii. For the purpose of this Notification, the DG, AEPC shall mean and include such other officials of the AEPC to whom the DG, AEPC expressly or otherwise delegates a part or whole of the necessary functions and responsibilities.

iii. The DG, AEPC, notwithstanding any delegations effected by him, shall be accountable to the Ministry of Textiles for implementation of the Allotment Policy.

iv. The Ministry of Textiles shall be the final authority regarding interpretation of any of the provisions of this notification. The Ministry of Textiles may also issue such guidelines as it deems fit from time to time regarding agencies of administration, their functions and responsibilities and may reallocate a part or whole of the functions and responsibilities to such authorities as it deems fit.

v. Export entitlements will be allotted only to exporters registered with the competent registering authorities as per the Export-Import Policy prevailing from time to time

3. BASE YEAR
The phrase "Base Year" for an allotment year, wherever appearing in this Notification, shall mean the calendar year preceding the year immediately before that allotment year. For example, for the allotment year 2000, the base year shall be 1998.

4. SYSTEMS OF ALLOTMENT
i. Quantities for export in each allotment year shall be allocated under the following systems at rates indicated against each of them:
System of Allotment Percentage of Annual Level
Past Performance Entitlement (PPE) System 70%
(Out of which HVE) (5%)
New Investors Entitlement (NIE) System 15%
Non Quota Entitlement (NQE) System 5%
First Come First Served (FCFS) Entitlement System 10%

ii. Quantities that become available from time to time on account of surrenders, flexibilities or otherwise shall also be allocated under the First Come First Served (FCFS) System.

iii. The Ministry of Textiles reserves the right to allocate entitlements in variation with the above, in case it is considered so desirable, in view of changes in the demand pattern and / or other relevant considerations. The Ministry may also reserve quantities for knitwear, woollen products, children's wear or any other Country/Category. Such reserved quantities will operate in the FCFS system for the products for which they have been reserved, upto 30 September and unallocated balance from the reserved quantities as on 1 October will be made available for applications in the FCFS system, without any reservations for such Countries/Categories.