The Manufacturer-Exporters' Entitlement (Mee) System

Detailed Guidelines for the Allotment of the Textiles (Excluding Garments and Knitwears) Export Quota for the Year 2000 Under The Manufacturer-Exporters' Entitlement (Mee) System.

Government Of India
Ministry Of Textiles
Office Of The Textile
Commissioner
Post Bag No. 11500, Mumbai

MEMORANDUM

Subject : Allotment of the textiles (excluding garments and knitwears) export quota for the year 2000 under the Manufacturer-Exporters' Entitlement (MEE) System.

In terms of sub para (v) of para 6 of the Yarn, Fabrics and Made-ups Export Entitlement (Quota) Policy for 2000-2004 as notified by the Ministry of Textiles, Government of India vide Notification No. 1/129/99-Exports-I, dated the 12^th Nov., 1999, the following terms and conditions are prescribed, with the prior approval of the Ministry of Textiles, for allotment of the quotas under the Manufacturers Exporter's Entitlement (MEE) system.

2. Application for the quota year 2000, are invited from manufacturer-exporters for consideration for allotment of the quotas under the above-mentioned system (MEE). Such applications in the prescribed format (annexure-I) in duplicate alongwith enclosures and complete in all respects, including supporting documents and affidavits, accompanied by a demand draft of Rs. 500/-(Five Hundred) drawn in favour of "The Cotton Textile Export Promotion Council, payable at Mumbai put into a file cover, should reach the head office of the Cotton Textile Export Promotion Council (TEXPROCIL), Engineering Centre 9, Mathew Road, Mumbai-400 004 by 5.00 p.m. on or before 10-01-2000. Applications received in any office other than the above-referred to head office of the Cotton Textile Export Promotion Council (TEXPROCIL) Mumbai will not be considered. Such applications received after the above indicated due date and time and those that are deficient in any respect, or are sent to any other offices of TEXPROCIL shall also not be considered. Under no circumstances would the applications received either in the other office(s) or late due to postal/courier service delay or any other reason be considered at all, and all such applications will automatically stand rejected. Applicants should send one application for yarn, fabrics and made-ups of cotton, synthetics and wools and in one file cover only. Individual applications for different categories will be considered as multiple applications and only one application out of all such applications will be considered.

3. For the manufacturer-exporters to be eligible for allotment of quota under this system (MEE), the following conditions/requirements are stipulated:-

i. The allotments thereunder shall be made to the manufacturer-exporters in the above-mentioned segments who have made substantial investment in the plant and machinery detailed in the annexure-II of this Memorandum and conforming to the technology norms of the Technology Upgradation Fund (TUF) Scheme as outlined in the Government Resolution No. 28/1/99-CTI dated 31.3.99 (as amended from time to time), towards modernisation and upgradation of technology in their existing unit or in a new unit and have commenced production during the base period.

ii. The Executive Director, TEXPROCIL, Mumbai shall be the authority to decide the eligibility and entitlement of the these applicants, within the meaning of this system and the terms and conditions stipulated in this Memorandum, and his decision will be final and binding.

iii. Allotment of the available quantities under this system shall be only in respect of the goods manufactured in the production unit(s) so modernised and upgraded, as determined by the Executive Director, TEXPROCIL, Mumbai.

iv. Such quota shall be allotted on the basis of the 'Value' of the machines listed in the said annexure-II. 'Value' for this purpose shall mean the invoice value only, in the case of new machinery of Indian origin. In regard to imported machinery (both new & second hand), 'value' shall mean the C.I.F. value in rupee terms plus the customs duty paid as per the customs authorities' assessed Bill of Entry concerned. In no case shall its value include erection charges, local freight charges or any other charges. Renovation of old machines and replacement of spare parts will not be considered. Of the machinery item stated annexure-II to this memorandum, only those items listed in and conforming to the restrictions outlined in the para 3.2(2) of the TUF notification dated 31.3.99 referred to in sub para 3(i) supra, will be eligible for being considered as eligible second-hand machinery items. Air-conditioning plant and other equipment will not be considered. Machines on lease, installed during the base period, will be considered, provided the lease agreement clearly stipulates that the ultimate ownership of the leased machines will be in favour of the applicant unit. The lease agreement should specify the detailed description, quantity, status (new or second hand and imported or indigenous) & value of each type of machine taken on lease, inter-alia. The clause pertaining to ownership in the copy of the lease agreement to be submitted, may be underlined/highlighted. In the event of the above-referred to conditions in respect of leased machines not being fulfilled, the investment in such leased machines will not be considered. Details of the machinery (inter-alia with complete specifications of speed) installed during the base period, i.e., from 1-7-1995 to 30-06-1999 as per the list in annexure-II, duly certified by a Chartered Accountant or a Chartered Engineer or a Cost and Works Accountant, segment wise for yarn, fabric and made-up, are required to be submitted in this regard, in the prescribed proforma as at annexure-IV of this memorandum. If a mill has more than one unit, it should make one composite application, but the lists of the eligible machines should be given unitwise alongwith one combined statement of the machines installed, together with their values. The Chartered Accountant (C.A.)/Chartered Engineer (C.E.)/Cost & Works Accountant (C&WA) should give a clear and correct certificate to the effect that the number of machines installed during the base period, with their value, at the time of their purchases, have been verified and have been found to be correct. The list of such machines should also be certified by the same Chartered Accountant/Engineer/Cost & Works Accountant indicating that the machines are installed at the locations mentioned in the said list and that the applicant unit is under commercial production.