Application and Computation

i. The quantities earmarked for allotment in this system shall be made available on 1st January and for this purpose, applications shall be invited by the Quota Administering Authority during the previous year.

ii. The DG, AEPC will compute PPE.

iii. Available levels will be allotted pro-rata on the value of exports during the base year by the applicants in each country-category. Allotments, however, will be restricted to the average annual export performance of India in the country-category during the base year.

Computation - H.V.E.

(iv) The average unit value realised by all exporters who have applied for PP Entitlement in a particular country-category during the base year would be worked out and exporters who have realised a higher unit value than the average unit value will be allotted additional quantities from the 5% reserved pool (HVE) on the basis of the difference between the unit value realised by an exporter and the average unit value realised in a country-category multiplied by the quantity exported by individual exporters in that country-category. The HVE of the individual exporters will be added to their PPE and will be subject to all the conditions applicable to PPE.

Allotment, Utilisation and Transferability

(v) The allotment will be in two parts, each consisting of 50% of the allotment. The first part will be valid from the date of allotment till the 31st of May and second part will be valid till the 30th of September.

  i. In the case of allotment valid till the 31st of May, transfers may be allowed till the last date, but the original quota holder or the transferee shall get the certification/endorsement of shipment in respect of the entitlement by the 31st of May. Such certification/endorsement shall be valid for shipment upto the 20th of June of the quota year. Unutilised quotas (non-certified or non-shipped) shall lapse.

  ii. In case of allotment valid till the 30th of September, transfers may be allowed till 20th September. The original quota holder or transferee may get an extension thereof till the 31st of December on payment of BG/EMD at the rates given below, subject to the condition that the extension sought is for a specific buyer. One time change of buyer can be allowed by DG, AEPC without changing other conditions applicable.

Product Group EMD/BG Amount

Socks/Gloves in USA Rs.2/- per dozen pair
Underwear in Canada Rs.5/- per piece
Group-A in Canada Rs.12/- per Sq. Mtr.
Group-II in USA Rs.12/- per SME
Categories 4,5 & 24 in EU Rs.12/- per piece
Others Rs.20/- per piece

iii. The applications for such extension should be submitted, complete in all respects, before the expiry of the initial validity of the entitlement or within a grace period of three working days.
iv. The transferred PPE will be known as PPT.
v. Shipments against PPT shall be counted as exports by the transferee.
vi. Transfer of PPT is not allowed.

Electronic Transfer System (ETS)

vii. PPE transfers will be regulated by the Director General, Apparel Export Promotion Council through an Electronic Transfer Scheme with the help of an on-line computer network in which the Offers of intending transferers will be displayed in the Regional Offices of AEPC, including the quantity and Offer prices and the intending transferees will request for transfers on the basis of displayed offers. The offers and requests would be received during the working hours to be prescribed by DG, AEPC and all such offers and requests so received will be processed together. The requests will be made only against the available Offers. However, in case there is no offer on display for a particular country / category, there will be no restrictions on the quantities to be requested and the request price to be indicated.

viii. DG, AEPC may take such steps as deemed necessary for facilitating the smooth and effective implementation of ETS after giving due notice to trade and after informing the Ministry of Textiles.