6. NEW INVESTORS ENTITLEMENT (NIE)

Applications and Computation

i. Allotments under the NIE system would be made only to exporters registered, as manufacturer-exporters and who have invested a minimum amount of Rs.50 lakhs in new machinery either in an existing unit or in a new unit. Such machinery shall meet the eligibility criterion of the Technological Upgradation Fund Scheme currently in force.

ii. Allotments under this system shall be only for the export of goods manufactured in the modernised and upgraded production unit.

iii. The allottees shall also submit an affidavit at the time of certification of shipments that the goods being exported have been manufactured in their production units so modernised/upgraded.

iv. The base period for NIE will be any consecutive period of 12 months starting from the 1st January of the base year and ending with 30th June of the previous year. Thus, for the quota year 2001, any 12 constitute months from out of the 18 months period from 1.1.1999 to 30.6.2000 will constitute the base period.

v. Applications for NIE will be received upto 30th September of the previous year by the Quota Administering Authority. An application under this system shall be accompanied by a demand draft of Rs. 500/- drawn in favour of the Quota Administering Authority and payable at New Delhi. The other terms and conditions of the application will be determined by the Textile Commissioner in consultation with the Quota Administering Authority and after seeking the prior approval of the Ministry of Textiles.

vi. Available quantities under the NIE will be distributed by the Quota Administering Authority on the basis of the production capacity of eligible applicants.

vii. Allocation to individual applicants will be distributed pro-rata among all eligible applicants on the basis of eligible investment.

viii. During the year 2000, NIE allocation would meet the committed liabilities under NIE pertaining to the previous years and if the liabilities are more, these would be met on a pro-rata basis but would not be carried over. The eligible persons would be required to rank their options from the available categories.

Allotment, Utilisation and Transferability

ix. NIE shall be allocated 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.

x. In case of NIE valid till 31st May, the quota holders will get the certification of shipment in respect of the entitlement by 31st May. The certification will be valid for shipment upto 20th June of the quota year. Unutilised quotas (non-certified or non-shipped) shall lapse.

xi. In case of NIE valid till 30th September, the quota holders can get the extension till 31st December on payment of BG/EMD at the rates mentioned in 5(vii), subject to the condition that the extension sought is for a specific buyer.

xii. 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.

xiii. NIE shall NOT be transferable.

7. NON QUOTA EXPORTERS' ENTITLEMENT (NQE) SYSTEM

Application and Computation

i. Exporters of garments to non-quota countries and non-quota garments to quota countries shall be eligible for allotment under this system provided the payment is received in free currency, and the exporter has a minimum export performance of Rs. 20 lacs during the base year. Exports of garments to Russia will, however, not be taken into account for NQE allotments.

ii. 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.

iii. The 'Quota Administering Authority' will compute NQE.

iv. Entitlements under this system will be calculated and allotted by the Quota Administering Authority on the basis of value of admissible exports during the base year. The exports of quota garments, which are covered under this Allotment Policy, to non-quota countries will, however, be given double weightage for the purpose of determining entitlements. The levels available will be distributed pro-rata on the basis of the value of exports of individual applicants.

v. An exporter shall be permitted a choice of ten country-category combinations for allotment.

Allotment, Utilisation and Transferabilitybodytext

vi. All conditions applicable to PPE shall also be applicable to NQE, mutatis-mutandis.

vii. NQE is transferable (such transferred entitlements hereinafter referred to as NQT) and the conditions of transfer will be the same as in the case of PPE.

viii. All conditions applicable to PPT shall also be applicable to NQT, mutatis-mutandis.