MEMORANDUM
Subject: Allotment of export entitlement (quota) for the year 2000, under the Powerloom Exporters Entitlement (PEE) system

In terms of para 7 of the Yarn, Fabrics and Made-ups Export Entitlement (Quota) Policy for 2000-2004 as notified by the Ministry of Textiles, Govt. of India vide Notification No. 1/129/99 - Exports-I, dated the 12th November, 99 the following terms and conditions are prescribed, with the approval of the Ministry of Textiles, for allocation of the quotas under the Powerloom Exporters' Entitlement (PEE) System:-

2. Applications in the prescribed format (annexure-I), correct and complete in all respects, including supporting documents and affidavit, put in a file cover, are invited from the manufacturers of powerloom fabrics and made-ups in the small-scale sector, seeking such quota for the year 2000, so as to reach the Receipt and Despatch Section of the Head Office of the Textile Commissioner, Ministry of Textile, Government of India, Mumbai-400020, latest by 6.00 p.m. on or before 10.01.2000 for consideration for allotment of export quota under the PEE system during the year 2000.

3. In order to become eligible for the allotment of quota under this system, fulfilment of the following conditions/requirements shall be essential:-

  i. Allotment shall be made to a powerloom fabric/made-ups manufacturer applicant in the small-scale sector, each owning atleast twelve powerlooms, either himself or along with his family members in the same village/town/city. Family members for this purpose mean and include any relation, by blood or marriage, residing in the same village/town/city. The applicant submitting the application for PEE quota should own atleast two powerlooms his own name, and the rest of the looms could be in the name(s) of his family member(s) in the same village/town/city.

  ii. The applicant alongwith his/her family members whose looms are clubbed in his/her application must each possess a valid powerloom permit obtained under the erstwhile Textiles (Control) Order, 1986, renewed or otherwise, or a photocopy of an acknowledgement, of a date prior to and including the above mentioned prescribed last date for the submission of applications for this quota, received from the competent authority of the concerned State Government, or under the Textiles (Development & Regulation) Order, 1992 or under the Textiles (Development & Regulation) Order, 1993. One powerloom permit/acknowledgement shall not be used for more than one such application. Such an acknowledgement issued/received after the aforesaid last date for the submission of such an application will not be considered. The powerloom installation address mentioned in the application should invariably tally with such address indicated in the powerloom permit/acknowledgement and the RCMC of the applicant concerned.

  iii. In case an applicant is a minor, the signatory of such an application must forward a copy of the power of attorney in his favour, duly attested as a true copy by a Gazetted Officer not below the rank of Deputy Collector, on behalf of such a minor.

  iv. The applicant must posses an RCMC as manufacturer-exporter issued by the Powerloom Development and Export Promotion Council (PDEXCIL), Mumbai for cotton textiles and an RCMC as manufacture-exporter issued by the Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) for man-made fibre textiles, valid as on the date of the submission of application for PEE 2000 quota. Application of an applicant not having such a valid RCMC as on the date of application will not be considered for the allotment of PEE quota under any circumstances and no relaxation would be given for the submission of the same RCMC later beyond the above prescribed last date for the submission of applications for the PEE quota for the year 2000.

  v. The distribution of the PEE quota will be determined on the basis of the following weightages, depending on the size of the powerloom holding of each applicant (alongwith those of his family members).

  vi. Applicant SSI manufacturers of powerloom fabrics and made-ups will be permitted a maximum choice of 7(seven) country-categories combination for consideration for allotment of quota under this system. They must submit their choice of country-categories in triplicate, alongwith their applications. If the country-category option is not submitted with the application, it will not be possible to allot quota to such applicants, and their applications will stand rejected.

  vii. 50% of such PEE quota allotment will be valid only upto the 31st of May, 2000. However shipments certified upto 31st of May, 2000, may be shipped latest by the 20th of June, 2000. Quotas out of this 50% not certified by the 31st of May, 2000 or not shipped by the 20th June, 2000 shall lapse. The balance 50% quota will be valid upto the 30th September, 2000 to be exported by the allottees latest by 30.09.2000. In case of PEE quota valid till 30.09.2000, the quota holders can get the extension till 31.12.2000, on payment of Bank Guarantee (BG)/Earnest Money Deposit (EMD) at the prescribed rates as per para 5 (iv) of the said notification dated 12.11.99, subject to the condition that the extension sought is for specific buyer. One time change of buyer can be allowed by quota administering authority without changing other conditions applicable. The application for such extension shall be submitted, complete in all respects before the expiry of initial validity of entitlement or within a grace period of three working days.

  viii. To facilitate ease of container shipments, clubbing of quotas by a group of PEE allottees will be permitted upto the 30th of September, 2000 subject to the provisions of sub para (vii) of this para. Exports by the quota allottee against PEE quotas will also be permissible from fabrics and made-ups manufactured on powerlooms owned by other SSI powerloom units subject to details thereof being submitted by the PEE quota allottee by way of declaration-cum-undertaking to the Cotton Textiles Export Promotion Council (TEXPROCIL) and in case of clubbed exports, additionally by the clubber-shipper, in the prescribed format (Annexure-V). It may be noted that the quota that may be allotted would be on the presumption that the affirmations contained in the affidavit are true and accurate. However, if any portion of the affirmation is found to be false, the eligibility adjudged and the quota allotted will stand withdrawn forthwith, without prejudice to any other action that may be taken under the law.

  ix. The quota allotted under this system is not transferable.