(ii) Apart from the above, quantities that become available from time to time on account of surrenders, flexibilities or otherwise shall also be allocated under the RGE 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 demand patterns or other relevant factors.


Applications 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 Authorities during the previous year.

(ii) The ‘Quota Administering Authority’ concerned 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.

Allotment, Utilisation and Transferability

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

(v) In case of PPE valid till 31st May, the transfers shall be allowed till the last date but the original quota holder or the transferee will get the endorsement on 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.

(vi) In case of PPE valid till 30th September, the transfers are allowed till 20th September and the quota holders or transferee can get the extension till 31st 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 the Quota Administering Authority without changing other conditions applicable.

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Product group Amount

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Yarn to the EU/USA Rs.5 per kg.
Fabric and made-up items to the EU Rs.10 per kg.
Fabric and made-up items to the USA/Canada Rs.2 per Sq. Mtr. or Rs.2 per dozen,
or Rs. 2 per kg. as the case may be.
Any other item 5% of FOB value

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(vii) The applications for such extension shall 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.

(viii) The transferred PPE will be known as PPT.

(viii) Shipments against PPT shall be counted as exports by the transferee.

(ix) Transfer of PPT is not allowed.


Applications and Computation

(i) Allotment under this system shall be made to Manufacturer-Exporters’ who have undertaken substantial modernisation and upgradation of technology in their plant and machinery during the base period. Such plant and 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, at the time of certification of shipments, submit an affidavit that the goods being exported have been manufactured in their production units so modernised/upgraded.

(iv) For the year 2000, the base period will be four years i.e., from 1.7.95 to 30.6.99. However, from the allotment year 2001, the base period will be three years. For example, the base period for year 2001 will be 1.7.1997 to 30.6.2000, base period for year 2002 will be 1.7.1998 to 30.6.2001 and so on. In case of year 2000, the applications will be invited as per guidelines to be issued separately.

(v) Applications for MEE will be received by ED, TEXPROCIL upto 30th September of the previous year. An application under this system shall be accompanied by a demand draft for Rs. 500/- drawn in favour of ED, TEXPROCIL. The other terms and conditions of the application will be determined by the Textile Commissioner in consultation with ED, TEXPROCIL and after getting approval from the Ministry of Textiles.

(vi) Available quantities under the MEE will be distributed by the ‘Quota Administering Authority’ concerned on the basis of the production capacity of eligible applicants. Each eligible applicant may opt for a maximum of five categories for the above allotment.