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Difficulties being faced by garment exporters at the time of logging of
their exports in DEEC Book
Circular No.
36 dated 16th September 1997
Member (Customs)
was recently informed in a Meeting with Secretary (Commerce) and Secretary
(Textiles) that Garment exporters are facing difficulties at the time of logging
of their exports in DEEC Book on the following counts: -
(i) Establishing nexus between the technical
Characteristics of the type of fabrics and other materials used in the export
product.
(ii) Physical measurement of establishes use of
the entire quantity of fabric and raw material imported under Advance Licence.
2.
Instances of this type are being raised giving the impression that the
staff in the Custom Houses are not a ware of or are not implementing, Board's
instructions contained in Circular Nos. 4/ 93 dated 4.3.93, 1/ 94 dated 5. 1. 94
and 34/ 94 12.12.94 and Member (Customs) letter F.No. 605/ 373/ 96-DBK
dated 16.1.97. These instructions clearly spell out that correct interpretation
of the words "raw materials required for use", does not mean that raw
materials must be physically incorporated. It was also clarified with the help
of examples that inputs may be allowed even if they are not exactly those used
in the export product but provided the inputs are commercially known to be
useable in the product exported.
3.
Further, it appears that at the stage of logging of Part- II of DEEC
Book, the exporters have, in some cases, been asked to establish that the entire
quantity of raw materials, mainly fabric, was used in the manufacture of Garment
entered for export. Attention in this regard is invited of Exemption
Notification Nos. 30/ 97 and 31/ 97 both dated 1.4.97 (QBAL). Para (V) of both
the Notifications only requires that the exporter must discharge his Export
Obligation by exporting the "resultant products" which are specifies
in Part (E) of Duty Entitlement Exemption Certificate. The Part (E) specifies
both, the quantity and FOB value of export product which has to be exported as
also the quality and technical characteristic of the export product. So long as
the exported product meets the requirements indicated in Part (E) of DEEC Book,
Custom Houses should not go into any extraneous questions pertaining to the size
of the Garment and utilisation of total quantity of fabric permitted for import
in Part- 1-C of DEEC Book. The satisfaction of Assistant Commissioner at the
stage of logging in not doubt with regard to the conditions specified in
Exemption Notification, but it must be exercised without asking for information
which goes beyond the ingredients specified in the Exemption Notification and in
the format of DEEC Book appended to the Notification.
4.
Instructions may kindly be issued through suitable Standing Order, if
necessary, so that the staff carries out the work of logging in a spirit which
is in conformity with the intention of DEEC Scheme.
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