Policy Circular No. 11 dated 2^nd June 1998

Attention is invited to the entry at Sl. No. 17 (I) of Schedule 2 Appendix 1 of the book titled "ITC (HS) Classifications of Export and Import Items 1997-2002" on the above mentioned subject.

2.     It has been decided to allow export of Peacock Tail Feathers, Handicrafts/ Articles made thereof within a limited ceiling of 20 lakh pieces during 1998-99.

3.     For the purposes of licensing, the entire ceiling of 20 lakh pieces shall be distributed as under: -

4.     Export of Peacock Tail Feathers including Handicraft items/ Articles made thereof will be allowed in terms of the procedure as mentioned below: -

i.      The licensing office, to whom the ceiling has been allotted, will notify the ceiling available for allotment to prospective exporters through a Trade Notice under intimation to this office. The Trade Notice will clearly indicate the cut off date for receipt of applications from prospective exporters, after which no applications will be entertained.

ii.     Prospective exporters will submit their applications to their jurisdictional Licensing Authorities in the form given in Appendix 18A of the Hand Book of Procedures, 1997-2002 within 30 days from the date of issue of the Trade Notice by the Regional Licensing Authorities in a Sealed Cover containing therein the quantity applied for and the Unit Price of export. Each exporter shall be allowed to submit only one application alongwith a declaration to the effect that no application has been submitted to any other licensing authority during the same licensing period.

iii.     Application will require to be supported by valid Irrevocable Letter of Credit/ Advance Payment Receipt covering 100% FOB value against specific order.

iv.     No allocation of the ceiling shall be made to the exporter who did not export against the licences issued in the previous licensing year of 1997-98.

v.      For allocation of the ceiling during the period 1998-99, the minimum per unit FOB realisation shall be atleast 5% more than the lowest per unit FOB realisation achieved during the previous licensing year of 1997-98.

vi.     Weight age shall be given to applicants offering highest unit value realisation subject to a quantity restriction on 10% of the quota allocated to the concerned port office. However, the condition of quantitative ceiling against available quota may be relaxed if there are not takers for the ceiling.

vii.    A total of 25% of the quota allocated to each port office shall be earmarked for Cooperative Societies of Weaker Sections who may apply to their concerned jurisdictional RLAs subject to fulfilling all other prescribed conditions of this Policy Circular. In the event of they�re being no such applicants, this quota could be made available to other applicants.

viii.   All applications will be considered in one lot after the stipulated cut off date for receipt of applications and the ceiling will be allotted giving due consideration to highest unit value realisation. In the event of the ceiling not being exhausted, the Licensing Authority may issue a second Trade Notice informing the balance available for distribution and receive further applications prior to the specific cut off date following the same procedure as stated above for considering applications. Thereafter, any balance quota will immediately be intimated to HQ, DGFT for reallocation as per demand.

ix.       Export Licences granted shall be valid upto 31.3.1999.

5.     Intending exporters will submit the details in respect of the Peacock Tail Feathers and Handicraft items and the feather used therein for the purpose of allocation of the ceiling in the application. However, export of crest feathers or any other part of Peacock will not be allowed.

6.     It shall be the endeavour of the exporters, to whom the ceiling is allocated, to export the quantity in full. In the event of the exporters being unable to export the quantity allotted to them, they will surrender the unshipped quantity, failing which, such exporters will be debarred from getting further ceiling of this item.

7.     Exporters will furnish a report regarding details of exports effected against applications to the concerned licensing authority within 30 days from the date of the shipment.

8.     Each port office will report the position of quota utilisation after 4 months from the date of release of the ceiling to this office. A quarterly statement showing the name of the exporters, quantity applied for, quantity allowed for exports, FOB value and port of destination may also be sent to this office by the concerned licensing authorities disbursing the Peacock Tail Feathers quota.

9.     As soon as the ceiling is exhausted, this fact may be reported to the Ministry of Commerce, EP  (Agri. III) Section with a copy to this office.