Term Paper of EXIM 1

8/8/2019 Term Paper of EXIM 1

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INTRODUCTION

Indian TEXTILE Industry

Indian Textile industry is one of the leading industries in the world. Indian Textile industry has

been taken very big strides. In last few decades, when the scenario started changing after the

economic liberalization of Indian economy in 1991, the textile industry has grown to the status of

a leading sector in the country with a sizeable base. The open economy has been given more trust

of the Indian textile industry, which has now successfully become one of the largest industries in

the world.

The textile industry has largely depended upon the manufacturing and export. The textile

industries play a major role in the economy of the country. India earns about 27% of total foreign

exchange through textile export and Indian textile industry contributes 14% of total industrial

production of the country. The textile industry also contributes around 3% to the GDP of the

country and it given the largest employment in the country. The textile industry has been

generated more than 35 million people and the industry will generate 12 million new jobs in year

2010. The Indian textile industry has been taking a new activity by entering the Chinese market.

Because most of the top global retailers (JC Penny, Nautica, Docker and Target) have their

sourcing network in India. Indian textile which is worth US $ 23 billion is expect to registerfourfold increase US $ 91- 100 billion in the next 20 to 25 years.

HISTORY


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No one knows when exactly the spinning and weaving of textile began. It has been said that

people knew how to wave even 27000 years ago. The oldest actual fragment of cloths found was

in southern Turkey. People used fibers found nature and hand processes to make fiber into cloth.

Even though high technology was not available, skilled weavers created a wide variety of fibers.

With the growth of cities and nations, improvement in technology came into place and there was

a substantial development in the international trade, both of which involved in textile. The Indian

textile industry was founded nearly five thousand years ago. At that time weaving of cotton had

known as Harrappans. And India began trade with other countries in the second country BC. In

13th century Indian silk was used as barter for species from the western countries. Indian textile

industry had begun export Indian silk and other cotton fabrics in British East India and other

countries in 17th century. In 19th century Indian cotton and silk were hand spun and woven.

These cotton and silk was highly popular fabrics and called Khadi. Indian textile industry is the

second largest in the world.

EXPORT


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Indian Exports (Optimistic Scenario)

Yarn

Garment exports of Bangladesh increase leading to increase in consumption of Indian

fabric and yarn

Exports of Far-East & ASEAN increase further

Rationalization in duties of MMF leading to increase in processing of fibers in India

Fabric

Garmenting deserved leading to entry of large textile players ensuring

Efficient sourcing and increase in the margins

Increase in investment for processing

Improvement in SAPTA trade

Garments

Garmenting and Knitting de-reserved to allow the units to grow bigger to be able to

service large orders and large clients

Labor laws in India become industry friendly

Garment parks come up in key regions giving a boost to exports

Successful Quota Phase-out without exports getting restricted by QRs


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Fig in US $ Mn

1994 1998 2002 2005* 2010*

Yarn 590 1780 2333 2701 3131

Made-ups 851 1498 2620 4527 11266

Fabric 1214 1716 2512 3530 7100

Garments 3713 4829 6510 10794 21711

Total 6368 9823 14035 21552 43208

Indian Exports (Pessimistic Scenario)

Yarn

Change works to the advantage for S. Korea/ASEAN/Far-East

Demand for packages increases

EEC other garment supply countries invest in back-end processes

Fabric

Environmental Clause impacts

Investment in processing does not happen

Blends and synthetic fabrics dominate reducing advantage of Indian cotton

Garments

Social clause impact leading to ban on some categories, etc.

SSA is a reality impacting exports of garments from India to USA and EU


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FTA becomes a reality

Other projectionist measures come up

As opposed to the optimistic scenario, the pessimistic scenario shows a shortfall of nearly US

$4000 mn of exports in year 2005 and the exports are not likely to be much higher than the

present figures. It would also lead to development of textile and clothing industry in the other

nations and India would lose out as a significant player in the industry. This would also stifle the

domestic textile industry which would be in a very weak position to compete with imports.

(These are expected to become cheaper with import duty rationalization as per international

treaties and cost competitiveness of overseas players). Some of the subsidies currently extended

by the Indian government to promote exports which are sector specific (TUF, 80 HHC) or region

specific (EPZS, EOUS) may also need to be withdrawn.

Fig in US $ Mn

1994 1998 2002 2005* 2010*

Yarn 590 1780 2003 2126 2022

Made-ups 851 1498 2038 2427 3098

Fabric 1214 1716 1931 2050 2154

Garments 3713 4829 5435 5939 6885

Total 6368 9823 11408 12542 14159

World trade in textile and clothing amounted to US $385 billion in 2003, in which 43%

accounted for textile. Developed countries accounted for little over one third of world exports in

textile. The share of developed countries in textile was estimate 47%. In the United States, the

state ofTexas lead in total production as of 2004, while the state ofCalifornia had the

highest yield per acre.

The five leading exporters of cotton in 2009 are

1. The United States,

2. India,
http://en.wikipedia.org/wiki/Texashttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Crop_yieldhttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Texashttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Crop_yieldhttp://en.wikipedia.org/wiki/Export


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3. Uzbekistan,

4. Brazil, and

5. Pakistan.

And the largest non-producing importers areKorea, Russia, Taiwan,Japan, andHong Kong.

Top ten cotton producers 2009

(480-pound bales)

People's Republic of China 32.0 million bales

India 23.5 million bales

United States 12.4 million bales

Pakistan 9.8 million bales

Brazil 5.5 million bales

Uzbekistan 4.4 million bales

Australia 1.8 million bales

Turkey 1.7 million bales

Turkmenistan 1.1 million bales

Syria 1.0 million bales

In India, the states ofMaharashtra (26.63%), Gujarat (17.96%) and Andhra Pradesh (13.75%)

and also Madhya Pradesh are the leading cotton producing states; these states have a

predominantly tropical wet and dry climate.

Top trading partner of Indian Textile industry

1. Germany

2. China

3. USA

4. Japan

5. France

6. Italy
http://en.wikipedia.org/wiki/Uzbekistanhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Koreahttp://en.wikipedia.org/wiki/Koreahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Taiwanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Uzbekistanhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkmenistanhttp://en.wikipedia.org/wiki/Syriahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Uzbekistanhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Koreahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Taiwanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Uzbekistanhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkmenistanhttp://en.wikipedia.org/wiki/Syriahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Andhra_Pradesh


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7. Netherland

8. U.K

9. Canada

10. South Korea

Textile export areas in last few decades are as follows-

Year Area in lakh hectares Production in lakh bales of 170 kgs Yield kgs per hectare

1950-51 56.48 30.62 92

1960-61 76.78 56.41 124

1970-71 76.05 47.63 106

1980-81 78.24 78.60 170

1990-91 74.39 117.00 267


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2000-01 85.76 140.00 278

2001-02 87.30 158.00 308

2002-03 76.67 136.00 302

2003-04 76.30 179.00 399

2004-05 87.86 243.00 470

2005-06 86.77 244.00 478

2006-07 91.44 280.00 521

2007-08 94.39 315.00 567

2008-09 93.73 290.00 526

Strength of textile industry

Strength of textile industry are as follows

a. Huge textile production capacity

b. Efficient multi-fiber raw material manufacturing capacity

c. Large pool of skilled and cheap workforce

d. Entrepreneurial skills

e. Huge export potential

f. Large domestic market

g. Very low import content

h. Flexible textile manufacturing system

Product

Textile goods have gained prominence among the export products of India; designer garments

for ladies as well as gents manufactured by the big houses in India have created huge demand in

the International garment industry. The popular ladies garment include knitted tops,


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embroidered salwar, sequin work blouses, sarongs, floral t-shirts, beaded garments, poplin

embroidered kurta, viscose crape printed skirt. A large number of small scale, medium scale as

well as large scale companies in India are engaged in the export of textile goods, the list of such

companies include:

Kshethra Exports

Mirza Fabric Private Limited

Kanha Designs Pvt. Ltd.

Knitco Fashions

Boom Buying Private Limited

Revolution Exports

Flying Fashions Subasri Textile

Vipro Garments

Kewal Impex

Sudharshanaa Tex

Macsam

Trend in Export of TEXTILE Product

In current scenario, the world textile export grown from US $ 272.43 billion in 1994 to US $ 530

billion in 2006. It is observed that the export of textile has exceeded. It may be mentioned that as

compared to textile, export of clothing is more desirable for the point of view of value addition.

During the 1994- 2006, against the two third share of textile in total export of China, Indias

share was only 50%. It significant to note that during the MFA phase out period, Indias share in

the world export of textile declined from 2.663% in1994 to 2.55% in 2004. Whereas the textile

share in the world textile export rose from 2.91% to 3.595 in 2004. In world terms, India ranks as

the second largest producers of textile & clothing after China. In the 2004-2005 fiscal year

India's textile and clothing export edged up by a meager 0.1% to US$ 13,524 mn. In the case of


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clothing alone, exports increased by 10.3% to US$ 1,738 mn during April - June 2005. Strong

growth was recorded in the case of wool clothing (up 26.4% to US$ 75 mn) and clothing made

from vegetables fibers other than cotton (up 33.6% to US$ 67 mn).

Future forecast

The Indian textile industry roots thousands of years back. After, the European industry

insurrection, Indian textile sector also witnessed considerable development in industrial aspects.

Textile industry plays an important role in the terms of revenue generation in Indian economy.

The significance of the textile industry is also due to its contribution in the industrial production,

employment. Currently, it is the second largest employment provider after agriculture and

provides employment to more than 30mn people. Considering the continual capital investments

in the textile industry, the Govt. of India may extend the Technology Up gradation Fund Scheme

(TUFS) by the end of the 11th Five Year Plan (till 2011-2012), in order to support the industry.

Indian textile industry is massively investing to meet the targeted output of $85bn by the end of

2010, aiming exports of $50bn. There is huge development foreseen in Indian textile exports

from the $17bn attained in 2005-06 to $50bn by 2009-10. The estimation for the exports in the

current financial year is about $19bn. There is substantial potential in Indian exports of technical

textiles and home-textiles, as most European companies want to set up facilities near-by the

emerging markets, such as China and India.

The global demand for apparel and woven textiles is likely to grow by 25 percent by year 2010

to over 35mn tons, and Asia will be responsible for 85 percent output of this growth. The woven

products output will also rise in Central and Southern American countries, however, at a

reasonable speed. On the other hand, in major developed countries, the output of woven products

will remain stable. Weaving process is conducted to make fabrics for a broad range of clothing

assortment, including shirts, jeans, sportswear, skirts, dresses, protective clothing etc.

Exim Policy

The Foreign Trade Policy of India is guided by the Export Import in known as in short EXIM

Policy of the Indian Government and is regulated by the Foreign Trade Development and
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Regulation Act, 1992.DGFT (Directorate General of Foreign Trade)is the main governing

body in matters related to Exim Policy.

Indian EXIM Policy contains various policy related decisions taken by the government in the

sphere of Foreign Trade, i.e., with respect to imports and exports from the country and more

especiallyexport promotion measures, policies and procedures related thereto. Trade Policy is

prepared and announced by the Central Government (Ministry of Commerce). India's Export

Import Policy also known as Foreign Trade Policy.

Exim Policy 2002 2009

The Exim Policy 2002 - 2009 deals with both the export and import of merchandise and services.

It is worth mentioning here that the Exim Policy: 1997 - 2002 had accorded a status of exporterto the business firm exporting services with effect from1.4.1999. Such business firms are known

as Service Providers.

Main Elements of Exim Policy 2002-2009

The new Exim Policy 2004-2009 has the following main elements:

1. Duty Exemption / Remission Schemes of Exim Policy 2002-2009

The Duty Exemption Scheme enables import of inputs required for export production. It includes

the following exemptions-

Duty Drawback: - The Duty Drawback Scheme is administered by the Directorate of

Drawback, Ministry of Finance. Under Duty Drawback scheme, an exporter is entitled to claim

Indian Customs Duty paid on the imported goods and Central Excise Duty paid on indigenous

raw materials or components.

Excise Duty Refund: - Excise Duty is a tax imposed by the Central Government on goods

manufactured in India. Excise duty is collected at source, i.e., before removal of goods from the

factory premises. Export goods are totally exempted from central excise duty.
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Octroi Exemption: - Octroi is a duty paid on manufactured goods, when they enter the

municipal limits of a city or a town. However, export goods are exempted from Octroi.

2. Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs),

Software Technology Parks(STPs) And Bio-Technology Parks (BTPs) of Exim

Policy 2002-2009

The Export Import Policies relating to Export Oriented Units (EOUs) Electronics Hardware

Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-technology parks

(BTPs) Scheme is given in Chapter 6 of the Foreign Trade Policy. Software Technology Park

(STP)/Electronics Hardware Technology Park (EHTP) complexes can be set up by the Central

Government, State Government, Public or Private Sector Undertakings.

3. Export Promotion Capital Goods Scheme (EPCG) of Exim Policy 2004-2009

Introduced in the EXIM policy of 1992-97, Export Promotion Capital Goods Scheme (EPCG)

enable exporters to import machinery and other capital goods for export production at

concessional or no customs duties at all. This facility is subject to export obligation, i.e., the

exporter is required to guarantee exports of certain minimum value, which is in multiple of total

value of capital goods imported.

4. Special Economic Zone (SEZ) under the Exim Policy 2002-2009

A Special Economic Zone in short SEZis a geographically distributed area or zones where the

economic laws are more liberal as compared to other parts of the country. SEZs are proposed to

be specially delineated duty free enclaves for the purpose of trade, operations, duty and tariffs.

SEZs are self-contained and integrated having their own infrastructure and support services.

The area under 'SEZ' covers a broad range of zone types, including Export Processing Zones

(EPZ), Free Zones (FZ), Industrial Estates (IE), Free Trade Zones (FTZ), Free Ports, Urban

Enterprise Zones and others.

5. Free Trade & Warehousing Zones of Exim Policy 2002-2009
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Free Trade & Warehousing Zones (FTWZ) shall be a special category of Special Economic

Zones with a focus on trading and warehousing. The concept of FTWZ is new and has been

recently introduced in the five-year foreign trade policy 2004-09. Its main objective is to provide

infrastructure for growth of the economy and foreign trade. Free Trade & Warehousing Zones

(FTWZ) plays an important role in achieving global standard warehousing facilities as free trade

zones. Free Trade & Warehousing Zones is a widely accepted model with a history of providing

Substantial encouragement to foreign trade and warehousing activity.

6. Deemed Exports under the Exim Policy 2002-2009

Deemed Export is a special type of transaction in the Indian Exim policy in which the payment

is received before the goods are delivered. The payment can be done in Indian Rupees or in

Foreign Exchange. As the deemed export is also a source of foreign exchange, so the

Government of India has given the benefit duty free import of inputs.

Exim Policy 2009-2014

Main Elements of Exim Policy 2009-2014

1. Higher Support for Market and Product Diversification
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1. 26 new markets have been added under Focus Market Scheme. These include 16 new

markets in Latin America and 10 in Asia-Oceania.

2. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to

3%.

3. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25%

to 2%.

4. Market Linked Focus Product Scheme (MLFPS) has been greatly expanded by inclusion

of products classified under as many as 153 ITC (HS) Codes at 4 digit level. Some major

products include; Pharmaceuticals, Synthetic textile fabrics, value added rubber products,value added plastic goods, textile made ups, knitted and crocheted fabrics, glass products,

certain iron and steel products and certain articles of aluminum among others.

5. A common simplified application form has been introduced for taking benefits under

FPS, FMS, MLFPS and VKGUY.

6. Higher allocation for Market Development Assistance (MDA) and Market Access

Initiative (MAI) schemes is being provided.

2. Technological Up gradation

To aid technological up gradation of our export sector, EPCG Scheme at Zero Duty has been

introduced. This Scheme will be available for engineering & electronic products, basic chemicals

& pharmaceuticals, apparels & textiles, plastics, handicrafts, chemicals & allied products and

leather & leather products (subject to exclusions of current beneficiaries under Technological

Upgradation Fund Schemes (TUFS), administered by Ministry of Textiles and beneficiaries of

Status Holder Incentive Scheme in that particular year). The scheme shall be in operation till

31.3.2011.

3. EPCG Scheme Relaxations


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1. To increase the life of existing plant and machinery, export obligation on import of

spares, etc. under EPCG Scheme has been reduced to 50% of the normal specific export

obligation.

2. Taking into account the decline in exports, the facility of Re-fixation of Annual Average

Export Obligation for a particular financial year in which there is decline in exports from

the country, has been extended for the 5 year Policy period 2009-14.

4. Support for Green products and products from North East

Focus Product Scheme benefit extended for export of green products; and for exports of some

products originating from the North East.

4. Status Holders

1. To accelerate exports and encourage technological up gradation, additional Duty Credit

Scripps shall be given to Status Holders @ 1% of the FOB value of past exports. The

duty credit scrip can be used for procurement of capital goods with Actual User

condition. This facility shall be available for sectors of leather (excluding finished

leather), textiles and jute, handicrafts, engineering, plastics and basic chemicals

(excluding Pharma products). This facility shall be available up to 31.3.2011.

2. Transferability for the Duty Credit scrip being issued to Status Holders under paragraph

3.8.6 of FTP under VKGUY Scheme has been permitted. This is subject to the condition

that transfer would be only to Status Holders and Scripps would be utilized for the

procurement of Cold

Chain equipment(s) only.


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6. Stability/ continuity of the Foreign Trade Policy

1. To impart stability to the Policy regime, Duty Entitlement Passbook (DEPB) Scheme is

extended beyond 31-12-2009 till 31.12.2010.

2. Interest subvention of 2% for pre-shipment credit for 7 specified sectors has been

extended till 31.3.2010 in the Budget 2009-10.

3. Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of

Income Tax Act has been extended for the financial year 2010-11 in the Budget 2009-10.

4. The adjustment assistance scheme initiated in December, 2008 to provide enhanced

ECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010.

7. Thrust to Value Added Manufacturing

1. To encourage Value Added Manufactured export, a minimum 15% value addition on

imported inputs under Advance Authorization Scheme has now been prescribed.

2. Coverage of Project Exports and a large number of manufactured goods under FPS and

MLFPS.

8. DEPB

DEPB rate shall also include factoring of custom duty component on fuel where fuel is allowed

as a consumable in Standard Input-Output Norms.


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9. Flexibility provided to exporters

1. Payment of customs duty for Export Obligation (EO) shortfall under Advance

Authorization / DFIA / EPCG Authorization has been allowed by way of debit of Duty

Credit scrip. Earlier the payment was allowed in cash only.

2. Import of restricted items, as replenishment, shall now be allowed against transferred

DFIAs, in line with the erstwhile DFRC scheme.

3. Transit loss claims received from private approved insurance companies in India willnow be allowed for the purpose of EO fulfillment under Export Promotion schemes. At

present, the facility has been limited to public sector general insurance companies only.

10. Waiver of Incentives Recovery

In cases, where RBI specifically writes off the export proceeds realization, the incentives under

the FTP shall now not be recovered from the exporters subject to certain conditions.

11. Simplification of Procedures

1. To facilitate duty free import of samples by exporters, number of samples/pieces has been

increased from the existing 15 to 50. Customs clearance of such samples shall be based

on declarations given by the importers with regard to the limit of value and quantity of

samples.

2. To allow exemption for up to two stages from payment of excise duty in lieu of refund, in

case of supply to an advance authorization holder (against invalidation letter) by the

domestic intermediate manufacturer. It would allow exemption for supplies made to a


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manufacturer,

if such manufacturer in turn supplies the products to an ultimate exporter. At present,

exemption is allowed up to one stage only.

3. Greater flexibility has been permitted to allow conversion of Shipping Bills from one

Export Promotion scheme to other scheme. Customs shall now permit this conversion

within three months, instead of the present limited period of only one month.

4. To reduce transaction costs, dispatch of imported goods directly from the Port to the site

has been allowed under Advance Authorization scheme for deemed supplies. At present,

the duty free imported goods could be taken only to the manufacturing unit of the

authorization holder or

its supporting manufacturer.

5. Disposal of manufacturing wastes / scrap will now be allowed after payment of

applicable excise duty, even before fulfillment of export obligation under Advance

Authorization and EPCG Scheme.

6. Regional Authorities have now been authorized to issue licenses for import of sports

weapons by renowned shooters, on the basis of NOC from the Ministry of Sports &

Youth Affairs. Now there will be no need to approach DGFT (Hqrs.) in such cases.

7. The procedure for issue of Free Sale Certificate has been simplified and the validity of

the Certificate has been increased from 1 year to 2 years. This will solve the problems

faced by the medical devices industry.

8. Automobile industry, having their own R&D establishment, would be allowed free

import of reference fuels (petrol and diesel), up to a maximum of 5 KL per annum, which


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are not manufactured in India.

9. Acceding to the demand of trade & industry, the application and redemption forms under

EPCG scheme have been simplified.

12.Reduction of Transaction Costs

1. No fee shall now be charged for grant of incentives under the Schemes in Chapter 3 of

FTP. Further, for all other Authorizations/license applications, maximum applicable fee

is being reduced to Rs. 100,000 from the existing Rs1,50,000 (for manual applications)and Rs. 50,000 from the existing Rs.75,000 (for EDI applications).

2. To further EDI initiatives, Export Promotion Councils/ Commodity Boards have been

advised to issue RCMC through a web based online system. It is expected that issuance

of RCMC would become EDI enabled before the end of 2009.

3. Electronic Message Exchange between Customs and DGFT in respect of incentive

schemes under Chapter 3 will become operational by 31.12.2009. This will obviate the

need for verification of scrip by Customs facilitating faster clearances.

4. For EDI ports, with effect from December 09, double verification of shipping bills by

customs for any of the DGFT schemes shall be dispensed with.

5. In cases, where the earlier authorization has been cancelled and a new authorization has

been issued in lieu of the earlier authorization, application fee paid already for the

cancelled authorization will now be adjusted against the application fee for the new


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authorization subject to payment of minimum fee of Rs. 200.

6. An Inter-Ministerial Committee will be formed to redress/ resolve problems/issues of

exporters.

7. An updated compilation of Standard Input Output Norms (SION) and ITC (HS)

Classification of Export and Import Items has been published.

13. Directorate of Trade Remedy Measures

To enable support to Indian industry and exporters, especially the MSMEs, in availing their

rights through trade remedy instruments, a Directorate of Trade Remedy Measures shall be

set up.

IMPORTANT DOCUMANTION

1. PERFORMA INVOICE

2. Exporter- AAKRTI TEXTILE Ltd3. Pro. KW. No. & Date Exporters Ref.-.4. Buyers Ref. No. & Date- 10/05/10


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5. Consignee6. Country of Origin of Goods- INDIA7. Country of Final Destination- USA8. Terms of Delivery and Payment-9. Carriage by: SEA OR AIR OR MULTI MODAL TRANSPORT- SEA

10.Place by Receipt by Pre-carrier- DELHI11.Port of Loading- BOMBAY12.Port of Discharge Final Destination- ELIZABETH PORT USA13.Marks & Nos./ Container No.- ASD456A14.No. & Kind of Pkgs.- 5 CONTAINER15.Description of Goods COTTON CLOTH16.Quantity- 16000 TON.17. Rate 200/MTR.18.Amount- 3,20,00019.Amount Chargeable (in words) THREE LAKH TWEENTY THOUSAND20.Total- 3,20,000

21.Signature & Date ASHWANI KUMAR 10/05/1022. Declaration:23.We declare that this Performa Invoice shows the actual price of the goods described and

that all particulars are true and correct.

INVOICE

Exporter - AAKRTI TEXTILE LtdInvoice No. & Date Exporters Ref.-TEX456EBuyers Order No. & Date WER12T 28/4/10Consignee-Country of Origin of Goods- INDIACountry of Final Destination- USATerms of Delivery and PaymentPre-Carriage by Place by Receipt by Pre-carrierPort of Loading BOMBAYPort of Discharge ELIZABETH PORT USAFinal Destination- USAMarks & Nos./-Container No.- ASD456ANo. & Kind of Pkgs.- 5 CONTAINERSDescription of Goods COTTON YARNQuantity -16000 TON.Rate-200/MTRAmount- 320000Amount Chargeable- 320000(in words)Total- 320000Signature & Date- A. KUMAR 10/05/10


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Declaration:We declare that this Invoice shows the actual price of the goods described andthat all particulars are true and correct.

PACKING LIST

Exporter - AAKRTI TEXTILE LtdInvoice No. & Date-- TEX456E 10/05/10Buyers Order No. & Date- WER12T 28/4/10ConsigneeCountry of Origin of Goods-INDIACountry of Final Destination-USAPre-Carriage by - AAKRTI TEXTILE LtdPlace of Receipt by Pre-carrier- DELHIPort of Loading - BOMBAYPort of Discharge ELIZABETH PORT OF USAPlace of Delivery- USAMarks & Nos./Container No.- ASD456ANo. & Kind of Pkgs. Description of Goods Quantity Remarks- 16000 TONSignature & Date- A. KUMAR 10/05/10IIFTOther Reference(s)Buyer (if other than consignee)Vessel/Flight No. SHI56P

BILL OF LADDING

Shipper ABC LTD.Consignee (if order state Notify Party & Address)Pre-Carriage by - AAKRTI TEXTILE LtdPlace of Receipt by Pre-carrier-Port of Loading - BOMBAYPort of Discharge USAPlace of Delivery (If On-Carriage)- USAMarks & Nos./Container No.- ASD456ANo. & Kind of pkgs. 5 CONTAINERSContainers Seal No. ASDF34HDescription of Goods COTTON CLOTHSignature & Initials as Agents only- A. KUMAR 10/05/10Vessel- SHI56P

MATES RECEIPTS

Pre-Carriage by - AAKRTI TEXTILE Ltd


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Place of Receipt by Pre-carrier-Port of Loading - BOMBAYPort of Discharge USAPlace of Delivery (If On-Carriage)- USAMarks & Nos./Container No.- ASD456A

No. & Kind of pkgs. 5 CONTAINERSContainers Seal No. ASDF34HDescription of Goods COTTON CLOTHSignature & Initials - A. KUMAR 10/05/10Vessel- SHI56P

GSP FORM

1. Goods consigned from (Exporters business name, address, country)- AAKRTI TEXTILE Ltd2. Goods consigned to (Consignees name, address, country)- JOAHN MCKENLY, USA

Reference No. 8990RE3. Means of transport and route (as far as known)- SEAGENERALISED SYSTEM OF PREFERENCESCERTIFICATE OF ORIGIN(Combined declaration and certification)FORM AIssued in ......INDIA....................................................................(country)4. For official use5. Item number 6. Marks and numbers of packages7. Number and kind of packages; description of goods 8. Origin criterion (See Notes overleaf)

9. Gross weight or other quantity- 16000 TON.10. Number and date of invoices- TEX456E 10/05/1011. Certification It is hereby certified, on the basis of control carried out, that the declaration bythe exporter is correct................................................................................................................... Place and date, signatureand stamp of certifying authority12. Declaration by the exporterThe undersigned hereby declares that the above details and statements are correct; that all thegoods wereproducedin ......................INDIA......................................................................................................................

(country)and that they comply with the origin requirements specified for those goods in the GeneralisedSystem of Preferences for goods exported to.....USA............................................................................................................................................................(importing country).................................................................................................................................................................


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Place and date, signature of authorized signatory -- A. KUMAR 10/05/10

CERTIFICATE OF ORIGIN

Exporter- AAKRTI TEXTILE LtdConsigneeQuantity 16000 TON.Vessel/Flight No.- SHI56PNAME AND LOGOOFCHAMBER OF COMMERCECertificationIt is hereby certified that the best of our knowledge and belief the above mentioned goods are ofIndian origin.STAMP

OFCHAMBER OF COMMERCE

CERTIFICATE OF INSPECTION/IN-PROCESS QUALITY CONTROL

Exporters Name and Address Invoice No. & DateBuyers Order No. & DateManufacturers Name & AddressMarks & Nos./ No. & Kind of Pkgs.Description of Goods (*)Quantity

Details of the Manufacturers Seal, if anyDetails of Seal of Inspection Authority, if anySpecification ReferenceFOB Value(As Declared by Exporter)Remarks, if any** Certification Under Inspection SystemIt is hereby declared that the consignment as per details given above has been inspected asrequire underthe ........................................................................................................................................ Act. Itsatisfies the conditions as

applicable to it and is certified export worthy.Date of Inspection ..............................................................OR**Certification Under In-Process Quality Control SystemIt is hereby certified, on the basis of controls carried out that the commodities as per details givenherein are inaccordance with the standard specifications prescribed under the .......................................................................... Act.


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SEAL OF THEISSUING AUTHORITYSignatureNameDesignation

Date

MARINE INSURANCE CERTIFICATE

FromPort of LoadingPort of DischargeMarks & Nos./Container No.No. & Kind of Pkgs.Containers

Description of GoodsVessel/Flight No.Survey: In the event of loss or damage which may involve claim under this certificate, notice ofloss or damage should be give to:Claim Payable By:InsuredLOGOName and Address of the Subsidiary of theGeneral Insurance Corporation of IndiaDUTY STAMPCertification No. and Date

Open Cover No. and DateCTD/BL/AWB No. and DateInsured Value ToTERMS OF INSURANCEThis is to certify that insurance of the above mentioned goods has been effected with thiscompany as per details specified in the Schedule herein above, subject to the terms andconditions of therelative Open Cover.For TheAuthorised SignatoryImportant

EXCHANGE CONTROL DECLARATION FORM NO.

Exporter Invoice No. & Date SB No. & DateAR4/AR4A No. & DateQ/Cert No. & Date Importer-Exporter Code No.ConsigneeExport Trade Control If export under:


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Deferred Credit [ ]Joint Ventures [ ]Rupee Credit [ ]Others [ ]RBIs Approval/Cir. No. & Date

Custom House Agent L/C. No.Pre-Carriage by Place of Receipt Type of shipment:By Pre-Carrier Outright sale [ ]Consignment Export [ ]Vessel/Flight No. Rotation No. Others [ ](Specify)Port of Loading Nature of Contract:CIG [ ]/C&F [ ]/FOB [ ]Other (Specify) [ ]Port of Discharge Country of Destination Exchange Rate U/S 14 of CA Currency of invoiceS. NO Marks & No. & Kind of Pkgs. Statistical Code & Description of Goods Quantity ValueFOB

Container Nos.Net WeightGross WeightTotal FOB Value in wordsAnalysis of Export Value Currency Amount Full export value OR where not ascertainable, thevalue whichexporter expects to receive on the sale of goods.FOB ValueFreightInsurance CurrencyCommission RateDiscount AmountOther DeductionsDuplicate

CONCLUSION

Albeit, home textiles will lure higher demand, there are specific demands for home textile

facilities. The 7th Five Year Plan has huge consideration on agricultural growth that also

includes cotton textile industry, resulting a prosperous future forecast for the textile industry in


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India. Indian cotton yarn manufacturers should rush forward for joint ventures and integrated

plans for establishing processing and weaving facilities in home textiles and technical textiles in

order to meet export target of $50bn, and a total textile production of $85bn by 2009-2010. And

the market for digital print for textiles is also growing from 114.6m in 2009 to just under 1bn

by 2014. India is now a fast emerging market inching to reach half a billion middle income

population by2030. All these factors are good for the Indian textile industry in the long run. Even

though the global economic crisis seems to be worsening day-by-day, as long as economies are

emerging and growing as those in South and South East Asia, textile industry is here to grow

provided it takes competition and innovation seriously. Indian textile and clothing industry is the

largest foreign exchange earner for the country, and employs over 20 million people, second only

to agriculture. India cannot afford to let this industry grow sick. That would be nothing short of a

human tragedy. Until the era of globalization and liberalization was launched at the opening of

the current decade, the domestic market was a protected turf, and a seller's market. However,

with the forces of globalization having been unleashed, and accentuated by the coming into force

of the WTO in 1995, there is no looking back. The world has changed and is changing. In the

borderless world, only the fittest would survive. Indian textile and clothing industry is beset with

several shortcomings, in no small measure due to the lop-sided govt. policy in the post-1947

India. But now it must change. It must change if it is not be blown away by the global market

forces, both in the international market as well as by imports in the domestic territory. And

contrary to the common refrain of the industrialists in textile industry, the onus of infusing a

refreshing change lies more on the industry than on the government. This is not to belittle the

significant role of a facilitator that govt. alone can provide. But competitive strategy originates at

the level of the firm. No amount of macroeconomic change can make the firms in the industry

competitive. The govt. must evolve a national policy, which can act as a general guideline for the

firms to define their unique positioning strategy. Given the national environment, the firms must

control their own destiny, or someone else will.

BIBLIOGRAPHY

http://www.ibef.org/industry/textiles.aspx
http://www.ibef.org/industry/textiles.aspxhttp://www.ibef.org/industry/textiles.aspx


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http://www.iloveindia.com/economy-of-india/textile-industry.html

http://handicraft.indiamart.com/history/indiantextiles.html

http://www.economywatch.com/business-and-economy/textile-industry.html

http://www.fibre2fashion.com/industry-article/8/728/textile-industry-in-indian-scenario1.asp

http://www.fibre2fashion.com/industry-article/market-research-industry-reports/indian-textile-

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http://business.mapsofindia.com/sectors/exports/major-products.html

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http://www.fibre2fashion.com/industry-article/17/1633/growth-road-for-the-indian-textile-

industry1.asp

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textile-sector1.asp

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mmf.htm
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Documents

Term Paper of EXIM 1