L.B. Singhal
Director General

Sub: WASTAGE NORMS FOR THE EXISTING EOUs/SEZ YARN UNITS UNDER TEXTILE SECTOR

The EPC for EOUs and SEZ Units had organized a meeting with top EOUs/SEZ units from all the Zones in Delhi on April 22, 2003. In this meeting textile units had raised the issue relating to wastage norms for cotton yarn units. It was pointed out that in the EXIM Policy, announced on 31.3.03, Appendix 14-L relating to wastage norms has been deleted and now wastage norms will be governed by standard input-output norms as given in Handbook of Procedures Vol. II. This has affected the cotton yarn adversely e.g. Appendix 14-L had provided wastage norms for combed cotton yarn as 30% whereas standard input-output norms provide the import of 1.22 Kg of raw cotton against export of 1 Kg of combed cotton yarn.

This issue was discussed in detail and Ministry of Commerce agreed to re-consider the issue in the Board of Approval. Accordingly this issue has been re-considered in the Board of Approval meeting held on 23.6.03. Ministry of Commerce vide letter No. 14/5/2003-EOU dated 4.7.03 has informed to the Council that this issue was considered in the Board of Approval Meeting held on 23.6.03 and it has been clarified that “the wastage norms already granted to the existing EOUs/SEZ yarn units will continue”.

This will help the Textile sector EOUs/SEZ Units considerably.

This is for information please.

(L. B. Singhal)
Director-General