20000113

SRO issued textile quota equal to preceding year's performance

MUZAFFAR QURESHI

KARACHI: Performance holders will receive quotas equal to the actual quantity exported by them under each category during the preceding year to a specific quota country i.e. 100 percent on performance basis, under the new Textile Quota Management Policy for the year 2000, which was announced by the Ministry of Commerce through an SRO (1 (1)/2000) on Wednesday.

The SRO provides that additional quota may be allocated to exporters on the basis of comparative higher value exports. These additional quotas shall be allocated from the quota available with the government commencing from the next quota year 2001 on higher value obtained in the preceding year.

The additional quota shall be allocated to the exporters in each category on the basis of the following formula:-

(I) 5 percent additional quota over authenticated entitlement if unit price in the preceding year was 25 percent above the national average.

(ii) 3 percent additional quota if unit price was 15 percent to 24 percent above the national average.

(iii) 2 percent additional quota if unit price was 5 percent to 14 percent above the national average

(iv) No additional quota if increase in unit value was less than 5 percent.

The additional quota allocation for higher value will be non-transferable and will be for one-time use. It will be admissible to those exporters who bring in higher unit value of at least 5 percent in respective categories as compared with the export price during the preceding year, and the quota for higher value will be subject to pre-audit.

The new Textile quota rules stipulates that 90 percent provisional allocation shall be made on the January 1. The remaining 10 percent shall be allocated after audit of quota entitlement of the exporter in the preceding year. It will be the responsibility of the exporter to arrange relevant documents for audit, directly or through the textile association concerned, latest by March 31, failing which, the unallocated quota will stand forfeited.

The SRO has revived Product Group Committees (PGCs) which were abolished last year. These committees will be formed by the Chairman of Quota Supervisory Council (QSC) one each for knitwear, woven, towel and allied made-ups, bedlinen and allied made-ups, yarn and fabrics sectors.

See text of the SRO No. 1(1)/2000-Textile (on page ....)