The Export Promotion Bureau (EPB) stopped shipments in seven categories for the US from November 13 due to high utilisation rate. The categories are 347/348, 360, 361, 666(S), 666(S), and 338, while the latest category included in the ban on the shipments is cat-338 (knitted T-shirts). The exporters, dealing in these categories, have been advised to obtain export licence before making any shipments. Earlier, the shipments were stopped in category 347/348 for the US from November 12 after it achieved a high fill rate.
The Textile Quota Management (TQM) Directorate, in a circular, said the category 338 had also become sensitive, therefore, the exporters were advised to check the availability of quota from their concerned textile association before making any further shipments in that category.
The situation in that category would be reviewed by the end of this month, the circular added.
The circular said in view of the high fill rate, based on the EPB quota utilisation in the US categories 347/8, 360, 361, 666(S) and 666(P), there was strong probability of embargo in those categories.
The issue was reviewed at a high level meeting in the EPB. On the basis of actual utilisation of quota and feedback received from the exporters and concerned textile associations, it has been decided in the interest of the exporters that with immediate effect no further shipments will be allowed.
The visa would be issued only for those shipments made on or before November 13 for the said categories, it said, adding the situation would be reviewed with the concerned associations by end of November.
The exporters have strongly reacted to the EPB move as they have large quantities of quota in their passbooks, which would remain unshipped, causing huge monetary loss to them.
They said they had bought that quota from the auction, organised by the EPB at a huge cost and if they were stopped from making shipments, the Bureau should provide compensation to the exporters.
The exporters said the EPB quota management department did not monitor utilisation of quota in different categories, especially in the last quarter of the quota year, and had suddenly appeared to advise the exporters not to make shipments till further advice.
They further said that sensing the high fill rate in hot categories in the last quota year, the EPB should have postponed quota auction, which was a good source of revenue, held four times a year.
Since the exporters were not at fault for the present scenario, it was the duty of the EPB to pay compensation to the exporters equal to the cost of unshipped quota, they added.
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