Cir(106)/2022
August 23, 2022

Committee:

Sub.: Minutes of 29th & 30th Meetings of TAMC- reg.

Dear Sirs/Madam,

Kindly refer to the minutes of the 30^th & 29^th Meeting of Technical Advisory Monitoring Committee (TAMC) under ATUFS and previous Version of TUFS under the Chairpersonship of the Textile Commissioner through VC Mode on 13^th July 2022 and 29^th June 2022, respectively.

We are giving below the Excerpts/ Highlights of both meetings for your kind information:

Excerpts/ Highlights of the Minutes of 30^th TAMC

1. Examining of the issue of over invoicing and other issues for allowing high sea sales in ATUFS raised by Chairman, AEPC.

As per Para 3.2 and Para 4.2.6 of Resolution dated 29.02.216 on ATUFS, Machinery (imported and indigenous) purchased directly from the machine manufacturers or their agents will be considered for benefits under the scheme. However, the benefit will also be available in case new imported stitching machines required for garmenting/ apparel/ made-ups manufacturing are purchased from the authorised stockiest/ custom warehouse located within the country, provided the purchase is made by the consignee/ from a person who has purchased the same directly from the machine manufacturer or their authorised agents. Such machinery will also be eligible for the benefits under this scheme. Under no circumstances, the machinery will be allowed under this scheme, if the machinery has been used even once and/ or even for testing purpose.

Machines purchased under High Sea Sales arrangements in converted cases from RRTUFS to ATUFS has been allowed in the 14^th Meeting of TAMC as enlistment was not necessary and same was allowed in RRTUFS. In this regard, AEPC has submitted that nowhere in guidelines for ATUFS, it is mentioned that Machine could not be purchased under High Sea Sales arrangement.

One of the possible challenges in case the machines purchased under high sea sales is it will increase the basic cost of machines since the person selling machines through high sea sale will add the cost of import including freight and insurance and finalise deal after adding their profit margin.

Decision of 30^th TAMC: TAMC decided that although there were apprehensions while framing the scheme guidelines however industry representatives assured that there would not be any risk in high sea sale like any other transactions permissible under the scheme and the arrangement helps the industry especially to MSMEs hence may be considered subject to fulfilment of all other conditions in GR’s etc. The decision may be brought to the notice of IMSC as point was raised in the 6^th Meeting of IMSC held on 28.04.2022.

2. Definition Issue of “Fully-Fashioned High-Speed Knitting Machine

Office of the Textile Commissioner has received claims pertaining to MC01-C-8 High performance Tricot Machinery in UID/JIT Request application. In such cases, Commercial Invoice issued with description of the machine as – Fully Fashioned Knitting Machine with the configuration as High-Performance Tricot machine for production of all 3 bar articles.

14^th meeting of TAMC has decided to consider the machine under M-1C-8 High performance Tricot Machinery with minimum 3 Bar and Speed of 23oo RPM and above. However, MoT is pursuing the matter with DRI hence the cases related Fully-Fashioned High-Speed Knitting Machine has been kept in abeyance till further directions due to variation in name and specification of knitting machinery as mentioned in commercial invoice, shipping documents and actual specification verified by JIT.

Decision of 30^th TAMC: TAMC has decided that the cases related to Fully-Fashioned High-Speed Knitting Machine to be kept in abeyance till the receipt of directives from the Ministry.

Excerpts/ Highlights of the Minutes of 29^th TAMC:

1. Clarification on identification whether shuttleless looms is new or old which is not imported under EPCG and claimed under ATUFS

In 25^th Meeting of TAMC – Agenda No.6(ii) it has been decided that in the cases where name of machine manufacturer is mentioned in COO as third party/ via/ on behalf where import of machine is not covered under EPCG scheme may not be considered under ATUFS as there is possibility that such procured machine(s) is either second hand or refurbished, which is not permissible under ATUFS.

In this regard, Surat Texmac Federation has referred to the Customs Notification No.50/2017 dated 30.06.2017 to put forth and ascertain the imported machines are new or old at the time of import. The agenda was again placed before 27^th TAMC which was deferred as matter needed examination and verification of the interpretation of Customs notification.

TXC Office sought clarification which the Customs Department has provided both for used as well as new machines. Hence, the Customs Department has confirmed that the description of the machinery and applicable serial number of customs notifications as mentioned in the Bill of Entry and supporting documents can be used to establish that the imported machine is new or old.

Decision of 29^th TAMC: Members from FIASWI, SIMA suggested to accept the clarification of Customs for New and Second-hand machinery and cases may be processed based on shipping documents provided.

2. Wrong Selection of Machinery Annexure during application/ JIT request in ATUFS

Based on the decision of 15^th TAMC pertaining to the wrong selection of machine/ annexure number during JIT request, Airjet Loom Owners Association, Ichalkaranji made a representation to the TXC Office. The matter was again discussed during 19^th TAMC held on 23.12.2020 as Agenda No.4 and it was decided to allow change in sub-segment in respect of Air Jet Loom, Water Jet Loom and Circular Knitting Machine. The Association further submitted that small scale units face difficulty as they are not tech-savvy and select wrong segment and machine reference no. during JIT which leads to ineligibility and rejection of claim.

Decision of 29^th TAMC: It was decided that the decision of 15^th TAMC regarding change of Annexure in same segment should be allowed irrespective of date.

3. Six cases wherein the units created application under RRTUFS from 09.01.2016 to 13.01.2016

The matter pertains to Six (06) cases wherein the units created application under RRTUFS from 09.01.2016 to 13.01.2016 during the transit phase of ATUFS just before the closure of RRTUFS and launch of ATUFS. The Term Loan (TL) was sanctioned on 28.01.2016 after the launch of ATUFS for all the six cases. However, units submitted UID applications in RRTUFS portal of i-TUFS in February 2016. Hence, UID was not allowed to the units under RRTUFS as TL sanction date is in ATUFS period.

Decision of 29^th TAMC: It was agreed to consider these cases since committed liability has been fixed based on auto UID generation, physical verification already done and no time limit has been breached as per the GR under ATUFS for the mentioned cases. Hence, it was also decided that similar type of cases may also be allowed for processing for settlement.

For detailed minutes of the meetings, you are requested to kindly refer to the attached minutes of the meetings.

Thanking you,

Yours faithfully,

Mrs. Chandrima Chatterjee

Secretary General