The Quota Supervisory Council (QSC) has advised all exporters to obtain export licence from the Export Promotion Bureau (EPB) before making shipments in Cat-347/348 (trousers) for the US. The decision will come into force from Friday (November 12). Under the normal course, the exporters used to make quota shipments first and then obtain the export licence from the EPB.
It was decided at an emergent meeting of QSC held on Wednesday to discuss the situation arising from the report of high fill rate reached in several textile categories for the US. The meeting was chaired by EPB Vice-Chairman Abid Javed and QSC Chairman Aziz Memon.
The meeting observed that the fill rate in Cat-347/348 had reached 93.1 percent, while there might be at least five percent shipments on the way, which would consume the 100 quota ceiling. Hence it was essential to place some restriction on shipments in this category, the meeting opined.
The QSC also reviewed the fill rate reported in other four textile categories for the US reported to be reaching near fill positions. The members were informed about the fill rate obtained in these categories, which include Cat-666-S (94.20 percent); 666-P (96.60 percent); 360/361 (90.8 percent) and 338 (84.6 percent).
The QSC stressed the need for strong monitoring in these categories and decided to evolve some sort of formula to avoid embargo on shipments in these categories.
The meeting noted that unlike the EU where the textile products would subject to duty due to expiry of Generalised System of Preferences (GSP) after December 31, 2004, there would be no such duty on textile products shipped to the US in 2005.
The QSC requested the exporters to delay shipments, if possible, with the consent of their buyers.
It was noted that the situation of near embargo had reached due to the lack of reconciliation of quotas by the US Customs and the EPB Textile Quota Department pending for several years.
Meanwhile, the QSC requested all textile associations to furnish the exporters list, showing the balance quota left as on November 10 in Cats 666-S,666-P, 360, 361, 347/348 and 338.