Issue of Textile Certificates by CLE – simplification of procedure

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No. CLE-HO/POL/CIRCULAR/15-16 February 24, 2015

Members of the Council

Sub: Issue of Textile Certificates by CLE – simplification of procedure – reg

Dear Member

As members are aware, Para 10 of General Notes of ITC (HS) Classification states the following with regard to import of Textile and Textile Articles.

Textile and textile articles containing hazardous dyes: Import of textile and textile articles is permitted subject to the condition that they shall not contain any of the hazardous dyes whose handling, production, carriage or use is prohibited by the Government of India under the provisions of clause (d) of subsection (2) of Section 6 of the Environment (Protection) Act, 1986 (29 of 1986) read with the relevant rule(s) framed thereunder. For this purpose, the import consignments shall be accompanied by a pre-shipment certificate from a textile testing laboratory accredited to the National Accreditation Agency of the Country of Origin.

In cases where such certificates are not available, the consignment will be cleared after getting a sample of the imported consignment tested & certified from any of the notified agencies.

However, in accordance with the DGFT Policy Circular No.5 dt.29.5.2003 (copy enclosed), Council for Leather Exports (CLE) has been nominated as a “Certifying Agency” to issue Certificates to its members for clearance of import of textile and textile articles by the manufacturer-exporters of leather products, subject to the following conditions stipulated in the aforesaid DGFT Policy Circular.

  • Council members have a valid RCMC on the date of issue
  • Importers are registered with the Council as manufacturer exporters in terms of Exim Policy provisions.
  • Items of imports are meant for manufacture of export products only and cannot be sold/transferred to units in DTA.

Accordingly, the Council for Leather Exports has been issuing TEXTILE CERTIFICATES to manufacturer exporters of leather products, footwear, leather garments etc., registered with Council to facilitate clearance of import consignments of textile and textile articles used as inputs in manufacturing of export products. For this purpose a fee of Rs.500 + applicable Service tax is being charged with effect from 1st April 2012.

With a view to ensure that the textile and textile based materials falling under ITC HS Chapters 50 to 63 are imported by registered manufacturer exporters, the Council has been obtaining affidavit duly notarized by the Notary Public. Such notarized affidavit is submitted by the member exporters for each and every import consignment of textile and textile based items for obtaining textile certificates from the Council which facilitates import of these items.

However, in the new Foreign Trade Policy 2015-20 announced in April 2015, some privileges are given to Status Holders. Para 3.24 of Foreign Trade Policy states that Authorisation and Customs Clearances for both imports and exports may be granted on self-declaration basis for Status Holders.

Also, as per new Foreign Trade Policy, an applicant shall be categorized as status holder upon achieving export performance during current and previous two financial years, as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB value of export earnings in free foreign exchange, as stated below.

Status CategoryExport Performance FOB / FOR (as converted) Value (in US $ million)
One Star Export House3
Two Star Export House25
Three Star Export House100
Four Star Export House500
Five Star Export House2000

Keeping in view certain Special Privileges given to Status Holders in availing Policy Support Measures as mentioned in para 3.24 of Foreign Trade Policy, the Council for Leather Exports has also considered to provide certain Special Facilities to Status Holders as a measure of “Ease of Doing Business”. Accordingly, the following procedure for Issue of Textile Certificates for Status Holders will come into force with immediate effect.

1. For obtaining “Textile Certificates” from the Council for Leather Exports, the Status Holders will be given the privilege of submitting the Affidavit in their Company letter head duly signed by Authorized Representative of the company along with company seal etc., without getting it notarized by the Notary Public. The format of the Affidavit is also enclosed herewith.

2. Such Facility of Self Certified Affidavit will be accepted by the Council as a Special Privilege to Status Holders who are registered as manufacturer exporters in the Council for Leather Exports and having valid RCMC.

3. While applying for Textile Certificates, Status Holders must furnish a copy of their valid Status Certificate while submitting their first application. For subsequent applications, it is not necessary to submit Status Holders Certificate.

4. It may be noted that as per DGFT Public Notice No. 17/2015-20 dated 4th June 2015, the Status Certificates issued under the previous Foreign Trade Policy i.e. FTP 2009-14 shall remain valid till 30th September 2015 or till the issuance of Status Certificate to such IEC holder under FTP 2015-20, whichever is earlier (Existing Status Holders have to approach concerned DGFT Office for issue of fresh Status Certificate under FTP 2015-20). In view of this, as and when new Status Holder Certificate under FTP 2015-20 is obtained by the Status Holder concerned, a copy of the same may also be submitted to CLE on or before Sept. 30, 2015.

Members may note the above

With regards

R. Ramesh Kumar
Executive Director