To become an exporter the
basic requirement is to obtain an Import-Export License
(and get an unique IE code) from the office of the respective
Joint Director General of Foreign Trade and register
as a member with the respective Export Promotion Council.
An exporter can be a manufacturer exporter or merchant
exporter. Registration with this Council under Export
and Import Policy is necessary for availing the benefits
and concessions granted by the Government for exports
of handloom.
There are two type of membership in the Council viz.
(1) Registered Textile Exporter (RTE)
(2) Member
Members have certain special privileges like contesting
in the election to the Executive Committee of the Council.
Both RTE and Members are entitled for Market Development
Assistance (MDA) and all other assistance. All new exporters
shall be registered initially as RTE and converted subsequently
as Members depending on their eligibility after one
year.
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Registered
Textile Exporters (RTE)
Those who enroll with
the Council initially are called RTE. They have to remit
an admission fee of Rs.2, 000 plus Rs.4, 000 as annual
subscription fee in favour of the Council for membership.
They can renew their (RTE) membership every year by
making a payment of Rs.4, 000 as renewal fees between
March and June. Any manufacturer, processor, and exporter
of handlooms can take RTE. Export turnover performance
is not a condition to become a RTE. Membership can be
done either in the Council’s head office at Chennai
or at the regional office at New Delhi. Application
forms can be obtained from head office or from the regional
offices either directly or through post on payment of
Rs.50. The application format can also be requested
through fax, email or downloaded from the Council’s
website.
Application forms duly filled in along with the following
documents may be sent to the head office or regional
office at New Delhi in person or by post and the Council
will issue the Registration-Cum-Membership Certificate
(RCMC) within 2 weeks, if the applications are in order.
• A Demand Draft towards admission plus subscription
fee in favour of the Handloom Export Promotion Council.
• Bank certificate in duplicate certifying the
financial soundness of the concern seeking membership
(RTE) addressed to the Council.
• In the case of partnership firm Xerox copy of
the partnership deed.
• In a Joint stock company or society or any other
corporate body, a resolution by the management of the
corporate body agreeing to apply for RTE. The resolution
should be in the following manner:
“We hereby agree to apply for the RTE of the Handloom
Export Promotion Council and abide by the rules”
• Photostat copy of the Import Export code number
(IE License copy) obtained from the Joint Director General
Foreign Trade.
• In case of manufacturer exporter a copy of the
Entrepreneur Memorandum Acknowledgement certificate or a certificate
from the State in-charge of Handlooms certifying that
they are manufacturer of Handloom items depending on
the case.
• Specimen signature of the representative nominated
by the firm. (In the case of a proprietorship, the proprietor,
in case of partnership firms one of the partners, in
case of Limited companies or Associations one of the
Directors).
RTEs are not entitled to vote at any general meeting
of the Council and stand for or propose any person as
candidate for election to the Executive Committee. However,
they have the right to attend and participate in annual
and extraordinary general body meetings and receive
notice for such purposes, and annual reports and accounts
of the Council or seek information as the Committee
may deem fit from time to time.
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Special
Safeguard to Members Registered Prior To 26.11.2000
Members who have enrolled
with the Council prior to 27.11.2000 (i.e. prior to
the Amendment of Article of Association of the Council)
are automatically treated as members irrespective of
their present export turnover performance subject to
the condition that they shall fulfil the member qualification
within the prescribed three year period or otherwise
will be automatically converted to RTE at the end of
that year.
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Tips
to the new exporter
• Export market is highly
competitive, sensitive to fashion and trends, and demands
quality and timely delivery.
• Different countries have different standards,
specifications and import tariffs for each item and
different colour and design preferences.
• Each country has different buying seasons influenced
by specific colour forecast and product preference.
• An exporter can either export directly or through
buying agents.
• An exporter who is new and inexperienced in
the market would do better by working through buying
agents who represent importers.
• You can seek the help of the Council to get
the list of buying agents or to get information about
foreign markets.
• You can participate in the buyer-seller meets
arranged by the Council for developing more personal
interaction with the buyers.
• ECGC insurance cover is essential to protect
exporters from non-payment by the buyer on account of
commercial and political risks inherent in foreign trade.
• EXIM bank extends line of credit, facilitating
the sanction of credit to your buyer in return for placing
orders with you. EXIM bank also refinances your credit
requirements from banks.
• Exporters normally use agents who facilitate
the clearing of goods and documents by complying with
all procedures. They also help you to comply with all
other formalities related to other Government agencies.
• Customs/Central Exercise formalities can be
sorted out by writing to the Public Relation Officer,
Office of the Commissioner of Customs or Central Excise
in their respective areas.
An exporter need not necessarily register with HEPC
in which case he will not be able to avail the benefits
that are extended to the exporters registered with the
Council.
