Procedure
to register with HEPC
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 manufacturing 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) Members
Members have certain
special privileges like contesting in the election to
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.3, 000 as annual
subscription fee in favour of the Council for registration.
They can renew their registration every year by making
a payment of Rs.3, 000 as renewal fees between March
and July. Any manufacturer, processor, and exporter
of handlooms can take registration. Export turnover
performance is not a condition to become a RTE. Registration
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 send the Registration-Cum-Membership
Certificate (RCMC) within 2 weeks.
“We hereby agree to
apply for the registration of the Handloom Export Promotion
Council and abide by the rules”
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Photostat copy of the
Import Export code number (IE License copy) obtained
from the Joint Director General Foreign Trade.
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In case of manufacturer
exporter a copy of the Small Scale Industries (SSI)
certificate or manufacturer certificate depending
on the case.
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Specimen signature of
the representative nominated by the firm. (In the
case of a proprietorship, the firm 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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Types
of Members
Any RTE who has completed
one year of registration with the Council and fulfils
the minimum turnover limit prescribed for that category
of application (either SSI or others) for the years
immediately preceding the financial year in which his
membership is taken can become member by remitting an
admission fee of Rs.10, 000 and an annual subscription
fee of Rs.5, 000 every year between April to July.
SSI Member
Other Members
Such applications shall be
in the prescribed form supported with the certificate
of the auditor to substantiate the claims on export
turnover performance.
Members enjoy the privileges
of voting in the General Body Meeting of the Council
and stand for or propose any person as candidate for
election to the Executive Committee.
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Special
Safeguard to Members Registered Prior To 26.11.2000
Members who have enrolled
with the Council prior to 26.11.2000 (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 i.e. on 31.3.2003.
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Tips
to the new exporter
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Export market is highly
competitive, sensitive to fashion and trends, and
demands quality and timely delivery.
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Different countries have
different standards, specifications and import tariffs
for each item and different colour and design preferences.
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Each country has different
buying seasons influenced by specific colour forecast
and product preference.
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An exporter can either export
directly or through buying agents.
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An exporter who is new
and inexperienced in the market would do better by
working through buying agents who represent importers.
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You can seek the help of
the Council to get the list of buying agents or to
get information about foreign markets.
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You can participate in
the buyer-seller meets arranged by the Council for
developing more personal interaction with the buyers.
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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.
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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.
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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.
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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.
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