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Garments quota rules may be amended

By Special Correspondent
The Commerce Ministry's proposal to restructure the quota system of the garments sector is likely to be. placed soon before the cabinet again for approval. •
The eight-point proposal was considered by the cabinet at a meeting tn August and sent to the committee on finance and economic affairs for further review and scrutiny
According to official sources, the cabinet committee has completed the scrutiny and sent the proposal back to the Commerce Ministry with some minor amendments. The ministry is now preparing to place it before the Cabinet as soon as possible, sources concerned said.
To facilitate a balanced development of the garments Industry. the Commerce Ministry had proposed amendment to The Textile Trade and Quota Administration Rules. 1991 and placed it for the •Consideration of the cabinet November 9. 1992. The cabinet formed a committee to examine the proposal and make recommendations accordingly
The recommendations of that committee were forwarded to the cabinet in
March last year. Afterwards, a coordination committee headed by the labour and manpower minister, was constituted to review the quota issue This committee prepared another report containing a 19 point recommendation.
The Commerce Ministry has now finalised its-draft proposal considering the report of the coordination committee keeping in view suggestions from the relevant quarters.
The final recommendations of the ministry includes provision for incentives to those who export garments fully made of local textiles Such exporters would get quota al location upto 200 per cent of their original export in the previous year.
It has also been recommended that If the applications for any category come under consideration for free quota, then a minimum of 500 dozens can be allocated. In case' of smaller availability of quota, the allocation would be made on 'first some first served basis or through lottery.
Allocation of unused |>ortion of 10 per cent quota reserved for local textiles under the
'free quota' category was also suggested.
The ministry also recommended that the allocated quota under any category can be ti'ansferred for a maximum of two times a year.
A clause of the recommendations favoured use of the quota system as a deterrent to employment of child labour in the garments industries. There are. however, alternative suggestions for use of the existing l^vs to prevent employment of child labour in the garments sector.