Retailing And Merchandising In Textiles And Appare

Retailing and Merchandising in Textiles and Appare 3(2+1)

Lesson 25 : Exports And Imports

Apparel Export Promotion Council (AEPC)

The apparel export council, sponsored by the ministry of textiles, government of India is the nodal agency to promote export of ready made garments, from India. Committed to stimulating growth of the garment exports both in quantity & quality terms, AEPC offers technical assistance, advice, information and seeks to open up new marketing avenues for exporters, AEPC has got around 7000 apparel manufacturers /exporters as its members and 150 officers /staff spread across 11 offices all over India, contributing to 6% share of India’s total exports, which is around 3% of the world trade in clothing.

It was incorporated u/s. 25 of the Companies Act, 1956 as a "company limited by guarantee" on 22nd February, 1978 with the prime object of promoting and regulating the growth of Readymade Garments to protect India's image as the reliable suppliers of high quality readymade garments and services. The Council is sponsored by the Government of India, Ministry of Textiles.

The main functions of the AEPC are as follows:

• Administers and monitors export entitlement for readymade garments for countries under MFA.
• Explores markets and identifies items which offer export potential.
• Provides library facilities to the members enabling them to keep abreast of new and current fashion trends in world market and disseminates international market information.
• Organizes Buyer Seller Meets abroad for selected products.
• Participates in Trade Fairs and Exhibitions abroad.
• Organizes seminars, discussions on topics of current interest.
• Creates and assists extensive publicity abroad for selected products.
• Advises the Government on matters of Export-Import Policy for readymade garments. * Arranges suitable alliance between buyers and suppliers.
• Further, AEPC also sponsors prestigious fairs namely

1. India International Garment Fair (IIGF) biannually for spring/summer and autumn/winter;
2. India Knit Fair (IKF) an annual fair. These fairs were greatly attended by foreign buyers and generate great business for Indian garment globally.

A notable achievement for the garment industry with the formation of the Apparel Export Promotion Council, the garment Industry in our Country enters into a new era of further progress and development in its exports. The new Council will be a very important addition to 18 other export promotion councils contributing their share in the export promotion of different items. In the economic history of our country the formation of this Council is a most timely step to boost the exports of readymade garments.

Garment exports which amounted to only a few lakhs of rupees per year before 10 years, now has reached the significant figure of 250 crores per year. Up till now Cotton Textiles Export Promotion Council was handling the export promotion work of garments, but now as the garment industry has reached a stature and maturity and has achieved the target of 250 cores, the leaders of the garment industry thought that it Would be in the best interests of the garment industry to have a separate export promotion council. Two leading organizations of readymade garments, clothing manufacturers association of India, Bombay and garments exporters association, New Delhi took a lead in this matter and formed a Special ad-hoc committee. The development of Exports of garments achieves three fold tasks

• Earning foreign exchange for the Country
• Providing employment
• Encouraging tourism

Objects Of Aepc

• To promote, advance, increase, develop export of all types of readymade garments, excluding, woolen knitwear and garments of leather, jute and hemp.
• To undertake all export promotion measures, particularly to undertake market research, quota distribution and allocation, to find out the tariff and other restrictive practices of importing countries, to find out the product range and export prices of garments of other countries, to develop new designs and patterns of garments, to undertake marketing in individual foreign markets, to send trade delegations and missions to foreign countries as well as to survey export potential of readymade garments from the country.
• To appoint representative, agents or correspondents in foreign markets for the purpose of continuously and regularly reporting the markets prices, market preferences and latest fashions and designs prevalent in the foreign countries.
• To conduct propaganda and publicity regularly and continuously so as to bring to the notice of the importers and the public in foreign countries the advantages of trade and commerce with India and to create a liking for the various types of garments markets for the purpose of continuously and regularly reporting to manufacturers, traders and exporters of garments.
  Name
  Registered Office
  Objects
• To assist members, especially, in the Small Scale Sector by giving assistance in the matter of understanding and implementation of the drawback, rules and procedures, import licence facilities provided and how to apply for the facilities.
• To establish design centers, to evolve improved design and patterns and garments suitable for export, to improve the qualities and standards of the fabrics and garments by importing technical know how, to encourage export production of quality garments and to undertake necessary research in fashions, designs and techniques and to encourage manufacture of garments for exports.
• To undertake training of workers and technical personnel, to improve the skill of workers engaged in garment manufacturing in India and to assist in the technological base of the garment industry.
• To obtain from members of the Council and to prepare for the Council as a whole, action plans for promotion of exports, development of export markets, generation of production for exports, setting of export targets generally and in relation to specific countries and commodities on an annual basis and for such medium and longer terms as may be considered desirable and to ensure/undertake execution of such plans.

Objects Incidental Or Ancillary To The Attainment Of Main Objects:

• To assist and give guidance to the members of the council as to registration with various authorities, how to apply for the quotas, explaining to the members about banking and documentation procedures, and in general, assisting all the members to fulfill the obligations regarding paper work and documentation in India before exports can be effected.
• To co-operate with government and other various organizations in the country and abroad with a view to further promotion of exports of readymade garments.
• To establish, if necessary, export promotion offices and show rooms in any part of the world.
• To open offices and show rooms in leading cities of India.
• To organize and participate in trade fairs, exhibitions and shows for the promotion of readymade garments in India and all parts of the world, so as to maximize the exports of readymade garments from India.
• To establish marketing consortiums so as to ensure maximum price realization to Indian exporters of readymade garments.
• To regulate and distribute quotas with the approval of the Ministry of Commerce, Government of India.
• To depute the Members or other officers of the Council and/ or their agents and/or representatives for survey of garments intended for export to foreign countries as a result of any dispute between the parties.
• To lay down standards and quality of packing in respect of garments intended for export and to formulate inspection procedures whenever necessary.
• To enquire and investigate into complaints received from foreign importers or Indian exporters in respect of the quality, description or other particulars of garments exported from India or the nonperformance or non-observance of the terms and conditions of contract relating to such exports and other connected matters and advising the manufacturers or exporters of readymade garments regarding the methods to be adopted to obviate such complaints of similar nature in future.
• To make recommendations as may be necessary or expedient to Government and public bodies, like, Chambers of Commerce where the Council on investigation of a complaint received by it is satisfied about its genuineness that the same has been caused by the willful or negligent act or acts of the manufacturer or the exporters of the goods as the case may be.
• To act as arbitrators or nominating arbitrators or values in the settlement of disputes or differences arising out of the transactions relating to exports of readymade garments between parties who agree to refer their disputes to the council.
• To enunciate just and adequate principles governing the export trade in readymade garments and to set up a code of practices for the general guidance of exporters and manufacturers and further to simplify transactions relating to exports of such readymade garments.
• To advice or represent to government, local authorities, public bodies on the policies adopted by them in relation to the control on industry or commerce and other measures, including, direct and indirect taxation, provided that, such advice or representation shall association, whether incorporated or not whose objects are altogether or in part similar to those of the council, and to procure from and communicate to any such company such information’s as may be likely to forward the objects of the council.
• To effect all such insurance in relation to the properties of the Council and the carrying on of its business or objects and any risk incidental thereto as may seem expedient.
• To adopt such means of making known the activities and services of the Council as may seen expedient, and in particular, by advertising in the press, by circulars, by purchase and exhibition, by publication of books and periodicals and by granting prizes, rewards and donations.
• To establish and support, or aid in the establishment and support of associations, institutions, funds, trusts and conveniences calculated to benefit employees or ex-employees of the Council or the dependents or connections of such persons, and to grant pensions and allowances, and to make payment towards insurance and to subscribe or guarantee money for charitable or benevolent objects, or for any exhibitions, or for any public or usable object.
• And generally to do all other lawful things as are incidental or conducive to the attainment of the above objects or any of them, provided that, the Council shall not support with its funds or endeavor or impose on, or procure to be observed by its Members or others, any regulations or restrictions which would make it a trade union.