GO GO INTERNATIONAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners being garment exporter and an association of garment exporters respectively are aggrieved by the quota policy instruction and circular imposing conditions for transfer of quota under the Garment Export Quota Policy.

(2.) As you are aware, the Quota Policy allows limited flexibility of transfer of quotas under PPE/NQE systems till 20th September. This flexibility is not available to the other systems viz. NIE/FCFS systems.

(3.) In this context, it has been noticed that during the current year, the actual utilization of quotas in most of traditionally fast moving categories has been low, though quantities have been allocated far in excess of the annual quota limits imposed by the restraining countries. This gives rise to a nagging suspicion that certain vested interests are including in increased activity of speculation and hoarding of quotas thereby creating artificial scarcity especially in categories where there has traditionally been a good demand. According to the trade circles, lately there is a spurt in premium for these categories in the market, which if allowed unchecked would affect the genuine exports of the country. Uncertainty in the market would result in some of the genuine exporters not being able to export goods, and there is a possibility that big importers of Indian goods may shift their buying to other textile exporting countries. It might also cause under utilisation of precious quotas and thereby loss to the country export exchequer.