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TAXAJ Corporate Services LLP - Financial Doctors

Apparel/Textile Export Promotion Council License (TEXPROCIL)

For any nation’s economic growth, Exports play a vital role. Export creates more employment opportunities, increase in foreign remittances, lesser current account deficit and robust overall economic growth. Textile export has been an important part of the Indian economy and it is the nation's oldest sector. Moreover, the industry is varied and there is a huge scope of Textile Industry in India as well as around the globe.

From hand-spun and hand-woven textiles to synthetic fibers, the demand of textiles products around the globe is increasing tremendously.

By 2029, it is anticipated that the Indian textiles market would be valued more than US$ 209 billion. The largest producer of cotton in the world is India.

360.13 lakh bales were produced during the crop year of October 2021 to September 2022.

Despite the pandemic, India's domestic textile exports expanded at a robust rate of 9% in FY21. In the fiscal year 2020-21, India exported 1.13 million tonnes of cotton yarn.

Hence, businesses in the textile sector looking for export or exporters and merchants must get the textiles export promotion council license and reap the benefits of this current opportunity.

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About This Plan

Filing of Forms with Textile Export Promotion Council.

Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

Depends upon case to case basis

Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Filing of Forms with Textile Export Promotion Council.
Who Should Buy
  • Business or Individual planning to export Textiles & related products.
How It's Done

    • Purchase of Plan
    • Expert Assigned
    • Share the details as requested
    • Preparation of Form and Filing with Department
Documents Required

For all applicants :

Self-Attested copies of IEC & PAN must. GST Number (if applicable)

Company: Self-Attested copy M & AOA, list of directors with their contact details on Company Letterhead.

Partnership firm: Self-Attested copy of Partnership deed. List of partners with their contact details on Company Letterhead.

Co-op Society: Self-Attested copy of Bye laws, List of Committee members with their contact details on Company Letterhead.

Trust: Self-Attested copy of Trust deed, List of trustees with their contact details on Company Letterhead.

Proprietor: Age Proof of Proprietor i.e. Self Attested copies of PAN card, Passport, etc.

For manufacturer Exporters:

Self-Attested copy of Certificate issued by DIC, SSI, MSME (Udyog Aadhar), MOC (SIA).

Additional document required for Member Exporters only:

Chartered Accountant's Certificate (CA Certificate) for Export Turnover.


What is the Textile Export Promotion Council?

Textile Export Promotion Council is an organization set up by the Indian Government. It assists Indian textile exporters also known as Apparel Export Promotion Council (AEPC) through providing access in International Markets, promotion of Indian Domestic products. Thus, the textile export promotion council performs various actions to increase the exports from India.

What is the Textile Export Promotion Council?

The Ministry of Textiles, Government of India, established the Apparel Export Promotion Council (AEPC) as a statutory organization with the purpose of encouraging the export of clothing and apparels made-ups from India.

Thus, the Apparel Export Promotion Council License is RCMC(Registration cum Membership Certificate). The textile export promotion council license or Apparel Export Promotion Council License allows the registrants to participate in the various initiatives taken by the government. The businesses having Apparel Export Promotion Council License also become eligible to get the advantages from Textile Export Incentives Schemes.

Type of Textile Export Incentives Schemes

Merchandise Exports from India (MEIS) Scheme

The MEIS, which was introduced in April 2015, offers duty rewards to qualified textile and clothing categories to the extent of 2–5 percent of Export FOB value in the nations categorized in accordance with the MEIS Scheme.

Duty Drawback Scheme

The Duty Drawback Scheme enables exporters to get a refund of customs duties paid on imported material or machinery or other capital goods when such textile products are either exported or are to be treated, processed, or included in other textile products / apparel for export.

Market Access Initiative Scheme

The Market Access Initiatives (MAI) Scheme is an export promotion initiative and scheme designed to serve as a catalyst for long-term promotion of India's exports. The plan is based on a focus product-focus country strategy to develop a particular market and a particular product through market research/surveys. Export Promotion Organizations,
Trade Promotion Organizations, National Level Institutions, Research Institutions, Universities, Laboratories, Exporters, etc., would receive assistance in order to increase exports by entering new markets or by gaining a larger share of the markets already in existence.

Market Development Assistance

Marketing Development Assistance (MDA) Scheme is to support/assist exporters/EPCs to carry out export promotion operations for their product(s) and commodities through FOCUS (LAC), FOCUS (Africa), FOCUS (CIS), and FOCUS (ASEAN + 2) programmes. The main goal of this scheme's incentives is to expand already-tapped international markets. The E&MDA Division of the Department of Commerce oversees the implementation of the initiative. Assistance on airline travel in economy class and/or costs for the crafted and equipped stall would be offered for participation in Trade Fairs/Exhibitions.

Schemes of Ministry of Textiles

Scheme for Textile Industry Workers’ Hostel

The following are the Scheme's goals:
offer a staff with a secure and safe workplace and accomodation.
promote improved worker retention by providing good housing in or near the textile parks, which will increase production.


The aim of the scheme is to build a workers' dormitory for about 3,750 workers throughout the five-year plan.

Development of Mega Cluster Scheme

In order to scale up the infrastructure and production chain at Handicrafts clusters, which have remained disorganized and have not kept up with the advancement, a mega cluster strategy has been developed to address and develop these sectors.

Technology Upgradation Fund Scheme

The government offers credit-linked capital investment subsidies with the goals of "Make in India" and "Zero Defect and Zero Effect" in manufacturing. This plan makes it easier for the textile sector to increase investment, productivity, quality, employment, exports, and import substitution. Additionally, it will subtly encourage investment in the construction of textile machines.

What is the Product Linked Incentive PLI Scheme for Textiles?

A performance-linked incentive is a type of reward given by one organization to another, such as the government to businesses or an employer to an employee, that is specifically outlined in a government programme or contract and is directly tied to the recipient's performance or output.

Therefore, The PLI Scheme for Textiles aims to support MMF Apparel & Fabrics and Technical Textiles production in the nation in order to help the textile sector grow and expand, become internationally competitive, and be a source of employment for people.

The plan is intended to aid in the development of a successful business and a thriving textile sector. The incentive under the Scheme will only be available for a period of 5 years, from 24.09.2021 (Date of Notification) till 31.03. 2030.

Incentive Rates under PLI Schemes for Textiles

Performance YearIncremental turnover on minimum ₹300cr investmentRate of incentive in %Incremental turnover on minimum ₹100crRate of incentive in %
Year 1 (FY 2024-25)₹600 Crore15₹200 Crore11
Year 2 (FY 2025-26)25%1425%10
Year 3 (FY 2026-27)25%1325%9
Year 4 (FY 2027-28)25%1225%8
Year 5 (2028-29)25%1125%7

Membership Fees of Council

1) Member Exporter [Entrance fees Rs.6,000/- + Membership fees Rs. 14,000/- + GST @18% = Total Rs. 23,600/-]
2) Registered Textile Exporter [Entrance fees Rs.3,000/- + Membership fees Rs. 8,000/- + GST @18%  = Total Rs.12,980/-]

Renewal Fees

Every year, after 1st April for the current financial year.
The renewal subscription fee for RTE is Rs. 8000/- + GST @18%- = Rs.9440/-.
The renewal subscription fee for Member is Rs.14000/- + GST @ 18% = Rs.16520/-.
Non-renewal of membership will result in automatic cancellation of the Registration cum Membership Certificate (RCMC).

Eligibility to become members of Textile Export Promotion Council

Member Exporter

Any person who is an exporter of garments whether manufacturer or merchant exporter or otherwise interested in the actual export of garments shall be eligible to become Member provided he or she meets the following criteria:

Applicant is registered firm or company and if it's the sole proprietorship firm, the applicant should be more than 21 years of age while applying.

Over the preceding three financial years, the firm or company's total export performance for clothing exceeded Rs. 1 crore.

The applicant or any of the firm's partners, directors, or Kartas have not been declared bankrupt by an appropriately constituted court of law.

No partner, director, or Karta of the business or corporation, including the applicant, has ever been found guilty of a crime involving misconduct or moral turpitude.

Registered Exporter

Any applicant, firm or society and/or Statutory Organization who is an exporter of garments whether manufacturer exporter or merchant exporter can register as Registered Exporter through getting an Textile Export Promotion Council License. Registered exporters can also become Member exporter after reaching the eligibility criteria of member exporter..