HANK YARN PACKING NOTIFICATION

A Statutory notification Dated : 31st March,2000 issued for the protection and in the interest of the handloom industry. 

PART - 1

PREAMBLE :

The Textiles (Development & Regulation) Order, 1993, an order issued under Section 3 of the Essential Commodities Act 1955, empowers the Textile Commissioner appointed by the Central Government, inter-alia, for the protection of the handloom industry (a rural based industry) by way of ensuring that the yarn in hank form is available in adequate quantity at reasonable prices to the handloom industry and for that purpose, to make statutory provisions and for securing compliance to the said statutory provisions by all concerned, regulate, monitor, direct the textile industry, trade and the related associations, federations, firms, persons, non-governmental organizations, councils, bodies, co-operatives and public sector undertakings, etc. and in this regard to secure co-ordination from the central and State Government departments/ offices/ organizations and the semi-government/government undertaking organizations. 

The handloom industry which caters to the employment and earning capacity of lakhs of poor handloom weavers and their family members needs to be provided with adequate quantity of yarn in the hank form (its raw material) at reasonable prices and on an assured basis. With this objective in view, this statutory notification has been issued by the Textile Commissioner. 

PART - II

1. STATUTORY PROVISIONS :

In exercise of the powers conferred on the Textile Commissioner, appointed by the Union of India (hereinafter referred to as the Textile Commissioner) by clauses 8, 12 & 13 of the Textiles (Development & Regulations) Order, 1993, an order issued under Section 3 of the Essential Commodities Act, 1955, I, as the Textile Commissioner, hereby stipulate/prescribe the following definitions, directions, regulations, provisions, guidelines and instructions etc., to be complied with by all concerned, namely the concerned textile industry, trade and related associations, federations, persons, non-governmental organizations etc. 

2. SHORT TITLE, EXTENT, COMMENCEMENT AND
APPLICATION :

i. This notification shall be called as the "Hank Yarn Packing Notification 2000" (hereinafter referred to as 'H.Y.N.2000'). 

ii. It extends to the whole of India. 

iii. It shall come into force with effect from the 1st of April, 2000. 

iv. It shall continue to be in force until further direction from the Textile Commissioner. 

3. REPEAL AND SAVINGS :

i. The Hank Yarn Packing Notification No.8/TDRO/8/2/95 dt. 20th March, 1995, ceases to have effect from the date the H.Y.N.2000 comes into force. 

ii. Notwithstanding such cessations of the notification referred to in sub clause (1), any order made, anything done or any action taken or rights accrued or penalty incurred or any direction made or notice issued or exemption granted or deemed to have been made, done, taken accrued, incurred, issued or granted, as the case may be, under the Hank Yarn Packing Notification No.8/TDRO/8/2/95, dated 20th March,1995, shall be deemed to have been made, done, taken, accrued, incurred, issued or granted under the corresponding provisions of the H.Y.N.2000. 

4. DEFINITIONS.

i. "Captive consumption" shall mean the yarn actually used by a producer of yarn for producing cloth in their own weaving/loom shed and/or knitting department, situated within India. 

ii. "Quarterly period" for the purposes of H.Y.N.2000 shall mean the period January-March, April-June, July-September and October-December of a calendar year. 

iii. "Transferee mill" shall mean the mill which has packed hank yarn in excess of its own obligation and seeks to accept, to the extent of such excess packing, the obligation on account of another mill with a shortfall in fulfillment of its hank yarn packing obligations. 

iv. "Transferor mill" shall mean the mill which has a shortfall in the fulfillment of its hank yarn packing obligation and seeks to fulfill the said shortfall by transfer of obligation to another mill which has packed hank yarn in excess of its own obligation. 

v. "Yarn" for the purpose of H.Y.N.2000 shall mean, yarn spun from not less than 90% cotton and/or 90% viscose fibre including their blends and/or their wastes but does not include the following: 

(a) hosiery yarn; 

(b) Sewing thread; 

(c) Industrial yarns, like tyre cord, multiple yarn (more than 2 ply yarn), as defined by the Bureau of Indian Standards from time to time; 

(d) Mixed yarn of various counts reeled off from cop bottoms and yarn comprising single count yarn reeled off from cop bottoms having lose ends or knots at short lengths; and 

(e) Cellulosic/non-cellulosic filament yarn or metallic yarn. 

vi. "Yarn packed for civil consumption" shall mean, the yarn packed for sale in the domestic market, which includes the following: 

(a) In the case of a producer of both yarn and cloth, the yarn packed for delivery, transfer and sale in India other than exports and deemed exports as defined in the Export and Import Policy in force, in excess of the yarn actually used for producing cloth in their own weaving/loom shed and/or knitting department situated within India, (i.e. captive consumption) irrespective of whether the spinning, and weaving and/or knitting units/departments are located in the same premises or not. 

(b) In the case of a producer of only yarn, the yarn packed by him for delivery, transfer and sale in India other than exports and deemed exports as defined in the Exports and Import Policy in force. 

(c) All other terms defined in the Textiles (Development & Regulations order, 1993, shall carry the same meaning for the purposes of H.Y.N.2000 to the extent relevant and necessary. 

5. SUBMISSION OF QUARTERLY RETURN : 

Every producer of yarn shall furnish to the concerned Regional Office of the Textile Commissioner under whose jurisdiction such producer of yarn is located and to the Consumer Service Section of the Headquarters Office of the Textile Commissioner, M/o Textiles, Govt. of India, New C.G.O. Building, 48, new Marine Lines, Mumbai - 400 020, true and accurate information regarding packing of yarn in compliance with the directions, provisions, guidelines, etc. contained in HYN 2000, in Annexure-I appended to HYN 2000, so as to reach the said offices on or before the 10th of the second month after expiry of each quarterly period, by Registered Post A.D. or by acknowledged hand delivery. 

6. EXTENT OF OBLIGATION AND FULFILLMENT THEREOF:

i. Every producer of yarn who packs yarn for civil consumption shall pack yarn in hank form in each quarterly period commencing from April - June, 2000 and in every subsequent quarterly period, in proportion of not less than fifty percent (50%) of total yarn packed by him during each quarterly period for civil consumption; 

Provided that in regard to yarn containing cotton including cotton waste to the extent of 90% or more by weight, not less than eighty percent of the yarn required to be packed in hank form shall be of counts 40s and below. 

ii. A producer of yarn who is enable to pack yarn in hank form for any reason or who does not have reeling capacity to pack yarn in hank form, up to the extent of stipulation made/proportion prescribed under sub clause (1) shall fulfill his obligation prescribed under this clause in either of the following manners:- 

(a) A producer of yarn, with the written permission of the concerned Central Excise Department and the Regional Office of the Textile Commissioner, shall get his yarn reeled into hank form, by another producer having surplus reeling facility or through independent reeling unit(s) which is(are) in the records of the respective Regional Office of the Textile Commissioner. A producer of yarn who avails of this facility shall produce a certificate in the 'Form-A' appended to this notification, duly certified by a Chartered/Cost Accountant, to the concerned Regional Office of the Textile Commissioner alongwith the quarterly hank yarn packing return, i.e., Annexure-I, appended to the HYN 2000, for every concerned quarterly period. 

OR 

(b) The shortfall in respect of one producer of yarn (called as the transferor) for a particular quarter shall be met by another producer (called as the transferee) after fulfilling his (transferee's) own hank yarn packing obligation to the satisfaction of the concerned Regional Office of the Textile Commissioner, and in this regard, the information shall be furnished by the transferor in Annexure-II appended to HYN 2000, so as to reach the jurisdictional Regional Office of the Textile Commissioner and the Consumer Service Section of the Office of the Textile Commissioner, M/o Textiles, Govt. of India, new C.G.O. Building, 48, New Marine Lines, Mumbai - 400 020, on or before the end of the second month after the expiry of each quarterly period, by Registered Post A.D. or by acknowledged hand delivery. 

7. CARRY FORWARD OF OBLIGATION :

If the shortfall in hank yarn packing obligation, that is to say, the overall hank yarn packing obligation and/or coarser counts of hank yarn packing obligation is 15% or less than 15%, and if it is not possible to fulfill the same by transfer of obligation within the same quarterly period, the said shortfall hank yarn packing obligation may be carried forward to the immediately following quarterly period and the same should be fulfilled in the said following quarterly period either by own packing or by transfer. 

8. CARRY FORWARD OF EXCESS PACKING :

The surplus hank yarn packing in a quarterly period can be carried forward by a mill only to the following quarterly period for the purposes of fulfillment of its own shortfall in hank yarn packing obligation in the said following quarterly period, but not for undertaking hank yarn packing obligation of a transferor mill or for any other purpose or for any other quarterly period. 

9. FULFILMENT OF OBLIGATION BY TRANSFER :

i. The fulfillment of shortfall hank yarn packing obligation by a transferor mill for any quarterly period shall be against the hank yarn packing of the transferee mil in excess of its own obligation in the same quarterly period only. 

ii. If a mill which packed hank yarn more than its own hank yarn packing obligation, fails to submit the quarterly return in Annexure-1 within the due date prescribed under HYN 2000, it shall not be eligible for undertaking other mill's (transferor mill's) shortfall hank yarn packing obligation even if it submits the quarterly returns later and whether or not the delay in submission of the said quarterly return is condoned or not. 

PART - III

10. EXEMPTION :

i. A spinning mill declared through an appropriate notification or order as a 'relief undertaking' by the concerned State Government shall be exempted from the fulfillment of hank yarn packing obligation for the period specified in the notification or order. 

ii. The spinning mill declared as 'relief undertaking' shall submit a certified copy of such order/notification of the State Government to the Consumer Service Section of the Office of the Textile Commissioner, Mumbai, with a copy to the jurisdictional Regional Office of the Textile Commissioner within one month from the date of such notification or order, failing which, the exemption from fulfillment of the hank yarn packing obligation will be admissible from the actual date of submission thereof to the aforesaid authorities. 

iii. Notwithstanding the fact that a spinning mill has been exempted from fulfillment of hank yarn packing obligation under this clause, it shall be required to furnish the Hank Yarn Packing Return (Annexure-1) in terms of claue-5 of H.Y.N.2000. 

11. DUTY TO GIVE INFORMATION, ETC.

No person shall, with an intent to evade the provisions of this notification, refuse to give any information lawfully demanded from him in terms of his notification or conceal, destroy, mutilate or deface any book or other documents or articles kept by him in the course of his business. Any such acts of omission or Commission shall constitute a violation of the provisions of this Notification read with the Textiles (Development & Regulation) Order, 1993 and the Essential Commodities Act, 1955. 

CERTIFICATE OF REELING OF HANK YARN FROM OUTSIDE

(Form-A, under clause 6 (2) of HYN 2000)

“Certifiedthat the following quantity of yarn produced by M/s. ………... during the quarterly period …………., has been got reeled into hank form through M/s………………………., located at (full address) ………… with the due permission of the Central Excise Department vide letter No…………….., dated ………….. (copy enclosed), and the Regional Office of the Textile Commissioner, ………………….., vide letter No……………………, dated ……………………..”

Quantity in Kg.


 
Sl. No.
YARN SENT OUTSIDE FOR THE PURPOSE OF REELING INTO HANK FORM

QUANTITY OF YARN PACKED IN HANK FORM OUT OF THE YARN MENTIONED AT COL. NO.5
Category/form of yarn
In counts 40s and below
In counts above 40s
Total
In counts 40s and below
In counts above 40s
Total
1
2
3
4
5
6
7
8
1.
Cone
2.
Cheese
3.
Cops

(Signature of the Proprietor/Partner/(Signature of the Proprietor/

Director/Managing Director/Partner/Director/Managing 

Authorized Signatory of the Director/Authorized Sig-

Mills who produce yarn, with date)natory of the reeling unit

who reeled the other form 

of yarn into hank form, with

                            date)

Seal of the Company/firmSeal of the Company/firm

(Signature with date, seal and 

Enrollment No. of the Chartered Accountant 

as the case may be)

ANNEXURE-I

QUARTERLY HANK YARN PACKING RETURN

(Under clause 5 of HYN 2000, No.16/TDRO/8/1/2000, dated 31st March, 2000).

Note:The Annexure-I, is to be submitted to the jurisdictional Regional Office of the Textile Commissioner with a copy to Consumer Service Section of the Office of the Textile Commissioner, Mumbai, so as to reach the said offices on or before the 10th of the Second month after expiry of the concerned quarterly period.

Part (00) Identification particulars:

(4-10)

1.Mill’s Serial No.____________________

2.Mill”s Name and Address _________________________Form No.

3.Whether Spg. Or Composite Unit -------------------------------

4.Nature of Management123

(Write 1 for NTC, 2 for STC, 3 for Co-op. and 4 for Pvt./Others in the box)------------------------------

Q03

5.Quarterly return pertaining to the period ending on______________-------------------------------

11121314

_______________


 

Part (01) Packing details of non-obligatory varieties of yarn and yarn exempted from/not falling within the purview of Hank Yarn Packing Noticiation-2000

Item

Hosiery Yarn (supporting documents should be maintained)
Sewing thread
Industrial Mixed Yarn
Yarn reeled off from cop bottoms.
Yarn spun from not less than 90% of cotton and/or viscose fibre, exported out of India (supporting documents should be maintained)
Yarn spun from not less than 90% of cotton and/or viscose fibre, exported out of india (supporting documents should be maintained)
Yarn spun from not less than 90% of cotton and/or viscose fibre, used for captive consumption (supporting documents should be maintained)
Yarn spun from less than 90% cotton and/or viscose fibre.
Other non-obligatory variety of yarn packed (with generic name)
Total

(Col. Nos. 1 to 9)

0
1
2
3
4
5
6
7
8
9
10
(15-20)6
(21-27)7
(28-34)7
(35-41)7
(42-48)7
(49-55)7
(56-62)7
(63-69)7
(70-76)7
(77-83)7
(84-90)7
010101


 

Part (02) YARN PACKED FOR CIVIL CONSUMPTION (OBLIGATORY VARIETIES) FORM Q 03

Description/Form of packing

Item No.

Category (1) yarn containing 90% and more of cotton including its waste by weight
Categary (2) yarn containing not less than 90% of viscose fibre or viscose plus cotton fibres including their waste but excluding those at category (1)
Grand Total

(3 + 4)

Count 40s & below

Count above 40s

Total (1 + 2)

0
00
1
2
3
4
5
(0)
(15-20)6
(21-27)7
(28-34)7
(35-41)7
(42-48)7
(49-55)7
a)Hank (Including yarn reeled into hank form from outside reelers)
020101
b)CONE
020201
c)PIRNS
020202
d)BEAM
020203
e)OTHERS
020204
f)Total quantity of yarn, other than in hank form, packed for civil consumption.

(a+b+c+d+e)

020300

(020201+020202+

020203+020204)

g)Total quantity of Yarn packed for civil Consumption.

(a+b+c+d+e)

020400

(020101+020300)

h)Hank Yarn Packing Obligation (H.Y.P.O)
020501
80% of (h) of column No.3 = A.

(80% of item No. 020501 of Column. No.3)

X
50% of (g) of column No.3 = B 

(50% of item No. 020400 of Col.3)

50% of (g) of column No.4 = C.

(50% of item No. 20400 of col.4)

50% of g) of column No.5 = D

(50% of item No. 020400 of Col.5)

i)Shortfall in fulfilment of H.Y.P.O. 

[(h) – (a)]

020601

(020501-020101)

A-(a) of col.No.1
B-(a) of column No.3
C-(a) of column No.4
D-(a) of column No.5
j)Excess hank yarn packing after fulfilling his own obligation.

[(a) – (h)]

020701

(020101-020501)

(a) of Column No.1-A
(a) of column No.3-B
(a) of column No.4-C.
(a) of column No. 5 –D.

Certified that the particulars furnished above are true and correct.For fulfilment of shorfall H.Y.P.O., the annexure-II shall be submitted so as to reach jurisdictional Regional Office of the Textile Commissioner and Consumer Service Section of the Office of the Textile Commissioner, Mumbai on or before the end of the second month after the expiry of quarterly period for which this Annexure-I is submitted.

certified that the particulars furnished above areCertified that the particulars furnished above are

verified and found to be true and correct to the verified and found to be true and correct to the best 

best of my (Mills management) knowledge and beliefof my (C.A’s) knowledge and belief.

Signature (with date) of the Proprietor/Partner/MD/Signature (with date) of the Chartered Accountant/

Director/Authorised Signatory of the mill.Cost Account.

(Name & Seal of the Mill)(with Name and Enrolment No. of C.A.)

ANNEXURE-II

Application for transfer of Hank Yarn Packing Obligation (H.Y.P.O)

(Under Clause 6(2) of HYN 2000, No.16/TDRO/8/1/2000 dt. 31st March, 2000)

Note:The Annexure-II is to be submitted by the transferor mill(s) to the jurisdictional Regional Office of the Textile Commissioner with a copy to the Consumer Service Section of the Office of the Textile Commissioner, Mumbai, so as to reach the said offices on or before the end of the second month after the expiry of the concerned quarterly period.

----------------------------------------------------------------------------------------------

To

The Officer-In-Charge,

Regional Office of the Textile Commissioner,

____________________.

Sir,

In terms of the Hank Yarn Packing Notification No.16/TDRO/8/1/2000 dated 31.03.2000, we (transferor) were required to pack ________ kgs. of yarn for civil consumption in hank form (H.Y.P.O) during the quarterly period__________.Whereas we have packed _____ kgs. of yarn in hank form and already transferred _____kgs of H.Y.P.O of the said quarterly period to other transferee mill(s).Now we the transferor, have shortfall to the extent of _____kgs. in fulfilment of the H.Y.P.O., for the quarter ______.We therefore approached the transferee mill(s) M/s________________ who have got excess hank yarn packing during the current quarter __________ after fulfilling their own H.Y.P.O., for transfer of our shortfall H.Y.P.O for the quarter _______.We have also confirmed from transferee Mill(s) that they have submitted Annexure-I for the current quarter _______ to their jurisdictional Regional Office of the Textile Commissioner within due date specified in the HYN 2000.The particulars of transfer of H.Y.P.O. by the transferor mill and the particulars of excess hank yarn packing by the transferee mill(s) are furnished below:

I.Mill Serial No. of Transferor:

(in Kgs.)


 
Sl. No.
Item No.
Particulars of transferor mill

M/s._________

Overall

Counts 40s & below (in case of Col.2, i.e., cotton yarn)
Cotton Yarn
Viscose yarn
Cotton and Viscose blended yarn
Total
0
00
1
2
3
4
5
6
1.
010101
Total H.Y.P.O.
2.
010201
(i) Hank yarn packed (by own packing including yarn reeled from outside reelers)
3.
010202
(ii)Quantity of H.Y.P.O transferred so far
4.
010203
(iii)Total of (i)+(ii)
5.
010301
Quantity of H.Y.P.O now being transferred
6.
010401
Net further shortfall of H.Y.P.O., if any. Sl. No.[1-(4+5)]

II.Mill Serial No. of Transferee :

(in Kgs.)
 
Sl. No.
Item No.
Particulars of transferee mill

M/s._________

Overall

Counts 40s & below (in case of Col.2, i.e., cotton yarn)
Cotton Yarn
Viscose yarn
Cotton and Viscose blended yarn
Total
0
00
1
2
3
4
5
6
1.
020101
Total H.Y.P.O.
2.
020201
Hank yarn packed (by own packing including yarn reeled from outside reelers)
3.
020301
Excess hank yarn packed. Sl. No.(2-1)
4.
020401
H.Y.P.O. of other mill(s)/producer(s) so far undertaken
5.
020501
H.Y.P.O. of above transferor mill(s) now being undertaken
6.
020601
Remaining (balance) excess, hank yarn packed, if any.Sl.No.[3-(4-5)]

We, the transferee mills have submitted Annexure-I for the current quarter _________ to our jurisdictional Regional Office of the.Textile Commissioner ___________ within due date specified in HYN 2000.

We the transferor and transferee mills agree with the above arrangement and request you to kindly issue us the registration letter for transfer of above H.Y.P.O. of above transferor mill.

We further certify that the particulars furnished above are true and correct to the best of our knowledge and belief.We fully understand that, if any of the information furnished above is found incorrect at any point of time, the registration letter issued by the jurisdictional Regional Office of the Textile Commissioner shall stand null and void without prejudice to any action that may be initiated against us severally or jointly, by the office of the Textile Commissioner.

Thanking You,

Yours faithfully,

Signature (with date) of Proprietor/Partner/Signature (with date) of

Managing Director/Director/AuthorisedProprietor/Partner/MD/

Signatory of transferee mill (with full addressDirector/Authorised 

& Phone no. of the mill)Signatory of transferor

mill (with full address & 

phone No. of the mill)

 

 

 

CERTIFICATE OF CHARTERED ACCOUNTANT/COST ACCOUNTANT

We certify that the above information furnished by the transferor and the transferee mills tally with the Central Excise documents and other relevant records maintained by them.

Signature (with date ) of the Signature (with date) of 

Chartered Accountant/Cost Accountantthe Chartered Accountant/

Of TRANSFEROR mill.Cost Accountant of 

(with Name & Enrolment No. and seal)TRANSFEREE mill.

                            (with Name & Enrolment No. and seal)


 

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