"Import of these items into EU and US have been put on hold due to a dispute on category utilisation flexibility. They are expected to be cleared once the dispute is solved," Apparel Export Promotion Council (AEPC) additional director general DK Nair said.

Even if the dispute remains unsolved, these imports would be automatically removed from January one, when new shipments quota come into effect, he said.

The US had initially put on hold import of ladies blouses from India on November 4. It was followed by an embargo on gents shirts shipments. The EU, on the other hand, has imposed an embargo on imports of readymade garments from India last week.

Import of these items have been put on hold as India had overutilised the shipment quota allocated bythese countries for the respective categories.

However, a section of garment exporters is peeved that they have to incur heavy loss as shipments have been held up.

"If these consignments do no reach on time, they will be cancelled. Who will compensate for these losses?" All India Garment Exporters Common Cause Guild president Chand K Anand asked.

Nair said flexibility in utilisation of quota was allowed under the categories and once the dispute was resolved the shipments would be allowed. "It could take even less than a day once the dispute is resolved," he said.

The European Commission (EC) had accepted that flexibility of quota utilisation was allowed but its member-states were yet to relax the embargo.

"It is expected to be settled once theECc confirms dispute settlement," he said, adding that actually, the shipments had only been put on hold.

Anand faulted AEPC for not monitoring the quota utilisation properly. "It is AEPC duty to monitor the quota utilisation. How can it shut its eyes to thereality?," he wondered

In particular, AEPC should have learnt a lesson after a similar problem arose last year with the US. "Last year, we overshot the quota in the US by 17 per cent. But we escaped as the people in US realised it late," he said.

According to Anand, the problem arose when AEPC allowed quotas for past performance on a first-come-first-served basis and though the curbs might be lifted from January 1, it would not serve the purpose in so far as the loss suffered by exporters.

Anand said as a result of the embargo, particularly on ladies blouses imports by the US, at least 10 lakh pieces had been held up.

"The entire December shipments of exporters had to cancelled. And it is not easy to get back the orders as stores abroad will have a fixed date to display these items," he said.

The embargoed goods amounted to about five per cent of the total quota allocated by the respective countries and value of ladies blouses itself amounted to Rs 40 crore.

But Nair denied that the quantity ofimports held up were significant. "As far as the US embargo is concerned, the quantity held is negligible," he said.

Regarding the shipments held up due to EU decision, the AEPC official said "insignificant quantity has been held up due to insignificant reason".

Two weeks ago, textile secretary Shyamal Ghosh had said India was negotiating with the US to allow flexibility in the quota utilisation. Talks were on to allow the flexibility and let the shipments, he said.