The ETS, established at an outlay of Rs 2 crore, will make export quota allocations for garment exports more transparent. It will also reduce hassles faced by exporters in getting quota entitlements to meet their overseas obligations.

While ETS will deal with only quota transfer to begin with, it is expected to be fully functional from January next by allocating all export quota entitlement for garment exporters and manufacturers.

ETS would accept only offers of quota transfers on Tuesday since requests for quota allocations are to be made against offers received the previous day. A gazette notification to give effect to ETS was made by the union textile ministryon September 4.

However, the existing manual system of transfer of quota entitlemnts would continue "temporarily", an AEPC circular said. The date of discontinuation of manual quota would be notified separately later and during the period when both manual and on-line system are functions, exporters would have the option of using either of them for their transactions, the circular said.

AEPC sources said extensive trials had been carried out from August 20 last on the on-line system before making it fully functional. The circular said facilities of consolidating entitlement of a maximum five firms and mutual transfer between these firms on ETS would not be available for this year as such firms were required to be declared before beginning of allotment year.

Electronic data interchange (EDI) connectivity to individual exporters would also be not available till the year-end, it said. ETS is expected to be extended to individual exporters at a later stage.

The ETS has been established as first of a seriesof initiatives to establish electronic commerce in the country by the government. Transfer of export entitlements would be monitored by AEPC headquarters in the capital and ETS, to be operational through very small aperture terminals (V-Sats), would be available to all exporters registered with AEPC and other designated registered authorities.