GST: Important Information for Importers / Exporters related to GST Implementation

Regarding MEIS Application (FOB Value Calculation)

Anti-Dumping (Review) on "Oxalic Acid" by European Commission

Chapter wise rate wise GST Schedule decided in the GST Council Meeting held on 18.05.2017

Implementation of the expanded India-Chile PTA

Imp-DGFT Trade Notices regarding Target Plus Scheme (TPS) Scrips & Duty Free Credit Entitlement (DFCE) Scheme

Change in office address of Regional Office of DGFT at Puducherry and Head of Office at Regional Office of DGFT at Ludhiana, Ahmedabad, Hyderabad and Bengaluru in Appendix-1 A of Foreign Trade Policy, 2015-20.

Monitoring of export obligation fulfilment under EPCG and Advance Authorization Schemes

Launching the India Standards Portal today Commerce Minister NirmalaSitharaman has said that while standards are important, they also need to be affordable.
"India needs to make it possible to provide quality goods at an affordable price," stated the Minister at the 4th National Standards Conclave being organized by Confederation of Indian Industry (CII) in cooperation with the Department of Commerce, Ministry of Commerce and Industry, Government of India on May 1-2.

While appreciative of the launch of the India Standards portal, she suggested that a feature be added for people to access this information via their phones and an SMS service must be provided for the same.

Rakesh Bharti Mittal, President Designate, CII stressed on the need for greater involvement of states in the development of standards as well as the need to help MSMEs and the agriculture sector comply with international standards.

India Standards Portal is a one stop centre for all information on Standards, Technical Regulations, conformity assessment & accreditation practices, and the related bodies in India.

(Ref. https://bureaucracytoday.com/top_news.aspx?id=186012 dated 1st may-2017)

The government proposes to come out with a mid-term review of the Foreign Trade Policy (FTP) 2015-20 in September, commerce and industry minister Nirmala Sitharaman said.

NEW DELHI: India plans to revamp its foreign trade policy and relook at incentives to give a leg up to the export sector, which is hurt by lower global demand as well as anappreciating rupee. The government proposes to come out with a mid­term review of the Foreign Trade Policy (FTP) 2015­20 in September, commerce and industry minister NirmalaSitharaman told ET.

“We have asked stakeholders, whoever is interested, to give us inputs,” she said. “We are looking at it in-depth and in all its details.” The foreign trade policy, announced in 2015, has set an export target of $900 billion, or about Rs 58 lakh crore, by 2020. In 2016­17, India’s merchandise shipments aggregated at $275 billion, or about Rs 17,70,000crore. To achieve the FTP target in five years, exports have to grow at 14% every year. “Between 2014 and today a lot has changed. Exports are happening, but globally trade is in a depressed situation,” Sitharaman said. “India went through a bad patch and is now recovering.” She will hold a day¬long consultation with the stakeholders on Saturday on FTP. Make in India will continue to be a significant factor influencing the policy. Already, the policy provides for higher level of rewards to products with high domestic content and value addition compared to products with high import content and less value addition. The government is likely to provide special incentives to a smaller list of sectors from among the 25 focus areas for the Make in India programme. Some aspects of the foreign trade policy will be modified to align in with the Goods and Service Tax, which is likely to be rolled out in July this year.

FTP 2015­20 had introduced two new schemes: Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). These schemes replaced multiple schemes, each with different conditions for eligibility and usage. Incentives under these schemes have been made available for SEZs as well. Ecommerce of handicrafts, handlooms and books among others are eligible for the benefits.

(Ref. http://economictimes.indiatimes.com/news/economy/foreign-trade/india-to-revamp-foreign-trade-policy-to-give-leg-up-to-exports/printarticle/58540622.cms dated 5th May-2017)

"We found merit in the suggestion that the review ofthe policy should be well in time to go along with theroll out of the GST. It means I have to announce itwell in time for July 1," Sitharaman said.

NEW DELHI: Commerce Minister NirmalaSitharaman today said the revised mid­termforeign trade policy (FTP) is to be announced few days ahead of July 1, the scheduleddate for the Goods and Services Tax roll out. After holding a meeting with various stakeholders, including exporters as part mid­term review of FTP (2015­20) here, the minister also said that no suggestions were made to scale down the 2020 export target of USD 900 billion, including services. Given the current economic and geopolitical situations globally there are concerns that international trade may be impacted.

Sitharaman said suggestions were made that the review should be concluded by July 1 so that it is aligned with the GST implementation. "We found merit in the suggestion that the review of the policy should be well in time to go along with the roll out of the GST. It means I have to announce it well in time for July 1," she said. She further said that there were certain specific suggestions and questions for the GST Council comprising state finance ministers, and headed by the Union Finance Minister.

A team including the Commerce Secretary to seek time from GST Council on the specific issue, including one related to duty refunds of exporters. Exporters, especially from the SME sector, have expressed concerns that their funds would be locked up for several months. As per the GST norms, 90 per cent of the refund will be given in 7 days and remaining 10 percent will be given in 4­5 months. SME exporters expressed concerns that their funds could remain locked for long time. During the meeting suggestions were also made to explore rupee denominated trade especially in the South East Asian nations and those in the Middle East. Suggestions were also made that the FTP should not focus only on exports but on imports as well.

(Ref. http://economictimes.indiatimes.com/news/economy/policy/mid-term-foreign-trade-policy-to-be-out-before-gst-roll-out-nirmala-sitharaman/articleshow/58549266.cms dated 6th May-2017)

New Delhi: Commerce and Industry Minister Smt. NirmalaSitharaman has said that the revised Foreign Trade Policy (FTP) would be released early to synchronise the same with roll out of GST. The core focus of the revised FTP would be promoting exports from the SMEs and high employment potential sectors. Smt. NirmalaSitharaman was chairing a meeting on the Mid-Term review of the Foreign Trade Policy 2015-20 organised jointly by Department of Commerce and Research and Information System for the Developing Countries (RIS).

Commerce Secretary, Ms Rita Teaotia, Chairman RIS ShriHardeep Singh Puri and DGFT Shri Ajay Bhalla also participated in discussions. The event was attended by the trade policy experts from the industry, academia, Research and Government.

Major suggestions discussed during the deliberations related to promoting Rupee Trade, facilitating not only exports but also imports and reducing cost of credit. Participant recommended harnessing the high foreign exchange earnings and large employment generation potential of services related to the Tourism, Education and Health sector. Such services fall under the WTO category of the Mode 2 Services, also called the 'Consumption Abroad' category. It was emphasised that promotion of mode2 in services sector shall contribute in domestic economic development and job creation.

Concerns were also raised on issues relating to GST and its impact on export. Minister said that Department of Commerce has already taken up these issues with Department of Revenue, and assured that it will again take up these issues With DoR for placing it before GST council to find a solution.

Critical role of Logistics sector for export competitiveness was also discussed;, reducing the cost of credit in promoting exports, export basket diversification, strategy for promoting value added exports, agriculture exports and services exports were also deliberated. It may be noted that while announcing the five year FTP, 2015-2020 on 01.04.2015, Hon’ble Commerce & Industry Minister had announced that the policy would be reviewed on mid-term basis. The exercise has been initiated by Department of commerce in January 2017. DGFT has held consultation with a cross section of stakeholders.- Exporters, Traders, Export promotion Councils, Commodity Boards, Various Ministries of the Central Govt., State Governments, foreign missions of India and Industry Bodies- in this regard.

(ref. https://orissadiary.com/nirmala-sitharaman-said-mid-term-review-ftp-completed-early-synchronise-roll-gst/ dated 6th May-2017)

Mr. R. Viswanathan, also known as Rengaraj Viswanathan, is a retired Indian diplomat, writer and speaker specializing in Latin American politics, markets, and culture.

Ecuador’s President Rafael Correa (L) and president elect Lenin Moreno greet supporters as they stand on the government palace’s balcony during a military change of guard ceremony in Quito, Ecuador April 3, 2017. Credit: Reuters

Leftist candidate Lenin Moreno won Ecuador’s presidential run-off elections on April 2, beating his rightist rival Guillermo Lasso, a wealthy banker.

Moreno’s victory is being celebrated by the Latin American Left, which had lost power to the right in Argentina and Peru in recent elections. In Brazil and Paraguay, the rightists have brought down leftist presidents through constitutional coups. There is talk of ‘retreat of the left‘and ‘fading of the pink tide‘in the region. Against this background, Moreno’s victory in Ecuador is a moral boost to the Left in the region. Moreno is the hand-picked candidate of leftist President Rafael Correa, who has ruled the country since 2007. The outspoken Correa is known for his fierce crusade against neoliberalism and Washington Consensus. He had refused to sign a FTA with the US, pulling out of the negotiations even when neighbours Colombia and Peru went ahead. He closed the US airbase in Ecuador when the lease expired in 2009. In a bold move, he granted asylum to Wikileaks founder Julian Assange who is wanted by US prosecutors after he had published secret American documents; Assange has been staying at the Ecuadorian embassy in London since June 2012. Lasso threatened to evict Assange if he won the election.

The victory of the Left in Ecuador comes as a relief and brings hope for those frustrated with the recent rise of right-wing extremism in Europe, US and other parts of the world. It should not be forgotten that the Left continues to rule in Bolivia, Chile, Uruguay and Venezuela. Former president LuizInácio Lula da Silva is still seen as the frontrunner in Brazil’s next elections in 2018, if he is not banned from running through right-wing conspiracy. The chances of Mexico’s leftist candidate, Andrés Manuel LópezObrador, have become brighter in the elections next year as a reaction to US President Donald Trump’s anti-Mexico diatribes.

The credit for the victory of the Left in Ecuador goes to the exemplary performance of Correa’s government in the last ten years. Correa has pulled the country out of its economic mess of the past when it suffered one crisis after another. He has reduced the poverty rate from 40% in 2006 to 23% in 2016. He has doubled the social spending, improved the living standard, and infrastructure and public services. He has included Ecuador’s indigenous people and other marginalised groups in political and economic development. He achieved all these without stoking inflation, which stood at 1.3% in 2016. Under his government, economic growth increased steadily while unemployment decreased. He redrew the unequal oil and mining contracts of multinational corporations, making them pay more, and using the additional revenue for education and healthcare. Alarmed by the fact that 38% the government revenue went to service external debt, he cut it down by aggressive and compulsory restructuring, and by standing up to IMF, World Bank and the western creditor mafia. While his close friend Hugo Chavez ruined the Venezuelan economy with disastrous policies in the name of ‘twenty first century socialism,’ Correa, who has a masters and PhD in economics from a US university, showed pragmatism. For instance, he continued the policy of his predecessors in keeping the US dollar as the country’s currency as part of economic stabilisation, despite his anti-US rhetoric and his own criticism of dollarisation when it was introduced in 2000.

More importantly, Correa brought political stability to Ecuador, notorious for its chronic instability. The country had seen eight presidents in the ten years before Correa came to power, witnessing military coups and congressional impeachments of presidents in that period. Three of Correa’s predecessors were forced out of office before completing their terms. Correa is the first president elected to serve a third consecutive term in the last 100 years of Ecuador’s history. After his first election in 2006, Correa got a new constitution approved in 2008, under which he won re-election in 2009 and 2013. Correa is leaving the presidency honourably with his head high and a respectable approval rating of 44% after ten years in power. He has announced that he will pursue academic work in Belgium, where he had done university studies and met his wife Anne Malherbe.

Moreno, who had served as vice president during Correa’s first term (2007-13), has promised the continuation of Correa’s inclusive agenda of development. He is more moderate and conciliatory than his sharp-tongued and thin-skinned combative predecessor who was intolerant of criticism. Moreno is a paraplegic since being shot during a robbery in 1998. He had used ‘laughter therapy’ as part of his recovery process and has created a foundation, Eventa, to promote humour and joy as a way of life, authoring numerous books on the subject.

Lasso, who lost narrowly with 48.83% of the vote, as against Moreno’s 51.17 %, is contesting the results claiming irregularities. He has asked his supporters to protest peacefully but forcefully. But he is yet to come out with solid evidence to substantiate his allegations. The external observers sent by the Organisation of American States (OAS) and UNASUR (South American community of states) have not reported any adverse observations on the polls. In fact, the secretary general of OAS has already congratulated Moreno for his victory. It may be noted that Lasso got 10% fewer votes than Moreno’s 39.36% in the first round of elections held in February. His party CREO got just 34 seats while Moreno’s Alliance Pais (Country Alliance) party had won 74 and secured a majority in the 137-member National Assembly in the February elections. Lasso had also lost to Correa in the 2013 presidential election, getting just 22.7% vis-à-vis Correa’s 57%.

Ecuador, a small country with a population of 16.4 million and $100 billion GDP, depends largely on oil exports for its revenue. With the drastic decline in oil prices in the last two years, the country faces problems of budget deficit, foreign exchange shortage and austerity. The GDP growth in 2017 is projected to be just 0.3% after the contraction of 2% in 2016. The country is in deep debt to China, which has given a cumulative credit of $17.4 billion. The Chinese are taking oil against repayment and are dominating in Ecuador’s oil, mining and infrastructure sectors. The excessive dependence on China for credit and investment is the price Correa had to pay in view of the hostile and high-handed approach of Western financial institutions.

India’s trade with Ecuador was $378 million in 2016 (January-December), of which exports were $165 million and imports $213 million. India’s imports have fallen drastically from $987 million in 2014, due to the fall in price of crude, the country’s main import. Ecuador is an OPEC member with an estimated 8 billion barrels of proven reserves and daily production of 540,000 barrels. TCS has implemented a $150 million IT project for Ecuador’s Banco Pichincha, which is one of their largest contracts in the region. India had exported seven Dhruv helicopters to Ecuador but four of them crashed. The delay in amicable resolution of this issue has caused some strain in bilateral relations. In spite of this, Ecuador is keen to strengthen trade with India and attract Indian investment. It had sent a large business and government delegation, led by the vice president, to the Indo-LAC Business Conclave in December 2013. Petro Ecuador has signed a MOU with ONGC Videsh Ltd for cooperation in hydrocarbons. Ecuador has established a consulate in Mumbai besides an embassy in New Delhi. This is noteworthy given that Brazil and Argentina are the only other Latin American countries with consulates in Mumbai.

It is time for India to consider opening an embassy in Quito. Ecuador is more important than Iceland, where India has an embassy for unknown reasons. India’s exports to Iceland are less than $20 million and imports below $5 million. After all, the cold and barren Iceland, with a tiny population of 330,000 and an insignificant GDP, does not have oil, minerals or opportunities like Ecuador does.

Latin America is projected to have a GDP growth of 1.1% in 2017, according to the 24 April report of the UN Economic Commission for Latin America and Caribbean (ECLAC). This latest growth estimate is less than the prediction of 1.3% in ECLAC's December 2016 report. Even the 1.1% growth comes as welcomenews; given the fact the region had suffered an economic contraction of 1.1% in 2016 and 0.5 % in 2015. South America is expected to have a low growth of 0.6% while Central America will have a higher rate of 3.6%

Growth estimates for the major countries are as follows:

• Brazil 0.4%
• Mexico- 1.9%
• Argentina 2%
• Colombia- 2.4%
• Peru- 3.5%
• Chile- 1.5%

Introduction

Water and oil, when mixed together and vigorously shaken, form a dispersion of oil droplets in water. Once the shaking stops, the phases start to separate. However, when an emulsifier is added to the system, the droplets remain dispersed, and a stable emulsion is obtained. An emulsifier consists of a water-loving hydrophilic head and an oil-loving hydrophobic tail. The hydrophilic head is directed to the aqueous phase and the hydrophobic tail to the oil phase. The emulsifier positions itself at the oil/water or air/water interface, and has a stabilizing effect on the emulsion by reducing the surface tension.

Major Applications

• Food Industry: An emulsifier is well known in the food industry for its emulsifying effects, where it serves various functions. Following are some examples of the use of emulsifiers in the food industry:
1. Modifies oil crystal and prevents water spattering in cooking
2. Destroys emulsion to stabilize foam and to make smooth texture in ice cream, and keeps its shape
3. Reacts with proteins to make smooth easy-rising dough in bread
4. Acts on starch to make bread soft
• Personal Care Industry: Emulsifiers are an important category of surfactants for personal care applications. They are essential in the production of creams and lotions. Emulsifiers enable oil and water/aqueous components to mix and remain stable over a long period of time. Choosing an optimum emulsifier system helps create evenly dispersed, small droplets, thus providing kinetic stability and an elegant texture, skin feel and appearance to creams and lotions. Typically, emulsions have a milky white, opaque appearance due to the type and level of emulsifiers used; however, there are micro emulsions that appear clear or transparent to the human eye. These are used in specialized applications, such as enhancing skin permeation of active substances. Emulsifiers often impart a specific texture or sensory aspect to the end product, so their selection is important for marketing appeal as well as technical aspects.
  
  Current Market Scenario
  
  The global emulsifiers market is expected to grow at a CAGR of 5.28% between 2016 and 2021. Factors contributing to the market growth include increasing popularity of natural emulsifiers and growing usage of emulsifiers in personal care products and the food & beverage industry. Technological advancements within the food processing industry are expected to further boost the market growth. Factors such as increasing demand for packaged food, escalating income levels and availability of packaged functional foods are boosting the demand for emulsifiers. However, consolidation within the food additive industry is expected to restrain the market growth.
  
  Among all the products, lecithin represents the largest share in the emulsifiers market. Lecithin is used widely in feed, food, nutritional supplements and cosmetics. The United States represents the largest market worldwide, whereas Asia-Pacific is projected to grow at the highest CAGR due to sustained demand for natural emulsifiers.
  
  Some of the key players in the emulsifiers market include Cargill Inc., Lonza Group, BASF, AAK Bakery Services Ltd., DSM Nutritional Products, DuPont, Lubrizol Advanced Material, Danisco A/S, Archer Daniels Midland Company, Dow Corning Corporation, Palsgaard A/S, Stepan Company, and Kerry Group.
  
  Recent Developments
  
  Emulsions are a fundamental product form for many cosmetic categories, which involves careful selection of optimum emulsifier systems. Cosmetic science has progressed a long way and at present there is a trend towards liquid crystal structures and emulsifiers that are acceptable and usable to manufacture certified natural cosmetics.
• Alfa Chemicals worked on emulsifier technology and developed an emulsifier with a trade name of Sucragel AOF BIO, which is a natural liquid emulsifier based on sucrose laurate. It can be used in the oil phase as a co-emulsifier for creams and lotions. It can also be used to gel oils, which can then in turn be diluted with water to form a fine sprayable emulsion.
• Azeis Personal Care developed emulsifier-based products, such as BlanovaMuls GMSC, BlanovaMuls Eco 77, and BlanovaMuls Eco 2277 Eco, among others. For example, BlanovaMuls GMSC is glyceryl stearate citrate based emulsifier, which is used to emulsify high amounts of oil. It is particularly suitable for the production of sprayable emulsions.
• Croda's new product formulations based on emulsifier technology include Arlacel 1690, Arlacel 2121, NatraGem E145 and NaturGem E140. These products are developed in order to cater to the growing demand from the cosmetic industry. For example, NatraGem E145 is a natural emulsifier, which is compatible with both low and high polarity oils with excellent electrolyte, pH and temperature tolerances.
• Dow Corning developed DC ES-5612 Formulation Aid, which is a silicone emulsifier designed to prepare low viscosity water-in-silicone and water-in-oil emulsions.
  
  Costs
  
  Emulsifiers are generally cost extensive to manufacture and process, owing to the high raw material costs associated with them. Emulsifiers significantly increase the cost of product in which they are added. Occasionally the cost of their formulation is almost doubled by their addition. However, owing to advancement in technology, natural raw materials based emulsifiers are being developed, which are not only of higher quality, but are also relatively cheaper. For example, a new starch emulsifier developed by Ingredion can deliver four times the emulsifying power of traditional beverage emulsifiers, enabling manufacturers to slash production and distribution costs.
  
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