Dear Members,

 

The Central Board of Indirect Taxes & Customs (CBIC) has  issued Instruction No. 20/2020-Customs dated 17th December, 2020 to its field formations  regarding Verification of the Preferential Certificates of Origin in terms of CAROTAR Rules 2020.

 

Reference is drawn to Board’s letter dated 13.11.20120 vide file of even number (copy enclosed), wherein it was advised to ensure judicious application of CAROTAR 2020, without causing disruption to the supply chain.

 

We understand that on review of the verification requests in terms of rule 6 of CAROTAR 2020, being received by the FTA Cell in the  CBIC, it is observed that significant number of such requests have to be returned on account of being deficient, thus leading to delay in verification process and adversely impacting trade facilitation.

 

Common grounds on which the requests are being returned to field formations are:

 

(i) the scanned documents are found to be illegible;

 

(ii) the certificates are being scanned and sent without requisite covering letter to indicate nature of request or approval of jurisdictional Principal Commissioner or Commissioner; or

 

(iii) bulk COOs are sent rather that representative COOS, as required in terms of Para 4(i) of Board’s circular 38/2020-Cus, dated 21.08.2020

 

It is also observed that some requests do not appear to merit verification, but continue to be referred to the Board for same. Some illustrative examples of such grounds for verification are:

 

(i) non-availability of name of issuing authority, even in cases where same is not mandated as per that specific trade agreement;

(ii) non-availability of specimen seal and signatures for cases where same has already been communicated by the Board.

 

Attention is also drawn to para 4 (iv) of Circular 38/2020-Cus, dated 21.08.2020, wherein it has been advised to ensure that verification requests should be communicated immediately to the Board in case requests are in terms of rule 6(1)(a) or 6(1)(c) of CROTAR 2020; and within 10 days from the date of receipt of requisite information and documents from the importer in case the request is being considered in terms of rule 6(1)(b). It has however been observed that matters are being referred to the Board after significant time lapse.

 

Attention is also drawn to para 7.1 of the aforementioned Circular, wherein it has been advised to email all verification related correspondence to Board on ftaroo-cbic@gov.in , to help reduce time taken in communication. It is however observed that many field formations continue to dispatch only physical documents without using the email mode, leading to unwarranted delays in processing of the matter.

 

It is directed that, where a reference for verification is made to the Board in terms of rule 6 of CAROTAR, 2020, same should be complete, and follow the established standard operating procedures, prescribed format and timelines. All proposals for verification should be duly vetted to ensure valid grounds for verification.

 

Further, representation from trade are still being received about difficulties being faced on account of multiple queries or importers being asked to directly seek clarifications from the issuing authorities of the exporting country. Accordingly, officers under charge may also be sensitized to ensure that enquiry on origin of imported goods is initiated only where there are sufficient grounds to suspect origin of a good, or where same has been identified as a risk by the Risk Management System. They should be suitably supervised to ensure that unnecessary queries are not raised on account of goods origin, as also advised at para 2.2 of Circular No. 45/2020-Customs, dated 12.10.2020.

  

Members (specially importers)  are requested to take note  of this instruction issued by CBIC to its field formations regarding CAROTAR 2020.  For full details, members  may access the said instruction using below link-

 

https://www.cbic.gov.in/htdocs-cbec/customs/cs-instructions/cs-instructions-2020/cs-ins-20-2020.pdf

 

Feed-backs if any, may also be sent to us on e-mail ids:-  deepak.gupta@chemexcil.gov.in, pwdd@chemexcil.gov.in  and    info@chemexcil.gov.in      for   records/ examination.

 

 

Thanking You,

 

 

Yours faithfully,

 

Deepak Gupta

Acting Executive Director

CHEMEXCIL

 

As you might be aware, Government has recently announced “Emergency Credit Line Guarantee Scheme"  to provide liquidity to the MSMEs in the wake of COVID-19 related economic stress.

 

 

 

Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. three lakh crore to eligible MSMEs and interested MUDRA. borrowers, in the form of a Guaranteed Emergency Credit Line (GECL) facility.

 

 

 

 

 

Details/ Salient Features of the Scheme

 

 

 

The Emergency Credit Line Guarantee Scheme (ECLGS) has been formulated as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.

 

 

 

The Scheme aims at mitigating the economic distress being faced by MSMEs by providing them additional funding of up to Rs. 3 lakh crore in the form of a fully guaranteed emergency credit line.

 

 

 

The main objective of the Scheme is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and Non-Banking Financial Companies (NBFCs) to increase access to, and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by providing them 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.

 

 

 

The salient features of the Scheme include –

 

 

 

i. All MSME borrower accounts with outstanding credit of up to Rs. 25 crore as on 29.2.2020 which were less than or equal to 60 days past due as on that date, i.e., regular, SMA0 and SMA 1 accounts, and with an annual turnover of up to Rs. 100 crore would be eligible for GECL funding under the Scheme.

 

 

 

ii. The amount of GECL funding to eligible MSME borrowers either in the form of additional working capital term loans (in case of banks and FIs), or additional term loans (in case of NBFCs) would be up to 20% of their entire outstanding credit up to Rs. 25 crore as on 29th February, 2020.

 

 

 

iii. The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS.

 

 

 

iv. Tenor of loan under Scheme shall be four years with moratorium period of one year on the principal amount.

 

 

 

v. No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.

 

 

 

vi. Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.

 

 

 

 

 

Implementation schedule:

 

The Scheme would be applicable to all loans sanctioned under GECL during the period from the date of announcement of the Scheme to 31.10.2020, or till an amount of Rs three lakh crore is sanctioned under the GECL, whichever is earlier.

 

 

 

Members are requested to take note of above features of the ECLGS Scheme and  may avail, if applicable.

 

 

 

For operational guidelines and FAQs, please use below links on NCGTC site-

 

 

 

 

 

https://www.eclgs.com/documents/ECLGS%20-%20Operational%20Guidelines-Updated%20-%2002.06.2020.pdf

 

 

 

 

 

https://www.eclgs.com/documents/FAQs_on_ECLGS-Updated_as_on_06.06.2020.pdf

 

 

 

 

 

Please note that above information is being provided only as a service to the members in good faith.  For further details/ queries, Please contact your bank and financial institutions.

 

 

 

You may also send your feedback to the council on info@chemexcil.gov.in .

 

 

 

 

 

Thanks and Regards,

 

 

 

 

 

S G Bharadi

 

Executive Director

This is with reference in view of the disruption in supply chains due to the Corona virus. As you aware that Coronavirus epidemic is a matter of grave concern for the entire world, it is incumbent on larger economies like India to fill up the gaps in the global market. Countries which had been depending on China have learnt a lesson they should have an alternative market for sourcing and India was expected to be their preferred destination. So in the coming few months can provide our exporters greater market access in the absence of usually aggressive and competitive Chinese suppliers.

 

 

 

As a part of special measures under the national emergency to combat the spread of COVID-19 in Peru, has announced a zero per cent import duty on 65 products which include organic and inorganic chemicals, medicament, medical appliances, articles of vulcanised rubber, super absorbent polymers, etc. this is to overcome the likely supply chain disruption. Though a temporary measure intended for 90 days with effect from 13 March, it is likely to be extended for a longer period. Peru currently imports these items from China, USA, and EU countries, with which it has Free Trade Agreements, while imports from India attract 6% duty. According to Lima Chamber of Commerce (LCC) and the Association of National Pharmaceutical Industries, the measure (to remove duty) would incentivize Peruvian importers to source these products from other markets such as India.

 

 

 

In this context on our request we have received tremendous support from the High Commission of India in Peru and we have received information from them that President of Anders Peru S.A.C., Mr. Peter Anders – which has major presence in Peru as distributor of chemicals and intermediate products in different industrial sectors, has expressed interest in establishing contacts with potential suppliers in India. Mr. Anders approached the Embassy for support and guidance for sourcing chemicals and ingredients in the following sectors:

 

 

 

•        Coatings and adhesives

 

•        Plastics

 

•        Flexo painting

 

•        Home and personal care (cosmetics and perfumes)

 

•        Industrial and institutional hygiene

 

•        Electroplating

 

•        Textiles

 

•        Paper industry

 

•        Food additives

 

 

 

Mr. Anders has stated that they are currently importing dyes from India for the paper industry, and that they are keen to build and expand company’s trade relations with Indian suppliers.

 

 

 

Anders Group is a well reputed Peruvian company in the chemicals sector and it is a regional South American distributor of specialty chemicals, ingredients and industrial equipment. It was founded in 1964 and has 56 years of market experience. Its headquarters is located in Lima, Peru. The group with more than 150 employees and a turnover of over US$ 60 million, has commercial offices and warehouses in Peru, Bolivia, Ecuador, Chile and Colombia. The group company presentation is attached herewith for your ready reference. Mr. Anders also informed that he would like to use company’s distribution centre in Lima as a hub for supplies to countries in the region.

 

 

 

Mr. Anders’ proposal offers a good opportunity to tap into the Peruvian market, especially when exports of organic chemicals from a major supplier to Peru has dropped by 17%  and those of inorganic chemicals by 13% during the period January – April 2020.

 

 

 

We may request to our members to contact directly with Anders Peru S.A.C to expand business in Peruvian market. The details are mentioned below

 

 

 

            Mr. Peter Anders

 

            President of the Board

 

            Anders Peru S.A.C.

 

            E.mail: peter.anders@qanders.com 

 

 

 

Further, as desired, please find attached Lists of potential importers in Peru under Chapters 28, 29, 32, 33, 34, and 38.

 

 

 

We may request to our member exporters to take advantage of this opportunity and export to Peru.

 

 

 

Members  may also  send their comments / feed-back  on  our e-mail id’s:  ed@chemexcil.gov.in;  adreach@chemexcil.gov.in; deepak.gupta@chemexcil.gov.in; rokolkata@chemexcil.gov.in & robengaluru@chemexcil.gov.in  

 

 

 

Thanks and best regards,

 

 

 

S G BHARADI

 

EXECUTIVE DIRECTOR

 

CHEMEXCIL

 

BASIC CHEMICALS, COSMETICS & DYES EXPORT PROMOTION COUNCIL