Dear Members,

 

The  Directorate of International Customs, Central Board of Indirect Taxation & Customs (CBIC)  has issued Circular No. 54/2020-Customs dated the 15^th December, 2020 regarding Special measures to facilitate MSME for AEO T1 & T2 accreditation- reg.

 

We understand  that, in line with the Prime Minister’s Aatma Nirbhar Bharat Abhiyaan to support MSMEs against the challenges of the COVID-19 pandemic, CBIC has examined the difficulties faced by MSMEs while applying for AEO accreditation. Accordingly, the CBIC has decided to relax the entire gamut of compliance and security requirements for MSMEs. The relaxation has been carried out to ensure that the MSMEs are facilitated through rationalized compliance requirements (MSME Annexure I & 2) and minimum but effective security requirements (MSME Annexure 3).

 

In view of above, the CBIC has decided to facilitate MSMEs by further relaxing the current accreditation process and reducing the compliance burden for their AEO accreditation. The procedural modifications/relaxations for AEO accreditation of MSMEs are as under:

 

 

3. The eligibility requirement of handling a minimum of 25 documents during the last financial year has been relaxed to 10 documents, subject to handling at least 5 documents in each half-year period of the preceding financial year (Ref.: Para 3.1.7 of the Master Circular).

 

3.  The requirement for the applicant to have “business activities for at least three financial years preceding the date of application” has been relaxed to two financial years. (Ref.: Para 3.1.6 of the Master Circular).

 

iii.                The qualifying period for legal and financial compliance has been reduced from ‘the last three financial years’ to ‘the last two financial years’. (Ref.: Paras 3.2 & 3.4 of the Master Circular).

 

2. For AEO TI and T2 accreditation, the present annexures i.e., Annexure A, B, C, D, E.1-E.4 have been supplanted with two annexures viz. MSME Annexure 1 and 2. Similar rationalized annexures I and 2 are presently being utilized for AEO TI accreditation only in accordance with the CBIC Circular No. 26/2018-Customs dated 10.08.2018.

 

5. For AEO T2 certification, the present annexures i.e., Annexure E.5. I -E.5.7 for physical verification have been rationalized to a single annexure viz. MSME Annexure 3. The rationalization has been carried out to ensure that the security requirements for an MSME are objective and cover the minimum verifiable security criteria. (Ref.: Para 3.5 of the Master Circular).

 

1. The time limit for processing of MSME AEO T1 & AEO T2 application has been reduced to fifteen working days (presently one month) and three months (presently six months) respectively after the submission of complete documents for priority processing by customs zones.

 

vii.             The benefit of relaxation in furnishing of Bank Guarantee for AEOs has been further relaxed to 25% from 50% and 10% from 25% of that required to be furnished by an importer/exporter who is not an AEO certificate holder, for MSME AEO T1 and MSME AEO T2 entities respectively (Ref.: Para 3.5 of the Master Circular).

 

 

The above relaxations shall apply only to an applicant who has a valid MSME certificate from the line-Ministry. Further, the approved MSME must ensure their continuous MSME status during the validity of its AEO certification, if granted.

 

Thus, the AEO accreditation for MSMEs now requires submission of only two annexures for AEO TI and three annexures for AEO T2 applicants respectively. The two common annexures for AEO T1 and AEO T2 are: MSME Annexure 1 (General Compliance), MSME Annexure 2 (Legal, Managing Commercial Records, and Financial Solvency Compliance). Further, the third annexure for AEO T2 is MSME Annexure 3 (Safety and Security Requirements). These annexures have been designed to fulfil the aspirations of simpler application procedure with reduced documentation requirement for AEO accreditation of MSMEs.

 

The Board Circular No. 33/2016- Customs dated 22/7/2016 as amended stands modified to the above extent.

 

Members (specially MSMEs) are requested to take note and may make use of relaxed procedures for AEO certification.  The said CBIC  circular is  available for reference  on below link-

 

https://www.cbic.gov.in/htdocs-cbec/customs/cs-circulars/cs-circulars-2020/Circular-No-54-2020-updated.pdf

 

 

Feed-backs if any, may 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