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Request for data for determination of ceiling rates under the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th Floor, 7 Cooperage Road, Mumbai - 400 001.India.
Tel : +91 22 22021288 / * Fax : +91 22 22026684
email : info@chemexcil.gov.in Web : https://chemexcil.gov.in

EPC: LIC: RODTEP

Date: 11-08-2020

Request for data for determination of ceiling rates under the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)

And Lists of Peruvian importers in various Chemical productsDistributor of Chemical Products in Peru looking for opportunities to source various chemicals from India

And Lists of Peruvian importers in various Chemical products

All Members of the Counci

ALL THE MEMBERS OF THE COUNCIL

Dear Members,

We have received communication from DBK Division, CBIC, DOR dated 10th August 2020 requesting data for determination of ceiling rates under the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP).

You might recall that in Sept 2019, Government had announced Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for neutralisation of various un refunded levies and Taxes on Export products. This scheme was supposed to replace MEIS from Jan 2020. Subsequently, DOC had sought data from councils in the specified format and was submitted by the council as per responses received. However, the launch of RODTEP was postponed till Dec 2020 to allow time to work out the rates.

Further, we understand from DBK DOR letter dated 05.08.2020 regarding constitution of RoDTEP Committee by the Government.

In continuation of the same, we have now received letter dated 10th August 2020 from DBK, CBIC, DOR informing us that the RoDTEP Committee has since started the exercise for determination of ceiling rates under the RoDTEP scheme. It is reiterated that the sequence of introduction of the scheme across sectors and prioritization of the sectors to be covered will be decided by Department of Commerce in consultation with Department of Revenue.

In this connection, Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/Chambers of Commerce have been requested to provide data w.r.t. inputs used in the respective export products in the specified Proforma comprising three parts viz. Proforma — R I, R2, and R3.

While providing the above data, care should be taken regarding the following aspects —

(a) Data provided should be complete for the exports made during the period 01.10.2019 to 31.03.2020. For a particular manufactured export item, the details of all input(s) that are used in the manufacture of all types/styles of that particular export item should be indicated.

(b) The incidence of duty should be restricted to currently un-refunded (i) duties/taxes/levies at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and (ii) such indirect duties/taxes/levies on distribution of exported product. An illustrative list of various duties/ taxes/ levies that might remains unrefunded is attached as Annexure.

(c) It may be ensured that only taxes/levies/duties borne on the exported product which are at present not getting refunded/reimbursed under any other mechanism such as Duty Drawback, GST refunds, Central/State Govt. exemptions, subsidy, etc. are taken into account while calculating the tax incidence on the export product.

(d) Data submitted should pertain to at least five units for each export product so as to be representative of the industry. The units should be carefully selected from amongst the small, medium as well as large manufacturer exporters.

(e) Data provided should only be of manufacturers/ manufacturer exporters in the domestic tariff area and it should be certified by the manufacturer and its Chartered Accountant/ Cost Accountant.

(f) The data should be supported by copies of relevant documents such as tax invoices of inputs used, shipping bills of export product, State Govt. notifications regarding taxes/levies like electricity duty, mandi tax etc.

(g). Data provided should be from manufacturer/ Units which are willing to get their data subjected to verification by authorities to check correct ness, if required.

The communication from DBK Division, CBIC dated 10th August 2020 along with formats ( R1, R2 & R3) is enclosed for your reference.

Considering the importance of this exercise to determine RoDTEP rates, members are requested to provide the requested data in specified formats, duly certified to the council within 10 days.

Your timely replies/ information be sent to us on email id's: ed@chemexcil.gov.in, deepak.gupta@chemexcil.gov.in, pwdd@chemexcil.gov.in & rodelhi@chemexcil.gov.in for examination and onward submission to DBK Division.

Thanking you.

Yours faithfully

S G Bharadi

Executive Director

Encl:C alling Data

Prafulla Walhe

Deputy Director

S G Bharadi

Executive Director

As we all understand, CBIC is committed to delivering superior trade experience by efficient service delivery. In this regard, CBIC seeks your valuable feedback/suggestions to improvise on their services.

Kindly take part in the survey using below links-

Survey link

https://www.icegate.gov.in/icegate-feedback/

Members are requested to take note and may spare their valuable 5 minutes to complete the survey which will help authorities to improve their services, wherever required.

Thanking You,

Yours faithfully,

(S. G. BHARADI)

EXECUTIVE DIRECTOR

CHEMEXCIL

As per updates on www.icegate.gov.in, Central Board of Indirect Taxes and Customs (CBIC) has invited Trade Community to participate in MANTHAN (Survey).

Kindly take part in the survey using below links-

Survey link

https://www.icegate.gov.in/icegate-feedback/

Members are requested to take note and may spare their valuable 5 minutes to complete the survey which will help authorities to improve their services, wherever required.

Thanking You,

Yours faithfully,

(S. G. BHARADI)

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

The Directorate General of Trade Remedies (DGTR) has issued Notification for Final Findings dated 6th August 2020 regarding Sunset Review investigation of Anti-Dumping duty imposed on imports of "Phosphoric Acid of all grades and all concentrations (excluding Agriculture/Fertilizer Grade)" originating in or exported from Korea RP.

You might be aware that, DGTR had earlier initiated the sunset review Investigation vide Notification No. 7/28/20] 9-DOTR elated 27th December, 2019 to review the need for continued imposition of ADD in respect of the subject goods, originating in or exported from the subject country and to examine whether the expiry of the said ADD is likely to lead to continuation or recurrence of dumping and injury to the domestic industry. The joint applicants for this SSR investigation were M/s Gujarat Alkalies & Chemicals Limited and M/s Grasim Industries Limited.

CONCLUSION (by DGTR)

Having regard to the contentions raised, information provided and submissions made by the interested parties and facts available before the Authority as recorded in the above findings, and on the basis of the above analysis of the likelihood of continuation or recurrence of dumping and injury to the domestic industry, the Authority concludes that:

Ø There is continued dumping of the subject goods from subject country and the imports are likely to enter the Indian market at dumped prices in the event of expiry of duty.

Ø The domestic industry has suffered continued injury on account of dumped imports from the subject country.

Ø The information on record shows likelihood of continuation of dumping and injury in case the Anti-dumping duly in force is allowed to cease at this stage.

Ø There is sufficient evidence to indicate that the revocation of anti-dumping duty at this stage will lead to continuation of dumping and injury to the Domestic Industry.

RECOMMENDATIONS

Ø The Authority notes that the investigation was initiated and notified to all interested parties and adequate opportunity was given to the domestic industry, exporters, importers and other interested parties to provide information on the aspects of dumping, injury and the causal link.

Ø Having concluded that there is positive evidence on the aspect of dumping, injury and causal link and likelihood of dumping and injury if the existing ADD are allowed to cease, the Authority is of the view that continuation of duty is required on the import of the PUC from the subject country.

Ø Under the circumstances, the Designated Authority considers it appropriate to recommend continuation of definitive anti-dumping duty, as modified, for a further period of 5 years from the date of its imposition, on all imports of the subject goods from the subject country as per column 7 in the duty table below:

SN	Tariff Heading*	Description of goods	Country of origin	Country of export	Producer	Duty amount	Currency	Unit
1	2	3	4	5	6	7	8	9
1	28092010	Phosphoric Acid of	Korea RP	Any	Any	137	USD	MT
		all grades and all concentrations (excluding Agriculture/ Fertilizer Grade)		Country including Korea RP



2	28092010	Phosphoric Acid of	Any	Korea	Any	137	USD	MT
		all grades and al l concentrations	Country other than	RP
		(excluding	Korea RP
		Agriculture/Fertilizer
		Grade)

Further, the landed value of imports for the purpose of this Notification shall be the assessable value as determined by the Customs under the Customs Act, 1962 (52 of 1962) and includes all duties of customs except duties under sections 3, 8B, 9 and 9A of the Customs Tariff Act, 1975, as amended from time to time. An appeal against the order of the Central Government arising out of these findings shall lie before the Customs, Excise and Service Tax Appellate Tribunal in accordance with the with the relevant provisions of the Act.

Members may take note of the same and do the needful accordingly. You may also refer to the said DGTR final finding Notification using below link:

http://www.dgtr.gov.in/sites/default/files/Final%20findings%20SSR%20Phosphoric%20Acid%20English.pdf

Feedbacks, if any, may be sent to us on email id's: ed@chemexcil.gov.in, deepak.gupta@chemexcil.gov.in, adreach@chemexcil.gov.in & info@chemexcil.gov.in for records/ examination.

Thanking you.

Yours faithfully

S G Bharadi

Executive Director