Amendment in CGST Rules, 2017: Notification regarding E-way bill

Electronic Sealing for Containers by exporters under self-sealing procedure

Revision in Entitlement to export freely exportable items on free of cost (FOC) basis by Status Holders

Amendments in Appendix 2G (List of Inspection and Certification Agencies) as per HBP 2015-20

Harmonised MEIS Schedule in the Appendix 3B (Table - 2) with ITC (HS), 2017

GSTR-3B filing due date for July 2017 extended to August 28, 2017 (only for taxpayers who opt to use Transition Input Credit in the current month return)

Grievance Redressal Committee (GRC) Meeting at Addl. DGFT Mumbai office on 13.09.2017 at 4.00 PM

State Levies still incurred by exporters Post GST Roll-Out

GST:LUT/ BOND- CBEC Clarification on RCMC in lieu of BG/ Eligibility of LUT on INR Receipts/ Others

RBI EDPMS - Further extension up-to 31.08.2017 for AD banks to clear pendency in EDPMS

IK-CEPA-  Comments on request list  from Korea for  Rules of Origin

Due Dates for e-Filing of  GST Returns for July /August 2017

Reminder - Inviting Pre-Budget Proposals for the Year 2018-19

Reminder - India- Japan CEPA: Issues for discussion in the Joint Committee meeting under India-Japan CEPA

Changes in S/B Declaration regarding All Industry Rates (AIRs) under Duty Drawback scheme

GST- Leviability of IGST on High Sea Sales of imported goods and point of collection

Under the GST regime, MEIS and SEIS scrips can be used only for payment of Basic Customs Duty (BCD).

The Government of India has always endeavoured to encourage and incentivise exports, and it has been an avowed policy to export goods and services and not taxes and duties. The Ministry of Commerce, Government of India has consistently formulated schemes aimed at diversifying Indian exports and creating a stable policy environment- Foreign Trade Policies (FTP). The FTP 2015-20 announced various schemes (some new and others modified existing schemes) as a step towards the Prime Minister’s much touted ‘Make in India’.

On June 30th, 2017 the Directorate General of Foreign Trade (DGFT) issued a Trade Notice amending the scope, applicability and procedural aspects of some of the FTP schemes, in view of and to align with the new GST regime that India embraced from 01st July, 2017 – all these changes took effect from July 1st, 2017. Are these FTP schemes still incentivising exports after the amendments? Some of the key amendments scheme-wise are discussed below:

Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) are focussed on boosting merchandise and service exports from India. The rewards granted under these schemes are that of duty credit scrips. Previously, the scrips could be used for making payments of customs duties on the import of goods, excise duties on certain domestic procurement of goods and service tax on the receipt of specified services.

Under the GST regime, MEIS and SEIS scrips can be used only for payment of Basic Customs Duty (BCD), and cannot be used for payment of Integrated GST (IGST) and GST Compensation Cessleviable on imports, and Central GST (CGST), State GST (SGST), IGST and GST Compensation Cess on domestic procurements. Therefore GST will have to be paid in cash by importers, resulting in cash outflow at the point in time of import, although credit of such taxes paid in cash would be available to them. One moot aspect also is that the Government has assured refund for taxes paid in exports within 7 days (upto 90%), yet, it does not consider the life-cycle of production/service rendition from the point of import!

The Advance Authorization (AA) scheme and Duty-Free Import Authorization (DFIA) Scheme allow duty free import of inputs which are physically incorporated in the resultant exports to manufacturers/exporters including those associated with supporting manufacturers, subject to certain conditions.

Under the GST regime, while the exemption from payment of Customs duties, including BCD, Additional Customs Duties Anti-dumping Duty, Safeguard Duties and Customs Cesses continue, there is no exemption from payment of IGST and GST Compensation Cess for imports under AA/DFIA. Companies making local procurements will have to pay applicable GST using an Invalidation Letter of AA/DFIA.

Therefore, there can be seen to have occurred a paradigm shift in pattern and manner of business transactions. Previously, an exporter need not have funded the tax portion of imports in the production of goods, which will be necessary under the GST regime.

Further, the Advance Release Order (ARO) facility available for domestic procurement of inputs under AA has been restricted only to certain inputs (listed in the Fourth Schedule of Central Excise Act, 1944 (CE Act)) such as tobacco and petroleum products. Therefore, AA cannot be used for domestic procurement of other inputs.

The Export Promotion Capital Goods (EPCG) scheme encourages manufacturers / exporters to import capital goods including spares for pre-production, production and post-production activities at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under the EPCG scheme, to be fulfilled in 6 years from the authorization issue date.Under the GST regime, the exemption from import duties under EPCG does not extend to any IGST payable and is restricted to BCD. Further, the ARO facility for domestic procurement of capital goods has been discontinued.

Schemes in the nature of Export Oriented Unit (EOU), Electronics Hardware Technology Park (EHTP), Software Technology Park (STP) or Bio-Technology Park (BTP) were introduced to aid in the establishment of units proposing to export a broad spectrum of their goods and services with the exception of permissible sales in the Domestic Tariff Area (DTA). These units enjoyed duty-free import of input used in their activities.
In the GST regime, though exemption has been given to the import of goods covered under GST from customs duties, IGST and Compensation Cess is payable on these imports. Further, GST is payable on domestic procurement which was earlier exempted ab initio.Only procurement of goods covered under Fourth Schedule of the CE Act will continue to enjoy the ab initio exemption from central excise duty.

On DTA clearances of finished goods, GST will be payable by EOUs, along with the requirement to pay back the BCD on imported inputs. Further, the transfer/supply of goods from one unit of EOU/EHTP/STP/BTP to another has been made liable to GST, as these constitute “supply” under the GST law.

Deemed Exports: The deemed exports scheme is an incentive for transactions where certain goods are domestically supplied by the manufacturers or exporters for payment received in INR or free foreign exchange. For deemed exports, AA benefits have been continued, however, the duty exemptions under AA are restricted (as set out in point 2 above). Deemed Export Drawback benefits have been restricted to refund of BCD only. Terminal Excise Duty refund has been made available only for goods covered under Schedule 4 of the CE Act subject to eligibility of the supply of such products as deemed exports. Therefore, the scope of the scheme has also been reduced.

Evidently, the changes in the FTP are substantial in as much as they restrict the purpose of the scrip and authorization holders as regards duty payment to a great extent. Effectively, the duty benefits under FTP scheme are by and large applicable only to customs duties and do not extend to levies of GST. Existing scrip and authorisation holders will have to immediately start paying GST in cash as opposed to debiting their scrips or enjoying an exemption, clearly resulting in cash flow considerations, even while credit of such taxes paid would be available as credit for set-off (as in the case of scrips presently held by importers as well).

The revamp of the export promotion schemes has in a manner raised certain pertinent questions as regards the FTP. Do schemes like AA and EPCG continue to be attractive options given the export obligation that comes with it? Have these amendments tilted the balance of convenience in favour of domestic supplies as opposed to export supplies?

Updation:

The Delhi HC has issued a notice to the Revenue department, that it shall hear a petition challenging curtailment of duty exemption benefits under Advance Authorisation scheme of Foreign Trade Policy, post implementation of GST.

While the upfront exemption is extended only to Basic Customs Duty, exporters are required to pay IGST on imports and/or CGST + SGST / UTGST on domestic procurements and thereafter claim the refund.

According to the petitioner, such mechanism adversely affects the working capital and puts all exporters in a tough position.

The High Court has therefore directed the Revenue dept. to file the counter affidavit, followed by a rejoinder by the petitioner before the next hearing scheduled on October 30.

(Source: https://www.thedollarbusiness.com/news/export-incentive-schemes-under-the-ftp-are-exports-still-incentivising-under-the-gst-regime/50903 dated 31st July-2017)

New Delhi, July 31: India's Foreign Trade Policy Statement released in 2015emphasises the need of a branding strategy. The India Brand Equity Foundation (IBEF) established by the Department of Commerce works closely with stakeholders across government and industry to promote and create international awareness of the Indian products and services in overseas markets.

IBEF has undertaken focused branding activities for sectors namely engineering, pharma, plantations (tea, coffee and spices), services, textiles and leather. This is done through a 360o branding approach including onsite branding, advertising in media, digital marketing including social media, PR, knowledge kits and revamping the websites of many export promotion councils. IBEF actively works with Indian missions abroad for its branding activities in overseas events and also supports them with knowledge works and branding collaterals.

Department of Commerce encourages participation of exporters, export promotion councils, trade associations etc. in International Trade Fairs, Expos etc. India Trade Promotion Organization (ITPO) is the trade promotion agency of the Department of Commerce. ITPO has finalized participation in 31 overseas exhibitions for 2017-18. Based on the proposals submitted by the Export Promotion Councils/Trade Promotion Organizations, an annual plan for organizing participation of exporters in various international fairs and expos is drawn and supported under the Market Access Initiative (MAI) scheme by Department of Commerce.255 proposals for export promotion activities/events in India and abroad for 2017-18 have been approved for assistance under MAI scheme. No targets of earning from such events are fixed.

This information was given by the Commerce and Industry Minister Smt. Nirmala Sitharaman in a written reply in Lok Sabha today

(Source:-http://www.newkerala.com/news/fullnews-258936.html dated 31st July-2017)

New Delhi, Aug 1 (KNN) The new Agreement on Trade, Commerce and Transit between India and Bhutan has come into force with effect from 29th July 2017.

The Agreement provides for a free trade regime between the territories of India and Bhutan. The Agreement also provides for duty free transit of Bhutanese merchandise for trade with third countries.

“The Agreement was last renewed on 29th July 2006 for a period of ten years. The validity of this Agreement was extended, with effect from 29th July 2016, for a period of one year or till the new agreement comes into force, through exchange of Diplomatic notes,” Ministry of Commerce & Industry said in a statement.

The new Agreement on Trade, Commerce and Transit Agreement was signed on 12th November 2016 by the Minister of State (IC), Ministry of Commerce and Industry on behalf of the Government of India during her visit to Bhutan on 11th-13th November, 2016.


(Source: http://knnindia.co.in/news/newsdetails/global/new-trade-agreement-between-india-bhutan-has-come-into-force-with-effect-from-july-29-2017 dated 1st August-2017)

	HIGHLIGHTS India's trade deficit with China in 2015-16 swelled to $52.68 billion, which Indian officials say has become unsustainable Sitharaman sought the assistance of Chinese ministry of commerce in reducing the trade deficit, facilitating greater market access
(Commerce Minister Nirmala Sitharaman in talks with her Chinese counterpart Zhong Shan. (Image: Twitter/@CimGOI )

BEIJING: Commerce Minister Nirmala Sitharaman has held "candid" talks with her Chinese counterpart Zhong Shan over the ballooning trade deficit in favour of China which has crossed over $52 billion and sought a level playing field for Indian IT and agro products.

India's trade deficit with China in 2015-16 swelled to $52.68 billion, which Indian officials say has become unsustainable. Besides pressing for access to IT and pharma products, the main stay of India's global exports, India has been insisting that China should compensate by stepping up investments.

"The two ministers exchanged views, in a candid manner, on further development of a strong, balanced and sustainable trade and investment partnership between India and China," Indian Consulate in Shanghai said in a statement on Tuesday. "In particular, Minister Sitharaman sought the assistance of Chinese ministry of commerce in reducing the trade deficit, facilitating greater market access and for providing a level playing field for Indian IT, pharmaceuticals and agro products in China," it said.

The meeting between the minister of state for commerce and industry and Zhong was the second after their meeting on the sidelines of the Regional Comprehensive Economic Partnership (RCEP) Ministerial meeting in Hanoi, Vietnam in May 2017. The ministers also agreed to further intensify India-China cooperation in the multilateral frameworks such as WTO, BRICS and Shanghai CooperationOrganisation (SCO), the statement said.

They decided to hold the 11th Joint Economic Group (JEG) in New Delhi at the earliest. A host of BRICS ministerial and officials meeting on various fields were being held in China ahead of the five-nation grouping's summit to be held in September this year in the Chinese city of Xiamen.

The meetings were taking place as per schedule despite the India-China tensions over the standoff at Doklam in the Sikkim section.

Ahead of Sitharaman's visit, China's commerce ministry said India should avoid abusing trade remedy measures and called for settling trade disputes through consultation. Reacting to India's move to launch an anti-dumping investigation over photovoltaic cells and units imported from China, Taiwan and Malaysia, Wang Hejun, head of the commerce ministry's trade remedy and investigation bureau said China was paying close attention to the probe and hopes India will conduct it in a prudent manner andas per relevant rules.

Wang said adopting restrictive measures for the trade of photovoltaic products would not only harm photovoltaic sector development in India, but also dampen the sector's long-term development worldwide as well as economic and trade cooperation between China and India.

Meanwhile, coinciding with Sitharamans's visit, an article in today's state-run 'Global Times' said protectionism against Chinese manufactured products will only boomerang on the Indian industry.

The list of Chinese products covered by India's trade remedy investigations is getting ever longer, expanding from garments, glass, minerals and other low-end items to advanced products such as new materials and machinery, it said.

It seems that the Indian government is trying to protect domestic industries from overseas competition through trade remedy measures, but although this strategy offers certain short-term benefits, it will eventually hinder India's industrial development, the article said.

India has initiated 12 investigations against Chinese products in the first half of this year, becoming the country with the most trade remedy probes against China, it said.

During the period, 11 investigations were launched by the US, it said, quoting China's ministry of commerce (MOFCOM).

"There are other explanations behind the intensified trade conflicts between India and China. After years of development, India's industries have made progress, and many companies in India now produce items that could compete with those from China," it said.

"Chinese producers still have the upper hand, but it seems understandable for the Indian government to be eager to protect local industries," the write-up claimed.

But it is wrong to resort to trade remedy measures to drive Chinese products out of the local market, it added. "At the same time that it is making great efforts in liberalising foreign investment rules, India should also open up to foreign competition to facilitate the development of domestic manufacturing," it said.

(Source:-http://timesofindia.indiatimes.com/business/india-business/commerce-minister-nirmala-sitharaman-holds-candid-talks-with-chinese-counterpart-on-growing-trade-deficit/articleshow/59863944.cms dated 1st August-2017)

Washington, Aug 2: Alleging that several countries, including India and China, have turned to discriminatory policies that unfairly disadvantage American companies, a US-based technology group has urged the Trump administration to overcome barriers to digital trade. The group has also named South Korea, Russia, Vietnam, Canada, Mexico and Indonesia that have adopted discriminatory policies against US companies.

"Multiple foreign governments have turned to discriminatory or otherwise harmful policies that unfairly disadvantage American companies and impede the ability of technology products and services to drive growth," Information Technology Industry Council (ITI) said in its 'report to the president on Trade Agreement Violations and Abuses'. Rules that treat foreign firms and local companies differently are in India, China, Colombia, Indonesia, South Korea, Russia and Vietnam, the report said. Technical barriers to trade, standards and conformity assessment are in the EU, India, Mexico and Vietnam, and tariffs and fees on technology products or digital products in the EU and India, it said. Burdensome customs regulations are in Canada and Mexico, ITI said, alleging that investment restrictions, including local presence requirements, are in India, China, Indonesia, and Vietnam. There is restricted access to government procurement markets in India and South Korea, it said. In the India annex of the report, ITI alleges that tariffs on technology products are inconsistent with India's WTO commitments. "India continues to raise tariffs on an increasingly wide range of technology products, including products where it is bound under the WTO rules to apply zero tariffs, such as mobile phones, base stations, routers, and ink cartridges," the report said. "Our view is that India is blatantly acting in a manner that is inconsistent with its WTO commitments. We encourage USTR to consider enforcement actions, such as revoking India's GSP benefits or initiating WTO dispute settlement proceedings, to address India's behaviour as soon as possible, as we anticipate that India will continue to raise tariffs on additional technology products," it said.

Objecting to the recent Make in India initiative of the Indian government, the report said that the order released by the Department of Industrial Policy and Promotion (DIPP) in the summer of 2017 obliges government agencies to provide procurement preferences to locally produced products for all public procurement, varying by cost thresholds. In order to qualify for a local product, it must have 50 per cent local content, calculated by the product's bill of materials, it said. Governments around the world are preventing US tech companies from selling their products and services abroad; requiring the "localisation" of data, software, services and hardware within their borders; forcing technology transfer; and using regulatory and other barriers to put a thumb on the scale in favour of their own firms, it said. "These restrictions harm the US companies in all sectors, preventing manufacturers, service providers and small businesses from entering foreign markets and using technology products and services to support exports and other businesses in the US," it said.

ITI Senior vice president for Global Policy Josh Kallmer said that the US can be offered the greatest potential to use trade to enhance innovation, job creation and economic growth by removing the barriers and enabling digital information to move rapidly and freely, including across the borders. According to the report, data localisation and restrictions on cross-border data flows in China, Colombia, the European Union (EU), Indonesia, South Korea, Russia and Vietnam; while restrictions on the ability of cloud computing companies to compete is in China and South Korea. PTI

(Source:-http://www.oneindia.com/international/several-countries-including-india-adopting-discriminatory-trade-policies-2512793.html dated 2nd August-2017)

The premium on the scrips is going to drop as a result of this Exporters will now have to shell out the goods and services tax (GST) at 12 per cent when selling scrips of export-incentive schemes such as the Merchandise Export from India Scheme (MEIS).

The government on Thursday clarified that scrips received by exporters under the Services Exports from India Scheme and the Incremental Export Incentivization Scheme, apart from the MEIS, will be taxed.

Exporters earn duty credits through the form of scrips at fixed rates of 2 per cent, 3 per cent, and 5 per cent, depending upon the product and country. The earned scrips can be freely transferred to others or sold. Exporters have continued to maintain that more government help is needed to sustain India’s falling outbound trade.

“MEIS etc fall under heading 4907 and attract 12 per cent GST,” the Central Board of Excise and Customs (CBEC) said in its frequently asked questions on the GST.

The GST is based on a category of goods and services based on the harmonised system number (HSN) codes. HSN 4907 relates to financial securities such as shares and bond certificates, and bank notes, cheque forms, etc.

Exporters are up in arms with the FAQs and demanded that export-incentive scrips such as the MEIS be made a separate category with a different HSN code, and the rate be reduced to 5 per cent.

Sources said the GST Council might take up the demand at its meeting on Saturday.

“What is the legal sanctity of FAQs? It’s not a notification. It's an interpretation,” Federation of Indian Export Organisation Director General and Chief Executive Officer Ajay Sahai told Business Standard.

The CBEC also said in its disclaimer to FAQs that these clarifications were only for educational and guidance purposes and did not have legal validity. Explaining the rationale of exporters’ demand to cut the rate on the MEIS to 5 per cent, he said those buying the scrips would have to wait to utilise the MEIS for tax purposes if the GST on their products is 5 per cent.

The premium on the scrips is going to drop as a result of this, the executive director of the Engineering Exports Promotion Council of India said.

The largest of such export promotion schemes in the form of scrips, the MEIS, was introduced in April 2015 under the Foreign Trade Policy and currently incentivises merchandise exports along with 7,913 items.

(Source:-http://www.business-standard.com/article/economy-policy/sale-of-scrips-under-export-promotion-schemes-to-attract-12-gst-117080400040_1.html dated 4th August-2017)

The establishment of an India-Afghanistan air freight corridor this year was welcomed by all stakeholders at a meeting hosted by India of the Heart of Asia-Istanbul Process, a platform to encourage security, political, and economic cooperation among strife-torn Afghanistan and its neighbours, here on Monday.

"With regard to the bilateral initiatives taken by India, the recent establishment of the air freight corridor between India and Afghanistan was welcomed as providing fast and assured access to farmers of Afghanistan to the large markets in South Asia and beyond," the External Affairs Ministry said in statement following the eighth meeting of the Regional Technical Group of Confidence Building Measure on Trade, Commerce and Investment Opportunities under the Heart of Asia - Istanbul Process.

"India's assistance for capacity building and training of Afghan officials, including on PPP mode of project implementation; and the WTO-related matter, programmes for which that were conducted by the Ministry of Finance and the Department of Commerce, Government of India the past few months were also acknowledged positively," it added.

The India-Afghanistan air freight corridor was established earlier this year with the first flight taking off from Kabul for New Delhi on June 19.

Monday's meeting was co-chaired by the Acting Director General, Economic Cooperation Department in Afghanistan's Ministry of Foreign Affairs Hassan Soroosh, and Joint Secretary in India's Ministry of External Affairs Deepak Mittal.

It was attended by representatives of 17 participating countries and supporting international organisations, including Azerbaijan, Iran, Kyrgyzstan, Pakistan, Russia, Tajikistan, Turkey, Turkmenistan, the United Arab Emirates, Australia, Egypt, Germany, Britain, the US, the European Union and the UN.

"The participants shared the view that Afghanistan acted as a natural bridge in promoting regional connectivity and economic integration.

"There was consensus that economic development was an important factor in ensuring peace and stability in Afghanistan and the Heart of Asia region," the statement said.

The Heart of Asia-Istanbul Process was established in November 2011 to expand coordination between Afghanistan and its neighbors and regional partners in facing common threats, including counter-terrorism, counter-narcotics, poverty, and extremism.

The US and over 20 other nations and organisations support the process.

According to the statement, the participants in Monday's meeting shared views on various measures and steps to promote transit and trade and realising reliable and robust connectivity, with Afghanistan as the hub.

"This included the recognition of the need to make the existing transit and trade agreements more inclusive and comprehensive by expanding them both northwards and southwards to connect South Asia with Central Asia; strengthening growth of small and medium enterprises (SMEs) and involvement of women in economic development, including through women entrepreneurship; and simplifying customs procedures," it said.

The initiative by India to develop a web portal, with participation of industry body Ficci, for exchanging information on regional markets, trade and investment opportunities, and facilitating networking between businesses for the participating countries also came in for appreciation.

According to the statement, the steps taken for development of transit and transport through Chahbahar port in Iran involving India, Afghanistan and Iran, the proposed Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, and the CASA-1000 (Central Asia-South Asia power project) were appreciated.

The TAT (Turkmenistan-Afghanistan-Tajikistan) railway line and the Lapis Lazuli corridor were also assessed positively.

The Lapis Lazuli corridor connects Afghanistan with Turkmenistan, Azerbaijan, Georgia to the Black Sea and ultimately through Turkey to the Mediterranean Sea and Europe.

"All sides agreed on the value of such connectivity and economic integration projects to overall growth, stability and prosperity in Afghanistan," the statement said.

(Source:-http://www.business-standard.com/article/news-ians/establishment-of-india-afghanistan-air-freight-corridor-hailed-117080701244_1.html dated 7th August-2017)

NEW DELHI, AUGUST 9:

Small exporters continue to face problems in securing exemption from paying Integrated Goods & Services Tax (IGST) on their shipments as Customs officials use their discretion to decide which exporter needs to furnish bank guarantees — instead of only a bond — in the absence of detailed guidelines on the matter.

Althought the Commerce Ministry is in discussions with the GST Council on the matter to see if the issue can be resolved through broad guidelines to check the discretionary powers of Customs officials, exporters are unhappy with the piece-meal redressal.

“Problems should be addressed at one go. On bank guarantees and bonds, the government has issued at least four instructions and things are still not smooth. Exporters don’t even know the time-line prescribed for acceptance of bond/LUT, and so accountability cannot be enforced when there is a delay,” pointed out Ajay Sahai of exporters’ body FIEO.

Contrary to an earlier communication from the Central Board of Excise and Customs, the GST Commissioner has to be satisfied about the track record of the exporter before granting exemption from IGST payment without a bank guarantee, pointed out TS Bhasin, President, Engineering Export Promotion Council. “This discretion-based system is not advisable,” he said.

Commerce Ministry officials are trying to sort out the problem. “The problems of status holders and other large exporters have largely been sorted out, with the Centre deciding to accept Letters of Undertaking (LUTs) instead of bank guarantees. We are in talks with the GST Council to see if some specific guidelines could be issued for small exporters to sort out their problem,” the official said.

According to the Central Goods and Services Tax Rules, 2017, exporters of goods without payment of integrated tax are required to furnish only an LUT instead of a bank guarantee if they are status-holders as specified in the Foreign Trade Policy or have sizeable inward remittances.

The instruction adds that smaller exporters with a good track record will have to furnish a bond on a non-judicial stamp paper while those whose export record is not good will have to furnish a bank guarantee. Since it is the GST commissioner who gets to decide whether the small exporters’ track record is good or not, there is a lot of discretion involved.

“There are excellent officials who are taking a broad view and asking for only bonds. But there are others who insist on bank guarantees as well, causing distress to exporters,” Sahai said. Furnishing of bonds supported by a bank guarantee blocks the working capital of exporters as they have to make a margin money deposit against the guarantee.

(Source:-http://www.thehindubusinessline.com/economy/policy/igst-exemption-small-exporters-face-uncertainty/article9809459.ece dated 9th August-2017 )

Q. On high-seas sales, will IGST be levied twice — first on high-seas sales and then on custom clearance?

The CBEC Circular no 33/2017-Cus dated August 1, 2017 clarifies that IGST on high-seas sale transactions of imported goods, whether one or multiple, will be levied and collected only at the time of importation — i.e. when import declarations are filed before the Customs authorities for customs clearance purposes for the first time. Further, value addition accruing in each such high-seas sale will form part of the value on which IGST is collected at the time of clearance. The importer (last buyer in the chain) would be required to furnish the entire chain of documents, such as original invoice, high-seas-sales contract, details of service charges/ commission paid etc., to establish a link between the first contracted price of the goods and the last transaction.

Q. We are merchant exporters, exporting our goods without payment of IGST, under letter of undertaking. Will this come in the way of our getting duty drawback?

No. In the notification no. 131/2016-Cus dated October 31, 2016, as amended, there is no condition denying drawback on the grounds that the goods have been exported under bond or letter of undertaking.

Q. We are engaged in providing commission agent services to principals based outside India. Supplies are made by our principals outside India to customers in India. Commission receivable by us is in foreign currency. We understand that GST is payable by us for our “intermediary services” at 18 per cent. Can we take input tax credit of the same? No, because it is your outward supply and not an inward supply for you.

Q. We are a sole proprietorship firm offering BPO services to our clients located abroad. All our revenue is from outside India. Being so, sales tax was not applicable to us. We hope even GST is not applicable to us. Please advise.

Your activity falls within the definition of services given in Section 2(6) of the IGST Act, 2017, as you meet all the stipulated conditions mentioned therein. So, in accordance with Section 16 (1) of the said Act, your supplies are zero rated. You can export the services on payment of IGST and claim refund, or you can export the services without payment of IGST after furnishing bond or letter of undertaking. I suggest you see the CBEC Circulars no. 26/2017-Cus dated July 1, 2017, 2/2/2017-GST dated July 4, 2017 and 4/4/2017-GST dated July 7, 2017.

Q. We are manufacturers. We supply to projects funded by international agencies that are recognised as deemed exports under the Foreign Trade Policy. Earlier we used to clear goods without excise duty payment under notification no. 108/95-CE dated August 28, 1995. Can we supply our goods without payment of GST?

No. Section 2(39) of the CGST Act, 2017 defines “deemed exports” as such supplies of goods as may be notified under section 147, but no notification has been issued so far.

(Source:-http://www.business-standard.com/article/economy-policy/igst-on-high-seas-sale-of-imports-is-levied-only-during-customs-clearance-117081400745_1.html )

The Central Board of Excise and Customs had issued circulars 2/2/2017-GST and 4/4/2017-GST to clarify the issues relating to furnishing of bonds/letter of undertaking (LUT) for exports without payment of IGST. Considering the large number of representations, the CBEC issued circular 5/5/2017-GST on August 11, 2017, clarifying as follows:

Eligibility to export under LUT: Any registered person, who has received a minimum foreign exchange inward remittance of 10 percent of export turnover in the preceding financial year is eligible for submitting LUT, provided that the amount of foreign inward remittance should be minimum Rs 1 crore. A status holder as specified in paragraph 3.20 and 3.21 of the Foreign Trade Policy 2015-2020 can submit an LUT. Form for submission of bond/LUT: Bonds are furnished on non-judicial stamp paper, while LUTs are generally submitted on a letterhead containing signature and seal of the authorised person.

Time for acceptance of bond/LUT: The bond/LUT should be accepted by the authorities within a period of three working days from the date of submission of bond/LUT along with complete documentation.

Procurements by merchant exporters under form CT 1: The facility of procurement of goods without payment of excise duty under form CT 1 by merchant exporters is no longer available. The merchant exporters have to procure the goods on payment of GST.

Supplies to export oriented units: Supplies to EOUs do not enjoy any benefit of zero rating and are subject to tax similar to any other taxable supply.

Acceptance of LUT in case of payment in Indian Rupees for supplies made to Nepal, Bhutan, and special economic zones: Acceptance of LUT instead of a bond for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with applicable Reserve Bank of India guidelines. However, the supply of services to Nepal or Bhutan will be deemed to be an export of services only if payment for such services is received in convertible foreign exchange.

Submission of bank guarantee along with bond: Circular 4/4/2017 provided that in the case of submission of a bond, the bank guarantee should not normally exceed 15 percent of the bond amount and the commissioner may waive off the requirement to furnish a bank guarantee, considering the facts of each case. Some of the cases, where the commissioner can waive off bank guarantee are as under: a) in the case of an exporter registered with a recognised export promotion council, if he submits a self-attested copy of the proof of registration with a recognised Export Promotion Council; or b) if the condition of receipt of 10 percent foreign inward remittance, subject to a minimum of Rs 1 crore (as mentioned above), is not fulfilled by a registered person in one state but the condition is fulfilled for the entity as a whole (including registrations in all states).

Jurisdiction for submission of bond/LUT: The bond/LUT submitted by an exporter will be accepted by the DC/AC having jurisdiction over his principal place of business. The exporter can submit a bond/LUT to the central tax authority or the state tax authority, till the administrative mechanism for assigning taxpayers to respective authority is implemented. However, the central tax officers will facilitate all exporters, whether or not they were registered with the Central Government in the earlier regime.

Documents for LUT: Documents submitted as proof of fulfilling the conditions of LUT shall be accepted unless there is evidence to the contrary. Further, the self-declaration of documents should be accepted unless there is specific information otherwise and verification, if any, may be done on post facto basis. For status holders, a self-attested copy of the proof of status should suffice.

Time of applicability of the circulars: Applicability of all the instructions and clarifications issued relating to submission of bond/LUT in previous circulars as well as present circulars are applicable for exports on or after July 1, 2017.

(Source:-https://www.bloombergquint.com/opinion/2017/08/16/gst-more-clarifications-from-cbec-on-letter-of-undertaking-for-exports dated 16th August-2017 )

New Delhi, Aug 14 (IANS) Indian exports rose for the 11th consecutive month in July 2017, official data showed on Monday.

Exports in July at $22.5 billion recorded a growth of over 3.9 per cent on the back of a healthy rise in shipments of engineering goods, petroleum products and chemicals, according to data released by the Commerce Ministry.

The country’s exports during the corresponding month of last year stood at $21.69 billion.

“In continuation with the positive growth exhibited by exports for the last eleven months, exports during July 2017 have shown growth of 3.94 per cent in dollar terms valued at $22,543.80 million as compared to $21,689.57 million during July,2016.,” the ministry statement said.

“During July 2017, major commodity groups of export showing positive growth over the corresponding month of last year are engineering goods (15.16 per cent), petroleum products (20.27), organic and inorganic chemicals (20.67), cotton yarn/fabrics/made-ups, handloom products etc.(5.39) and marine products(30.53),” it said.

However, the country’s imports during the month under review also increased by 15.42 per cent to $33.99 billion from $29.45 billion.

“Major commodity group of imports showing high growth in July 2017 over the corresponding month of last year are petroleum, crude and products (15.02 per cent), electronic goods (22.5), machinery, electrical and non-electrical (7.34), pearls, precious and semi-precious stones (6.86) and gold (95.05),” the statement said.

Besides, the data showed that India’s oil imports during July increased by 15.02 per cent to $7.84 billion, from $6.82 billion in the same month last year.

“The global Brent prices ($/barrel) have increased by 8.03 per cent in July 2017 vis-à-vis July 2016 as per World Bank commodity price data,” the statement said.

Non-oil imports were up by 15.55 per cent to $26.14 billion, from $22.63 billion in the corresponding month of last year.

Consequently, the trade deficit during the month under review rose higher to $11.45 billion from $7.76 billion reported for July 2016.

Further, the ministry disclosed that the services exports data provided by the Reserve Bank of India (RBI) for June 2017 was estimated at $13.39 billion, and the trade deficit at $5.9 billion

“Taking merchandise and services together, overall trade deficit for April-July 2017-18 is estimated at $34.07 billion, as compared to $10.80 billion during April-July 2016-17,” the statement added.

(Source:-http://www.canindia.com/indian-exports-rise-for-11th-straight-month-in-july-grow-4/ )

AHMEDABAD: The Union government is likely to impose anti-dumping duty on a chemical imported from China, Canada and European Union, which are used in dyes and pharmaceutical sector. Chemical industries in the state look forward to the announcement by the central government as it is aimed at safeguarding domestic players against cheaper imports.

ShaileshPatwari, president, Gujarat Chamber of Commerce and Industries (GCCI), said, "We are eager for the government decision and would welcome it, as it will go a long way in providing a level-playing field to the domestic players."

India has imposed similar duties on import of several products including steel, fabrics, chemicals, among others. Imports from China have increased across various sector, including textiles, ceramics and bulk drug pharmaceuticals, among others. This is detrimental to the prices of chemicals in the domestic industry as imports are relatively cheaper.

In the wake of this, Patwari also emphasized on denizens boycotting Chinese products. "Irrespective of whether the government imposes anti-dumping duty on the goods, people should boycott use of Chinese products as it is unfavourable for domestic producers," he said.

Soon after the announcement, even the stock markets look buoyant. Chemical companies' stock prices seemed to have reacted positively to the likelihood of imposition of anti-dumping duty. Several Gujarat-based companies such as Kiri Industries Limited, Meghmani Organics Ltd, Gujarat Alkalies and Chemicals Ltd, Asahi Song Colors Ltd and Aksharchem (India) saw their prices increasing on Wednesday. The sure was in range of 1.50% to 8%.

In fact, Gujarat Alkalies and Chemicals along with Teamec Chlorates had filed an application for initiating anti-dumping probe. "The government should impose anti-dumping duty not just on chemicals but several others such as Textiles, Pharmaceuticals - mainly bulk drugs, among others," said Jaimin Vasa, vice president, GCCI.

(Source:-http://timesofindia.indiatimes.com/city/ahmedabad/govt-may-impose-anti-dumping-duty-on-chemicals/articleshow/60093622.cms 17th August-2017 )

Globally, export control regimes are designed to control the export of dual-use goods and technologies which can be used in both - civilian as well as military applications. Among other things, export control regulations involve subjecting exports of specified items to prior authorization / licensing. The objective is to prevent illegitimate trade in such dual-use items and control the export of products to countries that are considered as a national threat.

Recent overhaul of Indian SCOMET list

The Indian Export Control regulations have been significantly overhauled by the Directorate General of Foreign Trade (DGFT) with effect from May 1, 2017. The amendments seek to revise the Special Chemical, Organisms, Materials, Equipment and Technologies category (SCOMET) list relating to dual-use goods and technologies.

These changes have been brought about as part of India’s continuing obligations as a member of the Missile Technology Control Regime and as an adherent to the Nuclear Suppliers Group Guidelines. It also seeks to align with the guidelines and control lists of the Wassenaar Arrangement and the Australia Group, two multilateral export control regimes that India wishes to join. The amendments have been introduced vide Notification No. 5/2015-2020 dated 24.04.2017, and are already in force w.e.f. 1st May, 2017.

The amendments could potentially have a far reaching impact on Indian exporters of goods/technology (including R&D) which is covered under the SCOMET.

Key changes

A new Category 8 has been introduced under the SCOMET for “Special Materials and Related Equipment, Material Processing, Electronics, Computers, Telecommunications, Information Security, Sensors, and Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion”. Some of the significant items covered under Category 8 include items employing cryptographic information security and related “technology”, which is very widely defined.

The SCOMET Category 6 which was earlier ‘Reserved’ has been populated with a ‘Munitions List’. The Munitions List completely replaces the earlier Military Stores List. Amendments have been made in Category 1C / 1D which relate to the export of chemicals and Category 2 which relates to micro-organisms has been widened and numerous entries have been incorporated therein.

Regulation of export of non- SCOMET items having a potential risk of use in or diversion Weapons of Mass Destruction/ missile/ military end use has been provided for.

A ‘Commodity Identification Note’ has been introduced in the SCOMET List to aid Companies in arriving at a proper classification and identification of the licensing jurisdiction procedures of their goods.

New ‘General Technology Note’ and ‘General Software Note’ introduced

The General Technology Note seeks to bring clarity on which technology is covered under the SCOMET list. It provides that Technology which is “required” for development, production or use of the specified items covered under Category 8 will also be treated as controlled. Such technology will remain controlled even if it is made applicable to uncontrolled items, barring certain exclusions. General Software Note provides clarity on exclusion of software which is available in public domain.

Procedural changes for trade facilitation

The time period for processing SCOMET applications has been reduced from 45 days to 30 days. Every SCOMET authorization holder is required to retain specified records in manual or electronic form for a period of five years from the date of import or export as the case may be. A modified format for end use cum end user certificate required for obtaining export license for SCOMET items has also been specified.

Impact on Industry

Despite the DFGT publicising these changes and holding periodic workshops for the industry, exporters appear to have very little information or knowledge about these changes and their impact. Exporters are facing challenges of determining the extent of coverage of their goods and related technology / software under the newly introduced categories. The encryption related criteria, complex technical language and exclusions are resulting in ambiguity in certain cases. For MNCs, the challenge is to align their approach with that of the group subsidiaries and associate companies located abroad.

Given the wide coverage of some of SCOMET categories, there is a need for exporters to undertake steps to map all exports made, especially activities which constitute exports of technology / software, analyse the coverage of exported items under the SCOMET list and ensure compliance with the Export Control regulations.

The 30-day license processing period means that adequate planning will be required for analysing in advance as to whether items are covered under the SCOMET list and making timely applications for export licenses or seeking clarifications.

There may also exist scope for making suitable suggestions to the DGFT for rationalization of the regime and ensure that ease of doing business is not impacted.

Exporters should not shy away from compliance with the export control regime. Although there are stringent penalty and imprisonment related consequences for non-compliance but wide-compliance will result in India being globally acknowledged as an export control compliant nation. Ultimately, Indian exports will get a competitive edge due to compliance with export control regulations.

(Source:-https://www.thedollarbusiness.com/news/indian-export-control-regime-revamped-overhaul-of-scomet-list/51030 )

New Delhi, Aug 18 (IANS) In a bid to ensure speedier and more transparent approval process for the setting up of Inland Container Depot (ICD)/Container Freight Station (CFS)/Air Freight Station (AFS), the companies can now move their applications and track their progress online, the government said on Friday.

“The improved procedure is aimed at ensuring a speedier and more transparent approval process. Companies can now submit applications online and view their progress/update online, without visiting any government office. This is a pioneer attempt as a major inter-ministerial IT application rather than a mere intra-ministerial IT initiative,” the Commerce Ministry said in a statement.

There have been frequent complaints from applicants that the manual process is very cumbersome and not only does it result in loss of documents in transit but also leads to lack of transparency regarding status of clearances by various agencies/departments. There have been persistent demands from various stakeholders to streamline the processes.

Now, the back-end process will also be online and the applicant can see various stages of processing of his/her application in various ministries/departments online.

“Apart from saving reams of paper, the process also brings about greater transparency by disclosing the application status. This includes sending out SMS and e-mail alerts to keep all stakeholders abreast of the progress,” the Ministry said.

“This approach was conceived under the broader umbrella motto of the government – ‘Minimum Government, Maximum Governance’,” the statement said. The approval process for setting up an ICD/CFS/AFS involves many departments. This is facilitated through an Inter-Ministerial Committee (IMC) which consists of officials from Ministries of Commerce, Finance (Department of Revenue), Railways and Shipping. If required, the view of the respective state government is also sought.

This IMC is housed in the Department of Commerce which is mandated to act as a single window for the approval process. Under the current process, an applicant submits as many as 10 physical copies of the application form with requisite documents to Infrastructure Division at the Department of Commerce (DoC), besides one copy with the Jurisdictional Commissioner of Customs.

The current process of examination of application is very cumbersome, and the application form very bulky with ancillary material running into almost 500-1,000 pages. This is initially scrutinised by the Department of Commerce for adherence to the land acquisition guidelines. Copies of the application are then sent to Ministry of Railways, Shipping, Civil Aviation and Department of Revenue (Central Board of Excise and Customs) for scrutiny and comments. Department of Revenue (CBEC) then sends the copies of this application to the Jurisdictional Commissioners in the field and thereafter on receiving a report from them sends their clearances to Department of Commerce.

Upon receiving the comments from the Ministry of Railways, Shipping, Civil Aviation and Department of Revenue (CBEC), a meeting of Inter-Ministerial Committee is convened wherein the application is reviewed on the basis of the comments received and a decision taken on issue of the Letter of Intent to the applicant.

Upon receiving the approval, the applicant is required to set up the infrastructure within one year from the date of approval. The IMC may grant an extension of six months after reviewing the justification for delays given by the party. After the applicant has put up the required infrastructure, conformed with the security standards of the Jurisdictional Commissioner of Customs and provided a bond backed by bank guarantee to the Customs, a final clearance and Customs notification is issued by the Customs department which then declares the facility operational.

(Ref:-http://www.india.com/news/agencies/now-companies-can-apply-online-to-set-up-inland-container-depot-2411534/ dated 18th August-2017 )

NEW DELHI, AUGUST 20:
The mid-term review of the Foreign Trade Policy (FTP) — likely next month — may provide relief to exporters reeling under the impact of the new Goods and Services Tax (GST) regime, with the Centre examining if some lost benefits could be restored.

The Commerce Ministry is in talks with the Finance Ministry and the GST Council to expand the scope of the popular ‘Advance Authorisation’ scheme to allow Integrated GST (IGST) exemption on imported inputs, in addition to basic customs duty, a government official told BusinessLine.

Changes are also likely to rules on supplies to export-oriented units (EOUs) from the domestic tariff area (DTA), which are currently not being treated as ‘deemed exports’.

“Exporters have been complaining that by restricting exemptions in the advance authorisation to only the basic customs duties on inputs, the scheme has become unattractive and that many may opt out if IGST is also not exempted,” the official said.

It is accepted international practice — in countries where GST and VAT exist — to give exemptions to exporters from such taxes on imported inputs, he added.

Under the GST regime, DTA manufacturers supplying to EOUs are not allowed to import the inputs without payment of duty under Advance Authorisation. “The DTA suppliers have to pay the basic customs duty, cesses and IGST for imported inputs. They are entitled to input tax credit of only IGST. Basic customs duty and cesses thereon are cost to them,” points out the Engineering Export Promotion Council.

The mid-term review of the FTP (2015-2020), likely next month, will try to sort out some of the problems faced by exporters if the GST Council gives its consent.

“There is nothing that the Commerce Ministry can do without the approval from the GST Council. It is being hoped that all issues being faced by exporters, which can be sorted out by the Centre, will get resolved in the review. If not, efforts in the direction would continue,” the official said.

India’s exports have been growing consistently for the past eleven months, but the pace of growth has slackened. Exports in 2016-17 grew 4.71 per cent to $274.64 billion compared with the previous fiscal, it was after two years of continuous decline.

(Ref:-http://www.thehindubusinessline.com/economy/policy/gst-exports/article9824328.ece dated 20th August-2017 dated 18th August-2017 )

By G Srinivasan
Even as the weak global trade growth in the last few years largely reflects persistent weakness in the global economy as observed by the World Trade Organization (WTO) in April 2017, India’s foreign trade performance, both on the merchandise goods and in the services fronts, has been singularly showing up positive trends.

A particularly noteworthy feature is that in the country’s export efforts, the immense contribution of the Micro, Small and Medium Enterprises (MSMEs) has been growing up, providing employment opportunities to countless skilled, semi-skilled personnel besides diversifying into a plethora of product portfolios. The share of exports from MSME in the country’s aggregate exports has grown up from 42.42 per cent in 2013-14 to 44.76 per cent in 2014-15 and to 49.86 per cent in 2015-16.

Thanks to the pro-active supportive policies of the government, challenges on the trade front in the face of protectionist barriers and non-tariff obstructions in the form of ever-changing standards and other sanitary and phyto-sanitary riders, India’s exports had acquitted commendably. This is confirmed by the fact that the country’s exports have been exhibiting positive growth for the last nine months. In line with growth indicated by exports since September 2016, exports during June 2017 have shown growth of 4.39 per cent in dollar terms valued at US$ 23,562.62 million as compared to US$ 22,572.30 million during June, 2016.

During June 2017, major commodity groups of export showing positive growth over the corresponding month of last year are engineering goods (14.78%), petroleum products (3.6%), organic & inorganic chemicals (13.2%), rice (27.29%) and marine products (24.27%). Cumulative value of exports for the period April-June 2017-18 was US$ 72,212.33 million (Rs 4,65,472.04 crore) as against US$ 65,311.77 million (Rs 4,36,960.98 crore) registering a positive growth of 10.57 per cent in dollar terms and 6.52 per cent in rupee terms over the same period last year.

Imports during June 2017 were valued at US$ 36,522.48 million (Rs 2,35,361.85 crore) which was 19.01 per cent higher in dollar terms and 13.96 per cent higher in rupee terms over the level of imports valued at US$ 30,688.54 million (Rs. 2,06,524.39 crore) in June, 2016. Cumulative value of imports for the period April-June 2017-18 was US$ 1,12,263.10 million (Rs. 7,23,631.11 crore) as against US$ 84,545.78 million (Rs. 5,65,754.29 crore) registering a positive growth of 32.78 per cent in dollar terms and 27.91 per cent in rupee terms over the same period last year. Major commodity group of imports showing high growth in June 2017 over the corresponding month of last year are petroleum, crude & products (12.04%), electronic goods (24.22%), pearls, precious & semi-precious stones (86.31%), machinery, electrical & non-electrical (7.02%) and gold (102.99%).

On trade in services, in which as per WTO’s latest ranking, India is placed at the eighth slot as the leading exporter valued at 161 billion US dollars in 2016 and holding 3.4 per cent of the global share. India is also hailed as the leading importer of services holding the tenth slot, accounting for a share of 2.9 per cent of global share in imported services valued at 133 billion in 2016. Thus, India enjoys a trade surplus of a huge 28 billion dollars in services export. It is also a fact that the share of services to total gross value added for the last three years hovers between 51.8 per cent in 2014-15 to 53.7 per cent in 2016-17. It is therefore no wonder that the country has tabled the ‘concept note for an initiative on trade facilitation in services” at the WTO to facilitate discussion among WTO members with an aim to achieve a positive outcome to leverage India’s competitive advantage as a services exporter.

With a view to promoting trade in services, the government has pursued a multi-pronged and holistic strategy of negotiating meaningful market access through multilateral, plurilateral and bilateral trade deals, trade promotion through participation in global fairs/exhibitions, focused strategies for specific markets and sectors. It has also extended fiscal benefits and incentives through Services Exports from India Scheme (SEIS).

In all, both in goods and in services, the country continues to grow apace in recent months despite the inhospitable external milieu in the form of trade protectionism and impediments to services exports by strict visa regime from the rich world and an anemic global growth in both the merchandise goods and relatively moderate growth in services.

It needs to be noted that the new Foreign Trade Policy (FTP) unveiled by the NDA government on April 1, 2015 had a focus on bolstering both manufacturing and services exports and improving the ease of doing business. Salient features of the FTP 2015 encompass, among others, merchandise export from India scheme, service export from India scheme, free transferability of duty credit scrips for payment of custom duty, excise duty and service tax. The government also ratified the Trade Facilitation Agreement (TFA) of the WTO to make India’s foreign trade a hassle-free operation for the stakeholders over the years. A National Committee on Trade Facilitation under the chairmanship of the Cabinet Secretary has been established which would go into the evolving of process of simplifying border management steps and adoption of new transparency measures, all of which are likely to cut the transaction cost of imports and exports and enable smooth movement of goods across borders.

In all, India’s foreign trade is in the cusp of major transformations and a perspicuous picture would unfold before long once all the crucial initiatives currently under way begin to fructify. (PIB)

(Source:-http://sentinelassam.com/story/editorial/0/new-horizons-on-india-s-foreign-trade/2017-08-21/1/317765#.WZuxLigjHIU dated 21st August-2017

NEW DELHI, AUGUST 23: India will participate in a mini-ministerial meeting of trade ministers from select World Trade Organisation (WTO) member countries at Marrakesh in October to finalise the agenda for the Ministerial meeting in Buenos Aires later in the year.

This follows complaints from countries, including India, that the Nairobi Ministerial meeting in December 2015 was not handled well due to lack of adequate preparation, a government official said.

“India as well as some other countries had brought it to the WTO Director General’s notice that the Nairobi Ministerial meeting was almost a disaster as all negotiations were left for the Trade Ministers to carry out at the meeting itself. As a result there were numerous small-group meetings that kept taking place and so many members did not have a clue as to what was happening,” the official told BusinessLine.

The objective of the Marrakesh meeting would be to arrive at an agenda that would include items that have been negotiated well at the various negotiating groups at the WTO so that crucial decisions are not left for the Buenos Aires meet in December.

New Delhi, on its part, would like to ensure that the mandate on public stockholding which flows from the Bali and Nairobi Ministerial meetings gets fulfilled.

“We will insist on a permanent solution to the problem of public stockholding so that the concerns of developing countries on implementing their food security programmes without the fear of attracting penalties are addressed,” the official said.

On the mid-year review of the Foreign Trade Policy, that is scheduled sometime next month, the official said that it would try to address problems that exporters are facing after the implementation of the GST regime. “Exporters are definitely facing liquidity issues as many exemptions have been withdrawn and they have to wait for refunds. We have to see how these problems could be sorted out,” the official said.

The Commerce Ministry is in talks with the Finance Ministry on the matter and after an agreement is reached between the two on the matter, the GST Council would be approached, the official added.

(Source:-http://www.thehindubusinessline.com/economy/india-to-participate-in-wto-miniministerial-at-marrakesh/article9828671.ece dated 23rd August-2017

Chairman's Desk

Chemexcil Activities

CHEMEXCIL Seminar on "Export / Import under GST Regime" held on 3^rd August, 2017, at New Delhi

Chemexcil's Participation in ABG trade summit, Las Vegas, USA from 8-10 August-2017

Exim Updates

Amendment in CGST Rules, 2017:Notification regarding E-way bill

Electronic Sealing for Containers by exporters under self-sealing procedure

Revision in Entitlement to export freely exportable items on free of cost (FOC) basis by Status Holders

Amendments in Appendix 2G (List of Inspection and Certification Agencies) as per HBP 2015-20

Harmonised MEIS Schedule in the Appendix 3B (Table - 2) with ITC (HS), 2017

GSTR-3B filing due date for July 2017 extended to August 28, 2017 (only for taxpayers who opt to use Transition Input Credit in the current month return)

Grievance Redressal Committee (GRC) Meeting at Addl. DGFT Mumbai office on 13.09.2017 at 4.00 PM

State Levies still incurred by exporters Post GST Roll-Out

GST:LUT/ BOND- CBEC Clarification on RCMC in lieu of BG/ Eligibility of LUT on INR Receipts/ Others

RBI EDPMS - Further extension up-to 31.08.2017 for AD banks to clear pendency in EDPMS

IK-CEPA-  Comments on request list  from Korea for  Rules of Origin

Due Dates for e-Filing of GST Returns for July /August 2017

Reminder - Inviting Pre-Budget Proposals for the Year 2018-19

Reminder - India- Japan CEPA: Issues for discussion in the Joint Committee meeting under India-Japan CEPA

DBK -Changes in S/B Declaration regarding All Industry Rates (AIRs) under Duty Drawback scheme

GST- Leviability of IGST on High Sea Sales of imported goods and point of collection

News & Articles

Export Incentive Schemes Under the FTO – are exports still ‘incentivizing’ under the GST regime?

Branding Strategy for Export Oriented Indian Products

New Trade Agreement between India & Bhutan has come into force with effect from July 29, 2017

Commerce Minister Nirmala Sitharaman holds 'candid' talks with Chinese counterpart on growing trade deficit

Several countries including India adopting discriminatory trade policies'

Sale of scrips under export promotion schemes to attract 12% GST

Establishment of India-Afghanistan air freight corridor hailed

IGST exemption: Small exporters face uncertainty

'IGST on high-seas sale of imports is levied only during customs clearance'

GST: More Clarifications From CBEC On Letter Of Undertaking For Exports

Indian exports rise for 11th straight month in July, grow 4%

Union government may impose anti-dumping duty on chemicals

Indian export control regime revamped; overhaul of SCOMET list

Now, companies can apply online to set up inland container depot

Trade policy review may look to help exporters with GST blues

New horizons on India's foreign trade

India to participate in WTO mini-ministerial at Marrakesh