Chemexcil
e-Bulletin

January 2018 No. 021

Chairman's Desk

Satish-Wagh
SHRI SATISH W. WAGH
Chairman, CHEMEXCIL
 

Dear Member-Exporters,

I have pleasure to bring to you the 21st issue of the CHEMEXCIL e-Bulletin for the month of January 2018, which contains the following activities undertaken by the Council and other useful information/EXIM Notifications, etc.

  1. Promotional Roadshows of CAPINDIA 2018 Exhibition at New Delhi, Kolkata, Ahmedabadand Vadodara
  2. Interactive meeting on issues faced by Importers (HS Code Classification & FSSAI)
  3. Outreach Program under Niryat Bandhu Scheme on “Mid-Term Review of FTP, GST & Refunds and FTA”

I am pleased to inform you that after two successful editions, CAPINDIA 2018, an initiative of the Department of Commerce, Government of India is being organized to once again promote India as a reliable and leading competitive source for Chemicals, Plastics, Construction, Mining and Allied Products. This is being organized in collaboration with Plastics Export Promotion Council (PLEXCONCIL), Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL), Chemicals & Allied Products Export Promotion Council (CAPEXIL) and Shellac and Forest Products Export Promotion Council (SHEFEXIL), and is scheduled from March 22 nd -24th, 2018 at Bombay Exhibition Centre, Mumbai. Plexconcil will be the lead Council for organizing this exhibition.

There will be 700 exhibitors comprising of manufacturer- exporters of chemicals, plastics, Mining chemicals and allied products and we are planning to invite more than 400 foreign buyers from different parts of the world. All the respective Councils have started correspondence with Indian Missions and in the process of inviting foreign buyers for this event. As a Chemexcil member, I believe your participation will add much value to the show in terms of showcasing the capabilities and advancement of Indian industries for Chemicals. I request all members to actively participate in thisevent and make this event a grand success.

I hope that you would find the newsletter informative and useful. The Secretariat looks forward to receiving your valuable feedback and suggestions so as to enable us to improve this e-bulletin further.





With Regards,

SHRI SATISH W. WAGH
CHAIRMAN,
CHEMEXCIL

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Chemexcil Activities

CAPINDIA 2018 Road show, New Delhi

PLEXCONCIL jointly with CHEMEXCIL, SHEFEXIL & CAPEXIL had organized a Press meet cum Roadshow on 4th January, 2018 at Hotel Le Meridien, New Delhi to highlight the unique features and benefits of participating in CAPINDIA 2018 EXPO.

The CAPINDIA Press meet cum Roadshow was attended by nearly 70-80 participants including media persons, Govt. officials, Chairmen, representatives and members of participating EPC’s.

During Press Conference, Sh. Shyamal Misra, Joint Secretary, Ministry of Commerce & Industry, Govt. of India briefed the media and requested them to give wide publicity for this event.

Shri Shyamal Misra, Joint Secretary, Ministry of Commerce & Industry, GOI briefing the media persons and participants about the CAPINDIA Event during Press Meet cum Roadshow of CAPINDIA 2018 EXPO held on 4th January, 2018 at Hotel Le Meridien, New Delhi.

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CAPINDIA 2018 PROMOTIONAL ROAD-SHOW, KOLKATA

From Left are Mr. T.K.Bhattacharyya, Executive Director of CAPEXIL; Mr. Soumen Guha, Regional Officer, CHEMEXCIL; Mr. Nilotpal Biswas, Regional Director, PLEXCONCIL; Mr. A. K. Basak, Chairman, PLEXCONCIL; Mr. S. K. Ghosh, Chairman, SHEFEXIL; and Dr. Debjani Roy, Executive Director, SHEFEXIL

The Council, jointly with PLEXCONCIL, CAPEXIL and SHEFEXIL had organised a Road-Show (Seminar) on Monday, January 15, 2018 in Conference hall of EEPC INDIA, Ground floor, ITFC, Vanijya Bhavan, 1/1 Wood Street, Kolkata – 700 016 at 3:30 p.m. to 6 p.m.to disseminate information on the CAPINDIA 2018 Exhibition.

Mr. T.K.Bhattacharyya, Executive Director, CAPEXIL,Mr. Soumen Guha, Regional Officer, CHEMEXCIL, Mr. Nilotpal Biswas, Regional Director, PLEXCONCIL, Mr. A. K. Basak, Chairman, PLEXCONCIL, Mr. S. K. Ghosh, Chairman, SHEFEXIL, Dr. Debjani Roy, Executive Director, SHEFEXIL, were present from the Four Export Promotion Council’s -

The CAPINDIA roads-how was attended by total 48 participants (15 from Chemexcil members, 15 Plexconcil members, 9 Capexcil members, 9 Shefexil members and various media persons).

Mr. A. K. Basak, Chairman, PLEXCONCIL welcomed the gathering and informed them that the 3rd CAPINDIA 2018, under the aegis of the Department of Commerce, Government of India, supported by Department of Chemicals and Petrochemicals, Government of India and organised jointly by PLEXCONCIL, CHEMEXCIL, CAPEXIL & SHEFEXIL. This show is the India’s leading show for Chemicals, Plastics, Constructions, Mining Industry & Allied Products. We jointly organize this event to explore overseas market to our member exporters.

Ms. Puja from Brand cell made power-point presentation for CAPINDIA 2018 informing about the exhibitors, overseas delegates, participation costs etc.

Mr. S. K. Ghosh, Chairman, SHEFEXIL, Dr. Debjani Roy, Executive Director, SHEFEXIL, Mr. Soumen Guha, Regional Officer, CHEMEXCIL encouraged the participants of participating in this CAP INDIA exhibition, so that they can take benefit for their future business, because our promotional activities we offered you very cheap prices to book the stall with the BSM.

Various press media was present in this show and they also provide wide publicity to promote this exhibition.

In the Vote of Thanks session, Mr. T.K. Bhattacharyya, Executive Director, CAPEXIL briefed the participants about the objective and features in our CAP INDIA exhibition and ended with thanks to the participants followed by Hi-Tea.

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Interactive meeting on issues faced by Importers (HS Code Classification & FSSAI)

The council had received representations from the member-exporters citing import related issues pertaining to FSSAI mapping and HS code classifications of items specially under Chapter 29 which is leading to harassment/ DRI/ SIB related problems causing import related delays and impacting exports.

An interactive meeting of the concerned member-exporters was organised at our Chemexcil conference room Mumbai Office on 16th January-2018 at 2.00pm to consolidate the major issues and decide on further action/ or meeting with the appropriate authority along-with few of the members.

This meeting was chaired by Shri S. G Bharadi- ED and attended by other officers of the council. From industry, the meeting was attended by around 15 participants.

The participants deliberated about the issues being faced while importing items especially under chapter 29. The FSSAI mapping of dual-use items imported for non-food applications leads to wastage of time in getting NOC and also involves transaction costs.

Considering the issues faced, the council shall represent these issues to the concerned in MoF, DoC, FSSAI etc for redressal.

In this regard, all the participants were requested to send us detailed representation/ further details in next 2-3 days with HS codes, items names etc and issues faced. This will enable us build a case and also enclose the representation for reference.

From Left are Mr. T.K.Bhattacharyya, Executive Director of CAPEXIL; Mr. Soumen Guha, Regional Officer, CHEMEXCIL; Mr. Nilotpal Biswas, Regional Director, PLEXCONCIL; Mr. A. K. Basak, Chairman, PLEXCONCIL; Mr. S. K. Ghosh, Chairman, SHEFEXIL; and Dr. Debjani Roy, Executive Director, SHEFEXIL

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CAPINDIA 2018 Road show, Ahmedabad

CHEMEXCIL jointly with PLEXCONCIL, CAPEXIL and SHEFEXIL had organised a Roadshow in Ahmedabad on 18th January 2018 (Thursday) at Gujarat Chamber of Commerce & Industry to disseminate information on the CAPINDIA 2018 Exhibition. Along with CAPINDIA 2018 Roadshow, Council had also organised two programmes on Mid term Review of Foreign Trade Policy (FTP) & Free Trade Agreements(FTAs) and IGST Refund on Exports. From 03-00 p.m. to 6:00 p.m.

Since there was an inspection in Jt. DGFT’s office the faculty was not able to attend and give the presentation.

Mr. Shanker Patel, President, The Green Environment Services Co-op Society Ltd, Mr. Alpesh Patel, President, Gujarat State Plastic Manufacturers Association, Mr. Satish Wagh, Chairman, Chemexcil Mr. Ajay Kadakia, Vice Chairman, Chemexcil, Mr. Ashwin Nayak, Vice Chaiman, Shefexil, Mr. Bhupendra Patel, Regional Chairman, Chemexcil, Mr. Sribash Dasmohapatra, Exe. Director, Plexconcil, Mr. S.G. Bharadi, Exe. Director, Chemexcil , Ms. Debjani Roy, ED, Shefexil, Mr. V.R. Chitalia, Director, Capexcil, Ms. Vaishali Zinzuwadia, Regional Director, Chemexcil, Mr. Nitin Tawade, Deputy Commissioner, Customs, Surat, were present during the Roadshow on CAPINDIA 2018.

Around 155 participants (85 Chemexcil members, 18 Plexconcil members, 6 Capexil members 19 Shefexil members; 5 GCCI members and 22 media persons).

Mr. Satish Wagh Chairman, Chemexcil in his welcome address, welcomed the dignitaries on the Dias and audience giving information about the Roadshow and IGST seminar.

Mr. Alpesh Patel, President, Gujarat State Plastic Manufacturers Association (GSPMA) addressed the gathering and encouraged them to participated in CAPINDIA 2018. He expressed that CAPINDIA exhibition is the platform where the plastics industry has to come forward and showcase their products to the international business community.

Ms. Pooja from Brand Cell gave a Presentation for CAPINDIA 2018 with the information about Cap India Features, Market review, Visitor Profile, Exhibitor profile, Cost and Partnership opportunities, after which the floor was open for the Press and Media.

The PRESS and MEDIA had a happy and satisfactory interaction with the spokesperson and they look forward to be in touch with the spokes people and CAP INDIA Exhibition. The news article for CAP INDIA were published in DNA, Western Times (English & Gujrati), The Economic Times (Gujarati), Gujarat Samachar, Jain Hind, Gujarat Today, Nav Gujarat Samay and Prabhat.

Chemexcil also had organised programme on “ IGST Refund on Exports” for the exporters.The Session was conducted by Mr. Nitin Gawade, Dy. Commissioner, Customs, Surat.

Chemexcil is thankful to the Customs department and Mr. Nitin Tagade for accepting our request to come and give a presentation on IGST REFUNDS ON EXPORTS.

The Council had received and still receiving several representations from member-exporters regarding delays in getting IGST refunds from July 2017. We also received many issues viz: Missing S/B’s in refund, matching errors related to IGST refunds, invoice numbering, eligibility of receiving refunds, how to claim the refund if the Shipping bill and invoice both are missing etc.

After the presentation many queries/issues were satisfactorily resolved and the members are now clear about the process. The presentation was very meticulously made and was well understood. We also have circulated the presentation to all who attended this seminar and will also send to those were not able to attend it.

MR. SATISH WAGH, CHAIRMAN, CHEMEXCIL ADDRESSING MEDIA DURING ROAD SHOW
 
PRESENTATION OF CAPINDIA 2018

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CAPINDIA ROAD SHOW, VADODARA

Mr. S.G. Bharadi along with other stakeholders inaugurating the CAPINDIA roadshow event at Vadodara

As part of 3rd Edition of CAPINDIA 2018, which is being organized under the aegis of Ministry of Commerce & Industry, with the active support of the Ministry of Chemicals & Fertilizers, jointly by the 4 Export Promotion Councils,( i.e. PLEXCONCIL, CHEMEXCIL, CAPEXIL & SHEFEXIL) from 22nd to 24th March, 2018 at Bombay Exhibition Centre, Goregaon, Mumbai, CAPEXIL in co-ordination with CHEMEXCIL had organized a Roadshow Presentation and Press Meet on CAPINDIA 2018 on 19th January, 2018 at Hotel Grand Mercure (Surya Palace), Sayajigunj, Vadodara, Gujarat. This event was attended by Shri S.G. Bharadi, Executive Director, CHEMEXCIL and Shri V.R. Chitalia, Regional Director of CAPEXIL. The total number of participants in the said event was about 60.

The above event was organized with the support from Federation of Gujarat Industries (FGI), Federation of Small Scale Industries (FSSI) & CREDAI.

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CHEMEXCIL PARTICIPATION IN ASEAN – INDIA Investment Meet & Expo

Council participated in ‘ASEAN – INDIA Investment Meet & Expo’ organized by The Ministry of Commerce & Industry in collaboration with the Ministry of External Affairs (MEA) and Confederation of Indian Industry (CII) from 22nd -23rd January, 2018 at The Ashok Hotel, New Delhi.

In the Expo there were nearly 30 Foreign Exhibitors and 38 Indian Exhibitors including EPCs, Associations & Govt. bodies to display their products and showcase their strength / capabilities in specific Sectors. The categories of the visitors at the expo included CEOs, Decision Makers, Experts, Diplomats, Trade & Government Delegation and Media.

There were two stalls pertaining to CHEMEXCIL in which four of our members relating to Cosmetics, Agro -chemicals and Dyes displayed their products to showcase their strength for creating Make in India image.

This Investment Meet & Expo was positioned as a Large Scale Conference and Exhibition to showcase the best initiatives from the government and industry across various sectors of mutual cooperation. Trade Ministers, Senior government officials and global industry experts from ASEAN member countries participated in this event. The event was inaugurated by Hon'ble Minister of Commerce & Industry and Trade Ministers from ASEAN Countries. There were plenary sessions during the summit relating to Trade & Investment, Regional Value Chains etc.

Films pertaining to CHEMEXCIL, CAPINDIA & Hon'ble CIM Message were continuously displayed during the event and visitors were informed about the services being provided by the Council for the benefit of the exporters. Council displayed Bulletins and distributed Brochures of CAPINDIA 2018 to the Visitors with briefing about this mega event.

‘ASEAN – INDIA Investment Meet & Expo’ held on 22nd -23rd January, 2018 at The Ashok Hotel, New Delhi

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Outreach Program under Niryat Bandhu Scheme on “Mid-Term Review of FTP, GST & Refunds and FTA”

The council had received intimation from O/o Addl DGFT Mumbai for facilitating a Niryat Bandhu program at Silvassa on 25/01/2018 which will cover FTP 2015-20 Mid Term Review, GST, FTA etc. In this regard, Chemexcil co-ordinatedwith DNHIA (DADRA & NAGAR HAVELI INDUSTRIES ASSOCIATION) for mobilising participation for this session which was held at Kamat Resorts, Silvassa.

The event was attended Shri A K Jha, Joint DGFT at O/o Addl. DGFT Mumbai, Shri K M Harilal Deputy DGFT at O/o Addl. DGFT Mumbai, Shri Sambhaji Chavan, Deputy DGFT at Addl. DGFT Mumbai, Shri Prafulla Walhe, Deputy Director, Chemexcil, Shri Deepak Gupta, Deputy Director, Chemexcil, Shri R.B Shelke, Hon Secy, DNHIA (DADRA & NAGAR HAVELI INDUSTRIES ASSOCIATION), Other office bearers of DHNIA and FIA.

Shri Shelke (DNHIA) - Welcomed the gathering and the panellists were also felicitated, Shri Deepak Gupta also welcomed the participants and stressed for importance of such programs. He also briefed the participants about chemexcil activities, Shri A.K Jha, Jt. DGFT- Delivered Keynote address and also informed the participants about changes such as FTP review, GST etc which will be covered, Shri Sambhaji Chavan, Deputy DGFT: Made a presentation on Mid-term review of FTP & FTA’s. He also encouraged the exporters to make themselves aware of the benefits available on exports., Shri K M Harilal Deputy DGFT- Made a presentation of GST & refunds. He explained the process of claiming refund and also the reasons for the delay.

Floor was subsequently opened for Q &A with the officers of Addl DGFT Mumbai Office. The event attracted good response with more than 40 participants attending the outreach program under Niryat Bandhu Scheme. They were satisfied with the program. The council also distributed CAPINDIA 2018 leaflets for awareness.

Mr. Deepak Gupta, Dy. Director, Chemexcil addressing the gathering during the Niryat bandhu program

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BENGAL GLOBAL BUSINESS SUMMIT

From Left are Mr. Ashish Dwivedi, President Specialty Chemicals & Business Strategy - Aditya Birla Chemicals, Mr. Pankaj Mehta, Senior Vice President - Reliance Industries Ltd., Shri Satish Wagh, Chairman CHEMEXCIL & CMD - Supriya Lifescience Ltd., Mr. Deepak C. Mehta, Chairman National Chemical Committee FICCI & CMD - Deepak Nitrite Ltd., Shri P. Kamalakanth, IFS, Executive Director - West Bengal Industrial Development Corporation, Mr. Ravi Kapoor, President Indian Chemical Council and MD - Heubach Colour Pvt. Ltd., Shri Ajay Durrani, Managing Director - Indian Subcontient Covestro India Pvt. Ltd., Mr. K.K. Seksaria, President Plasindia Foundation & MD - Uma Plastics Ltd., Mr. Alok Tibrewala, President Indian Plastics Federation

Bengal Global Business Summit 2018 is being organized by Government of West Bengal on 16th – 17th January 2018 at Biswa Bangla Convention Centre, Kolkata. Bengal Global Business Summit (BGBS), the flagship Investment Summit organised by the government of West Bengal, has continued to witness the presence of significant political dignitaries and business delegates from around the globe, underlining both the primacy of West Bengal as an attractive investment destination and a stable and progressive policy regime.

A host of prominent industrialists including Shri Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, Shri LN Mittal, Chairman & CEO, Shri Sajjan Jindal, Chairman, JSW Group, Shri Kishore Biyani, CEO, Future Group, Shri Uday Kotak, Executive Vice-Chairman and Managing Director, Kotak Mahindra Bank Ltd and Shri Sanjiv Goenka, Chairman, RP-Sanjiv Goenka Group, addressed the summit. Shri Harshavardhan Neotia, Chairman, Ambuja Neotia Group, Smt. Jyotsna Suri, CMD, Bharat Hotels, Shri Saroj Poddar, Chairman, Adventz Group and Shri YK Modi, Chairman & CEO, Great Eastern Energy Corporation Ltd, were present at the inaugural session of the summit.

Over 400 international delegates from 32 countries attended the summit. 9 countries — Japan, Germany, Italy, Poland, South Korea, France, Czech Republic, UK and UAE joined the summit as partner nations.

The International Plenary Session witnessed speeches from Ambassadors of Italy, Poland, Czech Republic, Macedonia, Luxembourg, Netherlands, Bosnia and Herzegovina and Gabon. Business and Official Delegation from JETRO — Japan, KOTRA — Korea, CCPIT — Shandong, China, Dubai Multi Commodities Centre — UAE, US India Strategic Partnership Forum, Federation of Bangladesh India Chamber of Commerce and Industry, Australia India Business Council, Scottish Development International, Asia Scotland Institute — UK, Indo - Polish Chamber of Commerce, Italy and Serbia attended the summit. Sectoral sessions on Chemicals, Petrochemicals and Downstream, Textile and Apparel, Tourism, IT/ITES and Start-Up were organised on day 1 of the summit.

Shri P. Kamalakanth, IFS, Executive Director, West Bengal Industrial Development Corporation, Mr. Deepak C. Mehta, Chairman National Chemical Committee FICCI & CMD, Deepak Nitrite Ltd, Mr. Ravi Kapoor, President Indian Chemical Council and MD, Heubach Colour Pvt. Ltd., Mr. Pankaj Mehta, Senior Vice President, Reliance Industries Ltd., Shri Ajay Durrani, Managing Director, Indian Subcontient Covestro India Pvt. Ltd., Shri Satish Wagh, Chairman CHEMEXCIL & CMD, Supriya Lifescience Ltd., Mr. Ashish Dwivedi, President Specialty Chemicals & Business Strategy, Aditya Birla Chemicals, Mr. K.K. Seksaria, President Plasindia Foundation & MD, Uma Plastics Ltd., Mr. Alok Tibrewala, President Indian Plastics Federation, were present in the Sectoral session on Chemicals, Petrochemicals and Downstream

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Exim Updates

CBEC launches IT tools ICETRAK and ICETAB for trade facilitation and faster clearances

EPC/LIC/ICEGATE/APP 31st Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

CBEC launches IT tools ICETRAK and ICETAB for trade facilitation and faster clearances

Dear Members,

As per updates on ICEGATE/CBEC site,  IT tools ICETRAK and ICETAB have been launched for  trade facilitation and faster clearances.

ICETRAK (Indian Customs Enquiry for TRade Assistance and Knowledge)  is  a mobile application which facilitates tracking of documents of Imports and Exports, duty calculator, GSTIN Enquiry also information pertaining to Customs Act and Notifications for the trade.

Members are requested to take note of this trade facilitation mobile application and may download ICETRAK from Google Play  using Android mobile phone.

Thanking you,
Yours faithfully,
S.G BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL

http://chemexcil.in/uploads/files/img_ICETRACK_and_ICETAB.jpg

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CBEC - Amendments in the AEO Programme Circular No. 33/2016 dated 22/7/2016

EPC/LIC/CBEC/ AEO 30th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

CBEC - Amendments in the AEO Programme Circular No. 33/2016 dated 22/7/2016

Dear Members,

In the mid-term review of Foreign Trade Policy (FTP) 2015-20 announced recently,  certain additional benefits have been assigned to AEO Certified entities.

To align the AEO programme with the changes notified in the mid-term review of Foreign Trade Policy 2015-20,  CBEC  has issued circular  No. 3/2018-Cus dated 17 January 2018 notifying  certain amendments in the AEO programme guidelines.

Some of  the key amendments are listed as follows:

Availability of Self Ratification Scheme:

In accordance with the conditions laid down in Para 4.07A of FTP 2015-2020, where there is no SION/valid Ad-hoc Norms for an export product and where SION has been notified but exporter intends to use additional inputs in the manufacturing process, eligible exporter, who is an AEO, can apply for an Advance Authorisation under this scheme on self declaration and self ratification basis.   

The application should be sent directly to the respective jurisdictional Custom Chief Commissioner’s office with a copy to the AEO Programme Manager, Directorate of International Customs or in case of any doubt, to the AEO Programme Manager, Directorate of International Customs, 10th Floor, Tower II, Jeevan Bharti Building, Connaught Place, New Delhi – 110001.

The Commissioner, Directorate of International Customs, 10th Floor, Tower II, Jeevan Bharti Building, Connaught Place, New Delhi – 110001 will be the AEO Programme  Manager and AEO Programme Team will comprise officers from the Directorate of International Customs or jurisdictional Custom Zones.

The details of the AEO applicants for legal compliance as per para 3.2.1 will be hosted on CBEC Website (Home-> Departmental Officers-> Systems / Home -> Public Information -> Indian AEO Programme), The field formation will directly respond to concerned office (viz. Zonal AEO Cell) with the requisite legal compliance information within 14 days of uploading the details.

The validity of AEO certificate shall be three years for AEO-T1 and AEO-T2, and five years for AEO-T3 and AEO-LO.

In order to maximize the reach of this programme, it has been decided by the competent authority to decentralise the processing of AEO applications so as to meet the objective of trade facilitation and ease of doing business.  

All Jurisdictional/ Zonal AEO Cell will nominate an Officer not below the rank of AC/DC as Client Relationship Manager (CRM) for all the AEO entities in their jurisdiction and the same may be uploaded on their website for easy access for this entities.

Members are requested to take note of  some of these amendments in the AEO  programme and benefit from same.   For complete text/ details of all the amendments,   members may download  CBEC  circular  No. 3/2018-Cus dated 17 January 2018 using below link-

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2018/circ03-2018cs.pdf

Thanking you,
Yours faithfully,
S.G BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL

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E-way bill : FAQ’s/ NIC User Manual

EPC/LIC/GST/E_WAY_BILL 30th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

E-way bill : FAQ’s/ NIC User Manual

Dear Members,

This is in continuation of our circular dated 17/01/2018  informing you about the launch of  E-way bill common website (www.ewaybill.nic.in/ http://164.100.80.180/ewbnat10/).

As you are aware, the nationwide e-way Bill system for inter-State movement of goods on  compulsory basis shall come into effect from 1st  February, 2018.   States may choose their own timings for implementation of e-way Bill for intra-State movement of goods on any date before 1st June, 2018.

However, members might have some doubts/ queries about the new  e-way bill system.    As a service to the members, we have identified few  FAQ’s and a User Manual etc  which are  available  on CBEC/  State GST sites.

These  FAQ’s/ User Manual  are available  on following links:

FAQs’

http://164.100.80.180/ewbnat9/Others/faq.aspx
https://cbec-gst.gov.in/ewaybill-rules.html
http://www.mahavat.gov.in/Mahavat/MyFold/WHATS%20NEW/FAQs%20on%20E-way%20Bill%20system%20-1.pdf
http://www.mahavat.gov.in/Mahavat/MyFold/WHATS%20NEW/FAQs%20on%20E-way%20Bill%20system%20-2.pdf
(Source-  www.cbec-gst.gov.in,  www.ewaybill.nic.in  and http://www.mahavat.gov.in)

NIC USER MANUAL
http://www.mahavat.gov.in/Mahavat/MyFold/WHATS%20NEW/E-way%20Bill%20user%20manual%20ver1.pdf
(Source-  http://www.mahavat.gov.in)

Members are requested to take note of above-said resources on e-way bill system  and may  refer in case of queries using above links.  Kindly note that these  FAQ’s etc have been provided just for reference/ guidance purpose.

Persistent issues, if any, may be brought to the notice of the concerned authorities   under cc to us on e-mail id’s: deepak.gupta@chemexcil.gov.in  & balani.lic@chemexcil.gov.in .

Thanking you,
Yours faithfully,
S.G BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL

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E-way bill : Maharashtra government defers introduction of the e-way bill regime for intra-State movement of goods from 1st Feb to 30th April 2018

EPC/LIC/GST/E_WAY_BILL 30th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

E-way bill : Maharashtra government defers introduction of the e-way bill regime for intra-State movement of goods from 1st Feb to 30th April 2018

Dear Members,

As you are aware,  under the GST regime, all consignments worth over Rs. 50,000 moving over 10 km from their origin will require prior registration and generation of an e-way bill.  The nationwide e-way Bill system for inter-State movement of goods on  compulsory basis will come into effect from 1st  February, 2018.   However, states may choose their own timings for implementation of e-way Bill for intra-State movement of goods on any date before 1st June, 2018.

In this regard,  Commissioner Of State Tax, Maharashtra State  has issued  Notification No. 3A/2018–State Tax dated 22/01/2018  regarding Non applicability of E-way bill rules for intra-state movements  from period 1st February 2018 to 30th April 2018.

As an effect of this notification, small traders, businesses  in Maharashtra will get more time to be ready for the  intra-State system.

Members are requested to take note of the same  and inform their  logistics providers accordingly.   The above-said Maharashtra State notification is available for download using below link-

https://mahagst.gov.in/sites/default/files/notification/3%20%282018%29%20notification.pdf

As far as other states are concerned,  we shall  update you as soon as information is received about  similar notifications.

Thanking you,
Yours faithfully,
S.G BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL

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GST Notifications: Exemption of GST on services related to transportation of goods from India to a place outside India by Air/ Sea & Reduction of GST on CETP services and certain goods.

EPC/LIC/GST_NOTIFICATIONS 29/01/2018
 
TO ALL THE MEMBERS OF COUNCIL
 

GST Notifications: Exemption of GST on services related to transportation of goods from India to a place outside India by Air/ Sea & Reduction of GST on CETP services and certain goods.

Dear Members,

This is in continuation of our recent circular in connection with recommendations of  25th GST council meeting held on 18/01/2018.

As far as exports/ chemical sector is concerned, the GST council has recommended   exemption  from GST on services related to transportation of goods from India to a place outside India by air  and  sea.  This exemption is valid till 30/09/2018.

Further,  there  has been reduction of GST on Common Effluent Treatment Plants services of treatment of effluents  from 18% to 12%.   Similarly, there  has been reduction of GST  on certain items from chemicals sector (Sub-heading 2809, Chapter 38 etc)

The relevant notifications have been issued and are highlighted as follows for your  reference:

Central Tax (Rate) Notifications

06/2018-Central Tax (Rate) ,dt. 25-01-2018 View (163 KB)

seeks to amend Notification No.1/2017-CGST (Rate).

2/2018-Central Tax (Rate) ,dt. 25-01-2018 View (281 KB) Seeks to amend notification No. 12/2017- Central Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018.
01/2018-Central Tax (Rate) ,dt. 25-01-2018 View (296 KB) Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018.

http://www.cbec.gov.in/htdocs-cbec/gst/central-tax-rate-notfns-2017

Integrated Tax (Rate) Notifications

07/2018-Integrated Tax (Rate) ,dt. 25-01-2018 View 164 KB) seeks to amend Notification No.1/2017-IGST (Rate).
02/2018-Integrated Tax (Rate) ,dt. 25-01-2018 View (281 KB) Seeks to amend notification No. 9/2017- Integrated Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018.
01/2018-Integrated Tax (Rate) ,dt. 25-01-2018 View (295 KB) Seeks to amend notification No. 8/2017- Integrated Tax (Rate) so as to notify IGST rates of various services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018.

http://www.cbec.gov.in/htdocs-cbec/gst/integrated-tax-rate-2017

Members are requested to take note of above notifications.  The above-said notifications are available for download using  hyperlinks provided therein.

Thanking you,
Yours faithfully,
(S.G BHARADI)
EXECUTIVE DIRECTOR
CHEMEXCIL

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GST Notifications: First Amendment to CGST Rules 2018/ Notifying e-way Bill website/ Reduction in Late fees for various returns

EPC/LIC/GST_NOTIFICATIONS 24/01/2018
 
TO ALL THE MEMBERS OF COUNCIL
 

GST Notifications: First Amendment to CGST Rules 2018/ Notifying e-way Bill website/ Reduction in Late fees for various returns

Dear Members,

The Central  Government has  issued several  Notifications pertaining to e-way Bill website,  amended CGST Rules 2018 and for reduction in Late fees for various returns.

The gist of  relevant notifications pertaining to exports/ industry have been highlighted as follows:

Central Tax Notifications

Notification No. & Date of Issue English Subject
10/2018-Central Tax ,dt. 23-01-2018 View (178 KB) Amending notification No. 39/2017-Central Tax dated 13.10.2017 for cross-empowerment of State tax officers for processing and grant of refund
09/2018-Central Tax ,dt. 23-01-2018 View (150 KB) Amendment of notification No. 4/2017-Central Tax dated 19.06.2017 for notifying e-way bill website
04/2018-Central Tax ,dt. 23-01-2018 View (141 KB) Reduction of late fee in case of delayed filing of FORM GSTR-1
03/2018-Central Tax ,dt. 23-01-2018 View (376 KB) First Amendment 2018, to CGST Rules

Members are requested to take note of above notifications.  The above-said notifications are available for download using  hyperlinks provided therein or below link- 

http://www.cbec.gov.in/htdocs-cbec/gst/central-tax-notfns-2017

Thanking you
Yours faithfully,
(S.G BHARADI)
EXECUTIVE DIRECTOR
CHEMEXCIL

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Non-Tariff Measures (SPS and TBT) issues being faced by our exporters to be raised in the forthcoming WTO SPS/TBT Committee

EPC/LIC/SPS_TBTs 23rd Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

Non-Tariff Measures (SPS and TBT) issues being faced by our exporters to be raised in the forthcoming WTO SPS/TBT Committee

Dear Members,

We have received communication from Ms. Tanu Singh, Deputy DGFT, Trade Policy Division, Department of Commerce informing us about the forthcoming WTO TBT/SPS committee meetings to be held in March 2018.

You will appreciate that these meetings provide an opportunity to the member-countries to raise their concerns relating to SPS/TBT measures being undertaken by other member countries.

In this regard, we request you to kindly let us know  any such issues being faced in overseas markets  which can be raised as Specific Trade Concerns(STCs)  during the meetings of  WTO TBT/SPS committee.  A small background note relevant to the issue so identified which is impacting exports may also be provided.

Members are therefore requested to send  us  their inputs latest by 30th Jan 2018 on e-mail id’s – deepak.gupta@chemexcil.gov.in and balani.lic@chemexcil.gov.in .

Your timely replies will be appreciated and shall enable us submit to TPD, DoC for deliberations during the WTO meetings.

Thanking You,
Yours faithfully,
(S.G. BHARADI)
Executive Director
CHEMEXCIL

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AIR DBK Amendments in the All Industry Rates of Duty Drawback 2017-18

EPC/LIC/DBK_2018 23rd Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

AIR DBK Amendments in the All Industry Rates of Duty Drawback 2017-18

Dear Members,

This is in continuation  of our circular dated 25/09/2017 informing you about  All Industry Rates of Duty Drawback  2017-18  w.e.f.  01/10/2017 and other changes in Duty Drawback.

Subsequently, representations where sent by the Trade/ Industry  to the  Drawback Department for increase in DBK rate.  Further, consultations were also held with the esteemed Duty Drawback Committee in Ahmedabad on 31/10/2017 during which CHEMEXCIL also submitted its suggestions.

Now, Ministry Of Finance (Department Of Revenue) has issued Notification No. 8/ 2018 - CUSTOMS (N.T.) 22nd January, 2018 regarding amendments in the  earlier notification No. 89/2017-Cus(NT) dated 21.09.2017 relating to AIRs of Duty Drawback.

As far as items  from chemical sector are concerned, following amendments are effected:

iii) in Chapter - 29,-
(a) against tariff item 290701,-
(i) for the entry in column (4), the entry “1.5%” shall be substituted;
(ii) for the entry in column (5), the entry “4.7” shall be substituted;
(b) against tariff item 291201,-
(i) for the entry in column (4), the entry “1.5%” shall be substituted;
(ii) for the entry in column (5), the entry “11.3” shall be substituted;

The above amendments shall come into force on the 25th day of January, 2018.

Members are requested to take note of the amendments.   The above-said notification is available for download using below link-
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2018/cs-nt2018/csnt8-2018.pdf

We also look forward to your feed-back on ed@chemexcil.gov.in and Deepak.gupta@chemexcil.gov.in

Thanking You,
Yours faithfully,
(S.G. BHARADI)
Executive Director
CHEMEXCIL

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JNCH(Nhava Sheva) -Discontinuation of Printing of EP copy of the Shipping Bill

EPC/LIC/JNCH/EP_SB 22nd Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

JNCH(Nhava Sheva) -Discontinuation of Printing of EP copy of the Shipping Bill

Dear Members,

This has reference to  our circular dated 15/01/2018 informing you that the Directorate General of Foreign Trade (DGFT) has issued Public Notice no. 52/2015-2020 dated 12/01/2018  regarding  amendments in Ayat Niryat Forms (ANF) 4A, 4E, 4F, 4G, 4H & 4I of Handbook of Procedures 2015-2020.

As per the amendment in the AA Redemption Form (ANF- 4F -Guidelines), it  has been mentioned that wherever printout of EP Copy of shipping bill is not provided to exporters by Customs Authorities in terms of Circular No-55/2016-Customs dated 23.11.2016, applicant will have option to submit Exporter Copy of shipping bill in original duly signed by the Customs authority concerned in lieu of EP copy of shipping bill.

In this regard,  O/o Commissioner Of Customs, NS-IV, Nhava Sheva  has issued Public Notice No. 10/2018 dated 18/01/2018 wherein Trade/ Exporters are advised to avail benefit of aforesaid provisions/relaxations as notified earlier in DGFT PN i.e.  the  option to submit Exporter Copy of shipping bill in original duly signed by the Customs authority concerned in lieu of EP copy of shipping bill.

Since member-exporters were facing issues in redemption/ EODC of their Advance Authorisation/ DFIA, this relaxation will  provide relief to the exporters.

Members are therefore  requested to take note and do the needful accordingly.   The JNCH (Nhava Sheva) Public notice is available for download using below link-

http://164.100.155.199/pdf/PN-2018/PN_010.pdf

Thanking You,
Yours faithfully,
(S. G. BHARADI)
Executive Director
CHEMEXCIL

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GST - Recommendations of 25th GST Council Meeting (pertaining to exports/ chemical sector)

EPC/LIC/25TH GST_COUNCIL 19th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

GST - Recommendations of 25th GST Council Meeting (pertaining to exports/ chemical sector)

Dear Members,

Kindly take note  that the  25th Meeting of GST Council was held in New Delhi  on 18/11/2018.

As per press notes released  by  CBEC/PIB, the  recommendations pertaining to  exports/ chemical sector  are highlighted as follows:

Recommendations of Changes relating to GST rates on certain services pertaining to Exports/ Chemical sector

(A) Exemptions / Changes in GST Rates / ITC Eligibility Criteria


To grant following exemptions: (i) To exempt service by way of  transportation of goods from India to a place outside India by air;
(ii) To exempt service by way of transportation of goods from India to a place outside India by sea and provide that value of such service may be excluded from the value of exempted services for the purpose of reversal of ITC.
The above exemptions may be granted with a sunset clause upto 30th September, 2018.
To exempt IGST payable under section 5(1) of the IGST Act, 2017 on supply of services covered by item 5(c) of Schedule II of the CGST Act, 2017 to the extent of  aggregate of the duties and taxes leviable  under section 3(7) of the Customs Tariff Act, 1975 read with sections 5 & 7 of IGST Act, 2017 on part of consideration declared under section 14(1) of the Customs Act, 1962 towards royalty and license fee includible in transaction value as specified under Rule 10 (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
To reduce GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5% without ITC and 12% with ITC.
To exempt dollar denominated services provided by financial intermediaries located in IFSC SEZ, which have been deemed to be outside India under the various regulations by RBI, IRDAI, SEBI or any financial regulatory authority, to a person outside India.
To reduce GST on Common Effluent Treatment Plants services of treatment of effluents, from 18% to 12%.
To reduce GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services in respect of the said goods.
To exempt government’s share of profit petroleum from GST and to clarify that cost petroleum is not taxable per se.

Policy Changes recommended by the 25th GST Council Meeting

The following Policy Changes have been recommended by the GST Council in its 25th meeting held today:

  • The late fee payable by any registered person for failure to furnish FORM GSTR-1 (supply details), FORM GSTR-5 (Non-resident taxable person) or FORM GSTR-5A (OIDAR) is being reduced to fifty rupees per day and shall be twenty rupees per day for NIL filers. The late fee payable for failure to furnish FORM GSTR-6 (Input Service Distributor) shall be fifty rupees per day.
  •  
  • Taxable persons who have obtained voluntary registration will now be permitted to apply for cancellation of registration even before the expiry of one year from the effective date of registration.
  •  
  • For migrated taxpayers, the last date for filing FORM GST REG-29 for cancellation of registration is being extended by further three months till 31st March, 2018.
  •  
  • The facility for generation, modification and cancellation of e-way bills is being provided on trial basis on the portal ewaybill.nic.in. Once fully operational, the e-way bill system will start functioning on the portal ewaybillgst.gov.in
  •  
  • Certain modifications are being made to the e-way bill rules which are to be notified nationwide for inter-State movement with effect from 01.02.2018 and for intra-State movement with effect from a date to be announced separately by each State but not later than 01.06.2018.

Changes In GST/IGST Rate and Clarifications in Respect of GST Rate on Certain Goods

The Council has recommended certain in GST/IGST rate and clarifications in respect of GST rate on Goods specified below as per discussions in the 25thGST Council Meeting held today.

The items pertaining to Chemical sector  are being highlighted below:

 REDUCTION FROM 18% TO 12%:


S. No.
Chapter/Heading/Sub-heading/Tariff item Description
3. 2809 Fertilizer grade Phosphoric acid
4. 29 or 38 Bio-diesel
5 38 The following Bio-pesticides, -

S. No.
Name of the bio pesticide
1 Bacillus thuringiensis var. israelensis
2 Bacillus thuringiensis var. kurstaki
3 Bacillus thuringiensis var. galleriae
4 Bacillus sphaericus
5 Trichoderma viride
6 Trichoderma harzianum
7 Pseudomonas fluoresens
8 Beauveriabassiana
9 NPV of Helicoverpaarmigera
10 NPV of Spodopteralitura
11 Neem based pesticides
12 Cymbopogan

MODIFICATION IN DEFINITION/ CLARIFICATION IN RESPECT OF CHANGES IN GST/IGST RATES ON GOODS:

 
S.
No
Chapter/
Heading/
Sub-heading/
Tariff item
Description Present GST Rate Modification/clarification Recommended
1 27 Poly Butylene Feed Stock & Liquefied Petroleum Gas 18% The GST to apply only on the net quantity of Poly Butylene Feed Stock or Liquefied Petroleum Gases retained for the manufacture of Poly Iso Butylene or Propylene or di-butyl para cresol respectively, subject to specified conditions.
 

As per press releases, it is proposed to issue notification giving effect to the recommendations of the Council from  25th January, 2018.

Members are requested to kindly take note of the above recommendations of the 25th GST Council meeting which are pertaining to exports/ chemicals sector.  As and when notifications are issued, we shall update you.  The original press release’s are available for download using below links.

http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-release-25-council-meeting-3.pdf
http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-release-25-council-meeting-1.pdf
http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-release-25-council-meeting-2.pdf

Thanking you,
Yours faithfully,
(S.G BHARADI)
EXECUTIVE DIRECTOR
CHEMEXCIL

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REACH - SMEs having to register for the 2018 deadline in the EU

EPC: PROJ: REACH 18th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

REACH - SMEs having to register for the 2018 deadline in the EU

Dear Sir / Madam,

The Council is in receipt of the attached letter dated 10th Jan 2018 with the subject “SMEs having to register for the 2018 deadline in the EU” from the Ministry of Chemicals and Fertilizers, New Delhi.

The letter details about the steps taken by the European Chemical Agency and conference to be held for helping SMEs to register for the 2018 deadline in the European Union.

The members who are planning to register their products under the European Union’s “REACH Regulation” are requested to take a note of it and benefit from the training programmes being organised by ECHA.

Thanking You,
Yours faithfully,
S G Bharadi
Executive Director

Encl: http://chemexcil.in/uploads/files/Letter_from_Ministry_on_REACH.pdf

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IGST Refund Status Check IGST Validation Detail Enquiry is available at ICEGATE

EPC/LIC/GST_REFUND_STATUS 17th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

IGST Refund Status Check IGST Validation Detail Enquiry is available at ICEGATE

Dear Members,

Lack of information about the status of IGST refunds on exports  has been a serious concern for exporters.  The council has also taken up this matter regularly  with the CBEC/ GST authorities to provide an online utility to  check the IGST  refund status.

Now,  we understand   that there is following update on ICEGATE portal:

“ICEGATE has provisioned “IGST Validation Detail” Enquiry feature for users to view their IGST refund status for exports made.     IGST Validation Detail Enquiry is available at ICEGATE under login for IEC Holder Role “

The IGST Validation detail inquiry is available  only for IEC holders registered with ICEGATE   (https://www.icegate.gov.in/index.html)

Members are requested to take note and  check IGST refund status on their own or through CHAs, as the case may be.  Issues, if any, may be brought to the notice of the council (deepak.gupta@chemexcil.gov.in  & balani.lic@chemexcil.gov.in).

Thanking You,
Yours faithfully,
(S.G. BHARADI)
Executive Director
CHEMEXCIL

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FSSAI / JNCH List of “Out of Scope” items/ Clarifications as per JNCH (Nhava Sheva)

EPC/LIC/JNCH/FSSAI 17th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

FSSAI / JNCH List of “Out of Scope” items/ Clarifications as per JNCH (Nhava Sheva)

Dear Members,

As you might be aware, issued are being faced during import of chemicals   due to FSSAI  Mapping and also HS code classification.

This issue has been taken up by the trade/ industry during “Customs Clearance Facilitation Committee (CCFC)” meeting held  10/01/2018 at JNCH (Nhava Sheva). During the meeting, representatives from importers specially those dealing in goods falling under chapters 29 & 34 of the Customs Tariff raised the issue that number of bills of entry are being referred to FSSAI, which are being certified as “out of scope” by FSSAI resulting  in considerable delays besides  increased transaction costs.

Taking cognizance of  the issues faced by importers,   O/o The Commissioner Of Customs, NS-III Mumbai Zone-II, Jawaharlal Nehru Custom House   have issued  Public Notice No. 09 /2018 dated 12/01/2016 regarding List of “Out of Scope” items as received from FSSAI.

As per PN, it has been decided that in such cases, where goods imported are “out of scope items, then, it would not be mandatory to obtain “out of scope“ endorsement / certificate from FSSAI, even if such bills of entry are routed to FSSAI / or status of bill of entry shows “FSSAI pending”.

In such cases, Out of Charge (OOC) officer shall not insist for FSSAI “out of scope” endorsement and shall give OOC, subject to other regulatory compliance. FSSAI has also suggested that Non Food items appearing in the list should not be referred to them for clearance henceforth. They have also requested to share this list with Risk Management Centre for Customs (RMCC).

In this regard, the list of HS CODE of Non Food Items for which out of scope certification is enclosed as Annexure-I.   

As an effect of this PN, it has been decided that if the goods as described in the list enclosed (description and CTH) are imported but status of bill of entry shows “FSSAI pending”, there is no need to obtain “out of scope“ endorsement / certificate from FSSAI. OOC in such cases may be given subject to other regulatory compliance.

Members are requested to take note of the same and also convey to their  CHA’s.  In case of any difficulty in imports from JNCH (Nhava Sheva),   members/ CHA’s may contact Deputy/Asstt Commissioner in charge Group-I, NS-I, Group-II A-F, NS-V or Appraising Main (Import), NS-III (email- appraisingmain.jnch@gov.in) .

For further details,  the JNCH PN is available download using below links-

SN SUBJECT DATED
PN-009-18 Subject: List of “Out of Scope” items as received from FSSAI-reg. 12-Jan-2018

http://164.100.155.199/pdf/PN-2018/PN_009.pdf

Finally, as far as importers in other ports/ ICD’s are concerned, the council is writing to the CBEC for issuance of similar  PN’s from other ports also. In the interim, the PN issued by JNCH and the List of “Out of Scope” items  can be used as reference.

Difficulties, if any, can be highlighted to us on e-mail id’s- ed@chemexcil.gov.in, deepak.gupta@chemexcil.gov.in and balani.lic@chemexcil.gov.in.

Thanking You,
Yours faithfully,
( S.G. BHARADI )
EXECUTIVE DIRECTOR
CHEMEXCIL

http://chemexcil.in/uploads/files/PN_009_(JNCH_FSSAI).pdf

http://chemexcil.in/uploads/files/Annexure_PN_09-2018.xls

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GST - E-way bill common website launched

EPC/LIC/GST/E_WAY_BILL 17th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

GST - E-way bill common website launched

Dear Members,

This is in continuation of our circular dated 18/12/2017 informing you  that Ministry of Finance has issued press release regarding  roll-out of  e-way Bill system on a trial basis latest by 16th  January, 2018.  

The nationwide e-way Bill system for inter-State movement of goods on  compulsory basis will come into effect from 1st  February, 2018. States may choose their own timings for implementation of e-way Bill for intra-State movement of goods on any date before 1st June, 2018

In this regard,   E-way bill common website  has been launched.  We understand that the system has been rolled out on trial basis from 16th Jan 2018 onwards.   For details, please visit the site using following link-

www.ewaybill.nic.in
http://164.100.80.180/ewbnat10/

Members are requested to take note of the same  and inform their  logistics providers accordingly.  Issues, if any, may be brought to the notice of the council (deepak.gupta@chemexcil.gov.in  & balani.lic@chemexcil.gov.in)

Thanking you,
Yours faithfully,
S.G BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL

http://chemexcil.in/uploads/files/DTtNfmbVoAApwf-_(e-way_bill).jpg

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DGFT - Amendments in ANFs 4A, 4E, 4F, 4G, 4H & 4I of Handbook of Procedures 2015-20 Regarding Non-issuance of EP copies of Shipping Bills by Customs Authorities.

EPC/LIC/DGFT/ AA 15/01/2018
 
TO ALL THE MEMBERS OF COUNCIL
 

DGFT - Amendments in ANFs 4A, 4E, 4F, 4G, 4H & 4I of Handbook of Procedures 2015-20 Regarding Non-issuance of EP copies of Shipping Bills by Customs Authorities.

Dear Sir/Madam,

The O/o DGFT, New Delhi  has issued Public Notice no. 52/2015-2020 dated 12/01/2018  regarding  amendments in Ayat Niryat Forms (ANF) 4A, 4E, 4F, 4G, 4H & 4I of Handbook of Procedures 2015-2020.

There amendments have been made in light of implementation of GST and non-issuance of EP copies of Shipping Bills  by Customs  Authorities.

As you are aware, as per guidelines for redemption/ EODC of Advance Authorisation,  EP copy of shipping bill  is needed by DGFT  RA’s  due to which exporters where facing issues in redemption.  The council had taken up this issue regularly with the DGFT HQ.

Now, as per the amendment in the AA Redemption Form (ANF- 4F -Guidelines), it  has been mentioned that wherever printout of EP Copy of shipping bill is not provided to exporters by Customs Authorities in terms of Circular No-55/2016-Customs dated 23.11.2016, applicant will have option to submit Exporter Copy of shipping bill in original duly signed by the Customs authority concerned in lieu of EP copy of shipping bill.

Members availing the Advance Authorisation scheme  are requested to take note and do the needful accordingly.   The said Public Notice is available for download using  below link-

PUBLIC NOTICE NO. DATE SUBJECT
52/2015-2020 12.01.2018

Amendments in ANFs 4A, 4E, 4F, 4G, 4H & 41 of Handbook of Procedures 2015-20.

http://dgft.gov.in/Exim/2000/PN/PN17/PN%2052%20eng.pdf

Thanking You,
Yours faithfully,
(S. G. BHARADI)
Executive Director
CHEMEXCIL

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ITC Refunds - Nodal Officers appointed by Mumbai CGST & CX regarding refund of un-utilised ITC on exports

EPC/LIC/GST/ Nodal_ Officers 12th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

ITC Refunds - Nodal Officers appointed by Mumbai CGST & CX regarding refund of un-utilised ITC on exports

Dear Members,

As you are aware,  for claiming refund of un-utilised ITC on exports, taxpayers have to  submit claims in RFD-01A with Jurisdictional CGST & CX formations.

To ensure quick processing and disbursal of ITC refund claims,O/o  The Principal Chief Commissioner of CGST & CX, Mumbai  have advertised the details of  Nodal Officers appointed  in the respective jurisdictions.  

The details of these nodal officers are available in the attached JPG file for your reference.  Members can identify their respective jurisdiction using pin code number.

Members pursuing ITC refund  claims in  Mumbai CGST & CX jurisdiction are  requested to take note  of this information and do the needful.  As and when we receive similar  information on other jurisdictions, we shall update you.   Persistent  difficulties, if any, in this regard,  can be brought to our notice on e-mail id’s deepak.gupta@chemexcil.gov.in  & balani.lic@chemexcil.gov.in

Thanking You,
Yours faithfully,
(S.G. BHARADI)
Executive Director
CHEMEXCIL
MCGST & CX-ITC Refund 001

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REX (EU-GSP) Transition Period to register under REX extended to 30.06.2018

EPC/LIC/EU-GSP 10th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

REX (EU-GSP) Transition Period to register under REX extended to 30.06.2018

Dear Members,

As you are aware, Registered Exporter System (REX) was introduced under EU GSP vide PN no 51 dated 30/12/2016.  This was informed to you by the council vide its circular dated 02/01/2017.

O/o DGFT, New Delhi has now issued Public Notice No.51/2015- 2020 dated   09.01.2018 to extend the transition period for exporters to register under Registered Exporter System (REX) for availing benefits under EU Generalized System of Preferences (GSP) from 31.12.2017 to 30.06.2018.

After 30.06.2018, benefits under EU-GSP scheme can only be availed by those exporters who are registered under REX system and can self-certify the Rules of Origin on a commercial document (instead of a Certificate of Origin issued by the authorized agencies).

Members are requested to take note of the same and do the needful accordingly.  The above PN is available for download using below hyperlink-

PUBLIC NOTICE NO. DATE SUBJECT
51/2015-2020 09.01.2018 Certificate of Origin of Goods for European Union Generalised System of Preferences (EU-GSP) - Modification of the system as of 1st January, 2017.

Thanking you,
Yours faithfully,
S.G. BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL

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GST - A compilation of 51 GST related Flyers uploaded on the CBEC website

EPC/LIC/GST_COMPILATION 8th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

GST - A compilation of 51 GST related Flyers uploaded on the CBEC website

Dear Members,

As you might be aware,   flyers on important topics of GST are being brought out by the National Academy of Customs, Indirect Taxes, & Narcotics (NACIN), the apex training institution under the Central Board of Excise & Customs (CBEC).

The council also regularly communicates to the members regarding such Flyers/FAQ’s/ Manuals for creating awareness and understanding of  GST related topics.

We understand that till date 51 Flyers have been issued and more are being issued on an ongoing basis.  For easy reference, NACIN has now come out with a compilation containing all the 51 Flyers released till date for ease of reference.

Members are requested to take note of the same and may use for easy reference.  This compilation of the  GST related flyers is available for download using below link and also on the chemexcil website-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/compltn-51-gst-fliers.pdf

Thanking You,
Yours faithfully,
(S.G. BHARADI)
Executive Director
CHEMEXCIL

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E- Seals - Updated details of CBEC approved e-seal vendors w.e.f 5th Jan 2018

EPC/LIC/e-SEALS_Updates 8th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

E- Seals - Updated details of CBEC approved e-seal vendors w.e.f 5th Jan 2018

Dear Members,

This is in continuation of our earlier  mailers  updating  you about the  details  of e-seal vendors approved by CBEC.

Kindly note that as per e-seal vendor details updated on CBEC portal  vide  F. No. 450/188/2017-Cus IV,    now there are total 13 suppliers w.e.f. 5th Jan 2018.

The details  of e-seal  Vendors as per above update of CBEC are as  follows:

Sr. No Name of the Vendor Contact Details
1 M/s Perfect RFID Technologies Ltd, New Delhi Ms. Ritika Mina,
Head-Business development,
512, Fifth Floor, Ansal Chamber-II, Bikaji Cama Place, New Delhi, 011-41024861,62
ritika.mina@perfectrfid.com
2 M/s ibTrack Solutions Pvt Ltd, Bengaluru Shri Sudhendra Dankanikote
Director and Chief Operating Officer, 1109, GF, 13th Cross, 2nd Stage, Indiranagar, Bengaluru
080-25266786, 25278786
sudhendra@ibtrack.net
3 M/s Optiemus Telematics Pvt Ltd, Noida Shri Apurba Chakraborty
Sr Vice President, Plot No. 2A, wing A, 1st Floor, Sector 126, Noida
011-49202020, 49202011
helpdesk@lynkseals.com
4 M/s Infotek Software & systems (P) Ltd., Pune Shri . Santosh Patil
Business Analyst, P-14, Phase 1, I2IT campus, Rajeev Gandhi Infotech Park, Hinjawadi, Pune – 411057
Tel: 020-64730029 / 30 Mobile: +91-8411057733
email: santosh.patil @infoteksoftware.com
5 M/s Sepio Products Private Limited, Vasai (E), Palghar-401210 (Maharashtra) Shri Darshan Gandhi
Director, M/s Sepio Products Private Limited, 037, Akshay Ind. Premises Co-op. Society Ltd. Navghar, Vasai (E), Palghar-401210 (Maharashtra), Phone No. 98218 88361, Landline No. 022-28474000, 022-28473000
Email : darshan @sepioproducts.com
6 M/s Pack Seals Industries, Mumbai Shri Piyusha Phadke
Proprietor, M/s. Pack Seals Industries, 102/ 1st Floor, Utkarsh Co.op Hsg.Soc. Ltd. Anandroa Pawar High School, Ram Mandir Road, Vajira naka, Borivali(W), Mumbai-400103. Phone No.022-28183138, 28147669
Email : info@ packsealsind.com
7 M/s. Thar Shipping Lines LLP, Bangalore. Shri Nishant Choradia
M/s. Thar Shipping Lines LLP, 71, 3rd Cross, Lalbagh Road, Sudhamanagar, Bangalore-560027, Mobile : 9377359469, 8971972679
Email Id : nc@tharlines.com
8 M/s. Great Eastern IDTech Pvt. Ltd. Gurgaon (Haryana). Shri Pradeep Kumar
General Manager, M/s.Great Eastern IDTech Pvt. Ltd., 285, Udyog Vihar, Phase-II, Gurgaon-122016,
Mobile 9818222201, Land Line-0124-2347431/32
Email Id : sales@geipl.com
9. M/s. Enopeck Seals Industries, Mumbai Shri B.M. Patil
M/s. Enopeck Seals Industries
301/A, 3rd Floor, Ramkrishna CHSL, Babhai Naka, Borivali (West), Mumbai – 400 092,
Mobile :9833889128, Land Line-022-28981267, 28991659
Email Id : info@enopeck.com
10. M/s. IDTech Solutions, Gurgaon (Haryana). Shri Samarath Vig, M/s. IDTech Solutions, Plot No.610, Udyog Vihar Phase-V, Gurgaon,
Mobile 9968048691, Land Line-0124-4255530
Email Id : samrath@idsolutionsindia.com
11 M/s Warner Industries, Mumbai Shri Rajesh Kohli
M/s Warner Industries, Kohli House, 6-D, Nesbit Road, Mazagaon, Mumbai 40001
Mobile +919820026864; Land line – 022-23732886
Email ID : rk@warnerseals.com
12 M/s Jainam Multi-product (India) Pvt. Ltd, Vapi (Gujarat) Shri Naresh Sharma
M/s Jainam Multi-product (India) Pvt. Ltd., 509, 5th Floor, Fortune Square-II, Daman Road, Landmark TBZ Jewellers, Chala, Vapi 396191;
Land Line : 0260- 2970405; Mobile No : 09825249766; Email ID : sharma@klikseal.in
13 M/S AAA Products Pvt. Ltd., Gurugram (Haryana) Shri Gopal Shakti
Business Development Head, M/S AAA Products Pvt. Ltd., K, No. 12/3/1 & 4/1/1, V.P.O. Begampur Khatola, Behrampur Road, Gurgaon (Haryana) - 122001; Land Line : 011-41006204/49480000; Mobile : 9971304631; Email ID : sales@boltseal.com

The   above details  are shared only for information/ guidance  purpose.  As exporters have to purchase e-seals directly from the vendors, they are advised to take appropriate precautions with regards to the financial transactions or any other dealings with the Vendor.

We also understand from CBEC updates, that the process of verifying the documents of the Vendors is an ongoing process. As and when aspiring vendors complete the required documentation their names will be put up on CBEC website.   We shall update you in due course.

Members are requested to take note of  this update.    Though the mandatory implementation of e-sealing for export containers is deferred till 1st March 2018, members may use this additional time and do the needful.    For further details, please use below link to download the update from CBEC portal:

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2018/eSeals_vendor_details_05jan2018.pdf

Thanking You,
Yours faithfully,
(S.G. BHARADI)
Executive Director
CHEMEXCIL

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GST - User Manual/ FAQ’s on claiming refund of IGST/ Un-utilised ITC on exports available on GST Portal

EPC/LIC/GST_REFUND/ FAQ’s 4th Jan 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

GST - User Manual/ FAQ’s on claiming refund of IGST/ Un-utilised ITC on exports available on GST Portal

Dear Members,

As you are aware,  claiming refund of IGST/ Un-utilised ITC on exports has been a concern for exporters due to delays on account of inadvertent errors, compliance burden etc.

From time to time, Government has issued clarifications and  council is also sending mailers  to create awareness amongst the exporters about the steps/ pre-requisites for processing of refunds.

For further handholding,GST Portal (www.gst.gov.in) has uploaded  Manual/ FAQ’s on various topics in their help section.     Keeping in mind the current concerns of the exporters regarding refunds,  following sections are very important (particularly MSME’s) and may be referred  to ensure expeditious claim processing/ error minimisation:

Refund

  • Applying for Refund on Account of Export of Goods (With Payment of Tax)
  • Filing Table 6A of Form GSTR-1
  • GST FORM RFD-01 A
  • Viewing Submitted or Saved Application for Refund
  • Tracking Refund Status (ITC refunds)

All above topics related to refunds  are available on  following url of GST Portal:
https://www.gst.gov.in/help/refund

Members are requested to take note and may refer to  User Manual/ FAQ’s  available on above link to familiarise with the refund claim process.  In case of further utilities on the such important topics, we shall update you.

Thanking You,
Yours faithfully,
(S.G. BHARADI)
Executive Director
CHEMEXCIL

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IMPORTANT and URGENT Request to submit the photocopy of Status Holder Certificate

EPC: MEMB: STATUS: CERT. 2nd January 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

IMPORTANT and URGENT Request to submit the photocopy of Status Holder Certificate

Dear Members,

Thanks you for associating with chemexcil

The members having status holder certificate issued by DGFT are requested to submit their certificate to Chemexcil membership section by sending scan copy (either JPG or PDF) by  email on membership@chemexcil.gov.in; pramila@chemexcil.gov.in; paradkar@chemexcil.gov.in

Status-holders are business leaders who have excelled in international trade and have successfully contributed to the country’s foreign trade. They are expected to not only contribute towards India’s exports but also provide guidance and handholding to new entrepreneurs.

Business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade are proposed to be recognized as Status Holders and given special treatment and privileges to facilitate their trade transactions, in order to reduce their transaction costs and time.

The nomenclature of Export House, Star Export House, Trading House, Star Trading House, Premier Trading House certificate has been changed to One, Two, Three, Four, Five Star Export House.

The criteria for export performance for recognition of status holder have been changed from Rupees to US dollar earnings. The new criteria is as under:

  • One Star Export House:- Export Performance FOB / FOR (as converted) Value (in US $ million) during current and previous two year is USD 3 million
  • 2. Two Star Export House:- Export Performance FOB / FOR (as converted) Value (in US $ million) during current and previous two year is USD 25 million
  • 3. Three Star Export House:- Export Performance FOB / FOR (as converted) Value (in US $ million) during current and previous two year is USD 100 million
  • 4. Four Star Export House:- Export Performance FOB / FOR (as converted) Value (in US $ million) during current and previous two year is USD 500 million
  • 5. Five Star Export House:- Export Performance FOB / FOR (as converted) Value (in US $ million) during current and previous two year is USD 2000 million

It is mandatory for memebrs having above category of status to submit the scan copy of the valid certificate(Issued by DGFT) to council at the earliest on email stated above or upload the same by using your user id and password on our web portal.

Thanks and regards,
(S. G. Bharadi)
Executive Director

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Logistics Division (MOC) - Simplification and rationalisation of export documentation for reducing transaction time and cost

EPC/LIC/MOC/lOGISTICS 01/01/ 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

Logistics Division (MOC) - Simplification and rationalisation of export documentation for reducing transaction time and cost

Dear Members,

The Council has received communication  from  Shri D.P. Mohapatra, Addl. DGFT, Department of Commerce (Logistics Division)  regarding Simplification and rationalisation of export documentation for reducing transaction time and cost.

As you are aware,  apart from the mandatory documents like Shipping bill, bill of lading/Airway bill and Commercial invoice cum packing list, Indian exporters are made to file several auxiliary and sector/product specific documents which often cause delay and unnecessary expenditure.

However, minimisation of transaction cost and transaction time is essential for gaining competitiveness in the global market.   Keeping that in view, an effort is being made by the Logistics Division of the Department of Commerce to identify and remove the repetitive and redundant documentsand to ensure expeditious documentation through maximum digitalisation and minimum human intervention.

Members are kindly  requested to provide information concerning  following:

Various mandatory and auxiliary documents that are insisted by the various authorities (both at State and Central levels) in the course of exports from the point of production till the point of dispatch, along with scanned copies of all such documents and also indication about flow of documents.

How many copies of each document is insisted by which authority and at what level, whether manually filed or filed online

Whether any document can be removed or the required information can be clubbed with another document.

Your valuable replies/ inputs (with document scans wherever possible) be sent to us by  6th Jan 2018  on e-mail id’s:   deepak.gupta@chemexcil.gov.in  & balani.lic@chemexcil.gov.in .

Your timely replies in this  endeavour shall be appreciated and  enable us submit to the concerned dept for consideration within the timelines.

Thanking You,

Yours faithfully,

(S.G. BHARADI)
Executive Director
CHEMEXCIL

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GST- Fourteenth Amendment in CGST Rules, 2017/ The date from which E-Way Bill Rules shall come into force

EPC/LIC/CGSTRules2017_Eway 01/01/ 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

GST- Fourteenth Amendment in CGST Rules, 2017/ The date from which E-Way Bill Rules shall come into force

Dear Members,

The Central Board of Excise & Customs has notified  Fourteenth amendment in CGST Rules 2017.  In addition to above amendments, the date from which E-Way Bill Rules shall come into force has also been notified.

Major amendments in CGST Rules  pertain to Refund formula of accumulated ITC against zero-rated supplies revised, Refund mechanism established for certain organizations, applicability  of UIN  etc.

From exports point of view,  we have highlighted following important Notifications for your reference:

Central Tax Notifications

Notification No. & Date of Issue English Subject
75/2017-Central Tax ,dt. 29-12-2017 View (279 KB) CGST (Fourteenth Amendment) Rules,2017
74/2017-Central Tax ,dt. 29-12-2017 View (113 KB) Notifies the date from which E-Way Bill Rules shall come into force

http://www.cbec.gov.in/htdocs-cbec/gst/central-tax-notfns-2017

Members are requested to take note of the same and do the needful.  Original Notifications are available for download using hyperlink provided therein.

Thanking You,
Yours faithfully,
(S.G. BHARADI)
Executive Director
CHEMEXCIL

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GST Extension of date for filing return in FORM GSTR-1 Clarifications on various aspects of return filing ( such as return filing dates, applicability and quantum of late fee, amendment of errors etc)

EPC/LIC/GSTR 01/01/ 2018
 
TO ALL THE MEMBERS OF COUNCIL
 

GST Extension of date for filing return in FORM GSTR-1 Clarifications on various aspects of return filing ( such as return filing dates, applicability and quantum of late fee, amendment of errors etc)

Dear Members ,

Kindly note that CBEC  has issued notifications regarding  extension of date for filing return in FORM GSTR-1.     The  GST Policy Wing, CBEC   has also  issued an important circular having clarifications on various aspects of return filing such as return filing dates, applicability and quantum of late fee, amendment of errors etc

The gist of important  changes are as under-

a)   Revised due dates for quarterly furnishing of FORM GSTR-1 for taxpayers with aggregate turnover of up-to Rs.1.5 crore.

As per Notification No. 71/2017 – Central Tax New Delhi, the 29th December, 2017 the revised schedule shall be as under

Sl No. Quarter for which the details in 
FORM GSTR-1 are furnished
Time period for furnishing the details in FORM 
GSTR-1
(1) (2) (3)
1 July - September, 2017 10th January, 2018
2 October - December, 2017 15th February, 2018
3 January - March, 2018 30th April, 2018

(b)Extension of the due dates for monthly furnishing of FORM GSTR-1 for taxpayers with aggregate turnover of more than Rs.1.5 crores.

As per Notification No. 72/2017 – Central Tax  New Delhi, the 29th December, 2017, the revised schedule shall be as under

Sl No. Months for which the details in 
FORM GSTR-1 are furnished
Time period for furnishing the details in FORM 
GSTR-1
(1) (2) (3)
1 July - November, 2017 10th January, 2018
2 December, 2017 10th February, 2018
3 January, 2018 10th March, 2018
4 February, 2018 10th April, 2018
5 March, 2018 10th May, 2018

Ø   Clarifications on various aspects of return filing such as return filing dates, applicability and quantum of late fee, amendment of errors etc

Representations have been received by CBEC seeking clarifications on various aspects of return filing such as return filing dates, applicability and quantum of late fee, amendment of errors in submitting / filing of FORM GSTR-3B and other related queries. In order to consolidate the information in various notifications and circulars regarding return filing and to ensure uniformity in implementation across field formations, CBEC (GST Policy Wing)  has issued master Circular No. 26/2017-GST dated 29/12/2017  which is available for download on below link-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-26-cgst.pdf

Members are requested to take note of the same and do the needful as per revised dead-lines.   In case of Technical  Issues, please write to helpdesk@gst.gov.in under cc todeepak.gupta@chemexcil.gov.in/ balani.lic@chemexcil.gov.in .

Thanking you,
Yours faithfully,
S.G BHARADI
EXECUTIVE DIRECTOR
CHEMEXCIL

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News & Articles

Dangerous Goods Cleopatra, Toxicology and Transport Regulations

Grieving for the death of Mark Antony, whom she loved most dearly, having no hope for her son Ptolemy Caesar to live, forget becoming emperor, Cleopatra foresaw her doomed future. What can be more humiliating to Cleopatra, who called herself the goddess Isis, the wife of Osiris, than being paraded in victory march in Rome by the triumphant Octavian, who later became Emperor Augustus Caesar.

Today, the 12th August 30 BCE, Cleopatra VII Philopator said her last words, as she applied the second asp (Egyptian cobra) to her arm:

As sweet as balm, as soft as air, as gentle,
    O Antony! Nay, I will take thee too.
    What should I stay!”

When we sift through the pages of history we can see the first use of poison in warfare recorded by Homer in Odyssey, poison from hellebores used by Odysseus on his arrows. Ibn Wahshiya, an Iraqi alchemist, agriculturalist, farm toxicologist, Egyptologist and historian wrote toxicology treatise, Book of Poisons, in 9th century C.E.

Coffee, tea or cola all these beverages contain ‘caffeine’, in the second edition of “A Small Dose of Toxicology” – The Health effects of Common Chemicals- Steven G. Gilbert says “Most consumers of caffeine are well aware of the benefits of this drug as well as the consequences of consuming too much. Through trial and error, we have learned how to moderate our consumption of caffeine to avoid any undesirable effects. In regulating our consumption of caffeine we are applying the most basic principle of toxicology: dose/response.

What dose constitute a substance as poison in transport regulations?
During transport we do not expect the Master of the vessel or her crew to open the packages and start eating or drinking the dangerous goods. The only way people on board ships or others involved in transport of goods by Rail, Road, River or Air can be exposed to chemicals are while handling the packages which carry stains of chemicals on the exterior or while dealing with a spillage or fire. Example a crew handle leaking packages and without washing hands consume food; oral route of exposure.

Paracelsus (1493-1541) said "All substances are poisons; there is none, which is not a poison. The right dose differentiates a poison from a remedy."

In transport regulations the word “toxic” has the same meaning as “poisonous”.

Toxic Gases are placed under Class 2.3 (Toxic gases) and Toxic Liquids and Solids are placed under Class 6.1 (Toxic substances).
Class 6.1, for the purpose of packing toxic liquids and solids are grouped into three packing groups:
1.  Packing group I: substances and preparations presenting a high toxicity risk;
2.  Packing group II: substances and preparations presenting a medium toxicity 
risk;
3.  Packing group III: substances and preparations presenting a low toxicity risk.

For making this grouping consideration from both accidental human experience and data obtained from animal experiments are taken.
The possible routes of exposures are:
oral ingestion;
dermal contact; and
inhalation of dusts, mists or vapours.

Class 6.1 Grouping criteria for administration through oral ingestion, dermal contact and inhalation of dusts and mists

Packing group Oral toxicity LD50
(mg/kg)
Dermal toxicity LD50
(mg/kg)
Inhalation toxicity
by dusts and mists LC50
(mg/ℓ)
I ≤ 5.0 ≤ 50 ≤ 0.2
II > 5.0 and ≤ 50 > 50 and ≤ 200 > 0.2 and ≤ 2.0

III > 50 and ≤ 300 > 200 and ≤ 1000 > 2.0 and ≤ 4.0

LD50 of Egyptian cobra (Naja haje), Cleopatra chose for her death, is Sub-
Cutaneous 1.15 mg/kg, Intra-venous 0.96 mg/kg, Intra-peritoneal 0.185 mg/kg.

For oral and dermal the dosage is calculated mg per kg body weight and for inhalation dosage is calculated by mg per litre of air we breathe. An excellent example to understand dosage is explained on coffee by Steven G. Gilbert in the second edition of “A Small Dose of Toxicology”. Below table describes same.

One Mug of Coffee containing 100 mg Caffeine
Adult 70 kg body weight Dosage = 100 mg / 70 kg = 1.4 mg/kg
Child 5 kg body weight Dosage = 100 mg / 5 kg = 20 mg/kg

What is LD50 and LC50?

LD50(median lethal dose) for acute oral toxicity is the statistically derived single dose of a substance that can be expected to cause death within 14 days in 50 per cent of young adult albino rats when administered by the oral route. The LD50 value is expressed in terms of mass of test substance per mass of test animal (mg/kg).

LD50 for acute dermal toxicity is that dose of the substance which, administered by continuous contact for 24 hours with the bare skin of the albino rabbit, is most likely to cause death within 14 days in one half of the animals tested. The result is expressed in milligrams per kilogram body mass.

LC50for acute toxicity on inhalation is that concentration of vapour, mist or dust which, administered by continuous inhalation to both male and female young adult albino rats for one hour, is most likely to cause death within 14 days in one half of the animals tested. The result is expressed in milligrams per litre of air for dusts and mists or in millilitres per cubic metre of air (parts per million) for vapours.

If you are involved in transporting toxic substances, then it is your legal and moral duty to ensure that the consignment strictly meets the requirements of relevant regulations for the mode of transport.

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India’s Export Strategy With Kenya (Organic & Inorganic Chemicals)

Indian Chemical Industry India, Asia’s third largest producer of chemical with a market size of USD 139 billion, is growing at a brisk pace. Approximately 34% of India’s export earnings can be attributed to the chemical industry, which majorly includes polymers & plastics, agrochemicals, dyes, and organic and inorganic chemicals. The country also stands as an important global player in the production of organic, inorganic, and agrochemicals.

Kenya Profile

Kenya, an East-African country, stands 23rd by area in Africa. Kenya covered a total land area of 569,140 sq. km. with an estimated population of 45.5 million in 2016. In terms of GDP, it is the 72nd largest economy of the world. The country is blessed with agriculture, which contributes more than 25% to theKenya’s GDP

Kenya’s inward FDI (flows) reached as high as USD 1.4 billion in 2015, as compared to USD 1 billion

in the previous year, resulting from renewed investor interest, confidence in the country’s business

climate,anda booming domestic consumer market. The rise in Kenya’s investments is mainly due

to the Chinese investments in the mining and hydrocarbon sectors. As on 2015, Kenya’s FDI inward
(stock) stood at USD 5.9 billion. Kenya is becoming a favored business hub, not only for oil & gas

exploration but also for manufacturing exports, as well as consumer goods and services.

India’s role in Kenya Economy

India and Kenya shared a long history as trade partners and contribute to the each other’s economy. Cumulatively, from 1996 to 2016, the FDI outflow from India to Kenya stood at around 11%. The potential sectors for investment included: infrastructure (roads, railway and airport), energy (hydropower, geothermal and renewable), manufacturing, tourism, and banking and finance.

India’s Export Strategy with Kenya

The Kenyan economy remains dependent on the large, informal, and subsistence agriculture, which accounts for over 30% of GDP, and about half of the total export of the country. Horticulture contributes the largest share of agricultural GDP (33%), followed by food crops (32%), and industrial crops (17%).

The bilateral trade agreement between the two countries has yielded fruitful results for both India and Kenya. Prime Minister Narendra Modi, in his visit to Kenya in July 2016, provided a new strength to the existing bilateral partnership. The two countries signed 7 MoUs/Agreements in the field of trade & developmental assistance and defence.

Further, in 2017, the Kenyan president Uhuru Kenyatta visited India to enhance cooperation between the two countries, which includes the field of agriculture. MoU on sooperation in the agricultural sector and allied sector and LoC worth USD 100 million for agricultural mechanization were signed during the visit.

Since, the agriculture sector contributes more than 25% to the Kenyan GDP, this agreement will likely give upper hand to India and help boost the export expecially in the agrochemical sector.

As depicted by the graph above, export of organic chemicals has increased at a very good rate. This is the result of good growth prospects in the manufacturing, pharmaceutical, and healthcare industries. India, being an important and preferred trade partner of the country, can count and explore its opportunities in Kenya.

Kenya’s “Vision 2030 Manufacturing Sector” is an open opportunity for India to strengthen its export,especially in the pharmaceutical, healthcare, food & beverage processing, and petrochemical industries(they majorly use organic and inorganic chemicals). As of now, India is expected to keep its focus onexporting organic and inorganic chemicals to tap into the manufacturing industries, which are emergingrapidly in Kenya.

Kenya’s Trade Agreements with other countries
Kenya is a part of several trade blocks or trade zones and communities through which it enjoys tradebetween nations. Within the African region, the country has two regional trade agreements namedCOMESA (Common Market for Eastern and Southern Africa) and EAC (East African Community).

In COMESA, Kenya enjoys liberal trade with 18 other African countries. Similarly, EAC is a regional

intergovernmental organization of six partner states: Kenya, Rwanda, South Sudan, the United Republicof Tanzania, the Republic of Burundi, and the Republic of Uganda. The member states of EAC enjoy freemovement of goods & services, labor/workers, and free movement of capital among themselves. Themajor focus areas under the EAC common market includes agriculture & food security, energy,environment & natural resources, industrialization, investment promotion and private sectordevelopment.

Kenya also has bilateral trade agreements with some of the major economies In Europe and Asia-Pacific,like Russia, Poland, the Netherlands, Czech Republic, China, South Korea, and Thailand.

Besides regional trade agreements, the United States and member states of COMESA are into the

multilateral trade system of the World Trade Organization (WTO). The system was brought into place torecognize the essential role of private investment, both domestic and foreign, in furthering growth,creating jobs, expanding trade, improving technology, and enhancing economic development. Moreover,the AGOA (African Growth and Opportunity Act) gives Kenya a free access to the US market. Kenya majorlyexports textiles, apparels and handicrafts under this act.

DISCLAIMER
Mordor Intelligence Reports and their contents, including all the analysis and research containing valuablemarket information, are provided to a select group of customers in response to orders.
Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MordorIntelligence takes no responsibility for any incorrect information supplied to us by manufacturers or users.

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INDIA-KENYA SPECIALTY CHEMICAL TRADE

India’s relationship with Kenya can be traced back to the era of sea trade. India actively contributed to the continuous progress achieved by Kenya since the historical period, through growing trade and investment partnerships between the two countries. Furthermore, both the countries enjoy a bilateral partnership, with India being the largest trading partner for Kenya, with a bilateral trade of USD 2.30 billion in 2016-17.

Kenya is not a major producer of specialty chemicals. However, for the country to support its manufacturing sector (which is the second largest consumer of chemicals after agriculture sector), the country formulated the National Chemicals Profile, which will support the existing infrastructure and capacities for managing chemicals. Specialty chemicals imported from India are used in textile, cosmetics & personal care, and plastic industries. All of these industries play a pivotal role in anchoring the country to emerge in the global market.

Currently, India’s exports to Kenya are low when compared export to other nations. However, this provides huge potential for India to tap in and increase its export activities with Kenya. Kenya is expected to be one of the fastest growing nations in eastern Africa; also, it has emerged to become the prime choice for investors. India is the top source import market for Kenya, ahead of both China and UAE. Superior product quality available at affordable costs, and relative proximity between the two nations are the major factors for the developing trade relationship between the two nations.

What are the major chemicals India exports to Kenya?

The major specialty chemicals India exports to Kenya includes -

  • Dyes, Dye Intermediates, Inks, & Pigments
  • Cosmetic & Toiletry Chemicals/Additives
  • Adhesives, modified starches, enzymes
  • Engineering Plastics & Additives
SPECIALTY CHEMICALS EXPORTS FROM INDIA TO KENYA: VALUE (IN USD MILLION), 2015-2016

COMMODITY EXPORT VALUE IN 2015 EXPORT VALUE IN 2016
     
Tanning or dyeing extracts; tannins and their derivatives; dyes,    
pigments and other coloring matter; paints and varnishes; putty and 22.786 21.939
other mastics; inks    
     
Essential  Oils  and  resinoids;  perfumery,  cosmetic  or  toilet 6.785 6.080
preparations
   
     
Enzymes; prepared enzymes 0.228 0.191
     
Adhesives; prepared, based on rubber or plastics (including artificial 0.906 0.465
resins)
   
     
Rubber or plastic accelerator, plasticiser, stabiliser 1.024 0.971
     

Source: UN Comtrade

GROWING FOCUS OF INDIA ON SPECIALTY CHEMICALS

At present, China dominates the global specialty chemicals market. However, India is now focused on becoming one of the global leaders of specialty chemicals in the coming years. India possesses the driving forces to emerge as a leader in the global specialty chemicals market owing to factors, such as easy availability of raw materials at competitive prices, strong base of technically skilled manpower, a domestic industry that supports ‘premiumisation’ of products, growing investment in R&D, and an ecosystem that firmly believes and supports innovation. The ‘Make in India’ campaign thoroughly supports all these forces, helping India become the top destination for the manufacturing of specialty chemicals.

India’s specialty chemicals market recorded an average growth of 14% from 2010-2015. India’s share in the global specialty chemicals market can increase from c.3.4% in 2015 to c.5% by 2020, provided the country continues to maintain a growth rate of around 13% through 2020.

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Latin American market in 2017-18 and prospects for Indian business

Mr. R. Viswanathan, also known as Rengaraj Viswanathan, is a retired Indian diplomat, writer and speaker specializing in Latin American politics, markets, and culture.
Viswanathan gives speeches in both Spanish and Portuguese and has visited almost all of the countries in the Latin American region. Records exist of more than 100 speeches since June 2004. More than thirty of these speeches are preserved on the internet

Latin America's GDP growth is projected to increase to 2.2% in 2018 from 1.3% in 2017, according to the 14 December report of the UN Economic Commission for Latin America and Caribbean (ECLAC). Although the growth of 2.2% is modest, it would be the highest since 2013.

The GDP growth prediction for the major countries are: Brazil - 2%, Mexico-2.4%, Argentina-3% and Colombia-2.6%. Panama will have the highest growth with 5.5%, followed by Dominican Republic-5.1% and Nicaragua-5%. In South America, the growth champion in 2018 will be Bolivia with 4%. Venezuela is the only country which will face GDP contraction, at 5.5%. The consolation is that the contraction would be less than the 2017 figure of 9.5%.

The growth of the region in 2018 will be driven by increase in domestic demand, higher exports and favourable growth of global economy and trade. The commodity prices which increased by 13% in 2017 are expected to maintain the same level of prices in 2018 too.

In 2017, imports of the region are estimated to increase by 11% to 949 billion dollars and exports by 9% to 929 billion. The trend of increase in trade is expected to be maintained in 2018.

The average inflation of the region has come down to 5.3% in 2017 from 7.3% in 2016. It is creditable that the inflation of the region has remained in single digit in the last ten years. The highest was 7.9% in 2015. The only black sheep is Venezuela with a four digit inflation. Argentina is struggling with a double digit inflation of 22.9% in 2017.

The ratio of external debt to the GDP of the region in 2017 was a manageable 38.6%. It is important to note that it has remained below 40% in the last decade. This means that Latin America has come out of its bad old habit of excessive external borrowing and debt default is a thing of the past.

The international reserves of the region reached 851 billion dollars in 2017, the highest in the last ten years. Venezuela is the only country with the problem of acute foreign exchange shortage.

The stronger macroeconomic fundamentals, the financial discipline of the governments and their Inclusive Development policies augur well for growth and prosperity of the region in the future.

Political developments

In the elections held in December, the business-friendly billionaire Sebastian Pinera was elected as President of Chile. Lenin Moreno, who was elected as President of Ecuador in February, is more moderate and pragmatic than his predecessor Rafael Correa who had confrontations with foreign companies and got carried away by his anti-imperialist rhetoric. Argentina, Brazil, Peru and Paraguay have changed their leftist governments with centre right ones in recent years. While the Pink Tide of the last decade seems to have receded for the moment, the good news is that there is a clear trend of moving towards a pragmatic centre and avoiding extreme left or right. Even the centre-right governments have pro-poor policies and higher public spending for health and education.

In 2018, Brazil, Mexico, Colombia, Costa Rica, Paraguay and Venezuela will have presidential elections. Although Lula is leading in the opinion polls, he faces the risk of disqualification if his conviction in the corruption case is confirmed by the Supreme Court. The right wing media gives generous coverage to Bolsanaro, the extreme rightist candidate but he is not expected to make it. Alckmin, the non-controversial former governor of Sao Paulo state has a chance. Meanwhile the current temporary president of Brazil is pursuing some reforms, privatisation and liberalisation, some of which could materialise. The country will have more political stability in 2018 after the four scandal-filled disastrous years since 2014.

In Mexico, Lopez Obrador, the leftist candidate who lost narrowly in the last two elections, is the favourite to win. His strong personality and nationalistic position is considered as positive to stand upto Trump who heaps insults upon the Mexicans. Although Obrador is against the opening of the energy sector to private sector, he is not likely to roll back significantly the reforms already done.

In Colombia, President Manuel Santos will leave office after having achieved peace in the country with the FARC agreement.  FARC, in its new avtar as a political party, will participate in the 2018 elections but they have very limited chances. The next president of the country will have a fresh start focussing on economic development free from the war burden. Thanks to the end of the guerrilla war, vast new areas of the country have now opened up for agriculture, mining, oil exploration and infrastructure development.

While most of Latin America has firm democratic foundations, three countries have remained as exceptions. The political crisis in Venezuela will continue in 2018 and could get even worse. President Maduro of Venezuela will try to get reelected in 2018 by hook or crook. Honduras is living upto its reputation of “Banana republic” with its ongoing agitation against the  reelection of President Hernandez after alleged electoral malpractices. Cuba, which was opening up, has slowed down its reforms in reaction to Trump’s revival of the failed policy of restrictions and isolation of Cuba. Raul Castro will step down as President in April 2018 but will continue as the communist party head.

Car wash (Lava Jato) and Odebrecht corruption scandals

The Car wash corruption scandal in Brazil has given a traumatic shock to the business and political elite of Brazil. Over 150 business leaders, executives and politicians have been arrested, of which a majority has been convicted. Many large Brazilian infrastructure companies have been blacklisted for government contracts and credit facilities. It will take quite some time for the affected Brazilian firms to come out of this stain. The Odebrecht scandal has claimed many victims among politicians in other countries too. The Vice President of Ecuador is already in jail and the Peruvian Congress had almost impeached President Kuczynski in December for involvement in the Odebrecht bribery scheme. Before 2014, Odebrecht was the largest Latin American infrastructure company and had done many prestigious projects in the region.

These scandals have given a strong anti-corruption message to the region, where corruption was accepted as part of doing business. But the scandals have left many infrastructure projects paralysed, delayed or scrapped in Brazil besides other countries. They have tarnished the reputation of the Brazilian companies and have opened the field to Chinese and other foreign firms in the region.

Latin America is more serious about India now

Trump has revived the Ugly Gringo fears of Latin Americans. Humiliated by Trump’s insults and anti-NAFTA stand, Mexico is keen to diversify its trade partnership. Other Latin Americans too are disgusted by the protectionist policies and Caudillo tantrums of Trump. They are also disillusioned with Europe which is mired in trade protection, anti-immigration and other such issues. On the other hand, China has emerged as the second largest trading partner of Latin America overtaking European Union. It has given around 150 billion dollars of credit and invested around 120 billion dollars in the region.  But the Latinos are wary of the non-transparent and sometimes high-handed business practices of the Chinese and the hidden agenda of Chinese government owned enterprises. Realising the risk of the overwhelming dominant presence of China, they want to reduce their overdependence.

Caught between the bullying Trump, indifferent Europe and the trust deficit with the Chinese, the Latin Americans have started looking more seriously at India, which has become more important for Latin America's exports than any European country. In 2016, Latin America exported 16.7 billion dollars of goods to India while their exports to Germany were 14.4 billion, Spain-13.5bn, UK-10 bn, Italy-9.3 bn and France – 7.2 bn. In 2014, India was the third largest export destination for Latin America’s exports after US and China. The Latin American business is attracted by India's huge and growing market. They have taken note that India has already overtaken China in GDP growth rate and the Indian population is set to exceed that of the Chinese in the coming years.

The Latin Americans perceive India as a non-threatening and benign economic partner. India's growth story within a large, diverse and sometimes chaotic but vibrant democracy resonates with Latin American aspirations and realities. The Indian culture and traditions of yoga, meditation, philosophy and Gurus are comfort zones for them.  The Indian companies have a positive image in the region. The Latin Americans appreciate the contribution of Indian pharma companies to lower the cost of medicines and increase the share of affordable generics in their markets. They are inspired by the success story of Indian IT companies which have helped human resource development by employing over 25,000 young Latin Americans in their operations in the region.

India’s exports to Latin America

In the fist six (April-September) months of 2017-18 fiscal year, India’s exports to Latin America have increased by an impressive 17% reaching 6.2 billion dollars. It is heartening to note that the growth is seen across all the six major markets of the region: Brazil, Mexico, Argentina, Colombia, Peru and Chile.

India’s exports to some Latin American countries are larger than the exports to some neighbouring countries and traditional trade partners. For example, India exports more to Mexico than to Thailand, Myanmar, Iran, Canada, Russia, Egypt or Nigeria.

Latin America is the largest destination for India’s vehicle exports with Mexico as the largest for cars and Colombia for motorcycles. In some countries such as Guatemala and Colombia, Indian motor cycle brands are the leaders with the highest market share.

Indian companies have started getting infrastructure projects and contracts for supply of equipments and machinery in the region. Sterlite Power Grid of India has won a billion dollar power transmission line project in Brazil in the public auction held in December this year. Other major companies such as Shapoorji and Palonji, Suzlon, KEC, Praj, Paharpur Cooling and Thermax have got business in the region. BFL Hydro, a small company from Bengaluru is doing a mini hydel project in Honduras.

India’s total exports to the region were 6.2 billion dollars in the period April to September 2017. It was 10.4 billion dollars in 2016-17. There is potential for India to increase its exports to 20 billion dollars in the next five years to Latin America which is a large and growing middle income (over 8000 dollars of per capita income) market of 19 countries with a total population of 615 million and GDP of over 5 trillion dollars

New paradigm of synergies and complementarities

In the past, distance was perceived as the major barrier for trade with Latin America. The economists saw Indian and Latin American exporters as competitors for the same consumer markets of the developed world, exporting raw materials and importing finished products. But these perceptions and theories have been upended with a new paradigm of business in the 21st century. The Indian and Latin American companies and markets are discovering new synergies and complementarities.

Here are some examples of the new paradigm:

- Reliance imports crude oil from Brazil, refine it in Jam Nagar and export diesel to Brazil besides other countries. Renuka Sugar imports a billion dollar worth raw sugar from Brazil, refine it in India and then export the refined sugar to Asia and Middle East. A Brazilian firm Surya Brasil imports henna ingredients from India, makes its own brand of products and export them to twenty countries including India.

- Chile, Peru and Argentina export fresh fruits and vegetables to India.

-Two dozen Indian IT firms have been using the distance and different time zone factors as advantages by developing a new 12/12 business model in which they do near-shore delivery of services to their US clients for 12 hours from the same time zone in Latin America and shift to India for the next 12 hours. They employ 25,000 Latin American staff from Mexico to Chile.

It is worth noting that India has beaten China in export of pharmaceuticals to Latin America. What is even more impressive is that India imports substantial quantities of bulk drugs from China, converts them into finished products in India and export to Latin America.

Energy and food security

Latin America has become a regular new source for India's imports of crude oil in the last fifteen years, supplying 15-20 percent of India’s global imports. Crude oil is the largest global export of Latin America, which has the capacity to double its exports in the future. Having lost a substantial part of exports to the US (which has started shale oil production), the Latin Americans are now more keen to diversify and penetrate large oil importing markets such as India and China. This fits in perfectly with India’s strategic energy security policy to diversify its import sources and reduce over dependence on the volatile Middle East. In any case, the Latin American crude option has put pressure on the the suppliers from Middle East (who had enjoyed undue monopoly in the past) to better their prices and terms of supply to India.

While India has achieved self-sufficiency in cereals, there is perpetual shortage of edible oil and pulses which are being imported in ever increasing quantities. India has been sourcing soy and sunflower oil as well as pulses from South America. Since the gap between India’s demand and production has been widening due to the relentless increase in population and consumption, India’s import from South America will go up in the future. Indian agriculture faces daunting challenges caused by the diversion of agricultural land for other purposes ( residential, commercial, industrial and infrastructural uses), shortage of water and low productivity due to inadequate investment by most farmers whose land sizes are small. On the other hand, South America has vast tracts of fertile land, abundant water, advanced technologies and best practices with which the region has emerged as a global agricultural powerhouse. Argentina and Brazil are world leaders in some areas of agricultural research and innovation. The region has the potential to bring in another 40 million hectares of land into agriculture and feed an extra 500 million people.

Investment and joint ventures

In 2017, Indian firms have increased their investment in Mexico and Brazil especially in auto parts, IT and agrochemicals. It is interesting that UPL, the largest Indian agrochemical company has more revenue in Latin America than in India. This is a good time for acquisitions in Brazil where the asset prices are depressed due to the political and economic situation. The Chinese have invested over 50 billion dollars buying up Brazilian power plants, mines and oil fields.

Mexican companies have increased their investment in India in 2017. Group Bimbo has invested 50 million dollars. Cineopolis has become the fourth the largest owner of multiplexes in India.

Aje, a Peruvian company has bet on the Indian cola market with production of Big Cola brand of soft drinks in Maharashtra.

In 2017, there have been more joint ventures in entertainment business. “ Thinking of him”. a film on Tagore’s romance with the Argentine celebrity Victoria Ocampo was coproduced by an  Argentine-India venture and was premiered in the Goa Film festival in November. Prabhakar Sharan from Motihari in Bihar became a hero in a Latin American film “ Enredados: La Confusion” ( Entangled: the confusion) produced in Costa Rica and released in February. It is the first Latin American film produced in the Bollywood style of songs and dance.

Conclusion

This is an opportune time for India to take the win-win economic partnership with Latin America to the next level, when the Latin Americans are the most serious about India. The appointment of Mr Suresh Prabhu as Commerce Minister of India is welcome news for economic relations with Latin America. He has been taking interest in the region in the last several years much before he became minister. He has deep knowledge and understanding of the region. A stand alone visit to the region by Prime Minister Modi and announcement of credit of a billion dollars would also help.

Ease of Doing Business & Mutual Recognition Agreements (MRAs)

With Government’s focus on “Ease of doing Business” & “Make in India”, Mutual Recognition Agreements play an important role in seamless flow of goods from one country to another country. India has ratified Trade Facilitation Agreement (TFA) on 22nd April, 2016 & another 125 countries have also ratified them till date. Certainly, trade facilitation would be an extremely important issue for it aims at simplification, reduction in transaction costs & customs and trade partnership. All these programs ultimately lead to ‘ease of doing business’ & increasing competitiveness.

The growth forecast estimated by IMF is 7.4% for India in FY 2019. Naturally, if this forecast comes true, Indian exports should grow.

Parth Sarthi shome Committee in September 2014 elaborated on transaction costs in India which were estimated about 15%. There is good scope therefore to reduce the transaction costs by adopting electronic communication, simplified procedures & increasing number of Authorized Economic Operators (AEOs).

Authorized Economic Operator (AEO) is a flagship program of world customs organization. AEO new program was launched in India by issuing circular no.33 dtd.22.07.2016(The entire procedure of registration is given in this circular) by CBEC.With a view to secure the international supply chain, the World Customs Organization had in June 2005 adopted the SAFE Framework of Standards to secure and facilitate global trade.Since then, this unique international instrument has ushered in modern supply chain security standards with the help of a closer partnership between Customs and business in the form of Authorized Economic Operator (AEO) program, which constitutes one of the three pillars of SAFE Framework.The AEO program seeks to provide tangible benefits in the form of faster Customs clearances and simplified Customs procedures to those business entities who offer a high degree of security guarantees in respect of their role in the supply chain. Over the years, AEO has become a flagship program for WCO Members as it offers an opportunity for Customs to share its responsibilities with the businesses, while at the same time rewarding them with a number of additional benefits. As of March, 2015, 168 out of 180 WCO Members have signed Letters of Intent committing to implement the SAFE Framework. In India, the AEO program was launched in 2011.

The prominent features of new AEO program are as under:

  1. Inclusion of direct port delivery of imports to ensure just-in-time inventory management by manufactures – clearance from wharf warehouse.
  2. Inclusion of Direct Port Entry for factory stuffed containers meant for export by AEOs
  3. Special focus on small and medium scale entities- any entity handling 25 import or export documents annually can become part of this program
  4.  Provision of Deferred Payment (Custom notification no. 134/2016 dtd. 02.11.2016) of duties- delinking duty payment and customs clearance.
  1.   Mutual Recognition Agreements with other Customs Administrations.
  2.  Faster disbursal of drawback amount.
  3. Faster tracking of refunds and adjudications.
  4. Extension of facilitation to exports in addition to imports
  5. Self-certified copies of FTA/PTA origin related or any other certificates required for clearance would be accepted (DGFT PN NO. 51 dtd. 30.12.2016).
  6. Paperless declaration with no supporting documents. From 1st December, 2016.  EP copies of shipping bill & triplicate copy of Bill of entry were discontinued in paper format vide JNCH PN NO.152 dtd. 24.11.2016.
  7. Recognition by Partner Government Agencies and other Stakeholders as part of this program.

Who can apply for AEO certificate?

  1. Anyone involved in the international supply chain that undertakes Customs related activity in India can apply for AEO status irrespective of size of the business. These may include exporters, importers, logistic providers (e.g. carriers, airlines, freight forwarders, etc.), Custodians or Terminal Operators, Customs House Agents and Warehouse Owners.
  2. Others who may qualify include port operators, authorized couriers, stevedores.
  3. Businesses that are not involved in Customs related work / activities will not be entitled to apply. This means that in general, banks, insurance companies, consultants and the like categories of businesses will not be eligible for AEO status.

Since, AEO status is internationally recognized quality mark granted by National Government, it adds significant status to the importer/exporter. It also reduces transaction cost for him.

In spite of all the above provisions the number of AEO certified companies are far too less. The total numbers of AEOs in India are 447 (up to 22.12.2017 – Source: CBEC’s website). In comparison to this EU has 20,360 AEOs, Japan has 606 AEOs & Korea has 292 AEOs & China has advanced certified AEOs 3,475 & General certified AEOs 35,778 AEOs (Source: www.wcoomd.org)

We therefore need to analyze, what is the real problem of less number of applications? Is there any fear of frequent visits by customs officers or is there no actual awareness on this subject? Whatever may be the reason, we need to look at this concept seriously as it reduces transaction cost, time & makes the product competitive. With alarming rise in the Crude Oil prices our trade deficit is increasing & we need to focus on ‘Ease of doing business & competitiveness”. It is time; both, industry & customs should look into the details seriously & help the exporters to get AEO status.

Mutual Recognition Agreements (MRAs) are those agreements which accept & recognize the status of AEO. In other words, if India has MRA with EU & both importer/exporter are holding AEO status then goods will move seamlessly without examination from one country to another. This reduces the transaction cost & time. Further, if the goods are sent by rail (China has started rail transport from China to UK in 2017 itself) it avoids multiple movements (loading & unloading from the ship) & services. It is therefore essential that we should have many MRAs with other countries. There are 47 MRAs between various countries already concluded and 46 MRAs are under negotiation (Source: www.wcoomd.org).

Needless to say, we need to improve our situation urgently. Negotiations with Regional Comprehensive Economic Partnership are likely to conclude into 2018. We need AEOs & MRAs in large numbers, both for reducing trade deficit & generating employment by way of increasing exports. Nobody should forget at this moment that export is our national priority.

Your views are welcome!

Sudhakar Kasture

Director, EXIM Institute (A Division of Helpline Impex Pvt. Ltd.)

Mumbai.

E-mail:sk@helplineimpex.co.in

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EXPORT STRATEGY- KENYA

BRIEF OF COUNTRY KENYA

Kenya is named after a mountain of the same name. The Kikuyu people who lived around present day Mt Kenya referred to it as Kirinyaga or Kerenyaga, meaning mountain of whiteness because of its snowcapped peak. Mt Kirinyaga which was the main landmark became synonymous with the territory the British later claimed as their colony. However, the name Kenya arose out of the inability of the British to pronounce Kirinyaga correctly.

Area: - Kenya covers an area of approximately 224,960 square miles and lies almost exactly astride the equator.

Climate:-In the low-lying districts, particularly along the coast, the climate is tropical, hot and humid. On the Plateau and in the highlands the climate is more temperate. Western Kenya and most parts of Nyanza experience heavy conventional rain and have two rain seasons, the long rains from April to June and the short rains from October to November. Kenyas warm climate is favorable for tourism during the drier season that is between September and March.

Principal commercial cities and towns

  • Nairobi: Nairobi is the capital city and a commercial center. It is situated 300 miles from the Coast and lies midway between the capitals of Uganda and Tanzania. It is the largest city in East Africa and houses two UN agencies, UNEP and Habitat.

 

  • Mombasa: Mombasa is Kenyas main port and a popular holiday city. It is situated on an island in a natural sheltered inlet. It is the only port that serves not only Kenya but land locked countries like Uganda, Rwanda and Burundi and Eastern Democratic Republic of Congo and Southern Sudan.
  • Kisumu : Kisumu is the Chief Port city on the shores of lake Victoria. It serves western Kenya, Uganda and Tanzania.
  • Nakuru : Nakuru is an agricultural and industrial town in the Rift Valley basin.
  • Eldoret : Eldoret lies on the main road and rail route to Uganda. It is mainly an agricultural town that serves wheat and Maize farmers from the North Rift
KENYA CHEMICAL INDUSTRY:

Kenya is not a major producer of synthetic chemicals. However there is extensive extraction of minerals that contributes to manufacturing including soda ash, fluorspar, and diatomite and titanium prospects. The major toxic chemicals are not relatively significant in quantity and are thus classified as in the category of all other commodities. The main manufacturing enterprises both large and small represent an estimated 6% of the GDP. The transport and energy sectors use petrochemicals and petroleum products and dispose generate toxic waste service stations, garages etc. The energy sector includes chemicals used in power generation using fossil fuels, batteries, oil, refrigeration/metal treatment etc.

Industries or manufacturing accounted for 18.7% of the GDP making industrialization the quickest means for generation of employment and value addition to natural resources. The main manufacturing enterprises (both large and small) are users of chemicals and represent an estimated 6% of the GDP. They include: tanneries, textile dyeing plants, dyestuff producers, metal working and electroplating shops.

Table 1G. Breakdown of Industrial Production by Region Region

Central

Sulphuric acid, fertilisers, Plastic and leathers shoes and apparels, plastic products, Vehicle parts, galvanized sheets, metal products

Coast

Petroleum Products, Cement, Plastic and leathers shoes and apparels, plastic products, Vehicle parts, galvanized sheets, metal products

Eastern

.Detergents, Cement, Ceramics, Print material, Textiles, galvanized sheets, leather, alcohol and spirits, meet

Nairobi

Basic chemicals, Petroleum Products, Cement, Glass, ceramics, Plastic and leathers shoes and apparels, plastic products, Vehicle parts, galvanized sheets, metal products

North Eastern

None

Nyanza

Sugar, ethanol, baker’s yeast, lime, P.V.C products, plastic products

Rift Valley

Soda ash, Fluorspar, textiles, sugar

Western

Pulp and paper, sugar, Sulphuric acid , , detergents

Kenya has a well-established and growing informal sector comprising of 1.3 Million SMEs employing about 7.57 million people and contributes about 18- 14% of the GDP. The rapid expansion of this sector is attributed to credit schemes through Non-Governmental Organizations (NGOs) and cooperatives. 15% are in Nairobi and Mombasa while 12.2% are in other towns 65.% are in rural areas. Most of these SMEs are situated adjacent to/within residential areas, or in marginal and ecologically sensitive zones. They lack the appropriate waste management infrastructure such as sewerage and waste disposal services hence the significance of their negative environmental impacts. Their technologies are obsolete or only adapted to a particular need and hence they are inefficient in use of both energy and raw materials. The recycling sector SMEs use municipal waste as part of the input materials leading to higher toxicity. The cumulative environmental impacts from SMEs surpass that from larger industries. These SMEs products include recycled plastics, car batteries, aluminium cans, paper, and scrap metal among others.

Industry and manufacturing

Although Kenya is the most industrially developed country in the African Great Lakes region, manufacturing still accounts for only 14% of the GDP. Industrial activity, concentrated around the three largest urban centres, Nairobi, Mombasa and Kisumu, is dominated by food-processing industries such as grain milling, beer production, and sugarcane crushing, and the fabrication of consumer goods, e.g., vehicles from kits.

There is a cement production industry. Kenya has an oil refinery that processes imported crude petroleum into petroleum products, mainly for the domestic market. In addition, a substantial and expanding informal sector commonly referred to as jua kali engages in small-scale manufacturing of household goods, auto parts, and farm implements.

Pesticide Industry in Kenya

The pesticides industry consists mainly of firms formulating and repacking pesticide materials. The only raw material available locally is pyrethrin extracted from pyrethrum flowers. The main concern about the pesticides industry is that some pesticides such as organochlorines and organophosphates contaminate the water ecosystems and environment causing health effects to human and wildlife. In addition, organophosphate pesticides contribute to influx of phosphates into the aquatic system enhancing eutrophication. The water quality standards give the safe limit values of pesticides.

Petroleum Products in Kenya:

Hydrocarbons form the major inputs of many chemical based industries as well as energy generation. Kenya imports good quantity  of crude and refined products. These include crude materials, aviation spirit, crude petroleum, motor spirit, kerosene, illuminating oil, jet fuel, gas oil, diesel oil and other oils. Some of the imported petroleum is re-exported to neighboring landlocked countries of Rwanda, Burundi, Eastern Zaire and Uganda. The transport sector (rail, road, marine and aviation) is the largest consumer of petroleum fuels. The key products of petroleum are gasoline, liquid petroleum and butane with the rest consisting of others and chemical products like aerosol cans such as butane.

Soaps, Perfumes, Cosmetics and Other Toiletry Preparations in Kenya:

There are 43 registered manufacturers of soaps, detergents, disinfectants, cosmetics and perfumes. Most of the raw material inputs are imported; despite good potential for their local production exist. For instance sodium hydroxide, essential oils, vegetables, are readily available.

Other Chemicals Produced in Kenya: - The following chemicals are manufactured in Kenya:

  • Power Alcohol:-Power alcohol is manufactured as a byproduct during the manufacture of sugar at Mumias Sugar Factory, Agrochemical and Foods and Molasses.
  • Basic Chemicals
  • Sulfuric Acid is manufacture by KEL Chemicals at Thika and East African Heavy Chemicals at Webuye. KEL Chemicals also manufactures fertilizer. Sulphonic and is produced by Orbit Chemicals in Athi River.
  • Hydrochloric Acid was manufactured by the Pan African Paper Mills for its local consumption, but is currently closed.
  • Pyrethrum-based pesticides, copper oxychloride, rodenticide etc. are manufactured but have to comply with the PCPB regulations.
  • Allied Metals:- Allied metals include aluminum, copper, lead, zinc and magnesium

Business Opportunities in Kenya

Kenya is most suitably and strategically located to meet the investment and business endeavours within the East African Community as well as the Common Market for East and Southern Africa (COMESA) region which boasts a population of over 400 Million.

With the down of the new constitutional dispensation in Kenya, which devolves Administration
to Counties, the phenomenal expansion in the infrastructure, including the recently launched,

Lamu Port – South Sudan – Ethiopia Transport Corridor (LAPSSET), the investment climate has

gone a notch higher and remain open in the many sectors enumerated in the National Vision
2030.

At a glance, the following areas present tremendous scope for investment:-

  • Agriculture
  • Infrastructure
  • Tourism
  • Energy
  • Manufacturing
  • Health
  • Finacial and other related services
  • ICT
  • Building & construction

Details of these sectors, including reasons for locating investment in Kenya, may be accessed from the Kenya Investment Authority website: www.investmetkenya.com

ECONOMY:-

Kenya is the economic, financial, and transport hub of East Africa. Kenya’s real GDP growth has averaged over 5% for the last eight years. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. While Kenya has a growing entrepreneurial middle class and steady growth, its economic and development trajectory could be impaired by weak governance and corruption. Although reliable numbers are hard to find, unemployment and under-employment are extremely high, and could be near 40% of the population.

Agriculture remains the backbone of the Kenyan economy, contributing one-third of GDP. About 75% of Kenya’s population of roughly 44.2 million work at least part-time in the agricultural sector, including livestock and pastoral activities. Over 75% of agricultural output is from small-scale, rain-fed farming or livestock production.

Inadequate infrastructure continues to hamper Kenya’s efforts to improve its annual growth to the 8%-10% range so that it can meaningfully address poverty and unemployment. The KENYATTA administration has been successful in courting external investment for infrastructure development. International financial institutions and donors remain important to Kenya's economic growth and development, but Kenya has also successfully raised capital in the global bond market. Kenya issued its first sovereign bond offering in mid-2014. Nairobi has contracted with a Chinese company to construct a new standard gauge railway connecting Mombasa and Nairobi, with completion expected in June 2017. In 2013, the country adopted a devolved system of government with the creation of 47 counties, and is in the process of devolving state revenues and responsibilities to the counties. Inflationary pressures and sharp currency depreciation peaked in early 2012 but have since abated following low global food and fuel prices and monetary interventions by the Central Bank. Drought-like conditions in parts of the country have pushed March 2017 inflation above 9%. Chronic budget deficits, including a shortage of funds in mid-2015, hampered the government’s ability to implement proposed development programs, but the economy is back in balance with many indicators, including foreign exchange reserves, interest rates, and FDI moving in the right direction. Underlying weaknesses were exposed in the banking sector in 2016 when the government was forced to take over three small and undercapitalized banks. In 2016, the government enacted legislation that limits interest rates banks can charge on loans and set a rate that banks must pay their depositors. This measure led to a sharp shrinkage of credit in the economy.

Tourism holds a significant place in Kenya’s economy. A spate of terrorist attacks by the Somalia-based group al-Shabaab reduced international tourism earning after their deadly 2013 attack on Nairobi’s Westgate mall, which killed 67 people, but the sector is now recovering. In 2016, tourist arrivals grew by 17% while revenues from tourism increased by 37%.

(Ref. https://www.cia.gov/library/publications/the-world-factbook/geos/ke.html )

MARKET CHALLENGES-KENYA

The cost of skilled, educated labor is high by developing world standards, and unemployment and underemployment remain high. Kenya’s physical infrastructure remains a key obstacle to economic development, along with government efficiency, corruption, and weak regulatory and judicial system reliability.

Although price sensitivity of consumers and companies is high, price competition in Kenya is weak, which poses an opportunity and a challenge for new entrants.

In 2016, Transparency International ranked Kenya 145 out of 176 countries with a score of 26 out of 100 on its perceptions of corruption index. Claims of corrupt dealings, particularly in land purchases and large government contracts persist.  Despite the implementation of some reforms, courts remain subject to significant case backlogs, and cases can take years to resolve. Parties often succeed in delaying cases for long periods through complicated procedural motions. Allegations of serious corruption within the judiciary persist. Outcomes of judicial proceedings to settle commercial disputes are often unpredictable.

Violations of intellectual property rights (IPR) for videos, music, software, and consumer goods continue to cause major problems. Title to land is uncertain, reducing the borrowing capacity of families and businesses and constraining Kenya’s ability to broaden its capital base. Land reform is a divisive and emotional issue, complicated by tribal traditions, land sale scams, and perceived historical injustices, which Kenya has so far been unable to resolve.

In August 2016, the Government of Kenya (GOK) enacted the Banking Act, capping the maximum interest rate banks can charge on commercial loans at four percent above Central Bank of Kenya’s (CBK) benchmark lending rate. The legislation also provides a floor for the interest rate that banks must pay to depositors.  The cap has contracted the market for credit, especially for consumers and small and medium businesses. The IMF has warned that the restrictions will result in a continuing shrinkage in the availability of credit, which was previously growing robustly and was one of the factors behind Kenya’s strong economic performance over the last eight years.

KENYA - MARKET OVERVIEW

Kenya has a market-based economy and is generally considered the economic, commercial, financial and logistics hub of East Africa. With the strongest industrial base in East Africa, Kenya has been successful in attracting overseas exporters and investors. More overseas companies are investing in Kenya and setting up local and regional operations to take advantage of Kenya’s strategic location, diversified economy, entrepreneurial workforce, comprehensive air routes, and status as a regional financial center.

An additional attraction for overseas companies is the strength of Kenya's human resources. According to UN data, Kenya’s population stood at 47.2 million people in 2016. Its urban areas, particularly Nairobi, are noted for their large number of well-educated English-speaking and multi-lingual professionals, and for their strong entrepreneurial tradition. Kenya is also a very “young” country with almost 79% of the population under the age of 35.

At the same time, businesses operating in Kenya face a number of challenges associated with corruption, unemployment, land titles, security, and poverty. The country’s per capita GDP was $1,553 in 2016, but unemployment and poverty remain high with an estimated 40% of the population living below the poverty line.

Sustained and significant economic growth is essential if Kenya is to address its development challenges. According to the World Bank, Kenya’s economy grew by 5.9% in 2016 anchored primarily on investment in public infrastructure, strong remittance inflows, low oil prices and a recovery in the tourism sector. However, 2017 growth is expected to dip to 5.5% due to an ongoing drought that has led to crop failure, higher energy prices and food insecurity as well as a slowdown in investments ahead of the elections. These elections were the second under a new constitution adopted in 2010. One of the most notable changes brought about by the new constitution was a broad devolution of power and responsibilities from the national government in Nairobi to local governments in 47 counties.

The World Bank’s ‘Ease of Doing Business Index’ shows Kenya moved up 21 places in the 2017 report to position 92 globally, making it the third most improved economy in 2017. This jump in ranking came following a similar improvement of 21 slots in 2016. The government has initiated a broad range of business reforms including the areas of starting a business, obtaining access to electricity, registering property, protecting minority investors and streamlining insolvency rules.  Kenya is also experiencing the fastest rise in FDI in Africa (47% increase in 2015) with the majority of foreign investment going into renewable energy projects. Kenya accounted for 67% of all private equity funding in East Africa.
(Source: https://www.export.gov/article?id=Kenya-Market-Overview ) <

KENYA’s FTA INVOLVEMENT

Kenya has been a member of the WTO since its inception in January 1995.

The WTO's 10th Ministerial Conference was held in Nairobi, Kenya, in December 2015. The Conference culminated in the adoption of the "Nairobi Package", a series of six Ministerial Decisions on agriculture, cotton, and issues related to least-developed countries (LDCs).

  • ACP/Cotonou Partnership Agreement

Exports from Kenya entering the European Union are entitled to duty reductions and freedom from all quota restrictions. Trade preferences include duty-free entry of all industrial products as well as a wide range of agricultural products including beef, fish, dairy products, cereals, fresh and processed fruits, and vegetables. Additional information is available at African, Caribbean, and Pacific Group of States.

  • African Growth and Opportunity Act (AGOA)

Kenya qualifies for duty free access until 2025 to the U.S. market under the African Growth and Opportunity Act. Some of Kenya's major products that qualify for export under AGOA include textiles, apparels, and handicrafts.

  • Generalized System of Preferences (GSP)

Under the Generalized System of Preferences, a wide range of Kenya's manufactured products are entitled to preferential duty treatment in the United States, Japan, Canada, New Zealand, Australia, Switzerland, Norway, Sweden, Finland, Austria, and other European countries. In addition, no quantitative restrictions are applicable to Kenyan exports on any of the 3,000-plus items currently eligible for GSP treatment. Additional information is available at United Nations Conference on Trade and Development.

  • Bilateral Trade Agreements

Kenya has signed bilateral trade agreements with several countries:

  • Argentina,
  • Bangladesh,
  • Nigeria,
  • Bulgaria,
  • China,
  • Comoros,
  • Congo (DRC),
  • Djibouti,
  • Egypt,
  • Hungary,
  • India,
  • Iraq,
  • Lesotho,
  • Liberia,
  • Netherlands,
  • Pakistan,
  • Poland,
  • Romania,
  • Russia,
  • Rwanda,
  • Somalia,
  • South Korea,
  • Swaziland,
  • Tanzania,
  • Thailand,
  • Zambia, and
  • Zimbabwe.

 Additional agreements are under negotiation with several additional countries:

  • Belarus,
  • Czech Republic,
  • Ethiopia,
  • Eritrea,
  • Iran,
  • Kazakhstan,
  • Mauritius,
  • Mozambique, and
  • South Africa.

KENYA - IMPORT TARIFFS

Kenya applies tariffs based on the international harmonized system (HS) of product classification, and applies duties and tariffs of the East African Community (EAC) Common External Tariff. In general, Customs duty is levied at rates between 0% and 100%, with an average rate of 25%. Imports into Kenya are subject to a standard VAT rate of 16%, levied on the sum of the CIF value, duty, and other applicable taxes. Tariff rates can be estimated by visiting Kenya Revenue Authority.

KENYA - IMPORT REQUIREMENTS AND DOCUMENTATION

To import any commodity into Kenya, an importer will have to enlist the services of a clearing agent who will process the import documentation through Kenya Customs electronically on the Simba 2005 system and clear the goods on your behalf.

An import declaration fee (IDF) of 2.25% of the CIF Value subject to a minimum of 5,000.00 Kenyan Shillings is payable. Customs will assess duty payable depending on the value of the item(s) and the duty rate applicable. The East African Community Common External Tariff laying out the duty rates of imported items is available.

Kenya has a pre-shipment inspection requirement (the Pre-Shipment Verification of Conformity, or PVoC) for exports destined for Kenya. Exports to Kenya must also obtain an additional Import Standards Mark (ISM), which must be affixed to a list of sensitive imported products sold in Kenya.

For a small number of health, environment, and security imports, import licenses are required. Imports of machinery and equipment classified as equity capital or loan purchases must be received prior to exchange approval; local banks will not issue shipping guarantees for clearance of imports in the absence of such approval. All imports procured by Kenyan-based importers must be insured with companies licensed to conduct business in Kenya. Importation of animals, plants, and seeds are subject to quarantine regulations.

All Kenyan imports are required to have the following documents: Import Declaration Forms (IDF); a Certificate of Conformity (CoC) from the PVoC agent for regulated products; an import standards mark (ISM) when applicable; and valid pro forma invoices from the exporting firm.

GDP (purchasing power parity): $152.9 billion (2016 est.), $142.6 billion (2015 est.) , $133.5 billion (2014 est.)

Industries: - small-scale consumer goods (plastic, furniture, batteries, textiles, clothing, soap, cigarettes, flour), agricultural products, horticulture, oil refining; aluminum, steel, lead; cement, commercial ship repair, tourism.

Exports: - $5.747 billion (2016 est.), $5.982 billion (2015 est.)

Exports Commodities:- Tea, horticultural products, coffee, petroleum products, fish, cement

Exporting Partners: - Uganda 10.1%, Tanzania 8.6%, US 7.7%, Netherlands 7.4%, UK 7.3%, UAE 4.6%, Pakistan 4.5% (2016)

Imports: - $13.64 billion (2016 est.), $14.36 billion (2015 est.)

Import Commodities: - machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, resins and plastics

Import Partners: - China 24.1%, India 11.2%, UAE 7.7%, Japan 5.4% (2016)

CHEMEXCIL EXPORTS TO KENYA

In USD Million
Chapter No./Panel 2014-15 (Actual) 2015-16 (Actual) % over 2014-15 2016-17 (Provisional) % over 2015-16
(32) Dyes & (29) Dye Intermediates 9.58 9.34 -2.51 10.43 11.67
(28) Inorganic, (29) Organic & (38)  Agro chemicals 35.51 38.51 8.45 39.66 2.99
(33) Cosmetics,  (34) Soaps, Toiletries and (33) Essential oils 13.38 8.97 -32.96 10.03 11.82
(15) Castor Oil 0.20 0.39 95.00 0.14 -64.10
Total 58.67 57.21 -2.49 60.26 5.33

SOURCE:DGCI&S



DYES TOP ITEMS EXPORTS TO KENYA

    Value USD in million
Sr.No HSCode Product 2014-15 2015-16 2016-17
1 32041719 OTHERS PIGMENT YELLOW (ORGANIC) 0.51 0.57 1.48
2 32050000 COLR LAKES 0.55 0.59 0.95
3 32041739 OTHERS PIGMENT RED 0.55 0.82 0.84
4 32041990 OTHR INCL MIXR OF COLRNG MATR OF TWO OR
MORE OF SUB-HDNG 320411 TO 320419 N.E.S.
0.64 0.75 0.68
5 32041751 PIGMENT BLUE 15 (PATHALOCYANINE BLUE) 0.56 0.5 0.61
6 32041929 OTHER AZOIC COUPLNG COMPNT(NAPTHOL OTHERS) 0.17 0.42 0.6
7 32041790 OTHER PIGMENTS 0.77 0.62 0.38
8 32041759 OTHERS PIGMENT BLUE 0.35 0.34 0.33
9 32042010 0PTICAL WHITENING AGENTS 0.41 0.67 0.3
10 32041740 PIGMENT VIOLETS 0.11 0.27 0.26
    TOTAL 4.62 5.55 6.43
SOURCE:DGCI&S      


DYE INTERMEDIATES TOP ITEMS EXPORTS TO KENYA

    Value USD in million
Sr.No HSCode Product 2014-15 2015-16 2016-17
1 29051100 SATURATED METHANOL (METHYL ALCOHOL) 1.02 0.72 1.09
2 29173500 PHTHALIC ANHYDRIDE 1.16 0.84 0.69
3 29270090 OTHER DIAZO-AZO-OR AZOXY-COMPOUNDS 0 0.4 0.31
4 29054500 GLYCEROL 0.04 0.01 0.02
5 29222990 OTHER AMINO-NAPHTHOLS AND OTHER AMINO- 
PHENOLS, THEIR ETHERS,ESTERS AND SALTS
0 0 0.01
6 29146910 1:4 DIHYDROXY ANTHRAQUINONE (QUINIZARIN) 0 0 0.01
7 29182110 SALICYLIC ACID 0 0 0
8 29049040 ORTHO NITROCHLOROBENZENE 0 0 0
9 29089990 OTHER HLGNTD SLPHNTD NITRATED/NITROSTD   
DRVTVS OF PHENOLS/
0 0 0
10 29215190 OTHR O-M-P-PHNYLENEDIAMINE DIAMINOTOLUENE
AND THEIR DRVTVS S
0 0 0
    TOTAL 2.22 1.97 2.13
SOURCE:DGCI&S      


INORGANIC CHEMICALS TOP ITEMS EXPORTS TO KENYA

    Value USD in million
Sr.No HSCode Product 2014-15 2015-16 2016-17
1 28151110 FLAKES OF SODIUM HYDROXIDE(NAOH),SOLID 2.38 5.1 3.91
2 28332100 MAGNESIUM SULPHATE 1.5 1.1 1.34
3 28183000 ALUMINIUM HYDROXIDE 1.19 0 0.82
4 28331100 DISODIUM SULPHATE 0.03 0.39 0.75
5 28365000 CALCIUM CARBONATE 0.77 0.54 0.67
6 28299030 IODATES AND PERIODATES 0.44 0.56 0.44
7 28061000 HYDROGEN CHLORIDE(HYDROCHLORIC ACID) 0.34 0.45 0.4
8 28011000 CHLORINE 0.25 0.27 0.31
9 28030010 CARBON BLACKS 0.63 0.4 0.27
10 31043000 POTASSIUM SULPHATE 0 0.15 0.25
    TOTAL 7.53 8.96 9.16
SOURCE:DGCI&S      


ORGANIC CHEMICALS TOP ITEMS EXPORTS TO KENYA

    Value USD in million
Sr.No HSCode Product 2014-15 2015-16 2016-17
1 29291020 TOLUENE DIISOCYANATE 1.5 6.17 9.83
2 11081200 STARCH OF MAIZE (CORN) 3.9 4.28 3.9
3 29153100 ETHYL ACETATE 4.67 3.11 2.32
4 27129090 OTHER WAXES OBTAINED BY   
SYNTHESIS/OTHER PROCESS W/N COLOURED NES
0.09 0 0.86
5 38237090 OTHER INDUSTRIAL FATTY ALCOHOL 0.77 0.62 0.74
6 29023000 TOLUENE 1.29 0.9 0.73
7 35051090 OTHER DEXTRINS AND OTHER MODIFIED STARCHES 0.13 0.18 0.64
8 29011000 SATURATED ACYCLIC HYDROCARBONS 0.36 0.39 0.47
9 29094400 OTHER MONOALKYL ETHRS OF ETHYLENE GLYCOL 
OR OF DIETHYLENE GLYCOL
0.09 0.3 0.46
10 29153200 VINYL ACETATE 0.08 0.11 0.34
    TOTAL 12.88 16.06 20.29
SOURCE:DGCI&S      


AGRO CHEMICALS TOP ITEMS EXPORTS TO KENYA

    Value USD in million
Sr.No HSCode Product 2014-15 2015-16 2016-17
1 38089290 OTHERS FUNGICIDE NES 3.35 2.1 3.29
2 38089910 PESTICIDES, NOT ELSEWHERE SPECIFIED OR INC 2.71 2.21 2.43
3 38089350 WEEDICIDES AND WEED KILLING AGENTS 1.36 1.14 1.02
4 38089199 OTHER INSECTICIDE NES 0.79 2.33 0.91
5 38089320 2:4 DICHLOROPHENOXY ACTC ACD AND ITS ESTERS 0.12 0.21 0.64
6 38089390 OTHER HERBICIDES-ANTI-SPROUTING PRODUCTS 0.63 0.27 0.34
7 38089191 REPELANT FOR INSECTS SUCH AS FLIES,MOSQUTO 0 0 0.18
8 38089990 OTHER SIMILAR PRODUCTS  N.E.S. 0.6 0.41 0.14
9 38089340 PLANT-GROWTH REGULATORS 0.03 0.12 0.12
10 38089122 METHYL BROMIDE 0 0 0.06
    TOTAL 9.59 8.79 9.13
SOURCE:DGCI&S      


COSMETICS AND TOILETRIES TOP ITEMS EXPORTS TO KENYA

    Value USD in million
Sr.No HSCode Product 2014-15 2015-16 2016-17
1 34021190 OTHERS(E.G.ALKYLSULPHATES,TECHNICAL 
DODECYLBENZENE-SUL
1.67 1.48 1.71
2 33061020 TOOTH PASTE 2.41 1.12 1.33
3 33049910 CREAMS FACE (EXCL TURMARIC) 1.97 0.4 0.82
4 33059040 HAIR DYES ( NATURAL,HERBAL 0R SYNTHETIC ) 1.69 0.89 0.78
5 34021900 OTHR ORNGC SRFCE-ACTV AGNTS W/N FOR RTL SL 0.37 0.13 0.54
6 34021300 NON-IONIC W/N FOR RTL SALE 0.45 0.38 0.38
7 25262000 NATRL STEATITE CRUSHED/POWDERED 0.79 0.63 0.34
8 38231900 OTHER INDUSTRIAL MONOCARBOXYLIC FATTY ACID 0.44 0.18 0.33
9 34022090 OTHER PREPARATIONS PUT UP FOR RETAIL SALE 0.16 0.26 0.2
10 33049920 NAIL POLISH /LACQUERS 0.18 0.09 0.14
    TOTAL 10.13 5.56 6.57
SOURCE:DGCI&S      


ESSENTIAL OILS TOP ITEMS EXPORTS TO KENYA

    Value USD in million
Sr.No HSCode Product 2014-15 2015-16 2016-17
1 33021010 SYNTHETIC FLAVOURING ESSENCES 0.57 0 0.69
2 33029019 OTHER MXTR OF AROMATIC CHEMICALS ANDESSN OIL 0.29 0.46 0.49
3 33021090 OTHER MXTR OF ODORFRS SBSTNS OF A KIND   
USDKIND USD IN FOOD/DRINK INDUSTRIES
0.25 0.33 0.18
4 33012990 OTHERS 0 0.05 0.12
5 33012400 ESSNTL OIL OF PEPPERMINT(MENTHA PIPERITA) 0.04 0.04 0.04
6 33029012 SYNTHETIC ESSENTIAL OILS 0.03 0.07 0.02
7 33011990 OTHERS 0.08 0 0.02
8 33012590 OTHERS 0.01 0 0.02
9 33012911 ANISE OIL (ANISEED OIL) 0.02 0 0.02
10 33012923 DILL OIL (ANETHUM OIL) 0 0 0.01
    TOTAL 1.29 0.95 1.61
SOURCE:DGCI&S      


Product: 32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring ...

Unit : US Dollarmillion
Exporters Imported value in 2012 Imported value in 2013 Imported value in 2014
World 84 82 95
India 17 20 22
South Africa 8 9 12
China 9 7 8
United Kingdom 5 5 6
Egypt 3 4 5
Germany 10 6 4
SOURCE:INTRACEN




List of supplying markets for a product imported by Kenya

Product: 28 Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, ...



Unit : US Dollar million
Exporters Imported value in 2012 Imported value in 2013 Imported value in 2014
World 100 110 89
China 24 30 28
India 19 19 17
Saudi Arabia 3 2 7
Thailand 3 4 5
United Arab Emirates 2 2 3
United Kingdom 2 2 3
SOURCE:INTRACEN


List of supplying markets for a product imported by Kenya

Product: 29 Organic chemicals

Unit : US Dollar million
Exporters Imported value in 2012 Imported value in 2013 Imported value in 2014
World 167 159 168
China 34 32 37
India 28 29 32
Korea, Republic of 34 32 32
South Africa 5 5 7
Germany 8 9 7
Spain 6 6 5
SOURCE:INTRACEN




List of supplying markets for a product imported by Kenya

Product: 38 Miscellaneous chemical products



Unit : US Dollar million
Exporters Imported value in 2012 Imported value in 2013 Imported value in 2014
World 270 292 317
Germany 24 27 33
France 25 33 33
United States of America 25 31 32
China 17 21 31
South Africa 22 19 26
India 20 20 22
SOURCE:INTRACEN




List of supplying markets for a product imported by Kenya

Product: 33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations



Unit : US Dollar million
Exporters Imported value in 2012 Imported value in 2013 Imported value in 2014
World 109 127 128
Swaziland 46 57 48
Ireland 8 14 19
India 8 7 9
South Africa 8 8 8
Germany 5 6 7
Switzerland 3 4 5
SOURCE:INTRACEN




List of supplying markets for a product imported by Kenya

Product: 34 Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial ...



Unit : US Dollar million
Exporters Imported value in 2012 Imported value in 2013 Imported value in 2014
World 78 75 87
Egypt 46 46 56
China 4 4 4
India 4 3 4
Germany 3 3 3
South Africa 3 2 3
United Kingdom 2 2 2
SOURCE:INTRACEN




List of supplying markets for a product imported by Kenya

Product: 15 Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal ...



Unit : US Dollar million
Exporters Imported value in 2012 Imported value in 2013 Imported value in 2014
World 628 563 566
Indonesia 574 460 494
Malaysia 14 25 42
United States of America 6 4 8
Argentina 2 8 6
Ukraine 5 1 4
India 0 1 2
SOURCE:INTRACEN


BACK

CONTENTS

Chairman's Desk

Chemexcil Activities

CAPINDIA 2018 Road show, New Delhi

CAPINDIA 2018 PROMOTIONAL ROAD-SHOW, KOLKATA

Interactive meeting on issues faced by Importers (HS Code Classification & FSSAI)

CAPINDIA 2018 Road show, Ahmedabad

CAPINDIA ROAD SHOW, VADODARA

CHEMEXCIL PARTICIPATION IN ASEAN – INDIA Investment Meet & Expo

Outreach Program under Niryat Bandhu Scheme on “Mid-Term Review of FTP, GST & Refunds and FTA”

BENGAL GLOBAL BUSINESS SUMMIT

Exim Updates

CBEC launches IT tools ICETRAK and ICETAB for trade facilitation and faster clearances

CBEC - Amendments in the AEO Programme Circular No. 33/2016 dated 22/7/2016

E-way bill : FAQ’s/ NIC User Manual

E-way bill : Maharashtra government defers introduction of the e-way bill regime for intra-State movement of goods from 1st Feb to 30th April 2018

GST Notifications: Exemption of GST on services related to transportation of goods from India to a place outside India by Air/ Sea & Reduction of GST on CETP services and certain goods.

GST Notifications: First Amendment to CGST Rules 2018/ Notifying e-way Bill website/ Reduction in Late fees for various returns

Non-Tariff Measures (SPS and TBT) issues being faced by our exporters to be raised in the forthcoming WTO SPS/TBT Committee

AIR DBK Amendments in the All Industry Rates of Duty Drawback 2017-18

JNCH(Nhava Sheva) -Discontinuation of Printing of EP copy of the Shipping Bill

GST - Recommendations of 25th GST Council Meeting (pertaining to exports/ chemical sector)

REACH - SMEs having to register for the 2018 deadline in the EU

IGST Refund Status Check IGST Validation Detail Enquiry is available at ICEGATE

FSSAI / JNCH List of “Out of Scope” items/ Clarifications as per JNCH (Nhava Sheva)

GST - E-way bill common website launched

DGFT - Amendments in ANFs 4A, 4E, 4F, 4G, 4H & 4I of Handbook of Procedures 2015-20 Regarding Non-issuance of EP copies of Shipping Bills by Customs Authorities.

ITC Refunds - Nodal Officers appointed by Mumbai CGST & CX regarding refund of un-utilised ITC on exports

REX (EU-GSP) Transition Period to register under REX extended to 30.06.2018

GST - A compilation of 51 GST related Flyers uploaded on the CBEC website

E- Seals - Updated details of CBEC approved e-seal vendors w.e.f 5th Jan 2018

GST - User Manual/ FAQ’s on claiming refund of IGST/ Un-utilised ITC on exports available on GST Portal

IMPORTANT and URGENT Request to submit the photocopy of Status Holder Certificate

Logistics Division (MOC) - Simplification and rationalisation of export documentation for reducing transaction time and cost

GST- Fourteenth Amendment in CGST Rules, 2017/ The date from which E-Way Bill Rules shall come into force

GST Extension of date for filing return in FORM GSTR-1 Clarifications on various aspects of return filing ( such as return filing dates, applicability and quantum of late fee, amendment of errors etc)

News & Articles

Dangerous Goods Cleopatra, Toxicology and Transport Regulations

India’s Export Strategy With Kenya (Organic & Inorganic Chemicals)

INDIA-KENYA SPECIALTY CHEMICAL TRADE

Latin American market in 2017-18 and prospects for Indian business

Ease of Doing Business & Mutual Recognition Agreements (MRAs)

EXPORT STRATEGY- KENYA


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