CONTENTS

Chemexcil Activities Seminar on "Chemexcil Membership awareness and E-way Bill System/ Export Refunds on 6th June 2018 at FTAPCCI Auditorium, Hyderabad Brief Report Chemexcil Workshop on IGST/ Un-utilized ITC refund Mumbai on 07/06/2018 CHEMEXCILS PARTICIPATION IN CHEMSPEC EUROPE-2018 ORGANIZED JOINTLY BY CHEMEXCIL & PLEXCONCIL INTERACTIVE SESSION ON ISSUES RELATED TO KOLKATA PORT / GST / FTP AT HOTEL LALIT GREAT EASTERN, KOLKATA ON 27-06-2018 Exim Updates GST - Reverse Charge Mechanism (RCM) further Deferred till 30 Sept. 2018 IGST Refunds - JNCH Scroll No. 6456 & Scroll No. 6314 e-Way Bill - Modifications to the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular No. 41/15/2018-GST dated 13.04.2018 AEO - Appointment of CRM within the jurisdiction of Chief Commissioner of Customs, Mumbai- II IGST Refunds - JNCH IGST scrolls from 8th June 2018 to 18th June 2018 DGFT - Amendment in Para 4.29 (vi) and Para 4.29(vii) of FTP 2015-20 on DFIA / Submission of application seeking authorization for import / export of restricted items through e-mail DGFT - Notifying office address of DGFT and its Regional Authorities and their jurisdiction and Private SEZs of Appendix 1A of Foreign Trade Policy, 2015-20 IGST Refunds - Facility on GST Portal to “Track status of invoice data shared/to be shared with ICEGATE” CBIC - Amendment in notification No. 50/2017-customs dated 30th June 2017, to prescribe effective rate of duty on specified goods / Increase the tariff rate on goods in chapter 28 etc Methanol :- Various issues raised during the visit of Secretary (C&PC) to State of Gujarat-reg GST (Policy Wing) - Clarifications on miscellaneous issues related to SEZ/ Refund of unutilized ITC for job workers/ Other issues under GST GST - Fifth Amendment (2018) to the CGST Rules, 2017 Trade issues related to Afghanistan Inputs on Chinese Laws/practices hampering fair trade & Issues faced by Indian exporters to be deliberated in 7th Trade Policy Review of China in WTO JNCH - Procedure to be followed for EGM error SB006 related to ICDs DGFT - Schedule of EODC Camps to be conducted in Additional DGFT Mumbai Office from 11.06.2018 To 22.06.2018 Banking Issues faced by exporters (e-BRC delay etc) JNCH (IGST Refunds) - List of Shipping Bills in Scroll no 5423 / SB005 list / Contact details of Officers at IGST camp CBIC - Procedure for e-commerce exports through Post and clarification on personal imports / Exports by Post Regulations, 2018 /Clearance of goods through FPOs IGST Refunds Extension of date in SB005 alternate mechanism cases and Clarification in other cases (SB003) DGFT - Doing away with the requirement of DSC for online/digital payment through e-MPS News & Articles Marine Pollutants – Compliance and Exemptions – IMDG CODE 38-16 Can India-China’s trade gap be trimmed? Boosting exports in these areas may help, says report US remains top export destination for India with shipments worth $47.9 bn last fiscal: Commerce ministry data India to ask US for renewal of GSP scheme China’s ‘green’ issues boost India’s FY18 chemical exports India: Indirect Tax Updates: Notification Of Customs Audit Regulations, 2018, Amendments In The Foreign Trade Policy, Exemption From Payment Of A Late Fee Under Profession Tax Iran, India to Begin PTA Talks Tough Times Ahead for Indian Businesses if Trump Imposes Retaliatory Tariffs Commerce Minister reviews progress of export promotion strategy India, US may discuss visa issues, steel export tariffs SushmaSwaraj discusses steps to revitalise bilateral ties with Italy India committed to broad-based trade agreement with EU: President Kovind Ease of Doing Business for exporters in filing DFIA CENTRE TO MAKE PCPIR POLICY MORE ATTRACTIVE PM Narendra Modi seeks double-digit GDP growth, raising India's share in world trade Commerce Minister Suresh Prabhu says it is a misconception that India subsidise exports

Seminar on "Chemexcil Membership awareness and E-way Bill System/ Export Refunds on 6th June 2018 at FTAPCCI Auditorium, Hyderabad

Chemexcil chairman Shri Satish Wagh felicitating Shri Gowra Srinivas, President, FTAPCCI with a bouquet of flowers during the seminar Shri S. G. Bharadi, Executive Director Chemexcil at the right.

From left Shri S.N. Pangrahi, Consultant, Shri Satish Wagh, Chairman, Chemexcil, Shri Gowra Srinivas, President, FTAPCCI, Shri S.G. Bharadi, Executive Director, Chemexcil, Shri Sanjay Kapoor, Secretary General, FTAPCCI

Chemexcil along with Federation of Telangana Andhra Pradesh Chamber of Commerce and Industry (FTAPCCI)conducted seminar on "Chemexcil Membership awareness and E-way Bill System/ Export Refundsat Hyderabad on6th June 2018at FTAPCCI Auditorium, Hyderabad.

The very objective of this seminar was to create Chemexcil awareness and educate the members on various aspects of E-way Bill System/ Export Refunds under GST.

The Speaker for the seminar wasShri. Satish Wagh, Chairman Chemexcil, Mr. S.G. Bharadi,Executive Director Chemexcil along with SN Panigrahi a Versatile Practitioner, Strategist, Consultant, Energetic Coach, Learning Enabler, & Public Speaker, Shri Gowra Srinivas President (FTAPCCI), Shri Sanjay Kapoor, Secretary General FTAPCCI

Shri S.G. Bharadi, Executive Director Chemexcil covered the important topic of Chemexcil Membership Awareness and made a comprehensive presentation on the topic which was Customized has briefly explained Chemexcil assistance to the members & ForeignBuyers, Achievements and Chemexcil Events.

Shri S.N. Pangrahi, Consultant - covered the important topic of e-way bill system and Export Refunds and made a comprehensive presentation on both topics

Total 35-membersand 5 Media Person from Hyderabad region attended this seminar

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Brief Report Chemexcil Workshop on IGST/ Un-utilized ITC refund Mumbai on 07/06/2018

Shri Satish Wagh, Chairman Chemexcil welcoming Shri Rohit Singla, IRS, Jt Commissioner, NS-II, JNCH

To guide the exporters regarding the procedure and process of the IGST/ ITC refund, sensitize them to avoid hassles while applying for the refund and take appropriate measures to rectify the errors,    the council had organized a "Workshop on Refund of IGST/Un-utilised ITC for Exporters"   on 7th June 2018  at Hotel Marine  Plaza, Mumbai.

Participants

Shri  Rohit Singla, IRS, Joint Commissioner of Customs, NS-II, Jawaharlal Nehru Custom House   graced  the workshop as a key note speaker  and also interacted  with the participants. The Council had also invited Shri Mihir Shah who is a Consultant, Advisor and  Trainer in International Business  and  also Proprietor – Universal Connections to give a detailed presentation on procedure and process of  refunds. From the council side Shri Satish Wagh- Chairman, Shri S.G Bharadi-ED and other  Officers/ staff of Chemexcil attended the Workshop.

Highlights of the workshop

Shri Wagh welcomed the esteemed panelists/ participants  and opined that the timing of the workshop was apt since Government  has organized refund drive fortnight.  He  urged the members to make best  use of  this opportunity to clear their pending refunds. Shri Rohit Singla briefed the members about the Special Drive by JNCH from 31.05.2018  to 14.06.2018.   Regarding  exporters who have mentioned IGST in 3.1(a) of GSTR-3B, he informed that in such cases the details are being sent to GSTN who will subsequently  transmit to Customs EDI for processing. Exporters will have to  later  on submit a certificate from Chartered Accountant before 31st October, 2018 to the DC(IGST), JNCH at the port of export to the effect that there is no discrepancy between the IGST amount refunded on exports and the actual IGST amount paid on exports of goods for the period July 2017 to March 2018.  Further, Shri Singla added that in cases where there is a short payment of IGST  proof of payment shall be submitted to Assistant/Deputy Commissioner of Customs in charge of IGST at JNCH. Later  on they will  submit a certificate from Chartered Accountant before 31st October, 2018 to the DC(IGST), JNCH. 

He also  informed that other errors like SB003, SB005 & SB006 are also being handled now during the drive  and in the last few days refunds worth at-least 1000 crs have been processed. Replying  to queries on  short payment, supplementary claims and merchant exporter Notification, Shri Singla advised that these are new queries and will have to  be taken up with CBIC for final resolution.  He also advised the council to send such representations with details for examination.

Shri Mihir Shah  explained  the entire procedure and  process in detail and covered topics like Categories of Supply under GST, Zero rated supply,  Pre-requisites for refunds, Returns and Refund Applications,  Refund of un-utilised  ITC,  Refund of IGST Paid on Exports,  Refund under 0.1% merchant exporter supply etc.

 Shri Shah also gave a demo on  “sign up / create login at ICEGATE portal”  for  IGST Validation Inquiry   during the session.
The Workshop got excellent response with more than 70 Member Exporters  attending the workshop.
The participants asked several queries during the Workshop which were answered satisfactorily by the eminent panelists.

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CHEMEXCILS PARTICIPATION IN CHEMSPEC EUROPE-2018

CHEMEXCIL is participated in Chemspec Europe-2018 exhibition being organized by MACK BROOKS EXHIBITIONS LIMITED UK, from 20th to 21st June, 2018 at Hall 8, Koln Messe, Cologne, Germany. This project is sanctioned under MAI scheme. Altogether 41 chemexcil member-exporters participated in this exhibition.CHEMEXCIL Booked 836 sq. mt. space in Hall No.8. 300 Sq.mt. Space is converted in India Pavilion, Branding INDIA.5000+ visitors from various countries and regions visited this exhibition. Visitors from Agrochemical intermediates, biotechnology, Catalysts, Colours& Pigments, Flavours& Fragrances, Organic Intermediates, Photographic Chemicals and Water treatment chemicals., International Trade Missions are the target visitors.

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ORGANIZED JOINTLY BY CHEMEXCIL & PLEXCONCIL INTERACTIVE SESSION ON ISSUES RELATED TO KOLKATA PORT / ST / FTP AT HOTEL LALIT GREAT EASTERN, KOLKATA ON 27-06-2018

From Left are Shri S.G. Bharadi, Executive Director - Chemexcil, Shri Subir Ghosh, PRO Commercial Taxes, Government of West Bengal, Shri Rajib Sankar Sengupta, Joint Commissioner, Commercial Taxes, Government of West Bengal, Shri Satish Wagh, Chairman - Chemexcil, Shri Mohan Lal Sukhpal, Joint Commissioner Customs (Port), Shri A.K. Basak, Chairman - Plexconcil, Captain Himangshu Shekar, Traffic Manager, Kolkata Port Trust, Shri Rohit Soni, Asst DGFT

The above Seminar was jointly organized by the CHEMEXCIL and PLEXCONCIL on issues related to Kolkata Port / GST / FTP at Hotel Lalit Great Eastern, Kolkata. From CHEMEXIL, the seminar was attended by Shri Satish Wagh, Chairman - Chemexcil and Shri S.G. Bharadi - Executive Director - Chemexcil and from Plexconcil Shri A.K. Basak, Chairman was attended. The  program  began  with  honoring the  distinguished  guests  with  presentation  fresh  flowers.

Objective –

With the onset of GST regime, there have been lot of concerns amongst the member-exporters regarding refunds, e-way bill, custom issues related to port, fate of export promotion schemes etc and also Foreign Trade Policy 2015-2020 etc.

To address the concerns of the exporters, the Council organized this Seminar and Interactive Session on ISSUES RELATED TO KOLKATA PORT / GST / FTP.

Topics coverage –

• Custom issues related to Kolkata Port Categories of Supply under GST
• Zero rated supply
• Pre-requisites for refunds
• Returns and Refund Applications
• Refund of un-utilised ITC.
• Refund under 0.1% merchant exporter supply
• e-Way Bill
• e-sealing for export containers / RFID e-seals
• Foreign Trade Policy 2015-2020
• Other Trade remedies

Speakers –

• Shri Mohan Lal Sukhpal, Joint Commissioner of Customs (Port)
• Captain Himangshu Shekar, Traffic Manager, Kolkata Port Trust
• Shri Rajib Sankar Sengupta, Joint Commissioner, Commercial Taxes, Government of West Bengal
• Shri Subir Ghosh, PRO, Commercial Taxes, Government of West Bengal
• Shri Rohit Soni, Assistant DGFT

Shri Satish Wagh, Chairman CHEMEXCIL welcoming Shri Rohit Soni, Asst DGFT with bouquet of flower

Shri Satish Wagh, Chairman CHEMEXCIL address the gathering

Dignitaries on the Dias

Shri S.G.Bharadi Exeuctive Director, CHEMEXCIL delivering the Vote of Thanks

Shri A.K. Basak, Chairman - Plexconcil, welcomed the gathering and informed about the plastic potential in the world market. India’s share only 1% in export in worldwide. Shri Satish Wagh, Chairman – Chemexcil delivered his address and informed to the participants that Central Government is working on a draft chemical policy which would focus on meeting the rising demand of chemicals from domestic industry and reduce dependence on imports. He informed that Rs.6,087 crore IGST refund has been sanctioned by the CBIC at the end of 16th June, 2018. He appealed to the exporters to ensure that the correct procedure of filing returns, giving accurate information in Shipping Bills and submitting RFD01A application forms to the jurisdictional formations are followed for quick disbursal of their refund claims. He thanks to the Government of West Bengal Government for taking initiative to develop deep sea port project in PPP basis at Tajpur, in Midnapore district, West Bengal.

Shri Mohan Lal SukhPal, Joint Commissioner of Customs (Port) delivered his key note address and inform to obtain facility of AEO. From the Kolkata Customs made PPT presentation about the AEO benefits and exemption on account of import and export. They informed to our members that AEO certification is Three-Tier AEO (T1, T2, T3) and this certification is launched by Indian Customs. Small and Medium Scale Enterprises who have filed 25 documents i.e. either Bills of Entry or Shipping Bills during the last financial year is also entitled for AEO. The applicant should have business activities for at least three financial years preceding the date of application.

Captain Himangshu Shekar, Traffic Manager, Kolkata Port Trust made presentation of ppt about the Kolkata Port Performance Analysis, Highlights of existing infrastructure, current constraints of Kolkata dock system, Projects already implemented, Projects in pipeline. Shri Rajib Sankar Sengupta, Joint Commissioner, Commercial Taxes, Government of West Bengal made presentation of ppt about Refunds and e-way bill.

Shri Rohit Soni, Asst DGFT also address the gathering.

Floor was subsequently opened for queries. With the detailed and suitable illustrations on the technical session which evoked a good response from the participants. Over 80 participants attending the seminar. The participants asked several queries during the seminar and where answered satisfactorily by the eminent speakers.

In the Vote of Thanks session, Shri S.G. Bharadi, Executive Director then briefed the participants about the various export promotional initiatives undertaken by the council with a strong commitment to enhance export growth significantly. He urged member-exporters to get Certificate of Origin from the regional office immediately after shipment. and informed member exporters to give export return on quarterly basis regularly through use our ONLINE facility. He requested to the participants to check the Chemexcil website on daily basis to get up-to-date information.

Shri Mohan Lal Sukhpal, Joint Commissioner of Customs (Port) delivering his address

Captain Himangshu Shekar, Traffic Manager, Kolkata Port Trust delivering his valuable presentation.

Shri Rajib Sankar Sengupta, Joint Commissioner, Commercial Taxes, Government of West Bengal delivering his valuable presentation.

Question - Answers session

A view of Participants

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Exim Updates

GST - Reverse Charge Mechanism (RCM) further Deferred till 30 Sept. 2018

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IGST Refunds - JNCH Scroll No. 6456 & Scroll No. 6314

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e-Way Bill - Modifications to the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular No. 41/15/2018-GST dated 13.04.2018

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AEO - Appointment of CRM within the jurisdiction of Chief Commissioner of Customs, Mumbai- II

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IGST Refunds - JNCH IGST scrolls from 8th June 2018 to 18th June 2018

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DGFT - Amendment in Para 4.29 (vi) and Para 4.29(vii) of FTP 2015-20 on DFIA / Submission of application seeking authorization for import / export of restricted items through e-mail

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DGFT - Notifying office address of DGFT and its Regional Authorities and their jurisdiction and Private SEZs of Appendix 1A of Foreign Trade Policy, 2015-20

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IGST Refunds - Facility on GST Portal to “Track status of invoice data shared/to be shared with ICEGATE”

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CBIC - Amendment in notification No. 50/2017-customs dated 30th June 2017, to prescribe effective rate of duty on specified goods / Increase the tariff rate on goods in chapter 28 etc

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Methanol :- Various issues raised during the visit of Secretary (C&PC) to State of Gujarat-reg

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GST (Policy Wing) - Clarifications on miscellaneous issues related to SEZ/ Refund of unutilized ITC for job workers/ Other issues under GST

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GST - Fifth Amendment (2018) to the CGST Rules, 2017

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Trade issues related to Afghanistan

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Inputs on Chinese Laws/practices hampering fair trade & Issues faced by Indian exporters to be deliberated in 7th Trade Policy Review of China in WTO

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JNCH - Procedure to be followed for EGM error SB006 related to ICDs

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DGFT - Schedule of EODC Camps to be conducted in Additional DGFT Mumbai Office from 11.06.2018 To 22.06.2018

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Banking Issues faced by exporters (e-BRC delay etc)

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JNCH (IGST Refunds) - List of Shipping Bills in Scroll no 5423 / SB005 list / Contact details of Officers at IGST camp

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CBIC - Procedure for e-commerce exports through Post and clarification on personal imports / Exports by Post Regulations, 2018 /Clearance of goods through FPOs

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IGST Refunds Extension of date in SB005 alternate mechanism cases and Clarification in other cases (SB003)

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DGFT - Doing away with the requirement of DSC for online/digital payment through e-MPS

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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

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Marine Pollutants – Compliance and Exemptions – IMDG CODE 38-16

Harmful substances when transported in packaged form needs to follow provisions of annex III of MARPOL and may have certain exemptions from said annex. Annex III of the International Convention for the Prevention of Pollution from Ships, 1973, as modified by theProtocol of 1978 (MARPOL), deals with the prevention of pollution by harmful substancescarried by sea in packaged form.

What are harmful substances?

“Harmful substances” are those substances which are identified asmarine pollutants in the International Maritime Dangerous Goods Code (IMDG Code) or which meetthe criteria in the Appendix of to annex III of MARPOL.

How does IMDG Code identify a substance as marine pollutant?

IMDG Code identifies marine pollutants with a symbol “P” in column 4 of dangerous goods list in chapter 3.2. Additionally,certain marine pollutants are identified only in the alphabetical index of IMDG Code. These are those marine pollutants which has not been assigned to an N.O.S. orgeneric entry.

If an entry is not identified as marine pollutant in column 4 of dangerous goods list in IMDG Code and the substance is not identified as marine pollutant in the alphabetical index however the properties of the substance meet the criteria of appendix of Annex III of MARPOL then it has to be transported as marine pollutant.

Appendix of annex III of MARPOL is in accordance with classification of environmentally hazardous substance in Globally Harmonized System of Classification and Labelling of Chemicals (GHS).

What are the compliance requirements for Marine Pollutants?

All dangerous goods and marine pollutants must only be transported in authorized Packagings, Intermediate Bulk Containers (IBCS) and Tanks with quantity limitations as stipulated by IMDG Code through Packing, IBC and Tank Instructions and must be marked, labelled placarded and documented as per the relevant provisions of IMDG Code.

Marks:

Every package, IBC and container and tank carrying marine pollutant must be marked with the environmentally hazardous substance mark as shown below.

This mark must be a square set at 45 Deg angle, that is diamond shape. The symbol fish and tree must always be black in a background of white or any suitable contrasting color. The line forming this diamond shape must be 2 mm and the size must be 100 x 100 mm.

Size of Marine Pollutant mark:

On packages and IBCs size must be 100 x 100 mm when these packages and IBCs are loaded into a container all four sides of the container must be marked with 250 x 250 mm marine pollutant marks. When solid or liquid marine pollutants are loaded in a tank container the mark must be 250 x 250 mm size.

Durability of Marine Pollutant Mark:

Durability of marine pollutant mark must be such that it is still identifiable on packages and containers/tanks surviving at least three months’immersion in the sea.

Max quantity per package for marine pollutants:

Packing and IBC instructions in column 8 and 10 of IMDG Code restricts type of packages/IBCs and quantity thereof. When we transport a marine pollutant in tank containers it is little tricky to decide what is the maximum degree of filling. Degree of filling in a tank container is determined according to the hazard involved during transport which takes into consideration of the coefficient of expansion of liquid.
If an entry in dangerous goods list of chapter 3.2 which is not identified as a marine pollutant in column 4 and is assigned with degree of filling as TP1 and the actual cargo is a marine pollutant then shipper must use the formula as per TP2 for calculating degree of filling. Refer section 4.2.1.9.3 of IMDG Code.

Stowage on board ships:

On cargo ships stowage categories, A, B & E is on or under deck and categories C & d is on deck only. However, if a marine pollutant having stowage category A, B or E is being loaded, even though allowed on or under deck, preferably the container must be loaded under deck and for categories C & D which permits only on deck stowage preference shall be given to stowage on well-protected decks or to stowage inboard insheltered areas of exposed decks.

Documentation:

For any substance which is a marine pollutant the dangerous goods declaration must indicate same by words “MARINE POLLUTANT” which may be supplemented with term ENVIRONMENTALLY HAZARDOUS.

Exemptions:

As per section 2.10.2.7 of IMDG Code Marine pollutants packaged in single or combination packagings containing a net quantity per single or innerpackaging of 5 L or less for liquids or having a net mass per single or inner packaging of 5 kg or less for solidsare not subject to any other provisions of IMDG Code relevant to marine pollutants provided the packagingsmeet the general provisions as mentioned in sections 4.1.1.1, 4.1.1.2 and 4.1.1.4 to 4.1.1.8 of IMDG Code.

According to this exemption a cargo which has no other properties of another hazard class but only a marine pollutant which as solid is transported under UN No. 3077 ENVIRONMENTALLYHAZARDOUS SUBSTANCE, SOLID, N.O.S. or as liquid is transported under UN 3082 HAZARDOUS SUBSTANCE, LIQUID,N.O.S., when packed 5 kg or 5 liters less than per pack need not be marked, labelled placarded or documented or stowed as MARINE POLLUTANT.

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Can India-China’s trade gap be trimmed? Boosting exports in these areas may help, says report

While widening trade deficit between India and China is continuing to raise concerns, a recent report suggests that rice exports could actually help India to reduce the trade gap which it currently runs with China.

While widening trade deficit between India and China is continuing to raise concerns, a recent report suggests that rice exports could actually help India to reduce the trade gap which it currently runs with China. An SBI ‘Country Wrap’ report released earlier this week said that India should try to tap sectors such as pharmaceuticals and agriculture — particularly in commodities like rice — in the Chinese market with an aim to bridge the widening trade gap.

According to the Economic Research Department of the SBI, China is a top importer of rice globally. However, for some reason, India has not been able to export enough rice to China. Once India is able to tap those (agriculture and pharma) markets and increase its exports, the trade deficit will be quite balanced.

Demand for Indian goods has been on a decline in the Chinese market, while India’s dependence on China for items such as electric equipment, machines, medical and surgical instruments and fertilizers, among others, is on a rise. Other top imports from China include organic chemicals, plastic, ships and boats, iron and steel, and optical photographic. The report pointed out that this has led to a widening trade deficit between India and China. Huge imports of Chinese goods by India has made China the country’s largest trade partner, it added.

In FY17, India’s trade deficit with China expanded to $51.11 billion from $38.72 billion in FY13. Structural reforms in China has reduced its imports from India, the report said. Commerce ministry data showed on Tuesday that the US emerged as the top export destination for India with $47.9 billion worth of shipments in FY18, PTI reported. However, China was India’s largest source country for imports during 2017-18 with $76.3 billion worth of imports.

Items like ores, cotton, organic chemicals mineral fuels copper, iron and steel, nuclear reactor and mechanical appliances, electrical machinery and plastic make it to the list of top export items from India to China, the report said.

(Source:https://www.financialexpress.com/economy/can-india-chinas-trade-gap-be-trimmed-boosting-exports-in-these-areas-may-help-says-report/1194638/ dated 5th June-2018)

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US remains top export destination for India with shipments worth $47.9 bn last fiscal: Commerce ministry data

New Delhi: The US has emerged as the top export destination for India, with $47.9 billion worth of shipments last fiscal, followed by UAE and Hong Kong, as per the commerce ministry data.

"USA was India's top export market during April-March 2018 with exports reaching $47.9 billion, followed by UAE ($28.1 billion) and Hong Kong ($14.7 billion)," the department of commerce said in a series of tweets.

In 2016-17, the country's shipments to America stood at $42.2 billion.

The other key destinations include China, Singapore, UK, Germany, Bangladesh, Vietnam and Nepal. The top ten exporting products last fiscal included petroleum; pearls, precious, semiprecious stones; pharmaceuticals; engineering goods; chemicals; textiles and rice.

According to trade experts, the US would always be the main export destination for domestic exporters as it accounts for about 16 percent of India's total merchandise shipments.

"It is a very big market for us as the US is largest economy in the world. We need to give special focus on this market as it is going to be an important destination for our exports," Professor at Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said.

Federation of Indian Export Organisations (FIEO) Direct General Ajay Sahai said that the US, being the biggest consumer, is extremely important for sectors such as apparels and made ups, leather footwear, pharma and engineering.

"We should push those exports which account for major imports into US so as to achieve quantum jump in exports," he said.

Further in terms of imports, China was India's largest source country for imports during 2017-18 with $76.3 billion.

This was followed by America ($26 billion) and Saudi Arabia ($22.1 billion).

Top imported products in India during April-March 2018 were petroleum crude ($87.4 billion) followed by pearls and semi precious stones ($34.2 billion) and gold ($33.7 billion).

In 2017-18, exports recorded a growth of about 10 percent to $303 billion. Imports on the other hand totalled nearly $460 billion, leaving a trade deficit of about $157 billion.

Higher growth in outbound shipments helps create employment opportunities, earn foreign exchange and boost economic activities.

(Source:https://www.firstpost.com/business/us-remains-top-export-destination-for-india-with-shipments-worth-47-9-bn-last-fiscal-commerce-ministry-data-4497355.html dated 5th June-2018)

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India to ask US for renewal of GSP scheme

India will ask the United States for a fast renewal of the generalised system of preferences (GSP) scheme, which allows market access at zero or low duties for about 3,500 Indian products, including textiles and chemicals. The US Trade Representative’s (USTR) office did not renew the scheme for India in April, saying it wanted to hold an eligibility review.

India’s commerce and industry minister Suresh Prabhu will visit Washington in June and is expected to point out that GSP extension should not tied up with India’s policy on pricing of medical devices or the dairy industry as the United States had been unilaterally offering the concession to help labour intensive sectors, according to a report in a top Indian business daily.

Though the US Congress had voted to extend the GSP scheme through 2020, it was not done so for India, Indonesia and Kazakhstan. Petitions were filed by the US dairy and medical device industries highlighting trade barriers in India and requesting a review of India’s GSP benefits.

The United States is reportedly unhappy with recent caps imposed by India on medical products such as stents and Prabhu may discuss that issue separately during his visit. (DS)

(Source:http://www.fibre2fashion.com/news/textile-news/india-to-ask-us-for-renewal-of-gsp-scheme-242605-newsdetails.htm dated 6th June-2018)

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China’s ‘green’ issues boost India’s FY18 chemical exports

China’s decision to shutter several chemical manufacturing units to rein in air pollution and protect the environment has helped Indian chemical exports grow 31.94% to $15.91 billion in 2017-18, a top industry representative has said.

“Indian [chemical] industry has been revived,” said SatishWagh, chairman, Chemexcil (Basic Chemicals, Cosmetics and Dyes Export Promotion Council). He added that the huge volume of exports had resulted in a shortage for domestic consumption.

‘Crucial period’

Stating that exports had increased both in volume and value terms, he said the trend was expected to continue for another 2-3 years.

“This period will be very crucial for us to encash and see that we reach all over the world to each and every buyer.

“It is a good opportunity... [we need to build] confidence in buyers,” he said, expecting the Chinese manufacturers to bounce back in three years,” he said.

Chemexcil executive director S. G. Bharadi said growth last fiscal was significant as in 2016-17 exports rose at a modest 3.22% to $12.06 billion.

Chemexcil members export dyes and dye intermediates; inorganic, organic and agro chemicals among other things.

Inorganic, organic and agro chemicals account for a bulk of these exports, growing to $10.66 billion in 2017-18 ($7.71 billion in 2016-17). Their export growth was 38.29% in 2017-18 against 3.48% in the previous fiscal. Chemexcil office-bearers were in the city for a seminar on export refunds and e-waybill requirements organised at the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI). There is a huge shortage of basic chemicals in the country, said GowraSrinivas, president, FTAPCCI. It is against this backdrop, Chemexcil wants the Centre to take a re-look at the processes relating to environmental clearances for the units to help them scale up.

(Source:http://www.thehindu.com/business/chinas-green-issues-boost-indias-fy18-chemical-exports/article24097713.ece dated

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India: Indirect Tax Updates: Notification Of Customs Audit Regulations, 2018, Amendments In The Foreign Trade Policy, Exemption From Payment Of A Late Fee Under Profession Tax

Important rulings by Authority for Advance Ruling (AAR)

Whether the sale of imported goods outside India, without such goods entering into India at any stage, taxable under GST?

AAR, Kerala has held that a transaction wherein a person registered under GST in India places an order for goods in China, and the Chinese supplier, on the directions of such person, ships the goods directly to a customer in the USA, GST will not be applicable in India since the goods cannot be said to have been imported in India in accordance with the provisions of the IGST Act, 2017. Furthermore, the position will not change even in a scenario wherein such goods are directly shipped by the Chinese supplier to such person's warehouse in the Netherlands, and thereafter sold to customers in and around the Netherlands.

(2018-VIL-02-AAR - Synthite Industries Ltd)

Whether reinstatement and access charges paid by businesses to a municipality towards digging and restoration of roads in the course of their business, be taxable under GST?

AAR, Maharashtra has held that recovering restoration charges by a municipality from business entities that have dug up a road cannot be equated to performing a sovereign function as envisaged under Article 243W of the Constitution. Thus, any reinstatement charges and any connected access charges paid to municipal authorities would be liable to GST under reverse charge mechanism.

(2018-VIL-22-AAR - Reliance Infrastructure Ltd)

Whether services of running a restaurant or a canteen for an entity, to provide meals to employees of such an entity, would be classifiable as 'outdoor catering' services (taxable under GST at the rate of 18%) or as 'restaurant' or 'canteen' service (taxable under GST at the rate of 5% without input tax credit)?

AAR, Gujarat, relying on the observations of the Allahabad High Court in the case of Indian Coffee Worker's Co-Op Society Ltd vs CCE & ST, Allahabad [2014 (34) S.T.R. 546 (All.)]), under the erstwhile service tax law, has ruled that services of running a canteen provided to an entity, within the premises of such entity, would not alter the nature of such services just because it is for providing meals to the employees of such entity, and would still be classified as 'outdoor catering' services and not as a restaurant or a canteen service. Consequently, such services would fall under the specific entry of 'outdoor catering services' and thereby be taxable at 18%.

(2018 (5) TMI 1181 - Rashmi Hospitality Services Pvt Ltd)

Applicability of IGST on the supply of Customs warehoused goods

The government vide circular no. 3/1/2018-IGST dated 25 May 2018 has clarified that IGST will be levied and collected on goods supplied while being deposited in Customs bonded warehouse only when such goods are cleared for home consumption from such a warehouse. The IGST would be charged either at the transaction value or the valuation done at the time of filing an into-bond bill of entry, whichever is higher.

It has been further clarified that GST should not be charged on any intermediate sale of such goods while they are deposited in the Customs bonded warehouse.

Notification of Customs Audit Regulations, 2018

Audit was introduced under the Customs law by inserting Section 99A in the Customs Act, 1962 vide the Finance Act, 2018. In furtherance of this, the government vide Notification No. 45/2018-Customs (N.T.) dated 24 May 2018 has introduced Customs Audit Regulations, 2018, guiding such audit under the Customs law.

Amendments in the Foreign Trade Policy

The Directorate General of Foreign Trade (DGFT) has made the following amendments to the Foreign Trade Policy 2015-20 vide public notices:

As per para 3.08 (b) of Foreign Trade Policy 2015-2020, to qualify for SEIS, the service provider should have minimum net foreign earnings of USD 15,000 (USD 10,000 for individual service providers and sole proprietorship). Now, DGFT vide Notification No. 8/2015-2020 dated 24 May 2018 has amended the said para to clarify that such minimum threshold limit is to be considered for the year for which the duty credit scrip is being obtained and not the financial year preceding the year of providing the eligible services.

Exemption from payment of a late fee under profession tax

The Maharashtra government vide Trade Circular No. 15T of 2018 dated 21 May 2018 has exempted registered employers from payment of a late fee in respect of monthly or annual returns pertaining to the period April 2016 to June 2018 if the following conditions are fulfilled:

Any amount payable as per the return should have been paid before the due date.

The monthly/annual returns for the said period are submitted before 31 July 2018.

There will be no refund or set off against the liability for late fee already paid.

(Source:http://www.mondaq.com/india/ x/707780/sales+taxes+VAT+GST/Indirect+Tax+Updates+Notification+of+Customs+Audit+Regulations+2018+ Amendments+in+the+Foreign+Trade+Policy+ Exemption+from+payment+of+a+late+fee+under+profession+tax dated 6th June-2018)

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Iran, India to Begin PTA Talks

India will soon begin talks with Iran on a trade accord just as the US has turned hostile toward the Persian Gulf nation, threatening it with renewed sanctions after walking out of a nuclear accord with the country.

The first round of formal negotiations on a preferential trade agreement will be held between India and Iran by August, Indian daily The Economic Times quoted "people with knowledge of the matter" as saying.

Such an accord will see the two giving duty concessions to each other’s goods, enabling greater market access for India’s pharmaceutical, rice and auto component exports.

“We are making our wish lists,” said one of the officials. “The first round of text-based negotiations will take place in a month or two.”

Talks on a PTA began two years ago, then slowed because Iran had concerns about India’s indirect tax structure.

“Most of Iran’s exports to us are intermediates,” an unnamed official said. “Initially, they had problems with countervailing duty and its adjustment in the pre-GST (goods and services tax) regime but now it is confident of the new tax structure.”

Iran has sought details on India’s tax structure before and after the imposition of GST on around 100 products, including urea, various dry fruits and chemicals.

India implemented GST on July 1 last year.

On the issue of PTA talks gaining momentum when the US was becoming belligerent on sanctions, another commerce department official said the two were mutually exclusive.

“PTA is a permanent thing while sanctions are temporary. Moreover, there is already an existing solution—the rupee payment mechanism—which is working,” the second official said.

Banks have not objected to India going ahead with the pact despite the threat of sanctions, the official said. “In fact, with a PTA, banks will have to process less payments due to reduction of duties,” he added.

Iran’s major exports to India are oil, fertilizers and chemicals while imports include cereals, tea, coffee, spices and organic chemicals.

“India can benefit on products such as pharmaceuticals, manmade staple fiber, iron and steel, tea, coffee, spices and chemicals,” said Ajay Sahai, director general, Federation of Indian Export Organizations.

The two sides agreed to undertake text-based negotiations on PTA as well as the conclusion of a bilateral investment treaty in a fixed timeframe during Iranian President Hassan Rouhani’s visit to India in February.

“India never stopped trading with Iran even when there were US and EU sanctions on that country. Going ahead with a PTA now is a strong signal of our trade partnership,” said an expert on trade issues.

India’s exports to Iran were $2.6 billion in fiscal 2018-19 while imports were $11.1 billion.

> Indian Delegation to Assess Mood in EU

To assess the mood of the nations in the European Union with regard to the impending US sanctions on Iran, a joint team of the finance, petroleum and natural gas ministries has been sent to meet officials in these countries.

According to a top government official, the team will be studying responses from various sources.

“We should remain aware of what the world is thinking,” said the official as reported by The Financial Express.

Though the European nations have said they will not adhere to the US sanctions, India does not want to keep any stone unturned.

“The last time when US had imposed sanctions, Europe followed. We want to be prepared for a repeat scenario,” said the official.

Currently, India pays Iran in euros through European banking channels and if European nations are not part of the sanction, it can continue to pay through the same channel. There is still time before sanctions are actually imposed.

India's Petroleum Minister Dharmendra Pradhan said the government is adopting a wait-and-watch policy regarding its crude imports from Iran, in case the US goes ahead with the sanction.

“It is too early to comment on the Iran issue.”

> India's Iran Investment in Rupee

It was reported a day before Rouhani's meeting with Indian Prime Minister Narendra Modi on February 17 that India, for the first time beyond Bhutan and Nepal, would invest in a foreign country—Iran—through its own national currency rupee to bypass any trouble arising out of impending US sanctions against Iran, which bars the country from dealing in dollars and euros, after the decision to invest in rupee was implemented in January to stimulate trade and investment between the two countries.

Rouhani’s visit was his first since assuming office in 2013 and came a decade after the last presidential visit from Iran: Mahmoud Ahmadinejad in 2008.

The Indian investments in rupees will get converted into Iranian rial through banking mechanism allowing investments from India, including in the Chabahar Port complex.

(Source:https://financialtribune.com/articles/domestic-economy/87670/iran-india-to-begin-pta-talks dated 9th June-2018)

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Tough Times Ahead for Indian Businesses if Trump Imposes Retaliatory Tariffs

Tariff concessions are crucial for Indian SMEs exporting their products to the US market.

New Delhi: India’s exports to the US, especially those from sectors like textiles, gems and jewellery, automotive, organic chemicals and pharmaceuticals, could be hurt badly if US President Donald Trump carries out his threat of imposing retaliatory import duties on Indian products. This possibility looks real, given the way Trump has publicly shamed traditional US allies like Japan, Germany and Canada, and levied punitive duties on their steel and aluminium exports.

Any US move to levy retaliatory tariffs will largely hit India’s small and medium enterprises. That could complicate the Narendra Modi government’s political challenges, with general elections just around the corner.

The US accounts for nearly 16% of India’s total exports. In 2017-18, India had a trade surplus of $21 billion with the US.

The US’s industrial tariffs have fallen to close to zero after several rounds of trade liberalisation. But on the other hand, India still continues to impose high import duty, which riles Trump.

For example, India has kept high tariffs on automobiles and motorcycles (60-75%), alcoholic beverages (150%) and textiles (some ad valorem equivalent rates exceed 300%).

What is even more worrying for the US is that as much as 25% of India’s industrial tariffs remain unbound at the WTO.

According to latest WTO data, in 2015 India’s average bound tariff rate was 48.5%, while its simple ‘most favoured nation’ average applied tariff was 13.4%. The US has expressed concern over this, saying its exporters face tremendous uncertainty as India has considerable flexibility to change tariff rates at any time.

Meanwhile, US exporters of stents and knee implants are seething with anger over price caps placed by India on these medical devices.

Value of key Indian exports to the US in 2017-18

The US trade deficit with India has become a sore point for the Trump administration, which wants full reciprocity in trade relations with all countries.

That Trump has publicly flagged that India imposes prohibitive duties of 100% on some products has left little doubt about US intention. Indian trade diplomats’ hope of being exempted from prohibitive US steel and aluminium tariffs has already proved false. They cannot afford to stay complacent about the threat of US slapping punitive tariffs on Indian exports, said trade experts.

“We’re like the piggybank that everybody is robbing,” Trump said while addressing a press conference in Canada’s Quebec City at the conclusion of the G7 summit.

Trump has made it clear that his tariff grievances went beyond developed economies. He especially mentioned India, which he said imposed prohibitively high tariffs on US products like Harley Davidson motorcycles.

Indian exporters worried

Meanwhile, garment exporters are worried at the prospect of the US levying equivalent import tariffs. Currently, US import duty on garment import varies from 8% to 28%. In comparison, India imposes customs duty on garment imports at the flat rate of 32%.

India’s garment exports in 2017-18 were 11% lower than the preceding year. This declining trend continues in the current fiscal year too.

As much as 30% of India’s garment exports go to the US.

One Gurgaon-based garment exporter, who did not want to be identified, told The Wire that the sector could face troubles if the US imposes an equivalent duty on garment imports.

Indian exports of gems and jewellery to the US, estimated at $10 billion in 2017-18, too could face serious hurdles if the latter levies retaliatory tariffs. Export of road transport vehicles and organic chemicals are also at the risk of being hit with high tariffs.

Task cut out for Indian trade diplomats

The Trump administration has ordered a review of India’s compliance with 15 conditions outlined by the Congress for availing concession tariffs in the US market under Generalised System of Preferences (GPS).

Tariff concessions are crucial for Indian SMEs exporting their products to the US market. The Indian government has pleaded its case before the GSP subcommittee, which is conducting a review of India’s eligibility and will decide if the country is providing “equitable and reasonable” market access as a quid pro for GSP benefits.

But there is not much hope of India getting a clean chit in the GSP review in which powerful US trade associations are petitioners. While the National Milk Producers’ Federation and the US Dairy Export Council have complained about restricted market access for farm products, the Advanced Medical Technology Association has brought up price caps on coronary stents and knee implants.

Given all of this, it would not be surprising if the US president goes ahead with his threat of increasing tariffs on exports from India in the event talks do not yield results.

Starting from June 10, India’s commerce minister Suresh Prabhu was on a two-day visit to the US, where he held talks with US secretary of commerce Wilbur Ross and US Trade Representative Robert E. Lighthizer to cool the rising trade tensions between the two countries. However, chances that Prabhu persuaded the US administration to drop its demand of full reciprocity in bilateral trade relations look dim.

India’s exports to the US grew by 13.42% during the year, much faster than the 9.98% growth rate of its overall merchandise exports, underlining the significance of the American market for Indian industry.

However, the easy access that Indian exports have traditionally enjoyed in the US market could be a thing of the past soon, if the Modi government does not properly handle Trump’s demand on reciprocity in bilateral trade relations.

(Source:https://thewire.in/trade/us-india-trade-donald-trump-tariffs dated 14th June-2018)

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Commerce Minister reviews progress of export promotion strategy

He said a conference of Heads of Indian missions has been scheduled in June end in which trade promotion measures will be discussed

The Department of Commerce will soon open 10 offices in Indian missions abroad for accelerating export promotion activities.

This was informed by Commerce & Industry Minister, Suresh Prabhu,during review of the sectoral export promotion plans prepared by Ministries and Departments in New Delhi today.

He said a conference of Heads of Indian missions has been scheduled in Juneend in which trade promotion measures will be discussed.

The Minister stressed on branding of Indian products and export credit as important focus areas for export promotion.

He also said that efforts should be made for getting priority sector lending status for export credit and directed the logistics division of the Ministry to work upon measureslike bulk cargo transportation to reduce freight costs.

The Minister suggested that each Ministry and Department should set targets for increasing exports of their product and product groups in 2018-2019.

Commerce Minister emphasized that exports are a national priority and an integrated approach is required to promote exports as a joint mission.

He directed that this forum should be institutionalized and inter-ministerial meetings be held every quarter to resolve difficulties and assess the progress across sectors.

Commerce Secretary, Ms. Rita Teaotia said that although exports have grown in the past year, a quantum jump is required. She also emphasized that branding is a major issue cutting across all sectors and Brand Equity Foundation is formulating a proposal to support line Ministries for branding export products.

Director General Foreign Trade,AlokChaturvedi informed the participants that Department of Commerce is preparing a ‘100 Billion Additional Export Strategy’ which will be released shortly. Merchandise Exports in 2017-18 grew by 9.8% YoY while Services Exports were up by 17.8% YoY. Total Exports were up by 12.9% in 2017-18 as compared to 2016-17.

The Minister of State for Commerce & Industry, C R Chaudhary was also present at the meeting. The meeting was attended by Secretaries to Government of India from DIPP, MSME, Textiles, Chemicals and Petrochemicals besides senior officers from other administrative ministries and departments including Agriculture, Electronics and IT, Department of Heavy Industry and Defence Production.

(Source:https://www.clipper28.com/en/commerce-minister-reviews-progress-of-export-promotion-strategy/ dated 15th June-2018)

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India, US may discuss visa issues, steel export tariffs

NEW DELHI: Pricing of medical devices, additional tariffs on Indian steel and aluminium exports, visa issues, and duty cuts for $5.6 billion of Indian exports are seen as “lowhanging fruits” that India and the US intend to resolve in their upcoming bilateral meetings.

Senior officials from both the countries will meet soon to address concerns that were flagged during commerce and industry minister Suresh Prabhu’s visit to the US early this week. “We have agreed to work on resolution of various issues and address the concerns of either side,” Prabhu said on Friday.

He said the meeting of officers might take place by the end of this month.

India and the US are now identifying areas that can be resolved first as the two have been embroiled in a series of trade spats over the last few months.

“We will identify low hanging fruits which can be resolved first, issues that were part of the Trade Policy Forum (TPF) would be there in the agenda,” said a commerce ministry official. Around four to five rounds of talks are expected to take place between the two countries with India likely to host the first round.

“Issues linked to intellectual property rights will come into the talks only if they are directly linked to trade,” the official said. India and the US failed to bring out a joint statement in the last TPF in October due to unresolved differences.

The United States had then pressed for strong outcomes across a number of areas, including nonscience-based barriers to agricultural trade, barriers to trade that impact sales of US high technology, tariffs in a number of agricultural and industrial sectors, market access in services, and protection and enforcement of intellectual property rights.

TIMING OF TALKS Prabhu’s meetings with US Trade Representative Robert Lighthizer, secretary of commerce Wilbur Ross, and secretary of agriculture Sonny Perdue, took place in the backdrop of US President Donald Trump criticising other Group of Seven (G-7) industrial nations.

“On the day of my visit…Trump made a statement about G7,” Prabhu said.

“Meeting with the USTR went very well. We made substantive progress on trade and investment issues,” the minister said.

Prabhu said the meeting was important in the backdrop of the fact that the US was not even ready to talk on trade related issues with its close trading partners such as Canada.

The US had pulled out of G-7 joint statement.

(Source:-https://economictimes.indiatimes.com/news/economy/foreign-trade/india-us-may-discuss-visa-issues-steel-export-tariffs/articleshow/64609616.cms dated 16th June-2018)

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SushmaSwaraj discusses steps to revitalise bilateral ties with Italy

SushmaSwaraj and Giuseppe Conte External Affairs Minister SushmaSwaraj shakes hand with Italian Prime Minister Giuseppe Conte in Rome on Monday , PTI

As part of her seven-day tour of four European nations, External Affairs Minister SushmaSwaraj held bilateral talks with Italian leadership on Monday. She called on Italian Prime Minister Giuseppe Conte, who assumed charge early this month, and their discussions focused on forging bilateral cooperation across sectors and steps to revitalise the bilateral relationship.

Swaraj, on the first leg of her tour, met with her Italian counterpart EnzoMoaveroMilanesi. "They exchanged views on regional and global issues of mutual interest," External Affairs Ministry spokesman Raveesh Kumar said. The two leaders shared concerns relating to counter-terrorism and cybersecurity and agreed to continue cooperation in this area, the statement said.

Outlining the reforms undertaken by India to promote ease of doing business and liberalise Foreign Direct Investment, Swaraj highlighted the tremendous scope for enhancing bilateral trade and investment in sectors like infrastructure, food processing, and renewable energy.

"To augment collaboration in areas of mutual benefit, the ministers agreed to hold the next meeting of the Joint Commission for Economic Cooperation (JCEC) in India later this year," the statement said.

They also welcomed Italy's participation as a partner country at the Tech Summit in India in November 2018, which would boost cooperation in technology and innovation.

The two leaders also welcomed the growing India-Italy convergence on contemporary global issues and agreed to enhance bilateral cooperation in multilateral forums.

The visit from June 17-23 to European nations will provide an opportunity to hold in-depth discussions with the political leadership on a wide range of global, regional, and bilateral issues and advance India's growing strategic engagement with the European Union, the Ministry of External Affairs has said.

The India-Italy ties took a hit after two Italian marines were arrested for allegedly killing two Indian fishermen off the coast of Kerala in 2012. The row also impacted EU's relationship with India.

Over the next few days, she will be visiting France, Luxembourg, and Belgium to discuss issues related to India-EU free trade agreement. The EU and Indian leaders had been looking to resume stalled negotiations over some time, but uncertainties over Brexit and inflexibility on both sides prevented the resumption of formal talks. Talks were stalled as EU was not recognising India as a "data secure" country. The EU also had reservations about high Indian tariffs on European cars and alcohol.

Her Luxembourg visit will be the first ever by an Indian External Affairs minister. She will meet the Grand Duke of Luxembourg, Henri Albert Gabriel Félix Marie Guillaume, and Prime Minister Xavier Bettel there. She will be in Belgium from June 20-23. In Brussels, she will meet Deputy Prime Minister and Minister of Foreign Affairs of Didier Reynders. She will meet President of the European Commission Jean-Claude Juncker and President of the European Parliament Antonio Tajani, as well.

Visits On Card

Over the next few days, External Affairs Minister SushmaSwaraj will be visiting France, Luxembourg, and Belgium to discuss issues related to India-EU free trade agreement.

(Source:-http://www.dnaindia.com/india/report-sushma-swaraj-discusses-steps-to-revitalise-bilateral-ties-with-italy-2626680)

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India committed to broad-based trade agreement with EU: President Kovind

ATHENS: India is committed to a broad-based trade and investment agreement with the EU to be achieved in a generous spirit of mutual accommodation and of pragmatism, President Ram NathKovind said here ON Tuesday.

The 28-member European Union is among India's largest trading partners.

Kovind, who arrived in Greece on Saturday on the first leg of his three-nation tour, said that the EU is a critical source of investment and technology, especially for sustainability programmes.

Indian companies are significant investors in the EU, in industries as far apart as pharmaceuticals and automobile components, he said.

"India remains committed to an India-EU Broad-based Trade and Investment Agreement (BTIA), to be achieved in a generous spirit of mutual accommodation and of pragmatism," he told a gathering of diplomats, policymakers and academics during his address on the subject 'India and Europe in a Changing World'.

The event was organised by the Hellenic Foundation for European and Foreign Policy - a leading foreign policy think-tank in Greece and Europe. The negotiations for the BTIA have been held up since May 2013 and both the sides are yet to bridge substantial gaps on crucial issues.

Since June 2007, both the sides have completed 16 rounds of talks and five stock-taking meetings on the proposed pact.

The negotiations have witnessed many hurdles with both sides having major differences on key issues like intellectual property rights, duty cut in automobile and spirits and liberal visa regime.

The two sides have to iron out differences related to movement of professionals.

Besides demanding significant duty cuts in automobiles, the EU wants tax reduction on wines, spirits and dairy products, and a strong intellectual property regime.

On the other hand, India is asking the EU to grant it data secure nation status. The country is among the nations not considered as data secure by the EU. The matter is crucial as it will have a bearing on Indian IT companies wanting market access to the countries in the bloc.

Earlier, addressing the India - Greek Business Forum meeting, Kovind said that India-Greek bilateral trade at USD 530 million is way below its potential.

"With some efforts this can easily be made to cross USD 1 billion in the next few years and India is keen to take lead in this effort," he said.

The President said that there are clear complementarities between the Indian and Greek economies. He asked Greek shipping, agriculture, food processing, tourism, infrastructure, technology, defence and start-up companies to look at investment and technology tie-up openings in India.

He said that there are lucrative opportunities for the Greek Shipping Industry in India's ambitious Sagarmala project.

The Sagarmalaprogramme was launched under the port-led growth model and aims to invest Rs 8 lakh crore to create new mega-ports, modernise existing facilities and also have special economic zones adjoining the port. Kovind also mntioned the opportunities to collaborate in defence manufacturing, pharma, tourism, real-estate, entertainment, infrastructure and technology sectors as well.

(Source:-https://economictimes.indiatimes.com/news/economy/foreign-trade/india-committed-to-broad-based-trade-agreement-with-eu-president-kovind/articleshow/64649090.cms dated 19.06.2018)

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Ease of Doing Business for exporters in filing DFIA

New Delhi, June 21 (KNN) Taking a step towards ease of doing business for exporters in the country, exporters have been enabled to file single Duty Free Import Authorization (DFIA) application for exports made from any EDI port and separate applications for export made from each non-EDI port.

DFIA scheme is in existence from 1st May, 2006. A Duty Free Import Authorisation is issued to allow duty free import of inputs which are used in the manufacture of the export product (making normal allowance for wastage) and fuel, energy, catalyst etc. which are consumed or utilised in the course of their use to obtain the export product.

In a notification, Directorate General of Foreign Trade (DGFT) said, “Paragraph 4.29 (vi) and Para 4.29(vii) of Foreign Trade Policy 2015-20 is replaced enabling exporters to file single DFIA application for exports made from any EDI port and separate applications for export made from each non-EDI port.”

Now after the amendment, separate DFIA shall be issued for each SION.

Also, export under DFIA shall be made from any port listed in Para 4.37 of Handbook of Procedures. However, separate application shall be made for EDI and non-EDI ports. In case export is made from a non-EDI port, separate application shall be made for each non-EDI port. (KNN Bureau)

(Source:-http://knnindia.co.in/news/newsdetails/sectors/ease-of-doing-business-for-exporters-in-filing-dfia dated 21st June-2018)

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CENTRE TO MAKE PCPIR POLICY MORE ATTRACTIVE

The Government of India has planned to make Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) policy more attractive.

“The Ministry of Chemical and Petrochemicals will soon convene a meeting with the Ministry of Petroleum to discuss about the desirable changes required to make the policy more attractive. Then the proposal would seek Cabinet nod, according to Chemical and Petrochemical Secretary P RaghavendraRao.

Attending an industry meeting organised by the FICCI Odisha chapter, Rao said, “16 per cent of the chemical and petrochemical industry is in eastern part of the country. But per capita consumption is very low. Odisha is the only state which has advantage of both PCPIR unit and Plastic Park.

It will provide much needed support for the development of this sector in Eastern part of the country.”

Industries Secretary Sanjeev Chopra said Paradip would emerge as a most sought-after industrial zone of the country in the coming 10-15 years. “It has Paradip Port for major cargo handling. In nest three-four years, doubling of Railway line will help faster movement of goods. It has advantage of Gas Pipeline, proposed Paradip-Dhamara waterway and East Coast Economic Corridor. All these facility will make Paradeep most attractive of investors,” he opined”

Stating that the State Government is subsidising this sector in every possible way, Chopra said the PCPIP project of Paradip would be completed within next two months. Polypropylene project would come up by end of this financial year.

(Source:-http://www.dailypioneer.com/state-editions/bhubaneswar/centre-to-make-pcpir-policy-more-attractive.html dated 24th June-2018)

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PM Narendra Modi seeks double-digit GDP growth, raising India's share in world trade

NEW DELHI: Prime Minister Narendra Modi today called for targeting double-digit GDP growth for breaking into the USD 5 trillion economy club and said India's share in world trade has to more than double to 3.4 per cent.

Speaking after laying the foundation stone of VanijyaBhawan, a new office complex of the Ministry of Commerce here, he said his government has in four years taken steps to ease the process of doing business in India while maintaining macroeconomic indicators like inflation, current account deficit (CAD) and fiscal deficit within limits.

After scaling these positive macroeconomic indicators, what next, the Prime Minister asked.

He said GDP growth touched 7.7 per cent in the last quarter of 2017-18 fiscal but now the time has come to look beyond 7-8 per cent growth and target double-digit expansion.

"The need of the hour is that we should work towards achieving the target of double digit growth from 7-8 per cent," Modi said, adding the world is watching as to when India will break into the USD 5 trillion economy club bydoubling its economy.

The Prime Minister emphasised the need for increasing exports and said that states must be made active partners in this effort.

He said the Department of Commerce must resolve to raise India's share in total global exports to at least 3.4 percent, from the current 1.6 per cent.

Similarly, he said, efforts must be made to raise domestic manufacturing output to reduce the dependence on imports. In this context, he gave the example of electronics manufacturing.

The Commerce Ministry as well as trade and industry should take up the challenge of double-digit GDP growth and doubling India's share in global trade, he said.

Listing out the achievements of his government, he said the country has moved away from a culture of delaying work through 'atkana, latkana and bhatkana' (obstructing, delaying and misguiding).

The Goods and Services Tax (GST), which replaced over a dozen indirect taxes from July 1 last year, has led to not just ease of doing business but also an increase in the tax base, he said.

Modi said 54 lakh new taxpayers have sought registration under the new regime, taking the number of indirect tax payers to over one Crore.

This compares to 60 lakh indirect tax payers in the pre-GST era, the Prime Minister said.

Foreign direct investment inflows as well as foreign exchange reserves are at record highs, he added.

Modi also expressed confidence that VanijyaBhawan will be completed well within the stipulated time.

He emphasised that this would be in keeping with the spirit of 'New India' and moving away from old practices, under which important building projects, even in the capital, had been inordinately delayed.

In this context, Modi mentioned the Dr. Ambedkar International Centre, Dr. Ambedkar National Memorial, the PravasiBharatiya Kendra and the new office building for the Central Information Commission.

This, Modi said, is also the result of breaking silos within the working of the government.

(Source:-https://economictimes.indiatimes.com/news/politics-and-nation/pm-modi-seeks-double-digit-gdp-growth-raising-indias-share-in-world-trade/articleshow/64694413.cms dated 22nd June-2018)

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Commerce Minister Suresh Prabhu says it is a misconception that India subsidise exports

Union Minister for Commerce and Civil Aviation Suresh Prabhu today sought to dispel the notion of other countries that India subsidised its exports.

Prabhu said it was important to provide market access to the farmers for which the highest standard of safety was needed to overcome the non-tariff barriers (NTBs).

Union Minister for Commerce and Civil Aviation Suresh Prabhu today sought to dispel the notion of other countries that India subsidised its exports. He said that the government was merely trying to mitigate the adversities of the exporters, which did not tantamount to subsidising of exports from India, specifically farm products.

“It is a misconception that we subsidise our exports. We are fully WTO compliant and not at all violating those”, Prabhu said at a chat session organised jointly by Shefexil and a leading business daily here. He said that OECD countries were giving more subsidises to their farmers, particularly in the export of agriculture products.

Talking about agriculture exports, he said “should it not be so that when India exports its agriculture products to other countries, those importing nations deter themselves from subsidising those items”. Stressing on agriculture, Prabhu said it was important to provide market access to the farmers for which the highest standard of safety was needed to overcome the non-tariff barriers (NTBs).

The government was already working on a craft agriculture policy to double farmers’ income, he said. “The commerce department is already working on the development of standards. The standard in the Western countries is very high “, he said.

Unless the highest standard was not adhered to, it would be difficult to do exports, he added. He also said there would be no market access and realisation of better prices.

Prabhu also said that the ministry was also working on preparing an integrated logistics plan to reduce costs and increase speed and efficiency. Earlier speaking at a CII event, he said that the ministry was preparing separate plans for the manufacture of drones and planes in the country.

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(Source:https://www.financialexpress.com/economy/commerce-minister-suresh-prabhu-says-it-is-a-misconception-that-india-subsidise-exports/1235119/ dated 7th July-2018)

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