Important Update on E-Seals -Implementing Electronic Sealing for Containers by exporters under self-sealing procedure prescribed by circular 26/2017-Cus dated 1st July 2017, circular 36/2017 dated 28.8.2017 and 37/2017 dated 20.9.2017

GST : Form GST TRAN-1 submission (with revision facility) extended to 30th November 2017 Eleventh Amendment to CGST Rules, 2017 Others

DGFT -Important Public Notices issued regarding EPCG Scheme

DGFT Enhancement in the validity period of Duty Credit Scrips issued on or after 01.01.2016

DGFT Onetime relaxation for EO extension and clubbing of Advance Authorisations

GSTR-3B Waiver of late fee on filing of GSTR-3B for August and September, 2017

NOTIFICATION NO. 41/2017 Integrated tax (Rate) Notification to prescribe Integrated Tax rate of 0.1% on inter-State supply of taxable goods by a registered supplier to a registered recipient for export subject to specified conditions.

Announcements by ECHA on the use of Zinc oxide and clarification for downstream users of Cromium VI Compounds

IGST Refunds Validation of Bank Accounts in the Public Financial Management System (PFMS)/ Issues hindering the disbursal of IGST Refund

Important GST : Notifications to exempt integrated tax and compensation cess on import of goods under AA/EPCG schemes / Notification to exempt goods imported by EOUs from integrated tax and compensation cess / Others

DGFT Amendments in Foreign Trade Policy 2015-20

GST Portal : Advisories issued by GST Portal on discrepancies faced

GST: CBEC Instructions to field formations for Refund of IGST paid on export of goods under Rule 96 of CGST Rules 2017

Important GST : Recommendations made during 22nd GST Council meeting of 06/10/2017 Relief Package for Exporters

GST : Facility of furnishing Letter of Undertaking extended to more exporters/ Clarifications

E-Seals: Details of Vendors providing E-seals (as per Circular 36/2017-Customs & 37/2017-Customs)

Upgradation of India Korea CEPA Comments on additional 146 tariff lines from Korean side

Exports to India are not picking up despite a host of positive initiatives by both the countries. “We are struggling to cross the $1 billion-mark on export to India although India is one of the high potential markets for Bangladesh,” said Abdul Matlub Ahmad, former president of the Federation of Bangladesh Chambers of Commerce and Industry.

In fiscal 2016-17, Bangladesh's exports to India stood at $672.40 million, according to data from the Export Promotion Bureau.

Bangladesh will now endeavour to hit the milestone within the next two to three years, he said.

The exports have not been increasing mainly for two reasons -- a lack of diversity in Bangladeshi goods and non-tariff barriers in India, according to Ahmad, also a former president of the India-Bangladesh Chamber of Commerce and Industry.

Goods cannot enter freely into the Indian market from Bangladesh for having non-tariff barriers like mandatory testing and poor banking system along the bordering areas.

On the other hand, Bangladesh has very few products in its export basket, he said.

“Only garment products, jute and jute goods are exported to India from Bangladesh.”

Subsequently, he urged the government to launch strong lobbying efforts with the Indian government for removing the anti-dumping duty of $19-$352 a tonne imposed on January 5 this year on jute and jute good exports.

Although India allows duty-free access to all Bangladeshi items save for some alcoholic beverages, the Indian government imposed a countervailing duty of 12.50 percent on the import of Bangladeshi apparel items. As a result, Bangladesh's garment exports to India are not increasing.

The Indian market can be a good export destination for Bangladeshi garment makers for its rising middle-class population, Ahmedabad.

Last fiscal year, garment shipments to India, a market of more than $40 billion, fetched $129.81 million, down 4.85 percent year-on-year.

“We will again raise the issue of non-tariff barriers in a meeting on Tuesday with the visiting Indian Finance Minister ArunJaitley,” said FBCCI President Shafiul Islam Mohiuddin.

Mohiuddin said they will also raise the issue of testing certification. Currently, the Bangladesh Standards and Testing Institution certificate for 21 food products is recognized by India.

Recently, Bangladesh proposed to India to accept the BSTI certification for 14 other products like frozen food, potato crackers, candy, milk powder, white bread, dry cake, drinking water, flavoured drinks, canned juices, soap, cement, mild-steel rod, GI pipes and textile items. The balance of trade between the two countries is heavily tilted towards India because Bangladesh imports some basic products like cotton, cereal, vehicles, chemicals and pharmaceuticals from the neighbouring country.“We want to invest in India. We also sent teams to visit some places in Kolkata and Gujarat recently to assess the investment potential in India,” Mohiuddin added.

A total of 29 business delegations from India are scheduled to hold meetings with the Bangladeshi businessmen at the capital's Sonargaon Hotel today, said Hussain Jamil, secretary to the FBCCI. Pankaj R Patel, president of the Federation of Indian Chambers of Commerce, will lead the Indian business delegation in the presence of Jaitley and Commerce Minister Tofail Ahmed in the meeting.

Mohiuddin will lead the Bangladeshi businessmen in the meeting. Bangladesh imports goods worth more than $6 billion from India in a year through the formal channel, about $2 billion of which is cotton.

More than 50 percent of Bangladesh's cotton requirement in a year is met by imports from India. It is believed that India exports goods worth more than $5 billion to Bangladesh a year through informal channels.

Indian companies such as Marico, CEAT, Tata Motors, Godrej, Sun Pharma, Asian Paints have made substantial investments in Bangladesh.

(Source: http://www.thedailystar.net/business/exports-india-fail-pick-1470901 dated 3rd Oct-2017)

The 14th India-EU Summit aims to deepen the India-EU Strategic Partnership and advance collaboration in priority areas, a Ministry of External Affairs statement said.

Four days ahead of the 14th India-European Union summit on October 6, hectic negotiations are underway between officials from India and the EU to explore ways on how they will move forward on the stalled negotiations over a new and ambitious Free Trade Agreement (FTA), which will encompass goods, services as well as mutual investment protection.

Sources told The Indian Express that the two sides may announce a mechanism or a joint working group to push for an early conclusion of the pact, which will also take care of the concerns arising out of the lapsed bilateral investment protection agreements with EU countries. “The idea is to turn the page on the issue of investments and trade, which may be adversely impacted due to the lapsed agreements on bilateral investment protection with all EU countries,” a source told The Indian Express.

This is the first summit between India and the EU, after the Brexit verdict came out last year. This also comes about four months after Prime Minister Narendra Modi strongly endorsed German Chancellor Angela Merkel’s vision of the European Union and committed at the earliest to resume talks between India and EU to stitch up a free trade agreement encompassing goods, services as well as mutual investment protection. EU is India’s largest regional trading partner with bilateral trade in goods standing at $ 88 bn in 2016. The EU is also the largest destination for Indian exports and a key source of the investment and cutting edge technologies. India received around $ 83 bn FDI flows from Europe during 2000-17 constituting approximately 24 per cent of the total FDI inflows into the country during the period. India and the EU are in the process of negotiating a bilateral Broad-based Trade and Investment Agreement since 2007. As of late, both sides are discussing the modalities of resumption of BTIA talks on a fast track.

Sources said that the meetings between the President of the European Council, Donald Franciszek Tusk and the President of the European Commission, Jean-Claude Juncker and Modi will be key to give their stamp of approval about this issue. Tusk and Juncker will be accompanied by a high-level delegation including EU’s High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, Federica Mogherini.

The 14th India-EU Summit aims to deepen the India-EU Strategic Partnership and advance collaboration in priority areas, a Ministry of External Affairs statement said.

(Source:-http://indianexpress.com/article/business/business-others/india-european-union-may-form-joint-group-on-fta-4871823/ dated 3rd Oct-2017)

Jaitley being welcomed at Bangladesh Air Force Base

Bangladesh will sign a $4.5 billion third Line of Credit (LoC) agreement with India on Wednesday. The agreement will be signed in the presence of Indian Finance Minister ArunJaitley and his Bangladesh counterpart Abul Mal Abdul Muhith.

A press release from Bangladesh government official said, Economic Relations Division (ERD), Secretary and Managing Director of Indian EXIM Bank, will ink the agreement on behalf of their respective sides at the Finance Ministry in Dhaka.

It was during the visit of Bangladeshi PM Sheikh Hasina's visit to India in April 2017, the Indian Line of Credit of US $4.5 billion was announced for Bangladesh.

This will bring the total quantum of credit lines extended by India to Bangladesh over the last six years to $8 billion. Signing of the Third Dollar Credit Line Agreement will enable the implementation of a number of key infrastructure priority projects of Bangladesh.

Later, the Joint Interpretive Notes on the agreement between the two countries will also be signed at the ministry to promote and protect investments.

JAITLEY TO HAVE A BUSY SCHEDULE

Indian Finance Minister ArunJaitley arrived in Dhaka, Wednesday noon on a three-day official visit. A special aircraft carrying the Jaitley-led Indian delegation landed at Bangladesh Air Force Base at around 2 pm. He was received by Bangladeshi Finance Minister Muhtih. Bangladesh finance ministry official told that, Jaitley is being accompanied by Subhash Chandra Garg, secretary of Department of Economic Affairs under the Indian Ministry of Finance and other senior officials of Indian government.

A 30-member high-level business delegation from the Federation of Indian Chambers of Commerce and Industry (FICCI) is also accompanying the finance and corporate affairs minister of India.

On Wednesday, Jaitley will also join a meeting with the delegation of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Pan Pacific Sonargaon Hotel in Dhaka.

President of FICCI Pankaj Patel, FBCCI President Shafiul Islam Mohiuddin and director Shahed Reza, among others, addressed the meeting. He will also hold bilateral meeting with his Bangladesh counterpart AMA Muhith. Jaitley will also attend an event to be organised by the Policy Research Institute of Bangladesh and the High Commission of India, on the subject of 'Macroeconomic Initiatives of the Government of India'.

A media statement of the Indian High Commision said, as India and Bangladesh have witnessed deepening of bilateral economic cooperation in recent years, particularly in terms of increasing volumes of trade and investment. The two ministers are expected to review the status of economic cooperation and initiatives taken during the visits of Modi and Hasina in 2015 and 2017, respectively.

Jaitley and Muhith will jointly inaugurate a new scheme for cashless transactions in visa services run by the State Bank of India on behalf of the High Commission of India. The two ministers will also inaugurate the Dhaka representative office of the EXIM Bank of India.

BANGLADESH SEEKS MORE INDIAN INVESTMENTS

Bangladeshi Commerce Minister Tofail Ahmed seeked more Indian investments in Bangladesh to reduce trade gap.

Ahmed said, in order to increase trade between India and Bangladesh we should focus on removing non-tariff and para-tariff barriers, improving the physical facilities, mutual recognition of certificates and standards and better connectivity needs to be ensured.

Ahmed was speaking at 'Bangladesh India Business Meeting' organized by FBCCI at a city hotel today.

Jaitely said, India has a large population and it has concentrated on skill development and India can extend cooperation to Bangladesh in this area through exchange programs.

(Source:-http://indiatoday.intoday.in/story/bangladesh-arun-jaitley-dhaka-line-of-credit-deal/1/1061030.html dated 4th Oct-2017)

India is thinking about establishing a free trade zone for Afg

han goods in order to increase the export of Afghan products to other countries, the Ministry of Commerce said on Wednesday.

Afghanistan’s exports will considerably increase if a free trade zone is created in India, the commerce ministry spokesman MusafirQoqandi told TOLOnews.

“For sure, these zones will be built by India for Afghan exports in order to send our products to other parts of India and out of that country,” he said. “We welcome this move and it will be effective for the increase of Afghanistan’s exports.”

Meanwhile, the International Chamber of Commerce stressed the need for such zones inside Afghanistan.

Abdul Qadir Bahman, CEO of the chamber, said they will send a draft plan to government in the near future.

“It is a good move. If India gives this chance to Afghan businessmen, they will be able to send their goods to other countries from India. But it will be better if these free zones are established in Afghanistan,” he told TOLOnews.

Experts say free zones provide more facilities for investors as they will not have to deal with taxes and customs issues if they use these zones.

(Source:-http://www.tolonews.com/index.php/business/india-considers-free-trade-zone-afghan-goods dated 3rd Oct-2017)

New Delhi, Oct 3 (KNN) As the Special Economic Zone projects continue to face operational and regulatory issues in the state, the commerce ministry has decided to give more time to the SEZ developer Navi Mumbai SEZ, hat has over eight projects in its cap.

The decision by the commerce ministry comes in response to the appeal fo the Maharashtra government.

Earlier, the Maharashtra government had sought more time from the Board of Approval (BoA), headed by Commerce Secretary Rita Teaotia, to resolve the issues faced by Navi Mumbai SEZ Ltd (NMSEZ).

NMSEZ informed the board that the proposed SEZ project is pending because the Maharashtra government failed to enact the state SEZ act.

Following which, in the absence of proper legislation, the entrepreneurs are hesitating to set up their units in the zones.

Navi Mumbai SEZ in a press interview informed that with more time in hand, the state government, City and Industrial Development Corporation (CIDCO) and NMSEZ are in the process of resolving operational and regulatory issues. (KNN/DA)

(Source:-http://knnindia.co.in/news/newsdetails/sectors/commerce-ministry-announces-time-relaxation-for-navi-mumbai-sez-to-address-issues dated 3rd Oct-2017)

While mixed expression of India’s positive economic growth against the momentary holdup post demonetisation and Goods and Services Tax (GST) attract global eyeballs, the trade figures with Europe, one of the most organised markets in the world depicts growth despite challenges. Will the pessimism get replaced by a recoil ushering new business avenues between Indian and Europe?

As India positions itself with an improved economic outlook, the Indian companies trying to expand their trade in Europe have gradually identified a niche demand for Indian products, according to a Federation of Indian Chambers of Commerce and Industry (FICCI) report.

The European Commission (EC) in their study finds the value of EU imports from India have also increased from EUR 22.6 billion in 2006 to EUR 39.3 billion in 2016. The textiles and clothing, chemicals and engineering goods related businesses by Indian entrepreneurs in Europe have performed the best in during the last analysed period. However, in 2015, the EU import from India was EUR 39.5 billion; and the momentary slowdown is allegedly attributed to the novel economic reforms.

The dynamic and huge market of India with 1.25 billion people is deemed as a major strategic partner of the EU according to the European Commission. The EU and India post the Free Trade Agreement negotiations launched in 2007 have further increased their bilateral trade and investment. However, the current focus remains on the outstanding issues including improved market access for some goods and services, government procurement, geographical indications, sound investment protection rules and sustainable development, the EC report on trade policy with India summarises.

EC stats on India-EU trade

The EU is India’s number one trading partner (13.5 pc of India’s overall trade with the world in 2015-16), well ahead of China (10.8 pc), USA (9.3 pc), UAE (7.7 pc) and Saudi Arabia (4.3 pc).

India is the EU’s 9th trading partner in 2016 (2.2 pc of EU’s overall trade with the world), after South Korea (2.5 pc) and ahead of Canada (1.9 pc).

The value of EU exports to India grew from EUR 24.2 billion in 2006 to EUR 37.8 billion in 2016, with engineering goods, gems and jewellery, other manufactured goods and chemicals ranking at the top.

The value of EU imports from India also increased from EUR 22.6 billion in 2006 to EUR 39.3 billion in 2016.

Trade in services almost tripled in the past decade, increasing from EUR 10.5billion in 2005 to EUR 28.1 billion in 2015.

EU investment stocks in India amounted to EUR 51.2 billion in 2015, increasing from EUR 44.2 billion in the previous year.

FICCI survey hopes rebound

FICCI in a recent report based on an internal survey stated that there has been a considerable rise in the number of companies who have successfully been able to reduce their losses while doing business in the region. The FICCI survey on “Are Winds of Change Bringing Good Tidings for Indian Companies Doing Business in Europe” notes that the current economic situation, though resulting in a number of procedural and regulatory obstacles for Indian companies to expand and or do business in the continent, is still providing needed returns on the investments made.

Considering the 27 countries (28 if we also consider the United Kingdom) as a single market, Europe is the biggest consumer base with close to 500 million potential consumers. Europe, a lucrative market as it readily embraces new foreign investment with the outlook of promoting employment and capital formation. The FICCI report says, “The ongoing negotiations to sign an equitable and balanced FTA between India and the EU are also closely monitored by Indian industry. The issue of visas and movement of professionals in the EU still remains one of the most contentious concern areas for Indian companies.”

The developed capital market, political and social stability in most of the EU nations and a transparent trade law remains the other promising factors to inspire Indian companies to open shop in Europe.

Some of the major findings in the FICCI survey show a positive change in the mindset of the respondents. From 2015 when 75 pc of Indian companies surveyed had responded that the ongoing crisis had resulted in their business prospects in the region being adversely impacted, this year 25 pc of the surveyed companies expressed concerns about their business prospects taking a hit due to the current economic scenario in Europe.

Over 65 pc of companies surveyed by FICCI noted that even when the markets were slow in registering increased domestic demand, they have been able to register growth in their product(s) category. Most significantly 61 pc of the surveyed companies who reported an increase in their business prospects, their losses have come down from 20 pc in 2015 to less than 5 pc this year. 18 pc respondents reported an increase of 2-5 pc in their businesses.

Challenges still remain

The lesser talked about side of the story behind India’s relative lack of success compared to the other Southeast and East Asian countries in the European market revolves around the failure of policies that would enable India’s small and medium business owners to capitalise global opportunities. The micro, small and medium enterprises (MSMEs) in India are still struggling to find a way to manage high transaction costs and trade facilitation issues as they lack the monetary backup or a better political network.

The lagging small and micro industries in India are still waiting for a simplified regulation while connecting to the global markets and the reduction of transaction costs allowing a more enterprise-friendly regime.

The EC throws light on how India has embarked on a process of economic reform and progressive integration with the global economy aiming a rapid and sustained growth. However, it also states how the country’s trade regime and regulatory environment remains comparatively restrictive in terms of the World Bank’s Ease of Doing Business Report or EC’s report on Trade and Investment Barriers and Protectionist Trends that states, “India still features amongst the four countries with the highest number of new Relevant Measures.

(Source: https://mediaindia.eu/business-politics/india-europe-business-outlook/ dated 5th Oct-2017)

Minister Prabhu stresses need to enhance competencies

Commerce Industry Minister Suresh Prabhu on Friday asked Export Promotion Councils and industry associations to prepare a vision statement for their product group that would, in turn, help boost output and exports.

In a stakeholders’ consultation on exports, Mr. Prabhu also stressed the importance of export-led growth and the need to enhance competencies and the need to tap into the global value chain to enhance exports. During the meeting, exporters raised Goods and Services Tax-related issues including those leading to working capital blockage.

In the context of the mid-term review of the Foreign Trade Policy, exporters wanted incentives for more products under the Foreign Trade Policy and increase in the interest subsidy rates.

‘Export strategy inputs’

The meeting also provided inputs for a new export strategy focussing on integrating India into the Regional/Global Value Chain, a stable Agri-Export Policy to provide remunerative returns to farmers, focus on high and medium technology sectors for exports, revisiting the focus area (overseas markets) approach and unleashing the potential of services such as tourism, professional services and e-commerce.

The meeting was attended by the Textiles and Information and Broadcasting Minister SmritiIrani, the Minister of State for Commerce and Industry C.R. Chaudhary, and senior government officials.

Federation of Indian Export Organisations (FIEO) president Ganesh Kumar Gupta suggested an export-linked employment Scheme to help job creation and migration of informal workers to formal sectors. He also demanded an annual interaction with the bankers to impress on the pro-active role that they have to play to facilitate country’s exports.

To help small exporters in marketing of their goods, Mr. Gupta suggested opening of display centres in important markets starting with China where a change is required in product profile of exports to address rising trade deficit. He also mooted an annual interaction with Ambassadors of Foreign Missions in India and Indian Missions abroad so that they can enhance the commercial and economic ties between India and its trade partners.

Mr. Prabhu said that there was a need to revisit the export strategy in view of increasing protectionism in markets overseas and high volatility in currencies. Commerce Secretary Rita Teaotia said GST issues are not the reason for delay in bringing out the mid-term review of the FTP. On achieving the target of $900 billion worth goods and services exports by 2020, she said it would be difficult due to global uncertainties.

(Source:-http://www.thehindu.com/business/govt-seeks-sector-wise-plan-from-industry-to-spur-exports/article19814461.ece dated 6th Oct-2017)

On April 1, 2015, the government announced a slew of incentives and new institutional mechanisms as part of the new Foreign Trade Policy (2015-2020) to nearly double country's goods and services exports to USD 900 billion by 2019-2020.

The commerce ministry today said it will revisit the USD 900 billion exports target by 2019-20 as the country's shipments are not able to show healthy growth rate in the first three years. After holding over three-hour long meeting with exporters, Commerce Secretary Rita Teaotia said that certainly there is a need to revisit the export target because in the external world nobody calculated for the global commodity prices and currency fluctuations.

"We are certainly not going to aim for the same target because we have not been able to show that growth rate in the first three years," she told reporters here.

On April 1, 2015, the government announced a slew of incentives and new institutional mechanisms as part of the new Foreign Trade Policy (2015-2020) to nearly double country's goods and services exports to USD 900 billion by 2019-2020.

India exports goods worth around USD 300 billion per fiscal year, while services exports amounted to around USD 150 billion annually.

On whether the ministry would come out with the mid-term review of the foreign trade policy, she said Commerce and Industry Minister Suresh Prabhu would take a call after returning from Morocco, where he is going for a WTO (World Trade Organisation) meeting.

"Whether we will issue a formal statement of intent (on the policy), the minister has to take a view on that," she said.

However, she added that the mid-term review is on and some got addressed through the Goods and Services Tax (GST).

Speaking to reporters, Prabhu said that it was agreed in the meeting that each export promotion council (EPC) "is now going to prepare a concrete strategic action plan for what can be done in the foreseeable future" to boost exports.

He said the ministry would act on the suggestions made by the stakeholders today.

"We will together act on those inputs in the next two- three weeks and therefore we will also prepare a plan," he said adding most of the issues are related to the finance ministry and "we are going to take those issues with them".

People who participated in the meeting include leading exporters, EPCs, associations, industry chambers, spices board.

Minister for Textiles and Information and Broadcasting Smriti Zubin Irani also participated in the meeting.

Prabhu also stressed on the importance of export-led growth and called for enhancing competitiveness and integration with global value chain.

The deliberations flagged global and domestic challenges faced by exporters.

GST related issues regarding working capital blockage, delay in refunds and usability of Merchandise Exports from India Scheme and Service Exports from India Scheme scrips were raised by exporters.

In the context of mid-term review of the FTP, exporters requested inclusion of more products under these schemes and interest subsidy scheme and also increase in the rates of incentive.

The meeting also provided inputs for a new export strategy focusing on integrating India into the regional and global value chain, focus on high and medium technology sectors of exports and unleashing the potential of services such as tourism and e-commerce.

In a series of tweets, Prabhu said: "We must align our standards with global standards. Benchmarking will stimulate exports, ensure India's integration with global value chain".

"We are working on short, medium and long-term strategies. There can be short-term challenges but the future belongs to India," he added.

India's exports recorded a double-digit growth of 10.29 percent after a gap of three months to USD 23.81 billion in August, mainly on account of rise in shipments of chemicals, petroleum and engineering products.

Cumulative exports during April-August 2017-18 increased by 8.57 percent to USD 118.57 billion, while imports grew by 26.63 percent to USD 181.71 billion, leaving a trade deficit of USD 63.14 billion.

(Source: http://www.moneycontrol.com/news/business/economy/commerce-min-to-revisit-900-bn-exports-target-2407181.html dated 6th Oct-2017)

LUDHIANA: Federation of Indian Export Organisations (FIEO) organized an interaction with Rita A Teotia, Commerce Secretary of the union government at a city hotel on Wednesday. The objective for the interaction was to address various issues faced by exporters and discuss midterm review of foreign trade Policy 2015-2020.

During her address Teotia said, "The government is working constantly for the progressive business needs of the country. Regulatory framework is followed by the government agencies to positively impact the business operations in favourable conditions, which is the prime role and objective of government. Issues raised & discussed by the Industry members during the interaction will surely be looked upon" Commenting on the GST imposed on exports, commerce secretary said , "With the recent GST implementation, the government is trying to create a pace for the industrial growth. Department of Revenue is now in line with the government at Center level, so as to act as a single governing agency and benefit the industry. Fresh notifications regarding the GST, are being worked out for implementation at the earliest. Exporting community needs to widen their scope and bridge their gaps through the support of Export Promotion Councils. Both the, Central and State Governments will work in active collaboration with each other, in order to materialize the future plans of export promotion by states"

Rahul Ahuja, Convener, FIEO Punjab State Committee, while sharing his views said that "With the implementation of GST, the exporters have come across various difficulties and we are happy that Government has considered our requests on priority. We compliment Commerce Secretary for her whole hearted support to address the exporter's issues which resulted in announcement made by GST council earlier this month" More than 100 exporters were present on this ocassion.

(Source: https://timesofindia.indiatimes.com/business/india-business/gst-will-create-pace-for-industrial-growth-commerce-secretary/articleshow/61052053.cms dated 12th Oct-2017)

The 6 October summit also touched upon a host of policy issues, including cooperation on climate change, energy, innovation, and security, culminating in a list of 53 priorities going forward, along with a series of joint statements on specific policy areas.

“The leaders committed to work in a result-oriented and mutually beneficial manner to further strengthen the India-EU Strategic Partnership by deepening their trade cooperation, enhancing investment flows in both directions, and broadening dialogue and engagement on global and regional issues, including climate change, as well as migration and the refugee crisis, and resolved to further strengthen their bilateral and multilateral cooperation in these areas,” they said afterward.

Juncker: chief negotiators meeting on FTA

One of the major questions heading into the high-level meeting was what announcements, if any, would be made about the future of the two sides’ negotiations for a free trade agreement.

Those talks kicked off a decade ago, but have since advanced in fits and starts, with disagreements emerging on issues such as intellectual property protections, the movement of workers for services trade, and the protection of personal data. Another issue has been the expiry for several bilateral investment treaties between some EU member states and India.

Negotiators last met formally in November 2013, despite repeated political calls in the years since to renew the talks.

Indeed, last week’s summit comes just months after India Prime Minister Narendra Modi met with German Chancellor Angela Merkel, with both leaders backing the resumption of the trade negotiations. The EU is India’s largest trading partner, while the Asian economic giant ranks as the 28-nation bloc’s ninth largest trading partner. (See Bridges Weekly, 1 June 2017)

Speaking to reporters on Friday, European Commission President Jean-Claude Juncker outlined the large scale of the existing EU-India trade relationship – along with noting the importance of those ties going forward into the upcoming “post-Brexit” landscape.

“With this in mind I believe it is time for a free trade agreement between India and the European Union. Once the circumstances are right – and only once the circumstances are right – we will resume,” the EU official said. He specifically highlighted data protection as a key issue for the European Union, given India’s role as an IT services hub.

“If India's standards of data protection are converging with those of the European Union, the European Union will be in a position to recognise the adequacy of India's rules. This is a precondition for exchanging personal data freely and securely,” said Juncker.

Furthermore, he noted that Brussels and New Delhi will be directing their chief negotiators to meet shortly to advance those efforts. He did not, however, mention a concrete date for officially rebooting the talks, or for their potential conclusion. Juncker did confirm in a separate speech to business leaders that the top trade officials from the EU and India would be meeting bilaterally this week in Marrakech, Morocco to discuss the matter.

The sentiment was reaffirmed by Donald Tusk, the EU Council President, who gave a “political observation” that trade deals serve both to boost economic prospects and also to “strengthen and defend the rules-based international order and our way of life.”

The summit’s host, Indian Prime Minister Narendra Modi, also referred to the value of deepening trade and investment ties between the two sides, particularly given the significant exchanges already underway between the European and Indian economies.

The leaders’ meeting came just days ahead of a WTO “mini-ministerial” in Marrakech, Morocco, which was meant to clarify the road ahead to the global trade club’s official ministerial conference in Buenos Aires, Argentina, at the end of the year.

The upcoming WTO ministerial was also a topic of discussion at the EU-India meet, with leaders confirming afterward “the crucial role of the rules-based multilateral trading system, and the importance of enhancing free, fair, and open trade for achieving sustainable growth and development.”

While both sides stressed the value of “concrete results” reached through collaboration with their fellow trading partners, they did not specify how the EU and India might overcome differences in approach to the various aspects of the WTO negotiations, such as domestic support for agricultural goods or whether to negotiate multilateral rules on e-commerce and investment facilitation.

Climate cooperation

Leaders also released a climate-specific joint statement, pledging to step up their work both in supporting the UN’s Paris Agreement on climate change, along with backing the implementation of other climate-related efforts, such as the deal reached last year to phase down climate-warming coolants known as hydrofluorocarbons under the Montreal Protocol. (See Bridges Weekly, 20 October 2016)

The statement comes just weeks ahead of this year’s UN Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP), where climate negotiators are aiming to advance on developing the so-called “rulebook” for implementing the Paris climate accord, among a host of other agenda items.

The EU and India also highlighted their work on transitioning towards more sustainable energy sources, along with investment efforts being made towards boosting the deployment of renewables.

(Source:-https://www.ictsd.org/bridges-news/bridges/news/eu-india-leaders-call-for-timely-relaunch-of-trade-talks dated 12th Oct-2017)

Trade balance stood almost flat at $8.98 billion in September 2017 against $9 billion in September 2016.

New Delhi: India's export soared by 25.67 per cent to $28.61 billion in September on the back of rise in shipments of chemicals, petroleum and engineering products, official data released today showed.

Import too rose by 18.09 per cent to $37.6 billion in September from $31.83 billion in the year-ago month, according to the data released by the commerce ministry.

Trade balance stood almost flat at $8.98 billion in September 2017 against $9 billion in September 2016. Gold import dipped by 5 per cent to $1.71 billion last month.

Oil and non-oil imports grew by 18.47 per cent and 17.98 per cent to $8.18 billion and $29.4 billion, respectively in September.

Cumulative exports during April-September 2017-18 increased by 11.52 per cent to $147.18 billion, while imports grew by 25.08 per cent to $219.31 billion, leaving a trade deficit of $72.12 billion.

"In continuation with positive growth exhibited by exports for the last thirteen months, exports during September 2017 have shown growth of 25.67 per cent in dollar terms," the ministry said in a statement.

In September, petroleum, engineering and chemicals exports grew by 37 per cent, 44.24 per cent and 46 per cent, respectively.

However, sectors which recorded negative growth includes handicrafts, iron ore, and fruit and vegetables.

(Source:-http://profit.ndtv.com/news/economic-indicators/article-exports-grow-in-september-as-demand-for-indian-chemicals-engineering-soar-1762672 dated 13th Oct-2017)

New Delhi, Oct 13 The commerce ministry today aligned certain provisions of the foreign trade policy with the Goods and Services Tax (GST) regime by extending tax exemptions on imports.

As per the notification of the Directorate General of Foreign Trade (DGFT), goods imported under Advance Authorisation will now be exempt from payment of integrated tax and compensation cess under the GST.

Similar exemptions have also given for import of second hand capital goods.

"Second hand capital goods, without any age limit, may also be imported without payment of...Integrated Tax and GST Compensation Cess...," it added.

It also said that export oriented unit/ Electronics Hardware Technology Park / Software Technology Park / Bio- Technology Park units may import without payment of integrated Tax and GST Compensation Cess.

(Source:-https://www.outlookindia.com/newsscroll/comm-min-aligns-certain-ftp-provisions-with-gst/1167421 dated 13th October-2017)

The proposed bilateral free trade pact got stalled due to differences over issues such as market openings in India for items like wines and spirits and automobiles and EU’s hesitation in granting India data secure status.

NEW DELHI, OCTOBER 15:
India and the European Union (EU) are set to begin talks soon on re-starting stalled negotiations for a free trade pact but New Delhi will not favour pre-conditions, such as prioritising an investment agreement that the 29-member bloc had earlier insisted upon.

“It was very clearly decided at the India-EU Summit earlier this month that it would be a comprehensive agreement. So, there is no question of giving investments preference over goods and services. But all issues related to investment protection would definitely get addressed,” a government official told BusinessLine.

The proposed bilateral free trade pact — officially known as the broad-based trade and investment agreement (BTIA) — launched in 2007, got stalled due to differences over issues such as market openings in India for items like wines and spirits and automobiles and EU’s hesitation in granting India data secure status.

The BTIA, which includes market access for goods, services and investments, is also important for India because of the increased market openings it hopes to get for its service professionals.

However, when the two sides seemed ready to get back to the negotiating table last year, India’s refusal to renew bilateral investment treaties with individual EU countries that lapsed by April 2017 upset the EU, and it did not respond to India’s requests for dates to re-start talks on BTIA.

“The EU was insistent that the issue related to the BITs be sorted out before re-launching the BTIA. But New Delhi has held on to its position that the investment agreement that would be negotiated to protect investments from the EU countries would be part of an over-all BTIA that includes goods and services,” the official said.

New Delhi wants to renegotiate all its past BITs on the basis of a new model BIT drafted by the Finance Ministry that aims to bring down litigation against the government. While it would be negotiating the pacts bilaterally with most countries, in the case of the EU countries, it would be a comprehensive pact for all 29 nations and a part of the proposed BTIA, the official added.

The ice was broken at the India-EU Summit in New Delhi where both sides decided to start talks on relaunching negotiations for a comprehensive BTIA. The dates are yet to be confirmed, but there are indications from the EU that it might by as early as next month, the official said.

Awaiting right time

While the outlook is positive, Jean-Claude Juncker, President of the European Commission, cautioned that the circumstances needed to be right for the talks to resume.

“Once the circumstances are right – and only once they are right – we will resume. Today's Summit is an important step in the right direction and our chief negotiators will sit down in the coming days to chart a way forward,” he said at a joint press conference with Prime Minister Narendra Modi after the Summit.

The EU is India’s number one trading partner with exports growing from €24.2 billion in 2006 to €37.8 billion in 2016, according to European Commission figures.

(Source: http://www.thehindubusinessline.com/economy/fresh-talks-on-free-trade-pact-with-eu-to-give-equal-weight-to-goods-services-investment/article9906703.ece dated 15th October-2017)

Prabhu put forward his suggestions and has sought, for consideration before Jaitley, an outlay of over Rs 16,000 crore to boost exports. The government is planning an incentive package of more than Rs 16,000 crore to revive exports amid slowdown in domestic market, and competition in exports, reports Hindu BusinessLine.

Commerce Minister Suresh Prabhu is said to have written a letter to Finance Minister ArunJaitley to make a prompt decision on issues affecting exports such as insufficient incentives and lack of credit facility.

In consultation with various stakeholders, Prabhu has suggested various other measures including allowing scrips (certificates) received under the Merchandise Exports from India Scheme (MEIS) to be used to pay Goods and Services Tax (GST), increasing the incentive rates and interest subsidy rates for labour-intensive sectors, reducing the GST rate on MEIS/SEIS scrips, and infusing more capital in the Export Credit Guarantee Corporation of India (ECGC).

The report said the Finance Minister would need to take a call on the incentives sought to give a fillip to exports. The mid-term review of foreign trade policy (FTP) which has been delayed should be announced without any delay.

(Source: http://www.moneycontrol.com/news/business/economy/centre-mulls-rs-16000-cr-incentive-package-to-boost-exports-2414561.html dated 17th Oct-2017)

File photo of Prime Minister Narendra Modi with Donald Tusk, President of the European Council and Jean-Claude Juncker, President of the European Commission after their joint press conference at Hyderabad House in New Delhi (Photo: PTI)

The government might offer concessions to the European Union (EU) in a bid to push forward the talks on a proposed trade pact, stuck for four years.

A Broad-based Trade and Investment Agreement (BTIA) was first mooted in 2007. The 16th and previous formal round of discussion was in 2013. Hurdles remain on issues of tariff reduction and market access in the alcohol and automobile, sectors, prime European exports to India.

The prime minister's office is nudging the commerce department to take forward stagnant trade discussion. So, tariff concessions in these areas have been discussed, a senior commerce and industry ministry official said, on condition of anonymity. Chief negotiators from both sides are to meet in mid-November.

The stagnancy in talks was made evident during the visit earlier this month by European Commission president Jean-Claude Juncker; met the prime minister. Despite extensive talks during the 14th India-EU Summit in Delhi on October 6, during which European Council president Donald Tusk was also present, both sides failed to move forward.

On the contrary, Juncker said any discussion on trade would only be held once the terms of engagement had changed. In contrast, the two sides held extensive deliberations on other bilateral, regional and international issues, including the theRohingya crisis and North Korea.

Investment positions

"Trade talks had hit a wall after India decided to terminate existing bilateral investment treaties (BITs) with 23 European countries in 2016," a senior EU diplomat said. The EU had warned that the move would stop investments from its member countries and asked India to keep these individual agreements in force until a new pact was signed.

However, the Indian government has maintained that all future investment pacts will be negotiated under the framework of the model BIT issued by the government in 2015. This was meant to form the basis for individual agreements to be negotiated with other nations. However, most of those negotiations are not time-bound, while the existing treaties would end over the coming year.

This was raised during the PM's visit to Brussels for the 13th India-EU Summit. While the commerce department has pushed for exceptions to be made in investment treaties, the finance ministry has been against it.

"The EUs prime concern with the BIT is with the clause stipulating that if an investor-state dispute arises, a foreign investor can only seek the option of international arbitration when all domestic legal routes have been exhausted. While India feels this is required to keep control on litigation and reduce the chances of extremely high penalties from international tribunals, the EU calls the Indian legal system slow and corrupt," a senior Delhi-based trade expert said.

Talking trade

Both sides had last year adopted an agenda in Brussels for a broad-based approach to "resolve trade irritants, in particular concerning goods, services and investments, and strengthen trade and investment relations".

On is note, India has made clear its dissatisfaction on the slow progress on issues related to facilitation of greater movement of professionals from one country to another and on services trade. This also involves India's demands to be classified a data-safe country, which will help Indian information technology and outsourcing companies gain a foothold.

Other than being India's largest trading partner and its biggest export destination, the bloc has also been Delhi's 'strategic' partner' since 2004. Total export to the 27 member-nations of the EU reached $47.2 billion in 2016-17, from $44.5 bn a year before. Import dipped slightly to $42.4 bn, from nearly $44 bn in 2015-16.

For India, this translates to 17 per cent of its total export and 11 per cent of aggregate import. The share of trade with the EU as compared to total bilateral trade has progressively shrunk in recent years. A little more than a decade before, when the strategic partnership was initiated, export to the bloc was 21.8 per cent of all export; import was 17.3 per cent of all inbound trade in 2004-05.

The trade negotiations also cover issues such as sanitary and phyto-sanitary measures, technical barriers and intellectual property rights. These also need to be worked on before a deal is sealed.

(Source:-http://www.business-standard.com/article/economy-policy/india-might-offer-concessions-to-eu-to-push-stalled-trade-pact-117101900371_1.html dated 19.10.2017)

File photo of Prime Minister Narendra Modi with Donald Tusk, President of the European Council and Jean-Claude Juncker, President of the European Commission after their joint press conference at Hyderabad House in New Delhi (Photo: PTI)

The government might offer concessions to the European Union (EU) in a bid to push forward the talks on a proposed trade pact, stuck for four years.

A Broad-based Trade and Investment Agreement (BTIA) was first mooted in 2007. The 16th and previous formal round of discussion was in 2013. Hurdles remain on issues of tariff reduction and market access in the alcohol and automobile, sectors, prime European exports to India.

The prime minister's office is nudging the commerce department to take forward stagnant trade discussion. So, tariff concessions in these areas have been discussed, a senior commerce and industry ministry official said, on condition of anonymity. Chief negotiators from both sides are to meet in mid-November.

The stagnancy in talks was made evident during the visit earlier this month by European Commission president Jean-Claude Juncker; met the prime minister. Despite extensive talks during the 14th India-EU Summit in Delhi on October 6, during which European Council president Donald Tusk was also present, both sides failed to move forward.

On the contrary, Juncker said any discussion on trade would only be held once the terms of engagement had changed. In contrast, the two sides held extensive deliberations on other bilateral, regional and international issues, including the theRohingya crisis and North Korea.

Investment positions

"Trade talks had hit a wall after India decided to terminate existing bilateral investment treaties (BITs) with 23 European countries in 2016," a senior EU diplomat said. The EU had warned that the move would stop investments from its member countries and asked India to keep these individual agreements in force until a new pact was signed.

However, the Indian government has maintained that all future investment pacts will be negotiated under the framework of the model BIT issued by the government in 2015. This was meant to form the basis for individual agreements to be negotiated with other nations. However, most of those negotiations are not time-bound, while the existing treaties would end over the coming year.

This was raised during the PM's visit to Brussels for the 13th India-EU Summit. While the commerce department has pushed for exceptions to be made in investment treaties, the finance ministry has been against it.

"The EUs prime concern with the BIT is with the clause stipulating that if an investor-state dispute arises, a foreign investor can only seek the option of international arbitration when all domestic legal routes have been exhausted. While India feels this is required to keep control on litigation and reduce the chances of extremely high penalties from international tribunals, the EU calls the Indian legal system slow and corrupt," a senior Delhi-based trade expert said.

Talking trade

Both sides had last year adopted an agenda in Brussels for a broad-based approach to "resolve trade irritants, in particular concerning goods, services and investments, and strengthen trade and investment relations".

On is note, India has made clear its dissatisfaction on the slow progress on issues related to facilitation of greater movement of professionals from one country to another and on services trade. This also involves India's demands to be classified a data-safe country, which will help Indian information technology and outsourcing companies gain a foothold.

Other than being India's largest trading partner and its biggest export destination, the bloc has also been Delhi's 'strategic' partner' since 2004. Total export to the 27 member-nations of the EU reached $47.2 billion in 2016-17, from $44.5 bn a year before. Import dipped slightly to $42.4 bn, from nearly $44 bn in 2015-16.

For India, this translates to 17 per cent of its total export and 11 per cent of aggregate import. The share of trade with the EU as compared to total bilateral trade has progressively shrunk in recent years. A little more than a decade before, when the strategic partnership was initiated, export to the bloc was 21.8 per cent of all export; import was 17.3 per cent of all inbound trade in 2004-05.

The trade negotiations also cover issues such as sanitary and phyto-sanitary measures, technical barriers and intellectual property rights. These also need to be worked on before a deal is sealed.

(Source:-http://www.business-standard.com/article/economy-policy/india-might-offer-concessions-to-eu-to-push-stalled-trade-pact-117101900371_1.html dated 19.10.2017)

Moves to accelerate free trade agreements

On May 16 2017 the European Court of Justice (ECJ) handed down its opinion in Case 2/15, regarding the European Union's competence to conclude its proposed free trade agreement (FTA) with Singapore. The ECJ ruled on provisions relating to:

• the protection of non-direct (ie, portfolio) foreign investments; and
• investor-state dispute settlement mechanisms which go beyond the European Union's exclusive competence.

The ECJ confirmed that Article 207 of the Treaty on the Functioning of the European Union gave the European Union exclusive competence to implement its common commercial policy, which includes concluding trade agreements comprising provisions concerning both the admission and protection of foreign direct investment. However, the ECJ found non-direct foreign investment to fall outside of the scope of the European Union's common commercial policy and thus to be excluded from the European Union's exclusive competence. The ECJ also highlighted the fact that the proposed investor-state dispute settlement mechanism would have removed disputes from the jurisdiction of member state courts. On this basis, it concluded that such provisions required the consent of member states and therefore exceeded the European Union's exclusive competence.

The consequences of the ECJ's opinion are that FTA proposals incorporating provisions on the protection of non-direct foreign investments or investor-state dispute settlement mechanisms should be treated as mixed agreements, requiring ratification from not only the European Union, but also each member state. This was bound to have an appreciable effect on the negotiation and contents of future EU FTAs, as exemplified by President Juncker's recent proposals to open FTA negotiations with Australia and New Zealand, excluding any provisions relating to investment protection or the resolution of investment disputes.

The decision to keep the provisions of the proposed FTAs within the boundaries of exclusive EU competence can be seen as the European Commission's recognition that the need to involve each member state, and the additional time and complication that this will inevitably require, outweighs the benefits of including provisions on non-direct foreign investment or investor-state dispute settlement in EU FTAs. These concerns are well illustrated by the ability of Belgium's Wallonia region to delay the passage of the Comprehensive Economic and Trade Agreement (CETA) with Canada.(1) The recent State of the Union speech saw Juncker emphasise the need for the European Union to be efficient when negotiating FTAs, acknowledging that potential trade partners from across the globe have been "lining up at the EU's door". He also expressed an intention to conclude the proposed agreements with Australia and New Zealand before the end of the commission's existing mandate (ie, before 2019) as a substitute to the now-stalled EU-US Transatlantic Trade and Investment Partnership. In this regard, Juncker highlighted that the European Union must ensure that its "own institutional set-up is fit for purpose so that it can ratify and implement agreements in an effective manner and preserve its reputation as a credible negotiating partner". On that basis, investment protection and the resolution of investment disputes will likely be dealt with in separate mixed agreements that require ratification at member state level.

Investment court system under scrutiny

On September 6 2017 the ECJ received a request from Belgium for an opinion on the legality of the investment court system under the EU treaties. The investment court system had been incorporated into the recently negotiated CETA, which had initially been met with opposition (notably from Wallonia) due to the rights it confers on investors to challenge the decisions of member state governments. Belgium – which did not itself take any position on the questions referred to the ECJ – submitted the request as part of a compromise reached with Wallonia on this issue.

More specifically, Belgium asked the ECJ to provide an opinion regarding the compatibility of the investment court system with:

• the ECJ's exclusive competence to provide the definitive interpretation of EU law;
• the general principle of equality and the 'practical effect' requirement of EU law;
• the right of access to the ECJ; and
• the right to an independent and impartial judiciary.(2)

These developments emphasise the political sensitivities surrounding trade and investment agreements, providing further evidence of the inevitable complications that will arise if FTAs are to require ratification from each member state. This also bears relation to the ECJ opinion on the EU-Singapore FTA. Whereas that decision addressed the European Union's competence to enter agreements including investor-state dispute mechanisms, these questions address the compatibility of the mechanism itself.

EU regulatory intervention in investment review

In his State of the Union speech of September 13 2017, Juncker stated that "Europe must always defend its strategic interests" and that foreign, state-owned companies should be able to invest in European technology or infrastructure with "transparency, with scrutiny and debate". It is on this basis that the commission has proposed a new framework for the screening of foreign direct investment on grounds of security and public order.

The proposal leaves most of the power with the member states. It does not oblige member states to enact a screening mechanism, but rather creates the framework that enables them to do so should they wish. The other purpose of the proposal is to facilitate exchange of information. It includes a mechanism to facilitate cooperation between member states and the commission which can be activated when a member state considers that an investment by a foreign entity in another member state may have a detrimental effect on the security or public order of another. In such a scenario, the concerned member state can submit its comments to the relevant member state and the commission. In addition, the proposal confers on the commission the right to conduct screening on grounds of security or public order in those instances where the proposed investments may have a detrimental effect on projects or programmes of EU interest.

The ECJ's opinion on the EU-Singapore FTA acknowledged that the European Union has exclusive competence on matters affecting foreign direct investment. Accordingly, existing member states' foreign direct investment screening regimes were liable to be challenged as a violation of the European Union's exclusive competence. The commission's proposals are a means of resolving this issue.

(Source: http://www.internationallawoffice.com/Newsletters/International-Trade/European-Union/Herbert-Smith-Freehills-LLP/Recent-developments-in-EU-trade-and-investment-policy dated 20th October-2017)

New Delhi: The Centre plans to work out export incentive packages worth Rs 15,000 crore in the coming weeks as global trade picks up. The packages will be compliant with the World Trade Organisation norms. The officials of the finance and commerce ministries will meet to discuss the measures and this could be announced as part of the Foreign Trade Policy review next month, a senior commerce ministry official said.

Union commerce minister Suresh Prabhu in a communication to finance ministerArunJaitley has listed out the incentives. The officials of the two ministries will meet to work out the fine print.

The proposed measures include allowing the scrips earned under the popular Merchandise Exports from India Scheme (MEIS) to be used to pay the Goods and Services Tax (GST), increasing incentive rates and interest subsidy rates for labour-intensive sectors, reducing the GST rate on MEIS/SEIS scrips and infusing more capital into the Export Credit Guarantee Corporation of India.

The country would have to phase out export subsidies at it has breached an income threshold stipulated by the WTO to end such sops. According to the special and differential provisions in the WTO's Agreement on Subsidies and Countervailing Measures, when a member's per capita gross national income (GNI) exceeds $1,000 per annum (at the 1990 exchange rate) for the third straight year, it has to phase out its export subsidies. There is, however, no clarity on the time frame to end such subsidies. Twin compliances

Officials said the Merchandise Exports from India Scheme (MEIS) is being redesigned to make exports GST and WTO compliant. Duty-drawbacks are basically taxes foregone and that is considered a "prohibited subsidy" by the WTO. The five-year foreign trade policy (2015-20) provides a framework to boost the exports of goods and services, besides the creation of more jobs.

Exports are showing signs of picking up as they soared 25.67 per cent to $28.61 billion in September, the highest growth in six months on the back of expansion in the the shipments of chemicals, petroleum and engineering products.

Exports had grown 27.5 per cent in March. Imports, too, rose 18.09 per cent to $37.6 billion in September.

(Source: https://www.telegraphindia.com/business/export-sops-get-ready-180236 )

(from left) Murali Nair, Senior Project Manager/Program Germany & Asia, Bertelsmann Stiftung; R Srinivasan, Editor, BusinessLine ; Jasper Wieck, Deputy Head of Mission of the German Embassy in India; and Andreas Esche, Program Director, Bertelsmann Stiftung, during the round table on EU-India FTA in New Delhi

NEW DELHI, OCTOBER 25: Germany and the UK will witness the highest absolute gains if the proposed Free Trade Agreement (FTA) between India and the European Union (EU) is concluded, states a study conducted by the Bertelsmann Stiftung of Germany.

Speaking at a round table on EU-India FTA organised by BusinessLine in association with the Bertelsmann Stiftung, Deputy Head of Mission of the German Embassy in India, Jasper Wieck, said: “We are afraid that those opposed to the India-EU FTA will keep finding reasons to delay it.”

“Some fear that the FTA will put domestic players at unease. But protecting existing investments is also a part of the FTA negotiations. I object to the notion that an FTA would put the domestic auto industry in India at risk from German counterparts.”

The study also suggested that if the UK exited the EU, India will stand to lose almost 21 per cent of the proposed gains from the FTA, which is officially called the Broad Based Trade and Investment Agreement (BTIA). As a result, India will then have to negotiate a separate trade pact with the UK to compensate for the losses, the study said.

Counsellor, Trade & Economic Affairs, EU Delegation in India, MarikaJakas, said, “We are keen on an FTA with India. The EU wants more market access in India for textile and agriculture sectors. There are very few bilateral investment treaties that have not yet expired. We have a very good reason to get FTA negotiations going to protect existing investments.”

However, Jakas said all sticky issues will be discussed when the chief trade negotiators from both sides meet next month to take stock of the matter and how to kickstart the stalled talks.

Data adequacy issue

On the controversial issue of data adequacy, one of India’s long-standing demands, Jakas said it cannot be discussed under the FTA as per EU rules. She said the issue of granting India ‘data-secure’ status can only be negotiated separately.

Arpita Mukherjee from ICRIER stated that for a successful conclusion of any trade agreement, it is imperative for all the line ministries to also take part in the ongoing negotiation and not just leave it to the Ministry of Commerce and Industry.

For example, she said, when sensitive matters such as market access for agricultural items are being discussed, it is critical that the Agriculture Ministry gets involved in the talks.

RanjaSengupta of Third World Network said, "We, as civil society remain critical of this and we think the chapter on labour and environment standards is cosmetic. It cannot really help labour, and we want a much more comprehensive monitoring framework spanning all chapters, not just on labour and environment standards. In fact we have always strongly criticised EU's Sustainable Development chapter through which they apparently show their commitment to development while demanding provisions in other chapters which can be very adverse for Indian workers."

For democracies, FTAs are not merely a function of economic benefit, BusinessLine Editor R Srinivasan said. “The fundamental challenge is that agreements happen when the leadership feels it can politically sell it. For Prime Minister Narendra Modi, it will be difficult to sell an FTA with the EU as domestic businesses will say it increases competition and can lead to job losses,” he pointed out.

(Source:-http://www.thehindubusinessline.com/economy/germany-uk-will-gain-the-most-from-an-indiaeu-free-trade-deal/article9924154.ece dated 25th October-2017)

BANGALURU: The market size of India's beauty cosmetics and grooming is expected to touch $35 billion by 2035 from the current level of $6.5 billion says the joint study undertaken by ASSOCHAM- MRSSIndia.com.

The study has revealed that the consumption the consumption pattern of cosmetics among teenagers went up substantially between 2005 and 2017 because of increasing awareness and due to the desire to look good and over 68 per cent of young adults feel that using grooming products boost their confidence. Also about 62 per cent of young consumers in big cities prefer to buy online beauty and grooming products 45 per cent of consumers tend to buy cosmetics and apparels from any shop of their convenience rather than a single shop.

The chamber spokesman said, the Indian men's grooming market witnessing a growth of more than 42 per cent in the last five years the growth is faster than the growth rate of the total personal care and beauty industry in India.

Since the Indian consumers tend to purchase natural and herbal cosmetics products, the herbal cosmetic industry is expected to grow at a rate of 12 per cent in India.

The overseas markets have great demand for Indian herbal and natural cosmetic products and exports to countries like the UAE, the USA, the Netherlands, Saudi Arabia, Germany, Japan, Malaysia, Nepal, Sri Lanka, UK, China, Indonesia, France, Russia, and Italy.

According to CHEMEXCIL, the exports of cosmetics, toiletries and essential oils during 2015-16 was around $1,007.20 million. The import during the same period was $703.58 million.

Among all the Indian cosmetic industry, the best-selling and the most popular items are color cosmetics, of which nail varnish, lipsticks and lip glosses. Indian products have gained the demand due to their experience in extraction of the best from natural dyestuff, flowers, roots, oils, etc.

Indian market has herbal cosmetic brands like Forest Essentials, Biotique, Himalaya Herbals, Blossom Kochhar, VLCC, Dabur, Lotus, Jovees, Kama Ayurveda, Patanjali, Just Herbs, and many more.

The major factors behind the preference for personal care products include the words such as 'natural', 'organic', 'botanical', 'free from' some harsh chemical, and even 'religious compliance'. Over half of Indian consumers reported 'natural or organic' features influencing hair and skin care purchase decisions. According to 71 per cent consumers they would prefer 'natural' face cream or lotion over other similar products. About 38 per cent said they would buy hair products containing 'botanical' ingredients. Even 'religious compliance' has swayed 17 per cent consumers.

(Source: https://timesofindia.indiatimes.com/business/india-business/indias-grooming-and-cosmetic-market-to-touch-35-billion-by-2035-study/articleshow/61339173.cms dated 30th Oct-2017)

New Delhi, Oct 30 (IANS) Overcoming the freeze in ties on the marines issue for over five years, India and Italy on Monday agreed to boost economic ties from the current bilateral trade level of $8.8 billion as the two sides signed six agreements, including on mutual investments and energy, following delegation-level talks headed by Indian Prime Minister Narendra Modi and his Italian counterpart Paolo Gentiloni here.

“India and Italy are two large economies of the world and there is a lot of scope to boost our commercial cooperation,” Modi said in a joint address to the media following talks with Gentiloni, the first Italian Prime Minister to visit India in 10 years.

“There is immense potential to increase our bilateral trade from the current levels of $8.8 billion,” he said.

He said discussions with members of a high-level Italian business delegation accompanying Gentiloni has left him with a lot of optimism

He called for more participation of Italian companies in India’s flagship programmes in collaboration with Indian companies.

“Our requirements in sectors like smart cities, food processing, pharmaceuticals and infrastructure match the expertise and capabilities of Italy,” Modi stated, adding that Italy would be the focus country in the World Food India to be held in November.

Diplomatic ties between India and Italy came to a near freeze following the February, 2012 firing by two Italian marines, Massimiliano Latorre and Salvatore Girone, from merchant vessel Enrica Lexie, killing two Indian fishermen off Kerala.

The case is now with the International Tribunal for the Law of the Seas (Itlos) at the The Hague and India has allowed both the marines to return to Italy.

The stand-off between New Delhi and Rome also affected the talks for a free trade pact between the European Union and India. According to a joint statement issued following the talks, both Modi and Gentiloni “appreciated the strong India-Italy economic linkages and committed to work in a result-oriented and mutually beneficial manner by injecting a renewed momentum into the broad-based economic engagement between the two countries”.

“PM Modi called upon the Italian industry to explore India’s untapped business opportunities in the infrastructure, food processing, renewable energy, and high-tech manufacturing sectors,” it stated.

“PM Gentiloni also called upon Indian industry to identify business opportunities, including in Italy’s textile, automotive, leather, machinery and chemical sectors.”

The Italian Prime Minister also highlighted his country’s commitment to the Make inIndia initiative through the activities of the 628 Italian companies which have invested over $2.4 billion and provide employment to over 23,000 people in India.

According to the statement, both leaders announced the organisation of an Indo-Italian High Level Forum on Design, with a focus on industrial design, auto design, architecture, interior design, and fashion.

Gentiloni also underlined Italy’s industrial expertise in the defence sector, and the renewed interest of Italian industry in participating in defence manufacturing under the Make in India initiative.

“In the area of smart cities, both sides expressed their intent to identify specific areas for cooperation,” the statement said.

“The Indian side welcomed the Italian initiative to share their experience in the area of urban rehabilitation, advanced technology solutions in the area of energy management (from smart grids to electric mobility networks), affordable housing and waste management,” it stated.

Both Modi and Gentiloni expressed their shared commitment to strengthening the economic partnership between India and the European Union (EU) and noted the ongoing efforts of both sides to reengage actively towards an early resumption of negotiations for a comprehensive and mutually beneficial India-EU Broad Based Trade and Investment Agreement (BTIA), according to the statement.

In his address to the media, Modi highlighted science and technology another area of cooperation between the two countries and said that Italy was emerging as a destination of choice for higher education among Indian students.

Stressing on cultural contacts and cooperation, he said: “I was pleased to know that a lot of people in Italy have a deep and abiding interest in Indian culture, cuisine, cinema, music, dance, yoga and ayurveda.”

The Indian Prime Minister called for strengthening cooperation in tourism and people to people exchanges to strengthen such links further.

“We discussed in detail some of the emerging security challenges facing the world,” Modi said.

“We are both committed to fight terrorism in all its forms, and to strengthen our cooperation in cyber security.”

Following Friday’s talks, the two sides signed six agreements, including two memorandums of understanding (MoUs) on cooperation in mutual investments and in the field of energy, and a joint declaration of intent of cooperation for safety in the railway sector.

Gentiloni arrived here on Sunday in what is the first Italian prime ministerial visit to India in over decade after the visit of then Prime Minister Romano Prodi in February 2007.

Indo-Italian ties got a breather when External Affairs Minister Sushma Swaraj visited the Vatican in September last year for the canonisation of Mother Teresa.

(Source:-http://www.newspatrolling.com/india-italy-agree-to-boost-economic-ties-lead/ dated 31st Oct-2017)

India and Latvia on Friday discussed ways to boost bilateral ties during a meeting between Prime Minister Narendra Modi and his Latvian counterpart Maris Kucinskis.

"The two leaders held discussions on various aspects of bilateral ties as well as important regional and global issues of mutual interest," the External Affairs Ministry said in a statement.

"The two leaders focused on building closer cooperation in the areas of trade and investment, food processing, and culture among others," it said.

"India's economic ties with Latvia have strengthened in recent years with growing awareness about the prospects in food processing sector as well as other opportunities in the infrastructure sector."

A protocol amending and supplementing the Agreement between India and Latvia relating to air services was also signed during the meeting.

Bilateral trade between India and Latvia stood at about $141 million in 2015-16. Major Indian exports are tea, coffee, tools, pharmaceuticals, chemicals, garments, iron & steel etc and imports include chemicals, fertilizers, iron and steel and machinery.

There is scope for growth of textiles, agro-products, gems and jewellery, chemical dyes and pharmaceuticals.

Earlier on Friday, Kucinskis attended the World Food India event that was inaugurated by Modi.

A 16-member business delegation from seven Latvian companies is participating in Wood Food India 2017.

"Latvian companies exhibiting at this prestigious event represent sectors such as dairy, fish processing, confectioneries and mineral and drinking water," the External Affairs Ministry statement said.

Kucinskis, who arrived here on Thursday on a four-day visit to India, will leave for Mumbai on Saturday where he will inaugurate the an honorary consulate of Latvia and will participate in the Latvia-India Transport and Logistics Conference titled "Latvia: India's Gateway to Europe and CIS countries".

(Source:-http://www.business-standard.com/article/news-ians/india-latvia-focus-on-boosting-bilateral-ties-117110301623_1.html dated 3rd Nov-2017)

Chairman's Desk

Chemexcil Activities

CHEMEXCIL's INDIAN CHEMICALS & COSMETICS EXHIBITION DHAKA, BANGLADESH

GST Outreach session at O/o Principal Commissioner, CGST, Mumbai South Commissionerate, Mumbai on 3rd October 2017

Consultation meeting with Duty Drawback Committee on 31/10/2017 at Crowne Plaza, Ahmedabad

Exim Updates

2017 Important Update on E-Seals -Implementing Electronic Sealing for Containers by exporters under self-sealing procedure prescribed by circular 26/2017-Cus dated 1st July 2017, circular 36/2017 dated 28.8.2017 and 37/2017 dated 20.9.2017.

GST : Form GST TRAN-1 submission (with revision facility) extended to 30th November 2017 Eleventh Amendment to CGST Rules, 2017 Others

DGFT -Important Public Notices issued regarding EPCG Scheme

DGFT Enhancement in the validity period of Duty Credit Scrips issued on or after 01.01.2016

DGFT Onetime relaxation for EO extension and clubbing of Advance Authorisations

GSTR-3B Waiver of late fee on filing of GSTR-3B for August and September, 2017

NOTIFICATION NO. 41/2017 Integrated tax (Rate) Notification to prescribe Integrated Tax rate of 0.1% on inter-State supply of taxable goods by a registered supplier to a registered recipient for export subject to specified conditions.

2017 Announcements by ECHA on the use of Zinc oxide and clarification for downstream users of Cromium VI Compounds

IGST Refunds Validation of Bank Accounts in the Public Financial Management System (PFMS)/ Issues hindering the disbursal of IGST Refund

Important GST : Notifications to exempt integrated tax and compensation cess on import of goods under AA/EPCG schemes / Notification to exempt goods imported by EOUs from integrated tax and compensation cess / Others

DGFT Amendments in Foreign Trade Policy 2015-20

GST Portal : Advisories issued by GST Portal on discrepancies faced

GST: CBEC Instructions to field formations for Refund of IGST paid on export of goods under Rule 96 of CGST Rules 2017

Important GST : Recommendations made during 22nd GST Council meeting of 06/10/2017 Relief Package for Exporters

GST : Facility of furnishing Letter of Undertaking extended to more exporters/ Clarifications

E-Seals: Details of Vendors providing E-seals (as per Circular 36/2017-Customs & 37/2017-Customs)

Upgradation of India Korea CEPA Comments on additional 146 tariff lines from Korean side

News & Articles

Exports to India fail to pick up

India, European Union may form joint group on FTA

Bangladesh: Jaitley arrives in Dhaka, will ink $4.5 billion Line of Credit deal

India Considers Free Trade Zone For Afghan Goods

Commerce Ministry announces time relaxation for Navi Mumbai SEZ to address issues

India – Europe business outlook, Recovering from pessimism despite persistent challenges

Govt. seeks sector-wise plan from industry to spur exports

Commerce Min to revisit $900 bn exports target

GST will create pace for industrial growth: Commerce Secretary

EU, India Leaders Call for "Timely Relaunch" of Trade Talks

Exports Grow In September As Demand For Indian Chemicals, Engineering Soar

Comm. Min aligns certain FTP provisions with GST

Fresh talks on free trade pact with EU to give equal weight to goods, services, investment

Centre mulls Rs 16,000-cr incentive package to boost exports

India might offer concessions to EU to push stalled trade pact

Recent developments in EU trade and investment policy

Export sops get ready

‘Germany, UK will gain the most from an India-EU free trade deal’

India’s grooming and cosmetic market to touch $35 billion by 2035: Study

India, Italy agree to boost economic ties (Lead)

India, Latvia focus on boosting bilateral ties