Chemexcil
e-Bulletin

September 2017 No. 017

Chairman's Desk

Satish-Wagh
SHRI SATISH W. WAGH
Chairman, CHEMEXCIL
 

Dear Member-Exporters,

First of all, I wish you a very Happy Diwali.

I have pleasure to bring to you the 17th issue of the CHEMEXCIL e-Bulletin for the month of September 2017, which contains the following activities undertaken by the Council and other useful information/Notifications, etc.

We have completed nearly three months post the GST era. This period of transition has been quite challenging for the exporters due to initial lack of clarity on export procedures under GST, liquidity issues on account of blockage of funds/ delay in GST refunds, compliance burden of GST Returns, Technical glitches on GST Portal and also concerns regarding status of export incentives under Foreign Trade Policy 2015-20.

The Council has regularlytaken up these issues with the concerned authorities for redressal. The trade/ industry awaits government support particularly in faster processing of GST refunds which will provide relief to the exporters.

The issues regarding LUT/ Bond/BG have been resolved to some extent and organized industry and the exporting community seem to have now got a good measure of the various issues of the GST provisions with respect to export. I must add that in many cases, the government has timely provided guidance notes, both general and sectoral, as well as clarificatory notifications and circulars which is highly appreciated. In particular, member exporters had requested us to take up various issues of GST and urge the government to do away with need of Bank Guarantee in case of exports being undertaken through the Bond route. Chemexcil, had taken up the matter at the different levels of the government. The CBEC responded positively through Circular No 5/52017-GST dated 11 August, 2017, which has now allowed the waiver of Bank Guarantee in case the exporter submits a self-attested copy of the proof of registration with a respective Export Promotion Council. Similarly, the GST Council has also decided to reduce GST rate on MEIS scrip sale from 12 % to 5% which is highly appreciated.

I also thank the Government of Gujarat for issuing order for remission in VAT Rate on Natural Gas by 9% which will effectively reduce applicable VAT rate on Natural Gas in Gujarat from 15% to 6%. This will provide relief to the consumers for natural gas in Gujarat. From council, we have also represented to the Revenue Dept for inclusion in GST which will allow users to take ITC.

Friends, now we are keenly awaiting the announcement of the Mid Term Foreign Trade Policy 2015-20 and hope the same addresses the concerns of the exporter’s which will boost exports.

I congratulate our Hon. Shri. Suresh Prabhu, Minister of Commerce and industry on his appointment to this position.

I also congratulate newly appointed Shri. Shyamal Misra, IAS, Joint Secretary, EP (CAP) Ministry of Commerce and Industry.

I met our Hon. Shri. Suresh Prabhu, Minister of Commerce and industry on 27th September-2017 at his office and discussed below issues

  1. GST Related Issues
    • Liquidity Problems faced by exporters/ processing of exporter’s refunds under GST.
    • Status of Export Incentives under GST Framework.
    • Request for enhanced incentives support to Overcome Trade Barriers in Overseas Markets
    • Reduction of the GST Rate for Surfactants from 28% to 18%
  2. Higher All Industries Duty Drawback Rate for 2017-18.
  3. Review Of ASEAN FTA / Better Market Access In Key Markets
  4. Expansion Of Interest Equalization Scheme by inclusion Of Merchant Exporters and addition of More tariff Lines:
  5. Inclusion of Chapter 28 and 29 items under EU GSP:
  6. Environment Related Controls:
  7. Promotion of value added Products of Castor Oil:
  8. Allow Import of Technical Pesticides:
  9. RBI Caution Listing:
  10. ICEGATE Working/ DGFT Server/ GST PORTAL glitches

Besides this, CHEMEXCIL organized 54th Annual General Meeting on 15th September, 2017 at 11.00 a.m. in the Conference Room of the Council along with the presentation of Annual Report for the year 2016-17 of the Council.

I do hope that the members would appreciate this edition of the bulletin and will continue to write to us with their comments and suggestions.



With Regards,

SHRI SATISH W. WAGH
CHAIRMAN,
CHEMEXCIL

BACK

Chemexcil Activities

CHEMEXCIL’s 54th ANNUAL GENERAL MEETING HELD ON 15th SEPTEMBER, 2017

54th Annual General Meeting of the BASIC CHEMICALS, COSMETICS AND DYES EXPORT PROMOTION COUNCIL, and Mumbai was conducted on Friday the 15th September, 2017 at 11.00 a.m. in the Conference Room of the Council (Jhansi Castle, 4th floor, 7 Cooperage Road, Mumbai-400 001) along with the presentation of Annual Report for the year 2016-17 of the Council.

Following officials form Chemexcil committee of administration were present during the meeting viz. Shri Satish Wagh, Chairman & Regional Chairman – Northern Region, Shri Ajay Kadakia,

Vice Chairman & Regional Chairman – Eastern Region, Shri S.G. Mokashi, Addl. Vice Chairman & Chairman- Basic Inorganic & Organic Chemicals including Agro Chemicals Panel & Regional Chairman – Southern Region, Shri Bhupendra Patel, Chairman-Gujarat Region; Shri Kirit Mehta, Member- Dyes & Dye Intermediates Panel; Dr. Smita Naram, Chairman- Cosmetics, Toiletries & Essential Oil Panel Shri Abhay V. Udeshi, Chairman - Castor Oil & Specialty Chemicals Panel; Shri S.G. Bharadi, Executive Director.
 

BACK

CHEMEXCIL’s Submission to Shri Suresh Prabhu, Hon’ble Minister for Commerce & Industry on constraints faced by exporters in Chemical sector

  1. GST Related Issues
    • Liquidity Problems faced by exporters/ processing of exporter’s refunds under GST.
    • Status of Export Incentives under GST Framework.
    • Request for enhanced incentives support to Overcome Trade Barriers in Overseas Markets
    • Inclusion of Natural Gas under GST.
    • Reduction of the GST Rate for Surfactants from 28% to 18%   
    • Higher All Industries Duty Drawback Rate for 2017-18.
  2. Review Of ASEAN FTA /  Better Market Access In Key Markets
  3. Expansion Of Interest  Equalisation Scheme by inclusion  Of Merchant Exporters and addition of  More tariff Lines:
  4. Inclusion of Chapter 28 and 29 items under EU GSP:
  5. Environment Related Controls: 
  6.  Promotion of value added Products of Castor Oil:  
  7. Allow Import of Technical Pesticides:
  8. RBI Caution Listing:
  9. ICEGATE Working/ DGFT Server/  GST PORTAL glitches

BACK

Exim Updates

DGFT Niryat Bandhu seminar for new IEC holders/ new exporters at Addl. DGFT Mumbai Office

EPC/LIC/DGFT/NIRYAT_BANDHU 28/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

DGFT Niryat Bandhu seminar for new IEC holders/ new exporters at Addl. DGFT Mumbai Office

Dear Members,

Kindly note that  Addl. DGFT Mumbai Office is conducting an in-house session on "Export & GST" for new Exporters/ IEC Holders under Niryat Bandhu Program.

The details of the session are as follows:

Date 11.10.2017
Time 4.00 PM TO 5.00 PM
Registration Prior registration not necessary. Entry is free subject to capacity of hall.
Venue Conference Hall of office of Additional DGFT Nistha Bhavan, 2nd floor, 48, Vithaldas Thakersey Marg, Churchgate, Mumbai-400020.

The pamphlet issued by Office of Addl DGFT Mumbai is attached for reference.

New Member exporters  are advised to take note and benefit from the session.

Your confirmations in this regard may be sent to us for records on e-mail id- Deepak.gupta@chemexcil.gov.in & balani.lic@chemexcil.gov.in .

Thanking You,
Yours faithfully,

(S.G. BHARADI)
Executive Director
CHEMEXCIL

Encl : Niryat Bandhu house plan pamplet

BACK

Proper practice for representation to Govt. Departments

EPC/LIC/DOC/EP-CAP 27/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

Proper practice for representation to Govt. Departments

Dear Members,

Kindly note that  we have received communication from the Under Secretary, EP-CAP Section, Department of Commerce  regarding  Proper practice to be followed  for representation to Govt. Departments.

As per direction,  it has been noticed several times that the Council members take up their issues / grievances directly with the Hon'ble Prime Minister and Hon'ble Ministers of the Government rather than taking up the same with their respective Export Promotion Councils and with this Department. Such type of practice is not desirable.

It is suggested that if any member is aggrieved by any issue / grievance,  he/she should initially take up the matter with the respective Export Promotion Council and with  EP-CAP, DOC  through proper channel of submission. However, if the grievance still remains unresolved, the aggrieved may address the public authority concerned.

Members are requested to take note of the directive  from EP-Section (copy attached) and do the needful accordingly.

Thanking you ,

 

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

OM dated 26 September 2017

BACK

Customs Valuation (Determination of Value of Imported Goods) Amendment Rules, 2017

EPC/LIC/CBEC/CVR 27/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

Customs Valuation (Determination of Value of Imported Goods) Amendment Rules, 2017

Dear Members ,

Kindly note that the Central Board Excise Customs (CBEC) has issued important  Notification/ Clarification  regarding Customs Valuation Amendment Rules 2107.

The  Definition of the term ‘place of importation’,  Treatment of the loading, unloading and handling charges, Computation of freight and insurance, Treatment of trans-shipment costs etc  have been clarified vide the notification/ circular.

The gist of the recent Notification/ Circular are follows. 

Circular  No.39 / 2017-Customs

26-09-2017

Clarifications regarding amendments to the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 vide Notification No. 91/2017-Customs (N.T.) dated 26.09.2017

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ39-2017cs.pdf

Notification 91/2017-Cus

26-09-2017

Customs Valuation (Determination of Value of Imported Goods) Amendment Rules, 2017

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2017/cs-nt2017/csnt91-2017.pdf

Relevant members are requested to take  note of these  Notification/ Circular.  For full details, you may download  using above links.

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

BACK

V. IMP All Industry Rates of Duty Drawback 2017

EPC/LIC/DBK_2017 25/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

All Industry Rates of Duty Drawback 2017

Dear Members,

Kindly note that  Ministry of Finance, Department of Revenue, GOI  has  notified All Industry Rates of Duty Drawback  2017.

In this regard, Government has issued Circular No. 38/2017-Customs F. No. 609/76/2017-DBK dated 22/09/2017  and Notification No. 88/2017-Customs (N.T.) dated 21.9.2017 and Notification No. 89/2017-Customs (N.T.) dated 21.9.2017  respectively,  regarding changes in the  Customs and Central Excise Duties Drawback Rules, 2017  and   Changes in All Industry Rates (AIRs).

For the sake of convenience, important points are highlighted  as follows:

DBK Rates for majority  of  items under CHEMEXCIL Purview i.e. Chapter 29, 32, 33, 34 & 38  remain at 1.5%. DBK Rates of Chapter 28 item rates reduced to 1.1%.

Definition of Drawback has been amended to provide for drawback of Customs and Central Excise duties excluding integrated tax and compensation cess leviable.  References to input services and Service Tax have been omitted.

The Composite rates of Drawback are being discontinued w.e.f. 1.10.2017. Hence, the composite rates and Notes and Conditions pertaining to CENVAT credit, rebate of Central Excise duty, etc. stand omitted. Thus, the declaration required to be given by an exporter for claiming composite rate of drawback w.e.f. 1.7.2017 as per Circular no. 32/2017-Customs dated 27.7.2017 is no longer required w.e.f. 1.10.2017;

For fixation of Brand Rate, Circular no. 23/2017-Customs dated 30.6.2017 may be referred. The brand rate facilitation would continue.

Where in respect of export product, NIL rate or no rate of drawback is provided in AIR Schedule, an application for fixation of Brand Rate under Rule 7 of the Drawback Rules, 2017 shall not be admissible. In such situation, application for fixation of Brand Rate may be filed under Rule 6 of the Drawback Rules, 2017;

Changes in Drawback  Rules 2017/ DBK Rates are applicable from 1st October 2017.

For full text of the AIR Drawback Schedule and above-said Notifications/ circulars, please use below links for downloading the same-

http://cbec.gov.in/resources//htdocs-cbec/customs/dbk-schdule/dbk-sch2017.pdf

http://cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ38-2017cs.pdf

http://cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2017/cs-nt2017/csnt89-2017.pdf

http://cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2017/cs-nt2017/csnt88-2017.pdf

Members are requested to take note of new provisions/ Rates  in Duty Drawback.   For any issues, you can write to us on Deepak.gupta@chemexcil.gov.in & balani.lic@chemexcil.gov.in .

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

CHEMEXCIL

BACK

Reduction of VAT rate on Natural Gas in Gujarat

EPC/LIC/Gujarat/ PNG 22/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

Reduction of VAT rate on Natural Gas in Gujarat

Dear Members,

Kindly note that Government of Gujarat  has issued Order No. (GHN-76) VAT-2017/S 41 (1) (180 –TH dated Sept 05 2017 regarding remission of VAT  rate on Natural Gas by 9% which will  effectively reduce applicable VAT rate on Natural Gas in Gujarat  from 15% to 6%.

As you are aware,  during Pre-GST period,  exporters were able to avail credit against the input 15% VAT paid on purchase of Natural Gas in Gujarat.   However, Natural Gas is not covered in GST, as a result  the  VAT paid on  Natural Gas  is not available as ITC  against the GST liability  on the related end product. This, straight away  increases the cost of production and  adversely impacts  industry at large,  including companies in Chemicals industry.   The council has been consistently taking up this issue with the Government.

However,  pursuant to this Gujarat Government Order,  the Natural  Gas supplier shall charge and collect tax at the rate of  6 % (six percent) on sales of natural gas from consumers  of the State except for those purchasing natural as for use in generation of electricity or for the manufacture of fertilizer.  Further,  the  Gas supplier shall charge and collect full tax as applicable on the sales in the course of interstate trade or commerce and shall not be entitled to the remission on such sales.

To make the change operational, the Natural Gas consumers  in Gujarat shall submit undertaking to the Natural  Gas supplier  to avail the benefit of reduced VAT  rate of 6%.

The relevant members are requested to take note of this positive development.  The Gujarat Government order is available for download on below link-
https://www.commercialtax.gujarat.gov.in/vatwebsite/ download/cir_noti/NOTI/Remission%20of%20Tax%20on%20Natural%20Gas.pdf

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

Encl : Remission of Tax on Natural Gas

Draft undertaking to be obtained from Customer

BACK

Request to follow CHEMEXCIL on Social Media like Twitter / Facebook

EPC: EDP: SOCIAL MEDIA 22/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

Request to follow CHEMEXCIL on Social Media like Twitter / Facebook

Dear Sir / Madam,

In lines with the Govt of India’s Digital India initiative for dissemination of important information related to trade, Council is active on social media account like Twitter and Facebook.

Members will get  following information on regular basis .

1. Circulars on various activities of Council, EXIM policy matters, GST etc.
2. Export Statistics
3. Information on Conferences/seminars/ Exhibitions/ RBSMs.

Below are the links for Twitter and Facebook

Twitter Account Link:- https://twitter.com/chemexcil
·         Facebook Account Link:- https://www.facebook.com/chemexcil

In view of the importance of the above, all members of the Council are requested to please Follow CHEMEXCIL on Twitter & Facebook in order to receive latest notifications on the activities of the Council, important circulars etc.

Thanking You,
Yours faithfully
S G Bharadi
Executive Director

BACK

RFID Electronic Seals - Clarifications regarding RFID Electronic Seals under Self Sealing Procedure / Implementation Deferred till 1st Nov. 2017

EPC/LIC/RFID_Self_Sealing 21/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

RFID Electronic Seals - Clarifications regarding RFID Electronic Seals under Self Sealing Procedure / Implementation Deferred till 1st Nov. 2017

Dear Members,

This is in continuation of our last circular dated 29/08/2017 informing you about CBEC circular No. 36/2017 dtd 28/08/2017 regarding Electronic Sealing for Containers by exporters under self-sealing procedure.

Subsequently, concerns were raised regarding availability of authentic RFID seal vendors,  high costs of software and shortage of time.  The council had also taken up this issue with CBEC and requested more clarity and time.

Taking cognizance of the issues raised the industry, CBEC has issued circular No. 37/2017 Dt. 20.09.2017 with clarifications about the Electronic Sealing For Containers By Exporters Under Self-Sealing Procedure and also deferred  implementation till 1st Nov 2017.

The important points are being highlighted below for sake of convenience:

Considering the difficulties expressed by trade associations in locating vendors of RFID seals, CBEC  has decided that the date for mandatory self-sealing and use of RFID container seals is deferred to 1st November, 2017.

The existing practice may continue till such time. It is also provided that exporters are free to voluntarily adopt the new self-sealing procedure based upon RFID sealing, if readers are in place at the customs station of export from 01.10.2017.

In order to ensure that electronic seals deployed are of a reliable quality, the Board has adopted international standards laid down under ISO 17712:2013 for high security seals and prescribed that  all vendors proposing to offer RFID Tamper Proof One-Time-Bolt Container Seals to exporters for self-sealing, must submit self-attested certificates from seal manufacturers to the Director (Customs), CBEC, North Block, New Delhi before commencing sales. Where the certification is found to comply with the requirements of the ISO standard, the names of such vendors shall be put up on the Board's website (www.cbec.gov.in) for ease of reference of the trade and field formations, as soon as they are received.

The RFID Seal vendors shall also produce a contract or communication between the vendor and manufacturer, to serve as a link document and undertake that the seals for which ISO certifications are submitted are the same seals pressed into service.  Any time a vendor changes his manufacturer-supplier, he shall provide the documentation referred in para 3 of circular 36/2017-Customs to the CBEC, before offering the seals for sale.

Web Hosted Application:  While each vendor may develop and design their own web-enabled application, for the purposes of consistency in process of communication with the customs stations and the RMD, each vendor shall provide information as specified in para 4 (b) of circular 36/2017-Customs to the department by email in excel format or any other format that may be specified by any field formation or RMD. This would permit ease of consolidation of multiple feeds at the customs station and data integration. All field formations are advised to communicate the designation based email addresses to the vendors, once the list is placed on the website.

As a measure of data integrity and security of sealing, vendors are also required to ensure that the Tag Identification (TID) number is captured in their data base and the IEC code of the exporter is linked to the same at the time of sale of the seals. Upon reading at the Port / ICD, the software application shall ensure that the seal's identity is checked with its TID. Beyond this prescribed minimum feature, vendors will remain free to build upon any other features of RFID system for enhancing security / functionalities.

For the ease of reference of the exporters, vendors are advised to publicise on their website, name of each port / ICD where they have provided readers. Custodians and Customs brokers/CHA are also advised to proactively engage with vendors regarding availability of reading facilities at container terminals and ICDs so that there is no dislocation to logistics operations.

Apprehensions have been expressed by trade regarding the availability of reading facilities in hinterland ICDs. In view thereof, Custodians and Customs brokers/CHA of ICDs have been  requested to facilitate the process of receiving handheld readers or installation of fixed readers at the ICDs and to approach the Board in case readers are not made available by vendors at any ICD by 10th October, 2017.

The original circular is available using below link for download-

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ37-2017cs.pdf

Members are requested to take note of the deferred date, clarifications and do the needful accordingly. Issues faced in this regard, may be communicated to the council on e-mail id’s- Deepak.gupta@chemexcil.gov.in & balani.lic@chemexcil.gov.in

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

BACK

DGFT - Amendments in Chapter 4 of Hand Book of Procedures 2015-20

EPC/LIC/RFID_Self_Sealing 21/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

DGFT - Amendments in Chapter 4 of Hand Book of Procedures 2015-20

Dear Members,

Kindly note that O/o DGFT, New Delhi  has made various amendments  in Chapter 4 of Hand Book of Procedures 2015-20 which deals with Duty Exemption/ Duty Remission schemes.

These important amendments are notified vide Public Notice no. 26 dated 20/09/2017  which is available for download using below link-
http://dgft.gov.in/Exim/2000/PN/PN17/PN26%20(eng).pdf<

Members are requested to take note of these amendments.

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

BACK

DGFT - Pending Cases of Norms Fixation

EPC/LIC/DGFT/ Norms 19/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

DGFT - Pending Cases of Norms Fixation

Dear Members,

This is regarding cases of norms fixation pending at DGFT HQ New Delhi.

The council has been regularly receiving complaints  from members regarding delays in Norms fixation which is leading to delay in EODC or exporter figuring in DEL.

Kindly note that council has been regularly taking up such  cases either directly with DGFT HQ  New Delhi or Grievance Redressal Committee (GRC) Meeting held in Mumbai/ New Delhi.

During interactions with DGFT HQ, the Council has been advised to submit the entire lot of pending cases for redressal.

While we have few Norms cases in our records, but  as a fresh initiative, we once again request the members to revert with their pending Norms case details so that we   can consolidate the same and put-forth to DGFT HQ for fixation/ redressal.  In case, your earlier query on Norms has been resolved, please do update us.

The replies on pending Norms cases,  be provided  ONLY in below format as word file:

Sr. No.

Name of Member (with IEC)

Grievance in detail with  Name of DGFT RA, relevant file no., Authorisation number, Follow-ups done, Last Status etc.

 

 

 

 

 

 

 

 

 

The responses with relevant details be sent to us in above format latest  by 26th September 2017 on our e-mail id’s Deepak.gupta@chemexcil.gov.in  & balani.lic@chemexcil.gov.in  which will enable us consolidate and forward to the concerned  officer in DGFT HQ.

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

BACK

GST Extension of time limit for submitting the declaration in GST Form TRANS-1 Revision in GST Form Trans 1 submitted earlier

EPC/LIC/TRANS-1 19/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

GST Extension of time limit for submitting the declaration in GST Form TRANS-1 Revision in GST Form Trans 1 submitted earlier

As informed earlier, during recent  GST Council meeting  dated 09/09/2017 it was decided to provide additional time for submission of FORM Trans-1 and also allowing  one time  revision in Trans-1 submitted earlier for   Transition of Old Input Credits to GST Regime.

In this regard,  CBEC/ GST has now  issued following  Orders/ Notifications:

Extension of deadline  for submitting  Form Trans-1 till 31st October 2017

As per CBEC Order No. 02/2017-GST dated 18/09/2017  the period for submitting the declaration in GST Form TRAN-1 has been extended till 31st October, 2017.    Original order is available on following link:

http://www.cbec.gov.in/resources//htdocs-cbec/gst/order2-cgst.pdf

One-time Revision in Form Trans 1 submitted earlier

The provision for one time revision of  GST Form Trans-1  has  been made vide Notification No. 34/2017 – Central Tax New Delhi, the 15th September, 2017.    Original notification is available on below link-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/34_2017-CT_Eng.pdf

Members are requested to kindly take note of above and do the needful accordingly.

Thanking you.
Yours faithfully
S.G BHARADI
EXECUTIVE DIRECTOR

BACK

RBI- EDPMS Issuance of eBRC

EPC/LIC/RBI/EDPMS_eBRC 19/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

RBI- EDPMS Issuance of eBRC

Dear Members,

As you are aware, the  Reserve Bank of India (RBI) had introduced  additional modules  under Export Data Processing and Monitoring System (EDPMS)  in May 2016  for caution listing of exporters, reporting of advance remittance for exports and migration of old XOS data.  However, several issues have cropped up due to delay in up-dation of data by AD banks on EDPMS server which have been taken up with RBI by the Council.

Now RBI has issued A. P. (DIR Series) Circular No. 04 dated September 15, 2017 wherein AD Category-I banks are directed to update the EDPMS with data of export proceeds on “as and when realised basis” and, with effect from October 16, 2017 generate Electronic Bank Realisation Certificate (eBRC) only from the data available in EDPMS, to ensure consistency of data in EDPMS and consolidated eBRC.

In our view,  this might address the issue of mismatch in cases where eBRC was issued, but  exporter was still caution listed.

Members are requested to take note of this change.    The original circular is available for download on following url:
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11119&Mode=0

Thanking You,
Yours faithfully,
S.G. BHARADI
EXECUTIVE DIRECTOR

BACK

GSTR-3B filing deadlines for the months of August to December, 2017

EPC/LIC/GSTR-3B 18/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

GSTR-3B filing deadlines for the months of August to December, 2017

Dear Members,

As you are aware, during recent meeting of GST Council it was decided to extend GSTR-1/GSTR-2/GSTR-3 filing dates for July 2017. It was  also informed that the  last dates for filing GSTR-3B for Aug to Dec 2017 shall be notified  later.

In this regard, CBEC has now issued Notification No. 35/2017 – Central Tax dated 15th  September, 2017 notifying  last date for filing the return in FORM GSTR-3B for the months of August to December, 2017.

The last dates as announced vide above notification are as follows:

Sl. No.

Month

Last Date for filing of return in
FORM GSTR-3B

 1

August, 2017

20th September, 2017

 2

September, 2017

20th October, 2017

 3

October, 2017

20th  November, 2017

 4

November, 2017

20th  December, 2017

 5

December, 2017

20th  January, 2018

Members are requested to kindly take note of above and do the needful accordingly.

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

BACK

Important notification regarding Stearic Acid Import

EPC/LIC/STEARIC_ACID 18/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

Important notification regarding Stearic Acid Import

Dear Members,

Kindly note that CBEC has issued notification no. 76 dated 15/09/2017 for substitution of  new Stearic Acid HS Code 38231100  in  Notification no. 50 dated  30/06/2017.

The concerned members are aware that  pursuant to change in HS code in the Union Budget 2017-18,  stearic acid was being imported under HS code 38231100 which was not covered under AIFTA  due to which  higher duty was  imposed.  The council had also taken up the issue with  TRU-CBEC.

With this new notification  no. 76 dated 15/09/2017, Stearic Acid shall now be importable under HS Code 38231100   at concessional tariff (as per Serial No. 251 of Notification no. 50 dated 30/06/2017 which is now amended).

Members are requested to kindly take note of above. The original notification may be downloaded using below link.

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2017/cs-tarr2017/cs76-2017.pdf

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

BACK

India-Peru Trade Agreement: Preparation of Indian Wish List

EPC/LIC/INDIA_PERU_FTA 15/09/2017
 
TO ALL THE MEMBERS OF COUNCIL
 

India-Peru Trade Agreement: Preparation of Indian Wish List

Dear Members,

We have received communication from FT-LAC Section, Department of Commerce (DoC)  that a trade agreement covering trade in goods, services and investment with Peru is being negotiated.

The first round of negotiations was held on 8-11 August, 2017 in New Delhi.  Under the chapter on National Treatment and Market Access of Goods (NTMA), both sides discussed on understanding each other’s position on the Preferential Treatment to be offered.

Both sides have committed to exchange Wish Lists by 15th November, 2017 so that fruitful discussions could be held during the next round.

In this regard, a tentative Indian Wish List containing 4970 tariff lines at 8-digit code has been prepared by DoC as per  following parameters using Trade Map data:

Ø  Tariff lines where India exports to Peru
Ø  Tariff lines where Peru Imports from World
Ø  Peru’s Imports from LAC region and
Ø  India’s global exports

The file  containing the tentative Indian Wish List of 4970 items along with sector-wise break up is attached for reference/ comments.

Members are therefore requested to kindly go through the enclosed Indian Wish List and give comments/suggestions on addition/ deletion of further items so as to finalize the India’s Wish List.

Your comments / suggestions should reach us  latest by 19th September, 2017 on our email id-  Deepak.gupta@chemexcil.gov.in & balani.lic@chemexcil.gov.in

Thanking you,
Yours Faithfully,
S.G Bharadi
Executive Director
CHEMEXCIL

Encl : INDIAN WISH LIST

BACK

News & Articles

India-European FTA talks this month

India and the European Free Trade Association (EFTA) will meet this month in an attempt to conclude their long pending negotiations, Commerce Minister Nirmala Sitharaman said here on Friday.

India and the European Free Trade Association (EFTA) will meet this month in an attempt to conclude their long pending negotiations, Commerce Minister Nirmala Sitharaman said here on Friday. “Together with the EFTA countries (Switzerland, Norway, Iceland, Liechtenstein), we want to go ahead with the FTA,” Sitharaman said at a business session with Swiss President Doris Leuthardorganised by industry chambers Ficci, CII and Assocham.

“We’ll meet in September and want it (FTA) concluded for the benefit of both,” she said.

She also said that India would look into “every concern” of foreign investors on intellectual property rights (IPR) and investment protection. “Investment protection is being negotiated,” the minister said.

So far, 16 rounds of negotiations have taken place, talks for which started in 2008. The two sides resumed talks on the agreement here in January after a gap of three years

The proposed agreement covers trade in goods and services, investments, trade facilitation, customs cooperation, IRPR protection and public procurement.

“We want to bring the EFTA free trade negotiations going on since 2008 to an end and we hope that this visit, and the push by Prime Minister Narendra Modi for the FTA, will help the Minister conclude the pending issues on the agreement,” Leuthard said in her address.

“For India to benefit, she has to compete with other Asian countries with whom we are also negotiating. You can compete only by further opening up your economy.

“We Swiss are reliable partners of India and we would like a trade agreement and investment protection framework,” the President added, noting that this year marked the 70th anniversary of Indo-Swiss cooperation. The India-EFTA bilateral trade was worth $19 billion in 2016-17, which was lower than the trade value of $21.5 billion in 2015-16.

(Source: http://www.financialexpress.com/economy/india-european-fta-talks-this-month/836556/ dated 1st Sept-2017)

BACK

Trade policy review only after resolving exporters’ cash woes, says Ministry

NEW DELHI, SEPTEMBER 3:

The Commerce Ministry will come up with the mid-term review of the foreign trade policy (FTP), initially scheduled this month, only after resolving the liquidity issues faced by exporters under the Goods and Services Tax (GST) regime, a government official has said.

“Two options are being examined by the Centre to deal with cash shortage faced by exporters who are no longer entitled to tax exemptions under various incentive schemes and have to instead pay taxes upfront and later claim reimbursement. Without a resolution to the issue, there is no point coming out with a mid-term review,” the official told BusinessLine.

One option is the much debated introduction of e-wallet facility for exporters for virtual payment of taxes while the other is putting in place an actual wallet for use by exporters with money deposited by the Centre.

The Finance Commerce Ministries will thrash out both options and examine others too, if required, to reach an understanding, before sorting the out the matter with the GST Council.

According to estimates made by the exporting community, over ₹1.85 lakh crore of their working capital may get stuck annually because of the time-lag between paying taxes and then getting refunds instead of exemptions.

e-wallet facility

In the previous round of consultations before the GST was implemented on July 1, the Commerce Ministry had proposed that an e-wallet facility could be introduced for exporters.

Under the mechanism, the e-wallet account of an exporter is debited based on the preceding year’s exports.

Whenever the exporter is supposed to pay GST, whether for imports or for procurement by merchant exporters, the payment is made from the e-wallet. Money, however, does not go out of the e-wallet account at all. It just goes from the GST account of exporter to the GST account of the supplier. The value of the e-wallet remains the same. When the exporter gives proof of export, her account is again re-credited. The other option of an actual wallet is similar to the e-wallet concept, but the virtual money is replaced by actual money to be provided by the Centre. In the actual account, too, no money would go out and accounts would only be debited and credited based on GST paid and reimbursements made.

“Although the Centre is more comfortable with the actual wallet proposal as it involves real money, the Finance Ministry may have to provide ₹30,000-40,000 crore quarterly for it which it may not be comfortable with,” the official said.

(Source:-http://www.thehindubusinessline.com/economy/policy/trade-policy-review-only-after-resolving-exporters-cash-woes-says-ministry/article9844588.ece dated 3rd September-2017)

BACK

Suresh Prabhu says government will promote exports in 'shortest possible time'

NEW DELHI: Commerce and industry minister Suresh Prabhu on Wednesday said his ministry is looking at certain measures to give a leg up to India’s exports which are facing “challenging times”, partly because of the Goods and Services Tax (GST) rollout.

“We are trying to work out what to be done to promote exports in a shortest possible time which includes issues coming up because of the GST,” Prabhu, who assumed charge as the commerce and industry minister on Monday, told reporters here.

India's export growth slowed to an eight-month low of 3.94% in July, while the trade deficit widened to $11.44 billion on account of high gold imports.

He added that the ministry is working on the support measures which can facilitate quick increase in exports both in terms of volume and value.

The commerce ministry is expected to announce incentives in the review of the foreign trade policy, which is scheduled to be released next month.

(Source:-http://economictimes.indiatimes.com/news/economy/policy/suresh-prabhu-says-government-will-promote-exports-in-shortest-possible-time/articleshow/60393864.cms dated 7th September-2017)

BACK

Government offers online tool to resolve foreign trade issues

NEW DELHI: The government has set up an online service facility that can be used by importers and exporters to resolve all foreign trade-related issues, an official statement said today.

The directorate general of foreign trade (DGFT), which comes under commerce ministry, has asked all exporters and importers to use the system - Contact@DGFT - for resolution of their matters.

Traders can raise all matters related to the directorate or other agencies of the Centre and States through this facility, which is activated at the DGFT website.

"Contact@DGFT system has been activated as a single point contact for resolving all foreign trade-related issues," the DGFT said in a notice to all regional authorities, export promotion councils, commodity boards and members of trade and industry. It said best efforts will be made for expeditious resolution. "In the interest of systematic monitoring and effective resolution, exporters/importers are requested not to send their queries through twitter or e-mail and use Contact@DGFT service instead," it added.

(Source:-http://economictimes.indiatimes.com/news/economy/policy/government-offers-online-tool-to-resolve-foreign-trade-issues/articleshow/60422566.cms dated 8th September-2017)

BACK

GST opens a Pandora’s box for exporters

The strong rupee and an ambiguous goods and services tax (GST) is giving sleepless nights to exporters

India’s export-to-GDP (gross domestic product) ratio slid to a multi-quarter low in June. Concerned over this, the new commerce and industry minister Suresh Prabhu has assured that the government will try to revive exports at the earliest. But that is a tough task in the current scenario.

The strong rupee and an ambiguous goods and services tax (GST) is giving sleepless nights to exporters.

Here’s why.

Like small and medium enterprises, the working capital needs of exporters too have increased. Under GST, they first have to pay integrated GST and seek a refund only after the goods are exported. Smaller exporters are required to furnish bonds and a letter of undertaking to the local commissioner, which is a financial burden, especially for service exporters.

Despite the new tax regime being in place for over two months now, there is limited clarity on the refund mechanism. This is making the situation worse.

The foreign trade policy (FTP) lays down the framework to incentivize exporters. They are eligible to get rebates since the aim is only to export the value of goods and not the tax paid on inputs required to manufacture them. In the pre-GST era, exporters enjoyed a slew of exemptions under FTP. They could import capital goods and raw materials without paying duties, thus having no impact on cash flow. However under GST, exporters are exempt only from paying the basic customs duty.

“Currently, the biggest concern among exporters is that FTP 2014-19 remains aligned to old taxes. Claiming export benefit has always been a documentation intensive process, hence clarity under the GST regime at this stage would be very beneficial. Since GST functions on the principle of refund and not exemptions, delays in the refund process severely strains working capital management of exporters,” said M.S. Mani, senior director (indirect tax) at Deloitte Haskins and Sells Llp.

In simple terms, there is a risk of working capital remaining blocked for a couple of months. This means loss of interest on this money, which an exporter may have otherwise earned. At the country level, capital to the tune of Rs95,000 crore is estimated to be locked-up from the time of buying raw materials and claiming refund on exported goods, which is typically four-six months, according to Suresh NandlalRohira, partner at Grant Thornton India Llp.

Amid this confusion, Parimal Shah, vice-president at MK Jokai Agri Plantations Pvt. Ltd, is worried that a longer wait to claim refund might prompt tea exporters to hike prices, thus hurting competitiveness. Mid-size tea producers and exporter caters to markets including Russia, Saudi Arabia, the European Union and the UK.

This is a valid concern because the tea plantation industry is one of the key contributors to India’s GDP and generates a lot of employment. “Clarity is yet to emerge on who should one approach for refunds—the centre or states. In the long term, we see a net-net gain of 1-1.25% on balance sheets of tea exporting companies, but for now we foresee four quarters of disruption as the tea industry would take one financial year to get used to the new regime,” he said.

If this estimate is anything to go by, then it raises serious questions about the future of smaller exporters across sectors. Even if a smaller exporter manages to deploy additional capital in the business, he may not be able to survive for long without timely refunds. Labour-intensive sectors like gems and jewellery, leather and ready-made garments have suffered the most, first by demonetisation and now GST.

Amid the gloom, the GST Council’s decision to form a committee headed by revenue secretary HasmukhAdhia to review exporter-related issues comes as a glimmer of hope.

However, some tax experts are sceptical of a speedy resolution of exporters’ problems since the commerce ministry (which frames FTP) and the finance ministry (under which the GST Council comes) have not worked together in the past on such a unique issue.

If this newly formed committee fails to resolve the aforementioned problems at the earliest, then a revival in export growth will get more distant. That would mean loss of foreign exchange earnings and, most importantly, many jobs as well.

(Source:-http://www.livemint.com/Money/KrifMLRnYcj7RRm8M03YnN/GST-opens-a-Pandoras-box-for-exporters.html dated 12th September-2017)

BACK

Airports Authority of India undertakes construction of Integrated Cargo Terminal at Imphal airport

Airports Authority of India will undertake construction of Integrated Cargo Terminal at Imphal Airport after obtaining grant-in-aid under Trade Infrastructure for Export Scheme (TIES) of Ministry of Commerce & Industry, Govt. of India. The Government of Manipur had planned to establish an Export Import Cargo Terminal (EICT) at Tulihal, Imphal Airport under ASIDE Scheme of the Ministry of Commerce & Industry.

The proposed Integrated Cargo Terminal is expected to give a boost to the export of handicrafts items and perishable cargo. This will also help generate employment opportunities in the North Eastern region of the country, thereby fostering economic development of the region. In addition to this, the EICT will help establish better connectivity with South & Southeast Asia and give a boost to trade between India and the ASEAN countries.

The estimated cost construction of the cargo terminal is Rs.16.20 crores. Out of this, the Ministry of Commerce & Industry has sanctioned a grant of Rs.12.96 crores under TIES. The balance amount to construct will be met out of internal sources of AAI.

(Source: http://www.business-standard.com/article/government-press-release/airports-authority-of-india-undertakes-construction-of-integrated-cargo-terminal-at-117091101306_1.html dated 12th September-2017)

BACK

As incomes rise, exporters pay the price of development

Per capita income above $1,000 for 3 years in a row, so subsidies have to end: WTO

NEW DELHI, SEPTEMBER 12:

The good news is that India’s per capita income has gone up, and stayed up. The bad news, going by a recent notification of the World Trade Organization (WTO), is that the country can no longer offer export subsidies, as its per capita gross national income (GNI) has crossed $1,000 for the third year in a row.

“The consequence of India graduating out of the list of poorer countries eligible to give export subsidies is serious. It will be open to penal action from other countries, including imposition of countervailing duties on its exports if it does not do away with its incentives soon,” an official told BusinessLine.

The development could deal a further blow to exports from the country, which posted weak growth last year after two consecutive years of decline due to low demand.

“The first scheme that could come under the WTO scanner is the popular Merchandise Export from India Scheme (MEIS), which provides a direct subsidy to exporters based on the value of exports,” the official said.

Wide impact

Almost all exports, ranging from textiles to agriculture products, stand to be affected as the scheme covers more than 7,000 items and costs the exchequer around ₹23,500 crore a year.

A team of officials from the Permanent Mission of India at the WTO held discussions with Commerce and Industry Minister Suresh Prabhu, Commerce Secretary Rita Teaotia and officials from the Trade Policy Division on how the situation could be tackled.

“The government knew all along that the special exemption that allowed India to give export subsidies was likely to go in 2017. In fact, the Foreign Trade Policy also mentions this. It should have prepared the exporters for this,” a trade economist from a Delhi-based thinktank said.

Other schemes that could also get affected, subject to interpretation of the WTO rules, are the interest subvention scheme under which banks charge lower interest on loans given to exporters, which is offset by the government, and the duty-drawback scheme where exporters are refunded duty paid on inputs.

“The WTO rules also consider the revenue that is otherwise due to the government but is foregone or not collected, such as tax credits, as subsidy. Some members may also insist that India’s interest subvention scheme and duty-drawback scheme qualify as subsidies,” said the trade economist.

The Commerce Ministry, which is supposed to announce the mid-term review of the Foreign Trade Policy this month, will be in a fix about whether to make any addition to the MEIS scheme as it could draw immediate criticism from other countries. It would also find it difficult to replace the existing MEIS schemes with production subsidies, which are allowed by the WTO.

(Source: http://www.thehindubusinessline.com/economy/as-incomes-rise-exporters-pay-the-price-of-development/article9856381.ece dated 12th September-2017)

BACK

Subsidy on export goods may be scrapped; Merchandise Export from India Scheme under scanner: Report

The move may hurt the country’s exports, which showed a frail growth last year after due to low demand.

A recent notification from the World Trade Centre (WTO) said that the country can no longer propose export subsidies, as its per capita gross national income (GNI) has crossed USD 1000 for the third year in a row, as reported by Hindu Business Line.

“The consequence of India graduating out of the list of poorer countries eligible to give export subsidies is serious. It will be open to penal action from other countries, including the imposition of countervailing duties on its exports if it does not do away with its incentives soon,” an official was quoted as saying.

This development could hurt the country’s exports, which showed a frail growth last year after due to low demand.

“The first scheme that could come under the WTO scanner is the popular Merchandise Export from India Scheme (MEIS), which provides a direct subsidy to exporters based on the value of exports,” the official added.

How will this impact the country?

Most of the exports in India may be affected as the scheme covers more than 7,000 items and will cost the national treasury around Rs 23,500 crore a year, according to the report.

A meeting to discuss how the situation could be tackled was held. A team of officials from the Permanent Mission of India at the WTO held discussions with Commerce and Industry Minister Suresh Prabhu, Commerce Secretary Rita Teaotia and officials from the Trade Policy Division.

The Ministry of Commerce will announce the mid-term review of the Foreign Trade policy this month, to discuss the MEIS scheme.

(Source: http://www.moneycontrol.com/news/business/economy/subsidy-on-export-goods-may-be-scrapped-merchandise-export-from-india-scheme-under-scanner-report-2386829.html dated 13th Sept-2017)

BACK

Exporters seek clarity on incentives under GST

MUMBAI: Exporters say they're facing difficulties owing to ambiguity about benefits continuing under goods and services tax (GST) from the previous tax regime and queries over accessing input credit, further clouding their prospects amid a dull global market and an appreciating rupee. Some of them have sought clarity on the matter from the government ahead of the peak export season, said people in the know.

The development has led to exporters being unsure about pricing products set for the European Union (EU) and the US and warnings that overseas sales could suffer a setback in the upcoming quarter. The Foreign Trade Policy, FTP 2015-2020, has several incentives based on the earlier levies such as excise duty and service tax. It had been expected that these incentives would be recalibrated under GST but that hasn't happened, exporters said.

"There is an urgent need for the government to clarify on the incentives available to exporters as their tax outgo has changed in GST," said MS Mani, partner, Deloitte India, adviser to some top exporters. "It is expected that the newly constituted committee headed by the revenue secretary (HasmukhAdhia) would fast track its recommendations so that exporters get muchneeded clarity ahead of the peak export season and are able to plan accordingly."

Sales surge in EU and the US during the Christmas period and exporters need to ensure that goods are shipped in September or at least October to catch that bump. "This is the need of the hour as the objective of the FTP is to ensure that goods are exported and not the taxes associated with the procurement or manufacture of these goods," said a person with direct knowledge of the matter. "Since the GST rates are not identical to the erstwhile indirect tax rates and because there is no exemption on procurements for exporters, the exporting community is not clear on whether the incentives would increase, decrease or remain the same."

(Source: http://economictimes.indiatimes.com/news/economy/policy/exporters-in-serious-fiscal-crisis-due-to-gst-refunds-delay/articleshow/60482451.cms dated 13th Sept-2017)

BACK

From WTO to trade deals, 3 key challenges new Commerce Minister is likely to face

Commerce Ministry is entitled to represent India at the World Trade Organisation (WTO), enter into international trade deals, keep a check on all the sectors' growth of India and in turn, contribute a major chunk to the country's GDP. he newly-appointed Commerce Minister Suresh Prabhu, who was earlier the Railways Minister for three years, is likely to face many challenges in his new list of duties.

Commerce Ministry handles the major component in developing the country. This is the government department entitled to represent India at the World Trade Organisation (WTO), enter into international trade deals, keep a check on all the sectors' growth of India and, in turn, contribute a major chunk to the country's GDP.

Here are 3 major challenges lined up for Suresh Prabhu

WTO

WTO is the world's largest trade forums where the countries who are a part of this forum take major decisions which revolve around building trade relations by either making new ones or resolving old ones. The trade-related matters are supervised by the WTO body.

The WTO conference is around the corner and Suresh Prabhu seems to be preparing himself by taking advice from his predecessors, according to Indian Express.

According to the report, he is taking inputs so that he is able to learn from their experiences.

Trade

India is an import-extensive country, making it one of the biggest challenges for the Commerce Ministry. The Ministry has to boost India's exports and lower the country's imports for the country to become more independent.

If India is made export-extensive, it will not have to be dependent on other countries for its growth and development.

In the recent data released by the Commerce Ministry, it states that India already has an import share of 79.17 percent as against the export share of 69.54 percent among the top 25 countries it trades with. This data accounts for the trade of April and June this year, making a 10 percent imbalance in trade prevalent in two months itself.

Higher imports cause a trade imbalance as the country will have to first pay off its import bills and then see its overall growth. More import bills mean a rise in the government's expenditure and more export bills mean a rise in the government revenue. As of now, India's trade balance is negative, showing that the imports are much higher than the exports.

To tackle this situation, the Commerce Ministry has to boost domestic manufacturing, tap the resources within the country and make sure that the products are at par with the international standards.

Trade deals

With trade on one side, one can not deny that international relations for every economy are vital. These international relations become stronger with trade deals which can result in helping the economies to grow. Suresh Prabhu has a long list of trade deals which he has to look after.

He has to prepare himself to negotiate free trade deals with China, Japan and Australia and negotiate thoroughly for bilateral free trade deals with Canada and the European Union.

With US President Donald Trump turning hostile towards free trade deals, it will be even more challenging for Prabhu to strike these deals with WTO's tougher norms.

(Source: http://www.moneycontrol.com/news/business/economy/from-wto-to-trade-deals-3-key-challenges-new-commerce-minister-is-likely-to-face-2388593.html dated 15th Sept-2017)

BACK

EU To Strengthen ‘Strategic’ Ties With India

Ahead of the European Union (EU)-India Summit (to be held in New Delhi in October), the 28-member bloc has hinted that it will broaden its engagement and strengthen strategic and business ties with India. The EU has also indicated that it will formalise a big-bang action plan on various bilateral issues at the upcoming summit.

A senior EU official told an Indian broadsheet over the weekend that the two ‘partners’ would announce a string of joint declarations at the summit. The official, who wished to remain anonymous, revealed that the summit would prepare a concrete roadmap for addressing major issues, such as climate change, clean energy, maritime security, naval co-operation, space research and combating cyber crime.

The official expressed hope that the wide-ranging EU-India partnership would bolster co-operation between India and the Hague-based Europol’s European Cybercrime Centre on counter-terrorism operations and battling cyber crime. As far as bilateral security co-operation is concerned, he stressed that both the EU and India were eager to expand the scope of “counter-piracy dialogue to maritime security”.

Meanwhile, a top EU expert on foreign policy said that one of the major goals of the upcoming summit would be to exploring various ways to “deepen India’s strategic relationship with the EU in a post-Brexit world”. Soon after the Brexit vote, India had said that it wanted to strengthen strategic ties with the EU as Britain had “historically been India’s entry point to Europe”.

The expert informed the press that the EU would soon unveil a white paper on its new-look relationship with India in which the new areas of economic and strategic co-operation would be mentioned. He said that it would be important for both the parties to resolve outstanding issues, including the wide-ranging Free Trade Agreement (FTA), in New Delhi.

It is unfortunate that the FTA has proved elusive so far despite 10 years of negotiations, said the expert. He insisted that India’s decision to cancel a multitude of bilateral investment treaties unilaterally heightened the EU’s concerns about India’s “protectionist attitude” in some sectors. However, the EU leaders in Brussels still believe that the October summit will cement bilateral ties in the post-Brexit world.

(Source:-https://inserbia.info/today/2017/09/eu-to-strengthen-strategic-ties-with-india/ dated 18th Sept-2017)

BACK

Chemical industry can reach USD 346 bn by 2025: Report

India's chemical industry has the potential to grow from the current USD 155 billion to USD 346 billion by 2025 with concerted efforts, a report said.

The domestic chemical market accounts for 3.4 per cent of the global market.

More than 80,000 chemicals are being used directly or indirectly in various sectors, said the report prepared by Tata Strategic Management Group. It was released by Fertiliser and Chemical Minister Ananth Kumar at an event in Gujarat.

According to the study, the industry faces critical issues like availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business.

"These issues have hampered industry growth and it needs government interventions to achieve its true potential," it said.

The report recommended adoption of alternate feedstock, increasing investment in R&D and achieving scale through collaboration for overcoming the challenges.

"Indian chemical industry is on the cusp of a growth trajectory. This industry should be looked at as a part of Indian economic growth story," Tata Strategic Management Group CEO ModanSaha said in a statement.

He said the chemical industry can play an important role in creating jobs and boosting the country's growth.

(Source:-http://www.business-standard.com/article/pti-stories/chemical-industry-can-reach-usd-346-bn-by-2025-report-117092101111_1.html dated 21st Sept-2017)

BACK

Dahej to house country’s first Central Institute of Chemical Engineering and Technology: Ananth Kumar

Just like Wimbeldon is for tennis and Lords is for cricket, Dahej is the "kaashi" of chemical and petrochemical industry, the Union minister said at India Chem Gujarat 2017 held at Mahatma Mandir

Describing Dahej as the “Kashi” for chemical and petrochemical industry, Union Minister for Chemical and Fertilizers Ananth Kumar on Thursday said India’s first Central Institute of Chemical Engineering and Technology (CICET) will be set up within this industrial zone in South Gujarat that also houses the only functional Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR).

“We want to open a specialised institution at Dahej on the lines of CIPET (Central Institute of Plastic Engineering and Technology). We have already conducted preliminary talks and we plan to set up India’s first Central Institute of Chemical Engineering and Technology,” said the minister while speaking at the inaugural function of “India Chem Gujarat 2017” at Mahatma Mandir.

“JaiseWimbeldonko tennis kikashikehtehai, jaise Lords ko cricket kakashikehtehai, aise hi chemical or petrochemical industry kakashi, yadi Bharat meinkisiekjagahbatasaktehaitohwohhaiDahej, Gujarat. (Just as Wimbeldon is called the kashi of tennis, Lords as the kashi of cricket, the same way, if there is one place in India which can be called the kashi of chemical and petrochemical industry, it is Dahej, Gujarat,” said Ananth Kumar.

“I am hoping that Chief Minister of Gujarat will allocate 10-15 acres needed for the project at Dahej PCPIR region,” he said adding that Dahej currently provides employment to 1.37 lakh youths. “Can we double this number? As per the vision statement for Dahej it is targeted to provide 8 lakh jobs by 2040,” the minister remarked.

Gujarat chief minister Vijay Rupani who spoke later readily agreed to provide the required land required for the project.

The Union minister also said that the Centre was ready to provide a helping hand to make Dahej PCPIR a success. “Today if Narendrabhai needs to give an example of a petrochemical hub to a foreign guest, then he cannot show a Pardip or Nagapatannam, Vishakapatam, but he can surely show Dahej,” Ananth Kumar said referring to Prime Minister Narendra Modi.

The Centre had approved setting up of four PCPIRs in the states of Andhra Pradesh (Vishakhapatanam-Kakinada), Gujarat (Dahej), Odisha (Paradeep) and Tamil Nadu (Cuddalore-Nagapattinam).

“Please send a proposal to us for the Viability Gap Funding (VGF) needed to make Dahej successful. We are going to help you… I have already told in Vijaybhai’s (Rupani) ears that the chief ministers of other states are sending VGF proposals. Andhra Pradesh, Telengana, Odisha and other states, but Gujarat hesitates because it is a self-sustaining and progressive state. I have come to say, please do not hesitate and send the proposal,” said Ananth Kumar.

The minister also suggested to the chief minister present at the event to organise a “Dahej investment summit” either as part of the Vibrant Gujarat summit or as a separate event for the next five years.

(Source:-http://indianexpress.com/article/education/dahej-to-house-countrys-first-central-institute-of-chemical-engineering-and-technology-ananth-kumar/ dated 21st September-2017)

BACK

‘Govt to bring in standards for chemical products’

In order to stop imports of sub-standard chemicals in India, the Centre is working on bringing in standards for chemical products.

In order to weed out unregulated imports of sub-standard chemicals into India, the Modi government is working on introducing standards for chemical products.

“We do not have very good standards right now in case of many chemicals. The more better standards we set for consumer products, the more demand for better chemicals will be there; chemicals which are less harmful; chemicals which are more amiable to environmental sustainability. So in our ministry we have set up a committee with the joint secretary who will to start this work of setting standards in chemicals. We do not have a standards cell and we have had a discussion with BIS (Bureau of Indian Standards),” said Rajeev Kapoor, secretary, Department of Chemicals and Petrochemicals while speaking at the inaugural of “India Chem Gujarat 2017”, Thursday. “Having set the standards in products, we also need to examine to what extent we can make it mandatory, to ensure that our country is not suffering from sub-standard imports. So both the issues were discussed yesterday and will be taken forward,” he said referring to FICCI CEO forum where this issue was discussed on Wednesday.

A report unveiled at the event held at Mahatma Mandir also bats for establishing product standards for the chemical industry. “Establishing product standards is of paramount importance. Availability of low quality and low performance products will eventually lead to health risks, customer dissatisfaction, negative industry image and will finally impact growth of the value chain,” states the report titled “Chemical Industry with focus to Gujarat and Speciality Chemicals” prepared by Tata Strategic Management Group.

Setting of standards is one of the several steps suggested in the report that will help Indian chemical industry attain a size of USD 346 billion by the year 2025. Currently (in 2016), the industry is estimated to be valued at USD 155 billion and contributes 3.4 percent to the global chemical industry. India ranks 14th in exports and 8th in imports of chemicals (excluding pharmaceutical products) globally. India’s chemical trade balance is negative with imports being significantly higher than the exports.

“A number of products which are either banner or regulated in western markets are still used in India. Standards which do not meet global norms will lead to lower quality products at higher prices for high-tech goods in India,” states the report that was unveiled by Union Minister for Chemical and Fertilizers Ananth Kumar and Gujarat chief minister Vijay Rupani.

The report suggests implementation of “consumer standard” in segments like polymer additives, personal care, water treatment, flavours and fragrances, textile chemicals, colorants, construction chemicals and others. “The government should set standards and regulation across the segments to promote quality consciousness, sustainable development and efficiency improvements… Often, the domestic industry is at a severe disadvantage due to unregulated imports of sub-standard products which find a safe evacuation to India,” the report added.

It also lists out several challenges that is currently hindering the growth of the sector. “Lack of adequate physical infrastructure and sub-par chemical logistics infrastructure makes material production and movement cost intensive. Uninterrupted power supply remains a challenge for the energy intensive chemical industry. Significant glut in global chemical capacities has led to growth of imports in India. The duty structure needs rationalisation for several products in the value chain,” the report states.

(Source:-http://indianexpress.com/article/business/business-others/govt-to-bring-in-standards-for-chemical-products-4855220/ dated 21st September-2017)

BACK

Indian exports may not gain much from rise in global trade

Demand in the United States and China will drive up trade volumes, according to the WTO While global trade growth is expected to rebound in 2017, India may not be in a position to fully take advantage of it in United States and China, which are the major markets where consumer and industrial demand drive trade forward.

On Thursday, the World Trade Organization (WTO) raised the estimate of growth in world merchandise trade volume for 2017 to 3.6 per cent up from the 2.4 per cent estimate earlier.

The latest rise has been due to positive economic trends in North America - with the United States in particular - along with China, which has lead to resurgence of industrial and consumer demand.

However, exporters and trade experts alike believe it will be difficult for India to tap into this demand in the near future for a plethora of reasons.

Stagnation in the US

The US is the largest destination for Indian exports, earning $42 billion in 2016-17. The share of goods heading to the US has gradually increased over the past five years and stood at 15.3 per cent last year.

However, major export categories such as textiles, gems and jewellery have seen stagnation in the US market.

India's textile exports, across categories such as apparels and accessories have suffered over the past few years due to the onslaught of cheaper alternatives from Bangladesh, Vietnam and Philippines.

"Our market share has stagnated in the low single digit levels and I don't see a change anytime soon, both in the United States or Europe." S K Jain, Chairman of the Apparel Export Promotion Council said.

On the other hand, India's exports in gems and jewellery and especially rough or processed diamonds, stood at $9.7 billion, up 12 per cent in the last year. But industry experts believe the trend may be reversed next year.

For pharmaceutical products, the US is a major market for Indian generics, almost half of which, by volume, reach US shores. "In the United States, almost 80 per cent of generics are sourced from India. However, the market share has stagnated while growth in value terms have slowed down", P V Appaji, past Executive Director at Pharmexil said.

This is mainly due to price erosion, he added.

Not geared for China either

On the other hand, India is ill-equipped to grow its exports to China. While its northern neighbour is its largest trading partner, only 3.68 per cent of India's exports find their way to China.

Apart from finding it difficult to bridge the whopping $51-billion trade deficit, India is also looking to upgrade its current basket of exports to China.

Raw materials like cotton, iron ore and copper - long a hallmark of Indian exports to neighboring China - has come under increased scrutiny as both government as well as exporters try to shift exports towards value added products in a bid to cap growing trade deficit.

While previous Commerce and Industry Minister Nirmala Sitharaman had earlier said that export focus should shift from raw materials, her Ministry has identified key sectors such as hardware, electronics, pharmaceuticals, textiles and auto components, to realign and boost exports.

With a burgeoning middle class and rising labour prices, China is expected to relinquish its dominance over the labour intensive, low-end manufacturing space in the near future, which is being eyed by the Indian industry.

A changing consumer pattern has also moulded a greater demand for consumer goods in China where overall demand in the first half of 2017 was driven by solid growth in industry (up 6.4 per cent) and even stronger growth in services (up 7.7 per cent).

"We are looking to harness our strengths in labour intensive sectors where India enjoys significant advantage over other developing nations," a Commerce Ministry official said under conditions of anonymity.

Currently, the top 5 export categories to China are all input products. These are used by China to manufacture costlier goods which it ships abroad, often back to India.

These, along with other raw materials like iron and iron ores, constitutes for more than 70 per cent of India's exports to China, Ajay Sahai, Federation of Indian Exports Organisations said.

These are subject to volatile global commodity prices and should be periodically swapped with products higher in the value chain, a Delhi based trade expert said.

(Source: http://www.business-standard.com/article/economy-policy/indian-exports-may-not-gain-much-from-rise-in-global-trade-117092200935_1.html dated 22nd Sept-2017)

BACK

Govt will announce additional measures to boost economic growth: ArunJaitley

The finance minister said the government has taken note of all economic indicators and will take additional moves; he said he would consult the prime minister before any announcement.

Finance minister ArunJaitley said his ministry would soon announce measures to revive economic growth that has decelerated to the slowest pace in three years.

Jaitley’s comments come against the background of the most serious economic challenge the government has faced since it came to power in 2014.

India’s gross domestic product (GDP) growth slowed to 5.7% in the quarter ended June, the slowest in three years, from 6.1% in the preceding three months, sparking concern over the state of the economy. The residual impact of the November invalidation of high-value banknotes and the July 1 implementation of the goods and services tax (GST) were seen as contributing factors. Current account deficit at a four-year high (2.4% of GDP in Q1 FY18) and rising retail inflation have further exacerbated the macroeconomic situation.

On Tuesday, Jaitley chaired a meeting to discuss the situation and find solutions to the problem. The meeting was attended by railway minister Piyush Goyal, commerce and industry minister Suresh Prabhu and the secretaries of the finance and commerce and industry ministries. The railway board chairman and representatives from the Prime Minister’s Office and NITI Aayog, the government’s policy think tank, were also in attendance.

Jaitley said the measures would be announced soon, after consulting Prime Minister Narendra Modi.

There has been speculation that the revival package could include incentives for exporters, fiscal sops and investments in large infrastructure projects. Reviving economic growth and creating more jobs, promises that the ruling Bharatiya Janata Party made to come to power in 2014, are crucial as the party seeks re-election in 2019.

DK Srivastava, chief policy adviser at EY India, said the government may announce fiscally expansionary programmes without breaching the 3.2% (of GDP) fiscal deficit target for 2017-18. “Public and departmental enterprises that can spend on infrastructure may be asked to speed up and enhance their capex (capital expenditure) plans for the year. The central government may also co-opt some state governments to work towards this objective.”

The government is already at 92% of its full-year fiscal deficit target in the first four months (April-July) of 2017-18 and may find it difficult to spend beyond its budgetary means this fiscal, Srivastava added.

Low oil prices have helped the government, which has not reduced the retail price of petrol and diesel, instead increasing levies on fuel. It has used this money to balance the fisc and spend on development programmes—a sound macroeconomic move, according to many economists.

Still, a recent increase in oil prices, coming in the wake of weak economic data, has resulted in a wave of criticism being directed at the government. It doesn’t help that the Bharatiya Janata Party had made fuel prices a big issue when the Congress-led United Progressive Alliance was in power.

Jaitley defended the levies on fuel.

“Funds for public investment are coming from resources such as excise duty on petrol and diesel.Public investment has become the foundation of growth at a time when private investment is low. Cutting those investments would mean cutting down allocations for social sector and infrastructure schemes,” he said.

(Source: http://www.hindustantimes.com/india-news/govt-will-announce-additional-measures-to-boost-economic-growth-arun-jaitley/story-BN0NNHLU8oaqEtJt6mPKAP.html dated 20th September-201&)

BACK

Foreign trade policy review may be delayed

NEW DELHI, SEPTEMBER 21:

Exporters may have to wait an extra month, or even more, for the foreign trade policy (FTP) review, earlier scheduled for September, as the government is still grappling with implementation issues related to the Goods and Services Tax (GST).

The Centre has also not taken a call on the future of export incentive schemes that may no longer be permissible under the World Trade Organisation rules as India has graduated out of the list of poorer countries allowed to give export subsidies.

“It is unlikely that the FTP review will be announced before October-end. It may happen even later depending on the pace at which the concerns of exporters are sorted out,” a government official told BusinessLine.

The five-year FTP announced on April 1, 2015, which laid an ambitious annual target of touching $900 billion of exports by 2020, provided for a review when the policy was half-way through and not on an annual basis as was the earlier practice. “The idea was not to tinker too much with the policy and instead do an analysis when it was half-way through and do course corrections if required,” the official said.

Two-and-a-half-years after the FTP was announced, the Commerce Ministry finds its hands full with the number of concerns it might need to address while reviewing the policy.

“Addressing the issues arising from implementation of the GST is top priority as it is bothering exporters most. The Centre has to ensure that refund of input taxes happens on time and exemptions may be given where necessary to help exporters maintain their liquidity. This can take time as not only will the Finance Ministry will have to be on board, the GST Council ultimately will have to pass the revisions,” the official said, adding that the Council would next meet only sometime in October.

Sop scheme

Incentive scheme for exporters is another tricky area in the review as earlier this year the WTO declared that India’s per capita Gross National Product (GNP) exceeded $1000 for three years in a row (2013. 2012, 2015) making it ineligible for export incentives that only poorer countries are allowed.

“The Commerce Ministry has to first identify the schemes that could be affected because of India’s new status and then plan how to phase out those schemes and replace them with production subsidies that are allowed under the WTO. This is again an onerous exercise,” the official said.

While the Merchandise Export Incentive Scheme under which incentives based on value of exports is provided to over 7,000 items would no doubt be one of the affected schemes, the government has to examine the validity of other schemes such as interest subvention.

Ambitious target

The ambitious export target of $900 billion fixed for 2020 is also a problem since exports have moved sluggishly over the last two years hovering around $300 billion and there is no scope of reaching the target. “Not only does the target need to be brought down to a realistic level, some more schemes have to be devised to accelerate exports,” the official said.

(Source:-http://www.thehindubusinessline.com/economy/policy/ftp-delayed-by-at-least-a-month-as-govt-grapples-with-gst-export-subsidy-schemes/article9867630.ece dated 21st Sept-2017)

BACK

Commerce ministry wants states to move beyond signing initial investment proposals

NEW DELHI: The commerce and industry ministry will reward states that are the best performers in attracting investments in a bid to encourage them to go beyond merely signing initial proposals and commitments.

The Centre is finalising norms to assess the performance of states and they are likely to include ease of doing business, investment conversion and facilitation, data and tracking the progress of investments.

The industry department will ask the states not to get into a rut of signing investment agreements as most of them have achieved little on the ground. The government is concerned that this has led to adverse investor sentiment, a senior official told ET.

Pushing domestic investment in the country is one of the top priorities for the ministry. Suresh Prabhu, who took over as commerce and industry minister earlier in September, has already flagged concerns over tracking investment progress and sketchy data availability at a pan-India level to ministry officials.

He has directed his ministry to set up a centralised portal to monitor all investments in collaboration with state governments.

Based on information published on the portal, the government will not only reward the high-performing states but also call on others to improve or get their act together.

"The involvement of states and the Centre in fast-tracking investments is a must," the official said.

State governments will have to apprise the Centre on the status on investments in five stages – when investment intent is conveyed, proposals are shared, approval of the singlewindow authority is received, project work starts and commercial operations commence.

Some states such as Haryana have built a mechanism to track investments, but the government wants to create a system to gather such data at the national level. The industry ministry plans to release a quarterly India Investments Report once the portal is functional.

Prabhu will meet with representatives from the private sector soon to understand why investments are clogged and he will urge them to pump more money into the economy.

The minister had said earlier that there is a need for a paradigm shift in the government’s approach towards increasing investments and in reaching out to companies.

Prabhu has asked for a district-wise plan to create core competencies for states.

(Source: http://economictimes.indiatimes.com/news/economy/policy/commerce-ministry-wants-states-to-move-beyond-signing-initial-investment-proposals/articleshow/60786737.cms dated 22nd September-2017)

BACK

Commerce minister to meet India Inc next week, discuss ways to spur growth

The lower-than-expected GDP growth followed large-scale destocking undertaken by manufacturers ahead of the goods and services tax rollout and the lingering impact of demonetisation.

On Wednesday, Prabhu had said that he is closely working with the finance ministry and NitiAayog for resolving exporters’ issues to boost shipments and generate jobs. (File)

Commerce and Industry Minister Suresh Prabhu will hold a meeting with industry bodies on September 26 to discuss issues pertaining to industrial growth and the interventions required to resolve them, a government official said.

Chief Economic Adviser Arvind Subramanian, financial advisers of all major government departments, officials of Department of Pharmaceuticals, Department of Textiles, Ministry of Micro, Small & Medium Enterprises and representatives of FICCI, CII and ASSOCHAM will be part of the meeting, the official added.

“The minister wants to reach out to the industry to know their concerns. Addressing the issues in a time-bound manner would be beneficial for promoting industrial growth, which has been witnessing a slowdown,” the official said.

Industrial growth, as measured by the Index of Industrial Production (IIP), has grown by a meagre 1.2 per cent in July, compared to 4.5 per cent growth in the same period a year ago. During April-July, IIP grew by 1.7 per cent, down from 6.5 per cent in the same period last year. A slowdown in overall economy was also reflected in the GDP growth of the first quarter of this financial year. gross domestic product (GDP) growth fell to 5.7 per cent in April-June — the lowest in at least five quarters.

The lower-than-expected GDP growth followed large-scale destocking undertaken by manufacturers ahead of the goods and services tax rollout and the lingering impact of demonetisation. The GDP had recorded a growth of 7.9 per cent in April-June quarter last year. The manufacturing sector has been the worst hit, with a GVA growth rate of 1.2 per cent in April-June as compared to a growth of 10.7 per cent in the same quarter last year.

Over the last week, the government has been discussing strategies to support economic growth. Prabhu has also been part of deliberations held by finance minister ArunJaitley along with railway minister Piyush Goyal and NITI Aayog Vice Chairman Rajiv Kumar to discuss the economic situation.

On Wednesday, Prabhu had said that he is closely working with the finance ministry and NitiAayog for resolving exporters’ issues to boost shipments and generate jobs. Prabhu said that ensuring growth of exports is the priority of the commerce ministry.

(Source:-http://indianexpress.com/article/business/commerce-minister-to-meet-india-inc-next-week-discuss-ways-to-spur-growth-4856848/ dated 23rd September-2017)

BACK

Visit of Commerce and Industry Minister, Shri Suresh Prabhu to Republic of Korea from September 21-23, 2017

The Minister for Commerce and Industry, Shri Suresh Prabhu arrived in the Republic of Korea on September 21, to participate in the 7th Asia-Europe (ASEM) Economic Ministers meeting and the 3rd Joint Ministerial Review of the India-Korea Comprehensive Economic Partnership Agreement (CEPA). This is just the second visit of the Minister after he assumed his current Ministerial charge.

On September 22, at the 7th ASEM meeting, Shri Prabhu reiterated India's commitment to promoting free and fair world trade, while emphasizing the challenges that lay ahead in ensuring free and fair trade as embodied in the WTO. He commended ASEM for addressing global issues of common interest in the spirit of mutual respect and equal partnership. The Minister also underlined the emergence of India as one of the world's leading investment destination.

On the sidelines of this meeting, the Commerce and Industry Minister had productive meetings with the Minister of State for Economy and Finance of France, Mr. Benjamin Griveaux; the State Secretary of the Ministry of Trade, Industry and Fisheries of Norway, Ms DilekAyhan; the State Secretary for Trade, Ministry of Foreign Affairs of Denmark, Ms Susanne Hyldelund, and the DG of the Ministry of Industry & Economy of Spain, Mr. Jose Louis Kaiser Moreiras.

Later in the day the Minister met, the Chairman of Korea's ruling Democratic Party, Ms. ChooMi-ae and discussed the rapid progress in bilateral ties since the inauguration of President Moon Jae-in's administration in May 2017. Ms. Choo highlighted the importance attached by President Moon to the bilateral relationship with India and his commitment to elevate it to the next level. Calling India a shining star in the global economy, Ms. Choo noted that the "elephant was out performing the dragon". Later, Shri Prabhu met the Chairman and CEO of Korea's most influential media house, the ChosunIlbo, Mr. Bang Sang-hoon to discuss bilateral economic ties, and to consider hosting the next India-Korea Business Summit at an early date, focusing on sectors which would energize the bilateral trade relationship.

Earlier, on September 21, the Minister for Commerce and Industry met the senior leadership of top Korean industries, including Samsung, Kia motors, Lotte, Kumho-Asiana, Hyundai Electric, Posco, LS Group, Toray Chemicals, CJ Logistics and TongyangMoolsang. In a detailed exchange of views with these businesses, and the Federation of Korean Industries, issues and prospects for more business cooperation were discussed. Attendees represented a cross section of Korean businesses already operating in or interested in expanding their operations in India.

(Source: http://www.business-standard.com/article/government-press-release/visit-of-commerce-and-industry-minister-shri-suresh-prabhu-to-republic-117092300477_1.html dated 24th September-2017)

BACK

Exports may miss global trade revival

Global trade growth is expected to rebound in 2017 but India may not be able to take advantage of this in the US and China — major markets where consumer and industrial demand is set to drive trade forward.

On Thursday, the World Trade Organisation (WTO) raised the estimate for growth in world merchandise trade volume for 2017 to 3.6 per cent from 2.4 per cent it had projected earlier.

The revision is because of positive economic trends in North America and China that are leading to a resurgence of industrial and consumer demand.

However, exporters and trade experts said it would be difficult for India to tap this demand in the near term.

The US is the largest destination for Indian exports, earning $42 billion in 2016-17. The share of goods heading to the US has increased over the past five years to 15.3 per cent in 2016-17.

However, major export categories such as textiles and gems and jewellery have stagnated in the US market.

India’s textile exports to the US, across categories such as apparel, made-ups and accessories, have suffered over the last few years due to cheaper alternatives from Bangladesh, Vietnam and the Philippines.

“Our market share has stagnated in the low single digits and I do not see a change anytime soon, either in the US or in Europe,” said SK Jain, chairman of the Apparel Export Promotion Council.

India’s exports of gems and jewellery, especially rough or processed diamonds, were $9.7 billion, up 12 per cent in the last year. But experts said the trend might be reversed next year.

The US is a major market for Indian manufacturers of generic drugs, almost half of which, by volume, reach US shores. “In the US, almost 80 per cent of generics are sourced from India. However, the market share has stagnated while growth in value terms has slowed down,” said PV Appaji, former executive director at Pharmexil.

(Source:-http://www.business-standard.com/article/economy-policy/exports-may-miss-global-trade-revival-117092300840_1.html dated 23rd September-2017)

BACK

India is more important for Latin American exports than Germany, UK, France, Spain and Italy

Mr. R. Viswanatham, also known as Rengaraj Viswanathan, is a retired Indian diplomat, writer and speaker specializing in Latin American politics, markets,and

India has become more important as an export destination for Latin America than their their traditional European trade partners such as Germany, UK or France. In 2016 Latin America exported 16.7 billion dollars of goods to India while their exports to Germany was 14.4 billion, Spain-13.5bn, UK-10 bn, Italy-9.3 bn and France – 7.2 bn.

India was the sixth largest export destination for Latin America in 2016, after US, China, Netherlands, Canada and Japan. In 2014, India was in the third rank with 29 billion dollars ahead of Japan, Netherlands and Canada. The main reason for the drop in Latin American export to India in 2016 is the sharp fall in prices of oil, the main Indian import from the region.

India is the number one destination of Latin America's vegetable oil exports, the second largest importer of Latin American crude oil, third for the region's exports of copper, fourth for gold and also fourth for ores.

India, as a major export market, is not a wonder of one or two years. India has emerged as a large and growing market for Latin American goods in recent years and is going to continue its ranking in the years to come. India has already overtaken China in GDP growth rate and is set to surpass China in population too.

Petroleum crude, copper, gold, ores and vegetable oil are among the top global exports of the region and at the same time these are the major imports of India from the world. India is going to increase its imports of these items in the future both globally and from Latin America in view of the of the growing gap between domestic demand and production. The increasing Indian population (15 million a year) and consumption power of the new middle class as well as the need for fuelling the high growth of the economy will continue to drive the rise in imports. This Indian need is complemented by Latin America's potential to export more with its ample resources.

Indian agriculture faces daunting challenges caused by the diversion of agricultural land for other purposes, shortage of water and low productivity due to inadequate investment by most farmers whose land sizes are small. On the other hand, South America has vast tracts of fertile land, abundant water, technologies and best practices with which the region has emerged as a global agricultural powerhouse. Besides soy and sunflower oil, the region can supply palm oil to India. Some countries in the region have started palm plantations and exports of oil. This will help India to reduce the over dependence on the monopoly suppliers Malaysia and Indonesia and bring down prices. South America has started exporting small quantities of pulses to India which is the largest importer in the world.

Apart from petroleum crude, vegetable oil, minerals, sugar and gold, Latin America exported to India in 2016 manufactured products such as equipments and machinery ( 432 million), iron and steel (227m), chemicals ( 200 m) electrical equipments ( 173 m) and plastic products ( 172 m). Latin American firms are yet to explore the opportunities offered by the huge investment India is making in infrastructure including highways, airports, ports, power and renewable energy as well the huge Indian "retail revolution” which opens possibilities for supply of value added food and consumer products from Latin America.

Latin American governments and business need to proactively explore the large long term opportunities offered by India with more business delegations, participation in Indian trade fairs, market studies and strengthening of commercial sections of the embassies.

Latin America is projected to increase its imports by 6% in 2017, according to the 3 August report of the Economic Commission for Latin America and Caribbean ( ECLAC). This is welcome news coming after the decline of imports in the last four years since 2013.

The region is resuming GDP growth (1.1%) in 2017, after the contractions of 0.4% in 2015 and 1% in 2016.

Panama will have the highest growth rate of 5.6% followed by Dominican Republic – 5.3%, Nicaragua-4.7% and Costa Rica-4.1%. Brazil will have a modest growth of 0.4%, Mexico-2.2%, Argentina-2%, Colombia-2.1%, Peru-2.5% and Chile-1.4%. South America is expected to see growth of 0.6%; Central America and Mexico, 2.5%. Venezuela will suffer 7.2% GDP contraction..no surprise. In the last three years, Venezuela has lost almost one third of its GDP.

The economic recovery of the region is being driven by the rise in domestic consumption and demand, the increase in global prices of commodities exported by the region and favourable global economic conditions. Commodity prices are expected to rise by 12% on average compared with 2016. In particular, energy prices are expected to increase by 19%, and metals and minerals by 16% and food prices by 3%.

The exports of the are projected to expand by 8%. Average inflation of the region has fallen from 7.3% in 2016 to 5.7% in May 2017. However, Argentina’s inflation stood at 24.7% while Venezuela’s rate has gone up over 600% and beyond control.

It is interesting to note that despite the recession in 2016, the region attracted 141 billion dollars of foreign direct investment (FDI), an increase from 2015. Brazil received 71 billion dollars, Mexico-28 bn, Colombia –9 bn, Peru- 6.6 bn, Chile –5.1 bn, Panama-5 bn, Costa Rica- 2.6 bn, Argentina-2.4 bn, Dominican Republic- 2.4 bn and Guatemala- 1 bn.

Total External debt of the region has increased to 1.47 trillion dollars from 1.42 trillion in 2015 but the ratio of external debt to GDP is a manageable 35%.

Total international reserves of the region have increased to 831 billion dollars in May 2017 from 795 billion in December 2015. This is a comfortable level for the region except for Venezuela whose position has become insecure with just about 10 billion dollars but with some debt repayments due this year.

Venezuela has become the black sheep of the region with its political and economic crisis. It has buried itself in a deeper hall with the Constituent Assembly elections held this week. The election has been rejected by key Latin American countries besides US and EU. The Chavistasare moving the country to a Cuban model of dictatorship which is untenable in Venezuela and is bound to collapse. The economy is in a free fall with total mismanagement, the world’s highest inflation, multiple exchange rates, large scale corruption, shortages of essential consumer items and the destruction of the domestic industry. Caracas has become the capital of crime and violence in the region. It is just a matter of time for the Chavista regime to collapse.

Brazil avoided another Presidential impeachment last week. Although the country will continue to suffer from political turbulence, it appears that the current President Temer is likely to stay till the elections due in 2018. He might take more initiatives to bring about some economic reforms in the coming months to show off his legitimacy. In any case, he is in a position to try the difficult and impossible since he has no future as President and nothing to lose. He has been disqualified to stand for Presidential elections as a conviction for his violation of electoral rules. The economy has started recovery and is set to grow. However investment, infrastructure and public spending will continue to be low key in the aftermath of the ongoing corruption scandals involving companies and politicians.

Mexico is heaving a sigh of relief seeing that Trump’s bite is less worse than his bark. During his campaign, he attacked NAFTA as the worst deal ever signed by US. But now he has realised the limitations and is talking about just a review of the Treaty. He has gone soft on the border wall and his capacity to hurt Mexico has diminished. So NAFTA is safe and the Mexican economy is not going to be disrupted by Trump.

India’s trade with the region should increase in 2017 from the 30 billion dollars in 2016, given the rise in commodity prices and the expected increase of global imports by the region. It is encouraging to note that India’s exports to Mexico had increased by over 20% in 2016. Vehicles have become the largest exports of India to the region at 3.4 billion dollars. The vehicle exports have been increasing significantly in recent years.

Indian investment in the region is coming down. Some companies such as Havells and Aegis have sold off their Latin Americans assets and operations. One of the sugar mills of Renuka in Brazil is being auctioned by the court in the first week of September. Renuka, which had invested about 500 million dollars in Brazil, has already declared bankruptcy. However, UPL, the largest Indian agrochemical company, is planning more acquisitions in Latin America. Its Brazilian turnover has overtaken its business in India.

The Indian business should get inspiration from China’s trade of 215 billion dollars with Latin America in 2016 and its investment of 110 billion dollars and credit of 141 billion dollars to the region. The Latin Americans want to reduce their over dependence on China and seek diversification and reach out to new markets such as India. There is tremendous potential for Indian business in the large and growing market of Latin America with a combined GDP of five trillion dollars and a population of 620 million.

According to Economist (27 July) seventy percent of farmworkers in US are Mexicans. In California it is even higher at 90%. The farm industry, especially the fruits and vegetable part, faces serious problems of shortage of workers, after Trump's persecution of Mexicans. The American farmers had to plough under vegetables and fruits since they did not have enough pickers. The wages have gone upto 19 dollars per hour in some places.This means that US has to increase imports of fruits and vegetables.

The US has a provision for guest workers under H2A. In 2016 US imported 134,000 guest workers. The request for H2A visa have steadily increased from 55000 in 2011. Even Trump's son Eric has applied for 29 visas for workers for his vineyard.

It is, therefore, not surprising that Trump barks less these days at Mexico under pressure from the farm lobby. He is just trying to tweak NAFTA a little for face saving rather than rip off the Treaty as he threatened during campaign. He had earlier claimed that NAFTA was the worst ever deal signed by US. He has now realised that most of the Mexican factories which export to US using NAFTA belong to his own American buddies who have set up assembly and manufacturing units in Mexico to cut costs. In fact, Mexico has helped US companies to reduce their over dependence on China for manufacturing and diversify. Today Mexico has become more competitive than China in the production of cars and appliances thanks to the Chinese wage rise. Trump can only bully those American companies who want to set up new plants in Mexico but not those who are already established there. If Trump stops the ongoing flow of Mexican-made products into US, the American industry will suffer more since they cannot quickly shut their Mexican shops and restart in US.

Mexico has also hinted that it can play its trump card. They have announced that they will reduce/stop import of corn and some other food products from US and source them from Argentina and Brazil. This has alarmed the US exporters of such products who are now putting pressure on Trump administration.

If Trump wants to reduce trade deficit he should go after China with whom the US trade deficit is a massive 366 billion dollars while it is just 66 bn with Mexico in 2016.

So NAFTA is safe and Trump is no longer a serious threat but just a minor nuisance to Mexico. According to a Pew research centre study, more Mexicans have left US than arrived in the period 2005-14 even before the apparition of Trump. The Trump Wall seems to have become like a Magical Realism..Trump, the Caudillo, is set for 'one hundred years of solitude'.

BACK

5 Important Steps for Shipping Dangerous Goods by Sea

1.Classify dangerous Goods

First step is to classify the goods under the criteria of IMDG Code. Chapter 2.0 of IMDG Code lays down general provisions of classification, chapters 2.1 to 2.9 are specific criteria for classification of goods under Class 1 to Class 9 and chapter 10 for marine pollutants.

Classification includes assignment of UN Number, Proper Shipping name and Packing Group. Most commonly transported substances and solutions are already assigned to specific UN Number and packing group which can be found in the Alphabetical index.

For the selection of appropriate packaging dangerous goods substances are divided into packing groups

Packing Group I: high danger

Packing Group II: medium danger

Packing Group III: low danger

Classes 1, 2, 5.2, 6.2, 7 and self-reactive substances of class 4.1 and articles are not assigned to packing groups.

UN Manual of Tests and Criteria, 6th edition sets out the test procedures for determining whether the goods are dangerous, packing groups and compatibility groups for explosives. Further these criteria meet the classification and assignment of packing group as set out in Globally Harmonized System of Classification and Labelling of Chemicals (GHS).

A mistake made in classification may change the packing group or proper shipping name or even a wrong class which can cause wrong stowage on board ships and wrong application of emergency response thus endangering lives at sea.

Personnel involved in classifying dangerous goods and assigning proper shipping name shall be trained in:

  • the structure of the description of substances
  • the classes of dangerous goods and the principles of their classification
  • the nature of the dangerous substances and articles transported (their physical, chemical and toxicological properties)
  • the procedure for classifying solutions and mixtures
  • identification by proper shipping name
  • use of Dangerous Goods List

2. Pack dangerous goods

Options of packagings are listed through Packing, IBC and Tank instructions. These instructions provide a wide range in size and types of packagings from smallest to largest, IBCs and tanks. Depending on the packing group maximum quantity permitted in specific packages or type of IBCs may differ. Certain goods when packed in plastics packages will differ in stowage category on board vessel.

Requirements for testing of packages are laid down in chapter 6 of IMDG Code.

Personnel involved in packing of dangerous goods shall be trained in:

  • Classes
  • Packaging requirements
  • type of packages (IBC, large packaging, tank
  • container and bulk container)
  • UN marking for approved packagings
  • segregation requirements
  • limited quantities and excepted quantities
  • Marking and labelling
  • First aid measures
  • Emergency response procedures
  • Safe handling procedures

3. Mark, label or placard dangerous goods

Every package of dangerous goods must be marked and labelled. Marking includes UN Number, Proper Shipping Name, Technical name (when assigned with special provision 274), Marine Pollutant mark. Labels of Class and Subsidiary Risks must be affixed next to the marks. Special provisions may require additional label or dispense a label which need to be considered. Consignment of dangerous goods in Limited Quantities or Excepted Quantities have different marking requirements which are laid down in chapters 3.4 and 3.5 respectively.  There may be additional marking requirements or exemptions for specific goods stipulated through special provisions.

Personnel involved in marking Labeling of dangerous goods packages or Placarding the cargo transport units shall be trained in:

  • Classes
  • Marking, labelling and placarding requirements
  • primary and subsidiary risk labels
  • marine pollutants
  • limited quantities and excepted quantities

4. Load/ Unload Cargo Transport Unit

Chapter 7.3 of IMDG Code contains the provisions appropriate to those responsible for the consignment operations in the dangerous goods transport supply chain, including provisions relating to packing of dangerous goods into cargo transport units. Segregation provisions of Chapter 7.2 must be adhered to when multiple dangerous goods are packed into same container. When liquid dangerous goods are filled into tank containers degree of filling as prescribed in chapter 4.2 must be taken in to consideration. Guidelines for packing a container can be found in UNECE CTU Code. Personnel involved in packing of container must be trained in performing this function. Most of the cargo damages and fires are originated by dangerous goods poorly packed in containers.

Personnel involved in Load/unload cargo transport units shall be trained in:

  • Documentation
  • Classes
  • Marking, labelling and placarding
  • Stowage requirements, where applicable
  • Segregation requirements
  • Cargo securing requirements (as contained in the
  • CTU Code)
  • Emergency response procedures
  • First aid measures
  • CSC requirements
  • Safe handling procedures

Exis Technologies online training for safe handling and packing of CTUs is an effective training tool for same.

5. Prepare Transport Document
Once the doors of container are closed no one can see what is inside the box. No one knows what’s inside the box other than the party packed it. Information contained in dangerous goods declaration is the final words which determine correct stowage and segregation on board ships.  Incorrectly prepared dangerous goods declaration can end up placing the container in wrong stowage location jeopardizing safety of life at sea.

Chapter 5.4 of IMDG Code lays down the criteria for declaring dangerous goods to carrier. Shipper and packer has different responsibilities which will be combined when shipper himself is packing the container.

Below are the legal declarations of Shipper and Packer of dangerous goods.

SHIPPER’S DECLARATION

I hereby declare that the contents of this consignment are fully and accurately described below by the proper shipping name, and are classified, packaged, marked and labelled/placarded and are in all respects in proper condition for transport according to the applicable international and national governmental regulations.

CONTAINER/VEHICLE PACKING CERTIFICATE

I hereby declare that the goods described above have been packed/ loaded into the container/vehicle identified above in accordance with the applicable provisions.

Personnel involved in preparing transport documents for dangerous goods shall be trained in:

  • transport document
  • container/vehicle packing certificate
  • competent authorities’ approval
  • waste transport documentation
  • special documentation, where appropriate

BACK

EXPORT STRATEGY- BANGLADESH

INTRODUCTION OF CHEMICAL INDUSTRY IN BANGLADESH

As Bangladesh is a developing country and was independent in 1971 so there are few chemical industries in Bangladesh.

Most of the industries were developed in Pakistan period and after independence these industries were owned by the government of Bangladesh. Besides these industries, several typeof chemical industries were developed in Bangladesh under the government sector, Public sector and Private sector.

Below categories of chemical industries are present in Bangladesh.

  • Fertilizer industry
  • Cement Industry
  • Glass industry
  • Hard board Industry
  • Sanitary ware and insulator industry
  • Oil refining industries
  • Paper industry
  • Pharmaceutical industry
  • Leather industry

Bangladesh Chemical Industries Corporation (BCIC) (http://www.bcic.gov.bd/) is a fully owned by the Government, was established in July, 1976 by a presidential Order. The Corporation is now managing 13 large and medium size industrial enterprises engaged in producing a wide range of products like Urea, TSP (Tri Sodium Phosphate), DAP (Diammonium Phosphate), Paper, Cement, Glass sheet, Hardboard, Sanitary ware & Insulator etc.

Aim and Objectives of Bangladesh Chemical Industries Corporation

The basic objective of BCIC is to help building the National Economy through:

  • Implementation of industrial policy to develop socio-economic condition.
  • Developing socio-economic infrastructures.
  • Ensuring operation of the enterprises at the optimum level of efficiency and productivity.
  • Making available import substitute and quality products at reasonable prices
  • Achieving the country towards food autarky by producing and supplying agricultural inputs at door steps of the people all over the country.
  • Earning Foreign exchange through export of surplus industrial products after meeting domestic demand.
  • Extending necessary Techno-Financial assistance to both local and Foreign Entrepreneurs and establishing new industries as Joint Venture in Chemical and allied sectors and making optimum use of the natural and human resources of the country.

Garment/Textile Industry: The Textile industry of the country remains the strongest root of its economy, with 76% contribution in its foreign exchange. Approximately, 2.2 million Bangladeshis are employed in this industry, of which 80% are women. The textile industry is made up of several small- and large-scale, private and public companies. The Unites States is the biggest garment importer for Bangladesh, with $5 billion in imports annually.

So there is huge opportunity for exports of textile chemicals in Bangladesh from India.

ECONOMY:-

Bangladesh's economy has grown roughly 6% per year since 1996 despite prolonged periods of political instability, poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms. Although more than half of GDP is generated through the services sector, almost half of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product.

Garment exports, the backbone of Bangladesh's industrial sector, accounted for more than 80% of total exports and surpassed $25 billion in 2016. The sector continues to grow, despite a series of high-profile factory accidents that have killed more than 1,000 workers and crippling strikes, including a nationwide transportation blockade orchestrated by the political opposition during the first several months of 2015. Steady export growth in the garment sector combined with remittances from overseas Bangladeshis - which totaled about $15 billion and 8% of GDP in 2015 - are key contributors to Bangladesh's sustained economic growth and rising foreign exchange reserves.

Regulations and customs in Bangladesh

  • Non TariffBarriersNon-tariff barriers include registration procedures and other regulatory requirements, which often impede access to the market.
  • Customs Duties and Taxes on Imports17.22%
  • Customs Classification Bangladesh applies the Harmonized Commodity Coding System.
  • Import Procedures:-Most imports require opening an irrevocable letter of credit (L/C), which necessitates a letter of credit authorization (LCA) approved by the central bank. Foreign companies must obtain authorization from the Chief Controller of Imports and Exports and provide the following documents: photocopy of an import registration certificate; photocopies of invoices, bills of lading, and import permit duly certified by the bank; a copy of the certificate of the General Index Register (GIR); certified copy of the last tax order; name and description of each imported item with the quantity and approximate CIF value. Private sector importers must provide the following documents: certificate of affiliation to a chamber of commerce and local industry recorded or professional association established in Bangladesh; proof of payment of renewal fees for import registration certificate (IRC) for the tax year; copy of a certificate of tax identification number (TIN); three copies of the proof of payment of the previous year's income tax.
  • Importing Samples: - Importing samples requires an import license or an authorization.

(Source:https://import-export.societegenerale.fr/en/find-your-market/country/bangladesh/regulations-customs )

BACK

FTA INVOLVEMENT

The Bangladesh has 6- free trade agreements in force which are as under

  1. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Free Trade Area  (Members:- Bhutan, Myanmar, Sri Lanka, Bangladesh, India, Nepal, Thailand)
  2. Pakistan-Bangladesh Free Trade Agreement 
  3. Trade Preferential System of the Organization of the Islamic Conference (Members: Bahrain, Egypt, Indonesia, Jordan, Kuwait, Lebanon, Morocco, Nigeria, Pakistan, Saudi Arabia, Turkey, Uganda, Bangladesh, Cote Divoire, GuineaIran, Islamic Republic of Maldives, Oman, Qatar, Senegal, Syrian Arab Republic, Tunisia, United Arab Emirates, Benin, Burkina Faso, Cameroon, Chad, Comoros, Djibouti, Gabon, Gambia, Guinea-Bissau, Iraq, Libya, Malaysia, Mauritania, Niger, Palestine, Sierra Leone, Somalia, Sudan)
  4. Asia-Pacific Trade Agreement  (Members : Bangladesh, India, Lao PDR, China, People's Republic of Korea, Republic of Sri Lanka)
  5. Preferential Tariff Arrangement-Group of Eight Developing Countries  (Members : Bangladesh, Indonesia, Malaysia, Pakistan, Egypt, Iran, Islamic Republic of Nigeria, Turkey)
  6. South Asian Free Trade Area (Members:  Bangladesh, Bhutan, India, Nepal, Sri Lanka, Pakistan, Maldives)

 (For More details please refer https://aric.adb.org/fta-country )

GDP (purchasing power parity): $628.4 billion (2016 est.),$587.7 billion (2015 est.),$550.2 billion (2014 est.)

Industries:- jute, cotton, garments, paper, leather, fertilizer, iron and steel, cement, petroleum products, tobacco, pharmaceuticals, ceramics, tea, salt, sugar, edible oils, soap and detergent, fabricated metal products, electricity, natural gas.

Exports: - $33.32 billion (2016 est.), $31.74 billion (2015 est.)

Exports Commodities:- garments, knitwear, agricultural products, frozen food (fish and seafood), jute and jute goods, leather.

Exporting Partners: - US 13.9%, Germany 12.9%, UK 8.9%, France 5%, Spain 4.7% (2015)

Imports: - $39.17 billion (2016 est.), $37.63 billion (2015 est.)

Import Commodities: - cotton, machinery and equipment, chemicals, iron and steel, foodstuffs.

Import Partners: - China 22.4%, India 14.1%, Singapore 5.2% (2015).

An Overview of the Chemical Sector in Bangladesh

The textile industry has played an important role in Bangladesh’s economic for a long time. Country textile industry in Bangladesh accountants for 45% of all industrial employment and contributes 5% to the total national income. A huge 78% of country’s exports earnings come from textiles and apparels sector, according to largest figures available. The textile private sector in the country is the fastest growing sector in Bangladesh. So the future of textile industry of Bangladesh is very bright. Combined the textile and apparel sectors consist of around 4000 firms. The textile industry is one of the largest in Bangladesh and is still expanding.

The textile industry is a chemicals based industry. There are different types of chemicals needed in the process of different types of textile processing steps. So chemicals play a vital role in textile industry specially wet processing factory.

Like textile, pharmaceutical sector has a great future. The pharmaceutical sector is widely regarded as a “hi-tech” industry, is a most developed among the manufacturing in the Bangladesh. Roughly 250 companies are operating in the market. So there are various types of chemicals used in this sector. Also there are so many chemicals are used in different industrial areas at present stage.

The Dyestuff sector is one of the important segments of the chemical industry in Bangladesh, having forward and backward linkages with a variety of sectors like textiles, leather, paper, plastics, printing inks and foodstuffs. The textile industry accounts for the largest consumption of dyestuffs at nearly 70%.

Different Chemical Names and Their Uses:

Chemicals are the most important ingredients of the wet process based industry. Textile wet processing industry can’t imagine without chemicals. Without textile industry, chemicals also widely used in manufacturing of pharmaceuticals, papers, cements, fertilizers, paints, plastics etc. Different chemicals used for different manufacturing process. Mostly used chemicals in textiles and other industries are summarized below:

Caustic Soda:

One of the main basic chemical is caustic soda. Its chemical name is Sodium Hydroxide (NaOH). It is an industrial product. Different industries use Caustic Soda as raw material. We name here few of the large consuming industries of Caustic Soda consumption such as Soap, glass, drugs, paper & pulp, textiles, leather, sugar, WTP and ETP etc.

Hydrogen Peroxide:

Our main basic chemical is Hydrogen Peroxide (H2O2). Market size in our country is ever bigger like caustic soda. Textile, Dyeing, medicine, pharmaceuticals, cleaning agent, pulp and paper etc Industries use Hydrogen Peroxide in huge quantity.

Acetic Acid:

This acid is widely used in textile wet processing industry for neutralization of fabric. And also used to obtain acidic condition in dyeing solution.

Hydrochloric Acid:

In the process of producing Caustic Soda we get Hydrogen (H2) and Chlorine (Cl2) as bi product. We will make very good use of H2 and Cl2 to produce different bi products. One bi product that we have decided to produce is Hydrochloric acid. It is used in textile industry, metal industry, effluent treatment plant, pharmaceutical industries, leather industries and many other industries.

Stable Bleaching Powder (SBP):

It is a very useful chemical. Not only domestic customers use this chemical. It is used in textile industry, pulp and paper industries and washing plant. Hospitals, WASA etc. organization use stable bleaching powder in bulk quantity. It has domestic use for cleaning houses, toilets and other places.

Chlorinated Paraffin Wax (CPW):

This product is used to produce inflammable plastic. Plastic product does not produce flame rather it melts. This product is used in PVC industries and in cable factories. Fire from electric short circuit is very common in our country. Production of electric cable with CPW will help to reduce the risk of electric short circuit.

Without above these, sulfuric acid, different washing chemicals, sequestering agents, softening agents, different stabilizer widely used in dyeing industry.

Market Demand:

According to “Feed Mill Industry in Bangladesh: Business Report 2012” the chemical industry in the country by identifying key market players, (including major producers, traders, etc), as well as evaluating foreign economic relations within the sector in the last three years.

The textile wet processing industry is a chemicals based industry. Different types of chemicals need in the process of different types of textile processing steps. So chemicals play a vital role in textile industry.

There are number of company or suppliers supply the chemicals in the Bangladesh, Some of their Bangladeshi suppliers and some of their foreigner company. So there is a vast market demand in textile chemicals.

(Source: http://textilelearner.blogspot.in/2013/02/an-overview-of-textile-chemical-sector.html )

BACK

CHEMEXCIL’S COMMODITYWISE EXPORTS TO BANGLADESH

CHEMEXCIL’S COMMODITYWISE  EXPORTS TO BANGLADESH
                                                                                                                           (US$ in million)
Chapter No./Panel 2014-15 (Actual) 2015-16 (Actual) 2016-17 (Provisional) % over 2015-16
(32) Dyes & (29) Dye Intermediates 114.07 103.12 117.13 13.59
(28) Inorganic, (29) Organic & (38)  Agro chemicals 109.11 114.98 134.93 17.35
(33) Cosmetics,  (34) Soaps, Toiletries and (33) Essential oils 85.47 82.47 89.84 8.94
(15) Castor Oil 0.10 0.08 0.16 103.65
Total 308.75 300.65 342.06 13.77
Source: DGCI&S        


DYES - Top Items Exports to Bangladesh
HSCode Product 2013-2014 2014-2015 2015-2016
32041680 REACTIVE BLACKS 21.66 33.18 28.48
32041650 REACTIVE BLUES 10.73 14.00 12.46
32041630 REACTIVE REDS 8.79 13.72 11.84
32041610 REACTIVE YELLOWS 9.28 12.60 10.97
32050000 COLOUR LAKES 4.39 7.79 8.43
32041620 REACTIVE ORANGES 4.96 6.80 5.66
32041690 OTHER REACTIVE DYES 1.13 1.58 3.03
32042010 OPTICAL WHITENING AGETNS 1.12 2.25 2.42
32021000 SYNTHETIC ORGANIC TANNING SUBSTANCES 4.44 3.09 2.37
32041561 VAT GREEN 1 (INDANTHRENE BRILL GREEN BFFB) 1.02 3.17 2.18
32041739 OTHER PIGMENT RED 0.78 1.10 1.90
32041640 REACTIVE VIOLETS 2.11 3.40 1.73
32041196 DISPERSE BLACK MIXTURES 0.60 1.30 1.67
32041719 OTHER PIGMENTS YELLOW 1.20 1.40 1.61
32041990 OTHER INCL. MIXTURE OF COLORING MATTERS OF TWO OR MORE OF SUB-HDNG 320411 TO 320419 0.86 1.26 1.39
  Country Totals 73.06 106.64 96.14


DYE INTERMEDIATES - Top Items Exports to Bangladesh
HSCode Product 2013-2014 2014-2015 2015-2016
29051100 SATURATED METHANOL (METHYL ALCOHOL) 0.06 0.62 1.04
29049070 SODIUM META NITRO-BENZENE SULPHONATE 0.05 0.08 0.08
29041040 VINYL SULPHONE 0.00 0.02 0.07
29214390 OTHER TOLUIDINES & THEIR DERIVATIVES; SALTS THEREOF 0.06 0.04 0.03
29041030 NAPTHALENE SULPHONIC ACID 0.04 0.06 0.03
29029010 DIPENTENE 0.00 0.00 0.02
29224300 ANTHRANILIC ACID AND ITS SALTS 0.00 0.03 0.01
29214110 ANILINE 0.00 0.00 0.01
  Country Totals 0.21 0.84 1.29


Exporters Imported value in 2015
World 587.91
India 146.29
China 109.26
Singapore 88.14
Korea, Republic of 45.04
Taipei, Chinese 40.58
Thailand 26.86




INORGANIC CHEMICALS - Top Items Exports to Bangladesh
HSCode Product 2013-2014 2014-2015 2015-2016
28030010 CARBON BLACK 4.08 5.28 4.27
28092010 PHOSPHORIC ACID 0.02 0.01 4.08
28281010 COMMERCIAL CALCIUM HYPOCHLORITE (BLEACHING PASTE/POWDER) 2.20 2.35 2.77
28365000 CALCIUM CARBONATE 1.84 2.14 2.20
28151110 FLAKES OF SODIUM HYDROXIDE (CAUSTIC SODA) 2.89 0.91 2.02
28362020 DISODIUM CARBONATE LIGHT (SODA ASH) 12.10 3.19 1.51
28363000 SODIUM HYDROGEN CARBONATE 0.74 1.13 1.07
28042100 RARE GASES ARGON 0.70 0.79 0.87
38249025 PRECIPITATED SILICA AND SILICA GEL 0.86 0.88 0.86
38029019 OTHER ACTIVATED NATURAL MINERAL PRODUCTS 0.60 0.87 0.80
38101010 PICKLING PREPARATIONS AND OTHER SOLDERING, BRAZING OR WELDING POWDER/PASTES 0.12 0.06 0.76
38249021 ELECTROPLATING  SALTS 1.17 0.98 0.68
28331100 DISODIUM SULPHATE 0.03 0.10 0.55
28299030 IODATES AND PERIODATES 1.35 1.96 0.51
28275990 OTHER BROMIDES AND OXYBROMIDES 0.13 0.35 0.42
  Country Totals 28.81 20.97 23.37


Unit : US Dollar MILLION

Exporters

Imported value in 2015

World

375.39

China

166.50

India

39.04

Jordan

37.57

Morocco

14.33

Germany

11.97

South Africa

11.82





ORGANIC CHEMICALS - Top Items Exports to Bangladesh
HSCode Product 2013-2014 2014-2015 2015-2016
29333990 OTHER COMPOUNDS CONTG.  AN UNFUSED PYRIDINE RING (W/N) HYDROGENATED STRUCTURE 6.25 8.24 10.31
29153100 ETHYL ACETATE 5.89 5.75 6.43
38170011 LINEAR ALKYLBENZENE 1.19 4.92 5.56
29183090 OTHER CARBOXYLIC ACIDS WITH ALDEHYDE OR KETONE FUNCTION BUT WITHOUT OTHER OXYGEN FUNCTION, THEIR ANH 2.04 2.61 2.88
29333919 OTHER DERIVATIVES OF PYRIDINE 1.17 2.28 1.98
29335990 OTHER COMPOUNDS CONTAINING A PYRIMIDINE RING (W/N HYDROGENTATED) OR PIPERAZINE RING IN STRUCTURE 1.83 1.22 1.61
29152100 ACETIC ACID 1.68 0.92 1.57
29029090 OTHER CYCLIC HYDROCARBONS 1.20 1.38 1.57
38140010 ORGANIC COMPOSITE SOLVENTS AND THINNERS N.E.S. 0.98 1.37 1.51
11081200 STARCH OF MAIZE (CORN) 2.18 1.27 1.50
29224990 OTHER AMINO ACIDS AND THEIR ESTERS OTHER THAN THOSE CONTAINING  MORE THAN ONE KINDOF OXYGEN FUNCTION 0.82 1.46 1.36
29159090 OTHER SATURATED ACYCLIC MONOCARBAXYLIC ACID ETC & THEIR DERIVATIVES 0.72 0.91 1.04
35051090 OTHER DEXTRINS AND OTHER MODIFIED STARCHES 0.62 0.77 0.94
29153200 VINYL ACETATE 0.95 0.71 0.90
29152400 ACETIC ANHYDRIDE 0.36 0.54 0.90
  Country Totals 27.88 34.36 40.07


   
Exporters Imported value in 2015
World 656.77
India 181.54
China 176.63
Singapore 79.41
Korea, Republic of 40.62
Malaysia 27.36
Germany 13.11




AGRO CHEMICALS - Top Items Exports to Bangladesh
HSCode Product 2013-2014 2014-2015 2015-2016
38089199 OTHER INSECTICIDE N.E.S. 22.09 21.52 20.02
38089290 OTHER FUNGICIDES 7.96 11.11 16.96
38089910 PESTICIDES, NOT ELSEWHERE SPECIFIED OR INCLUDED 3.87 4.24 4.01
38089390 OTHER HERBICIDES, ANTI-S-SPROUTING PRODUCTS AND PLANT GROWTH REGULATORS 1.03 3.17 3.45
38089210 MANEB 1.60 2.36 1.72
38089990 OTHER SIMILAR PRODUCTS  N.E.S. 2.16 0.81 0.99
38089191 REPELLANT FOR INSECTS  SUCH AS FLIES, MOSQUITO 0.77 1.04 0.80
38089310 CHLOROMETHYL PHENOXY ACETIC ACID (M.C.P.A.) 0.15 0.44 0.53
38089135 CIPERMETHRIN TECHNICAL GRADE 0.56 0.83 0.51
38089132 QUINALPHOS 0.19 0.34 0.26
38089121 DIAGINAL 0.00 0.00 0.22
38089400 DISINFECTANTS 0.06 0.26 0.12
38089250 COPPER OXYCHLORIDE 0.09 0.09 0.10
38089137 SYNTHETIC PYRETHRUM 0.29 0.35 0.09
38089111 ALUMINIUM PHOSPHITE (E.G. PHOSTOXIN) 0.36 0.08 0.09
  Country Totals 41.18 46.64 49.87


Exporters

Imported value in 2015

World

505.04

China

103.53

India

100.18

Singapore

75.30

Germany

30.27

Taipei, Chinese

25.98

Malaysia

21.71





COSMETICS & TOILETRIES - Top Items Exports to Bangladesh
HSCode Product 2013-2014 2014-2015 2015-2016
34029091 WASHING AND CLEANING  PREPNS HAVING BASIS OF SOAP/OTHER ORGANIC SURFACE ACTIVE (OTHER PREPNS) 36.98 30.49 16.81
38099190 OTHER TEXTILE ASSISTANTS 4.24 5.22 7.13
34021190 OTHERS (E.G. ALKYL SULPHATES TECH. DODECYL BENZENE-SULPHONATES, ETC.) 3.67 4.64 6.77
33049990 OTHER BEAUTY MAKE-UP PREPARATION 5.86 4.93 5.76
33029011 SYNTHETIC PERFUMERY COMPOUNDS 3.44 3.18 3.66
33061020 DENTIFRICES IN PASTE (TOOTH PASTE) 3.12 2.49 3.39
38099110 TEXTILE ASSISTANTS MORDANTING AGENTS 1.70 2.27 3.11
33079090 OTHER COSMETICS AND TOILETRIES PREPARATIONS N.E.S. 0.20 0.40 2.77
33049910 CREAM FACE 1.49 1.24 2.53
34021300 NON-IONIC W/N FOR RETAIL SALE 2.16 2.04 2.44
33072000 PERSONAL DEODORANT AND ANTIPERSPIRANTS 1.10 3.17 2.07
34029099 OTHER (OTHER PREPARATIONS)  NES 0.83 1.73 2.01
34013090 OTHER ORGANIC SURFACE ACTIVE PRODUCTS AND PREPARATION  WASHING THE SKIN IN THE FORM OF LIQUIED OR CR 1.47 1.68 1.77
25262000 NATURAL STEATITE CRUSHED/POWDER 1.49 1.46 1.50
33071090 OTHER PRE-SHAVE, SHAVING OR AFTER  SHAVE PREPARATIONS 1.32 1.04 1.19
  Country Totals 69.06 65.99 62.91


Exporters Imported value in 2015
World 160.87
India 52.67
Germany 14.92
Singapore 13.44
Korea, Republic of 11.98
China 10.42
Thailand 9.79




  ESSENTIAL OIL - Top Items Exports to Bangladesh
HSCode Product 2013-2014 2014-2015 2015-2016
33029019 OTHER MIXTURE OF AROMATIC CHEMICALS AND ESSENTIAL OILS AS PERFUME BASE 0.55 1.78 1.31
33021090 OTHER FLAVOURING ESSENCES USED IN THE FOOD OR DRINK  INDUSTRIES 0.53 0.65 0.58
33012590 OTHER MINT OILS 0.05 0.08 0.07
33029012 SYNTHETIC ESSENTIAL OILS 0.06 0.12 0.06
33019090 OTHER AQUEOUS SOLUTION OF ESSENTIAL OILS. 0.04 0.09 0.05
33012990 ESSENTIAL OILS OF GERANIUM 0.01 0.03 0.04
33012400 PEPPERMINT OIL(MENTHA PIPERITA) 0.03 0.04 0.03
33011990 CITRONELLA OIL CEYLON  TYPE INCLUDING & CONCETRATE 0.00 0.02 0.01
33019049 OTHER CONCENTRATES OF ESSENTIAL OIL IN FATS IN FIXED OILS OR IN WAXES OR THE LIKE OBTAINED BY COLD 0.01 0.00 0.01
33013099 RESINOIDS OTHER 0.78 0.00 0.00
  Country Totals 2.06 2.80 2.15


Exporters Imported value in 2015
World 73.75
India 32.88
Singapore 19.56
Thailand 4.75
China 3.41
United Arab Emirates 2.61
United States of America 1.27




Exporters Imported value in 2015
World 2769.62
Indonesia 1458.75
Argentina 590.68
Malaysia 344.39
Brazil 194.94
Paraguay 85.01
India 2.42




BACK

CONTENTS

Chairman's Desk

Chemexcil Activities

CHEMEXCIL’s 54th ANNUAL GENERAL MEETING HELD ON 15th SEPTEMBER, 2017

CHEMEXCIL’s Submission to Shri Suresh Prabhu, Hon’ble Minister for Commerce & Industry on constraints faced by exporters in Chemical sector

Exim Updates

DGFT NiryatBandhu seminar for new IEC holders/ new exporters at Addl. DGFT Mumbai Office

Proper practice for representation to Govt. Departments

Customs Valuation (Determination of Value of Imported Goods) Amendment Rules, 2017

V. IMP All Industry Rates of Duty Drawback 2017

Reduction of VAT rate on Natural Gas in Gujarat

Request to follow CHEMEXCIL on Social Media like Twitter / Facebook

RFID Electronic Seals - Clarifications regarding RFID Electronic Seals under Self Sealing Procedure / Implementation Deferred till 1st Nov. 2017

DGFT - Amendments in Chapter 4 of Hand Book of Procedures 2015-20

DGFT - Pending Cases of Norms Fixation

GST Extension of time limit for submitting the declaration in GST Form TRANS-1 Revision in GST Form Trans 1 submitted earlier

RBI- EDPMS Issuance of eBRC

GSTR-3B filing deadlines for the months of August to December, 2017

Important notification regarding Stearic Acid Import

India-Peru Trade Agreement: Preparation of Indian Wish List

News & Articles

India-European FTA talks this month

Trade policy review only after resolving exporters’ cash woes, says Ministry

Suresh Prabhu says government will promote exports in 'shortest possible time'

Government offers online tool to resolve foreign trade issues

GST opens a Pandora’s box for exporters

Airports Authority of India undertakes construction of Integrated Cargo Terminal at Imphal airport

As incomes rise, exporters pay the price of development

Subsidy on export goods may be scrapped; Merchandise Export from India Scheme under scanner: Report

Exporters seek clarity on incentives under GST

From WTO to trade deals, 3 key challenges new Commerce Minister is likely to face

EU To Strengthen ‘Strategic’ Ties With India

Chemical industry can reach USD 346 bn by 2025: Report

Dahej to house country’s first Central Institute of Chemical Engineering and Technology: Ananth Kumar

‘Govt to bring in standards for chemical products’

Indian exports may not gain much from rise in global trade

Govt will announce additional measures to boost economic growth: ArunJaitley

Foreign trade policy review may be delayed

Commerce ministry wants states to move beyond signing initial investment proposals

Commerce minister to meet India Inc next week, discuss ways to spur growth

Visit of Commerce and Industry Minister, Shri Suresh Prabhu to Republic of Korea from September 21-23, 2017

Exports may miss global trade revival

India is more important for Latin American exports than Germany, UK, France, Spain and Italy

5 Important Steps for Shipping Dangerous Goods by Sea

EXPORT STRATEGY- BANGLADESH

FTA INVOLVEMENT

CHEMEXCIL’S COMMODITYWISE EXPORTS TO BANGLADESH


For all your queries contact: info@chemexcil.gov.in
Twitter   facebook

MUMBAI
Tel: +91 22 22021288
Fax: +91 22 22026684
info@chemexcil.gov.in
NEW DELHI
Tel: +91 11 26160937
Fax: +91 11 26169891
rodelhi@chemexcil.gov.in
AHMEDABAD
Tel: +91 79 26650223
Fax: +91 79 26651224
roahmedabad@chemexcil.gov.in
KOLKATA
Tel: +91 -33-22805791
Fax: +91 -33-22875562
rokolkata@chemexcil.gov.in
BENGALURU
Tel: +91 80 22269037
Fax: +91 80 22260446
robengaluru@chemexcil.gov.in