Gst Hits Nepal's Export To India: Report

KATHMANDU: Nepal's export to India has been adversely affected after the enforcement of Goods and Services Tax as Nepali goods have become less competitive in the Indian market due to high duty in post-GST period, a media report said today.

 

Trade of major export items to India, which were enjoying zero duty or nominal tariff earlier, has dropped significantly, the Himalayan Times reported citing the Nepal Rastra Bank s recent report.

 

Export of juice, jute products, vegetables, fruits, processed food like biscuits and noodles, cardamom, among others, have plunged heavily, the daily said.

 

Export of juice, which was a major export item to India in the previous years, has plunged by 57 per cent in the first two months of current fiscal as compared to corresponding period of the previous fiscal year.

 

The country exported juice products worth Rs 344 million in first two months of the ongoing fiscal as compared to Rs 800 million in same period of previous fiscal.

 

Export of juice products to India was on the rise since last several years as the Indian multinational DaburBSE 1.28 % Nepal was the largest exporter of juice to India.

 

According to the central bank's data, export of juice had surged by 50 per cent in the first two months of fiscal 2016- 17 compared to the corresponding period of fiscal 2015-16.

 

The major reason behind the significant decline in export of juice is increased tariff to export to the Indian market, the daily said.

 

The exporters said they have to pay 12 per cent integrated goods and services tax (IGST) to export juice to India, compared to 6.18 per cent during pre-GST regime.

 

This means the Indian market has become 5.82 per cent costlier for juice exporters after implementation of the GST, it said.

 

Likewise, export of large cardamom plunged by 45.3 per cent, fruits (85.9 per cent), vegetables (39 per cent), noodles (34 per cent), jute goods (2.3 per cent) in first two months of this fiscal as compared to corresponding period of last fiscal.

 

There are high tariff differences in post- and pre-GST period in vegetables, processed food and other agriculture products. As per the study carried out by an independent think-tank South Asia Watch on Trade, Economics and Environment (SAWTEE) on 30 major export items to India, export tariff for 28 top items have increased, like five per cent on big cardamom, 12 per cent on processed food items and 18 per cent on vegetable products.

 

As Nepal's top export items have been hit hard since enforcement of the GST, country s export to india is likely to drop.

 

Shekhar Golchha, senior vice president of Federation of Nepalese Chambers of Commerce and Industry, said that Nepali goods have become less competitive in Indian market as they have to pay high duty in post-GST period.

 

"Nepali exporters should diversify their market in short-term and be competitive in longer-term to tap the huge market opportunity in India," he was quoted as saying.

 

 

 

 

Soures : Economictimes.indiatimes.com

Deendayal Port Becomes 2Nd Major Port To Have Shore To Ship Power Facility

GANDHIDHAM: Deendayal Port will now become the second Major Port in India to have shore-to-ship power facility.

 

The facility would mean that not all the ships coming to the port will have to run their electricity from diesel generators.

 

“In line with international conventions and the Government's initiative to reduce pollution from marine sources, the port has invited tenders for installing power supply arrangements to ships calling at the port when they are alongside berth. The project will have 1 megawatt capacity and cater to four ships at a time for their lighting loads,” said Shri Ravi Parmar, Chairman of Deendayal Port Trust.

 

The facility is expected that emissions or usage of fossil fuel will reduce by 100 litre per hour for the vessels berthed at the port, which translates to approximately 12 kilolitre per ship for a port stay of five days.

 

Even the tugs being used at the port will have shore-to-ship power facility at a separate area within the port. “When the tugs are not attending to the ships, they are berthed alongside port craft jetty, when they run their generators to meet the electricity requirements. The port has made arrangement to provide electricity from shore-based installation to the tugs, both at Vadinar and at Kandla, which results in an estimated reduction in consumption to the tune of approximately 1,000 litres per day, that is 365 kl per annum,” according to shipping sources.

 

A year ago, V.O. Chidambaranar Port had commissioned shore-to-ship power. Other Major Ports of India are yet to catch up on the feature to be part of the 'Project Green Port'.

 

Deendayal Port Trust will also have a wind power plant under the 'Project Green Port' initiative of Ministry of Shipping. The port already has captive 6 mw wind power project installed, which was commissioned in March and has the capacity to generate 1.45 crore units annually.

 

Now, it plans to come up with another 14 mw of wind power for a period of next 20 years. The estimated annual energy production from this project will be around 40 million units per year and likely to be commissioned by March.

 

 

 

 

Soures : Dailyshippingtimes.com

Readymade Garment Exports Up 25% In September In Rupee Terms

NEW DELHI: After seeing a fall for three months in a row, ready-made garment (RMG) exports rose by 25 per cent in rupee terms and 30 per cent in dollar terms in September.

 

But exporters say this will not be sustainable since Government policies are not favourable.

 

RMG exports rose to Rs 10,707 crore in September 2017 from Rs 8,583.55 crore in the same month a year ago.

 

In dollar terms, these figures were $1.662 billion as against $1.284 billion.

 

Of the total RMG exports, 52 per cent is woven and 48 per cent is knitwear.

 

The sector started the year in April with 27.60 per cent growth in rupee terms and a 31.65 per cent increase in dollar terms. But in the following month growth (in rupee terms) was only 3.84 per cent.

 

Exporters say that garment exports this year will surpass last year’s total exports of $17.358 billion as, generally, exports tend to grow in the second half.

 

January to March are the crucial months for RMG exports. Around 30-40 per cent of exports have taken place during these three months in the last few years.

 

Exporters attributed the increase mainly to the upcoming Christmas season in Western markets. The other factor is that inventories piled up due to the GST are now being cleared. Tirupur Exporters’ Association President Raja Shanmugam said that people are now becoming used to the system. In the last three months while global demand was increasing, exporters could not cater to it due to tax-related confusion. “Now we don’t have a choice, but the GST makes our products costlier compared to other countries,” said Shanmugam. He added the September numbers are not sustainable in the current environment.

 

Another exporter agreed and said unless India signs an FTA with European countries exporters will be in deep trouble. Competing nations have a duty advantage, which India does not possess.

 

Customers have also started asking for a reduction in price after the rupee started strengthening against the dollar. This comes at a time when the cost of doing business is going down for exporters.

 

 

 

 

Soures : Dailyshippingtimes.com

India's Exports To Bangladesh Bounce Back, Record 13% Growth In Fy17

KOLKATA: After a subdued show for two consecutive years, India’s exports to Bangladesh reported a robust growth in 2016-17. The growth is attributed to a significant rise in export of equipment and high-value machinery for project implementation in Bangladesh.

 

According to the Commerce Ministry, exports to Bangladesh touched $6.8 billion in the fiscal year ending March 2017, recording 13 per cent growth. Total bilateral trade had hit an all-time high of $7.5 billion, up 11 per cent.

 

Bangladesh is the ninth largest importer of Indian goods. According to the Ministry, Indian exports increased by a modest 4.6 per cent ($6.4 billion) in 2014-15 and dropped by 6.4 per cent ($6.03 billion) in 2015-16.

 

New initiatives

 

Indian observers believe conversion of road traffic to less costly rail, containerisation of cargo and multi-modal transport can reduce the trade logistics costs. India recently approved Rs. 40 crore, in the third line of credit worth $4.5 billion to Dhaka, to help Bangladesh build a transhipment facility at Ishwardi that connects Gede-Darshana rail-link. It will help increase rail cargo by road. A parallel effort is on by both the countries to run container trains between Kolkata and Dhaka.

 

But the most promising news is from shipping sector. Though India and Bangladesh opened direct shipping last year; the cargo volume didn’t grow to the expected levels due to congestion at Chittagong Port in Bangladesh.

 

In a recent trend, Bangladeshi shipping lines started moving containerised cargo from Kolkata to the inland river port at Pangaon, barely 20 km from Dhaka. The Port is equipped with container handling facility. Indian authorities are bullish that popularising this route can reduce trade costs significantly.

 

 

 

 

Soures : Dailyshippingtimes.com

Textile Exporters To Tap Uae Market

CHENNAI: A 100-member delegation from textile and garment industry would be visiting the United Arab Emirates next month.

 

Federation of Indian Export Organisation Chairman A Sakthivel would be leading the business delegation to take part in the International Apparel and Textile Fair to be held at the Dubai World Trade Centre between November 1 and 3, a press release said.

 

During the visit, the traders would be displaying fashion readymade and fashion garments at the Indian pavilion.

 

Currently, India's textile and garment export is focused to Europe and United States markets. By the participation in the trade fair, "FIEO envisages to serve major GCC countries directly", it said.

 

The United Arab Emirates ranks third in the world in terms of textile exports. It is also the fourth largest trading centre for fashion and apparel, it said.

 

 

 

 

Soures : Economictimes.indiatimes.com

Exporters Soon Can Claim Refund For Gst Paid In August, Sept.

New Delhi - Exporters can soon start claiming refunds for GST paid in August and September as GSTN will this week launch an online application for processing of refund, its Chief Executive Officer Prakash Kumar said recently.

 

GST Network (GSTN), the company handling IT infrastructure for the indirect tax regime, has from October 10 started issuing refunds to exporters for Integrated GST (IGST) they paid for the month of July, after matching GSTR-3B and GSTR-1.

 

For August and September, while the initial return GSTR- 3B has already been filed, the final return GSTR-1 has not yet been filed.

 

"A separate online app for claiming Integrated GST (IGST) refunds for August and September would be made available on GSTN portal this week," Kumar said.

 

GSTN has developed the app wherein exporters can save and upload their sales data which are part of GSTR-1 after filling up export details in Table 6A.

 

The table will be then extracted separately and after exporters digitally sign it, it would automatically go to the Customs Department.

 

The Customs Department will then validate the information provided in the table with the shipping bill data and also the taxes paid in GSTR-3B. The refund amount would be either credited to exporter's bank account through ECS or a cheque would be issued.

 

As per data, 55.87 lakh GSTR-3B returns were filed for July, 51.37 lakh for August and over 42 lakh for September. Preliminary returns GSTR-3B for a month is filed on the 20th day of the next month after paying due taxes.

 

Thereafter, final returns in form GSTR-1, 2, 3 are filed by businesses giving invoice wise details of sales. The final return filing for August and September has not started yet. Over July-August, an estimated Rs 67,000 crore has accumulated as the Integrated GST (IGST), of which only about Rs 5,000-10,000 crore will be due as refunds to exporters.

 

The Goods and Services Tax (GST), the amalgamation of over a dozen indirect taxes like excise duty and VAT, does not provide for any exemption, and so exporters are required to first pay Integrated-GST (IGST) on manufactured goods and claim refunds after exporting them. This had put severe liquidity crunch, particularly on aggregators or merchant exporters.

 

To ease their problems, the GST Council earlier this month decided a package for them that includes extending the Advance Authorisation / Export Promotion Capital Goods (EPCG) / 100 per cent EOU (Export Oriented Unit) schemes to sourcing inputs from abroad as well as domestic suppliers till March 31, thus not requiring to pay IGST.

 

 

 

Soures : Dailyshippingtimes.com

Bangladesh & India Top Buyer Of Scrapped Ships

DHAKA : Bangladesh was the top buyer of scrapped ships in the world in the third quarter of 2017, followed by India, according to a study of Brussels-based Shipbreaking Platform.

 

During the period, 50 scrapped ships were brought to Bangladesh and 44 to India, making South Asia the most preferred destination for scrapping old vessels, which is a hazardous practice for human health and environment.

 

A total of 227 ships were broken between the months of July and September, 124 of which ended up on the beaches in South Asia, according to the organisation which is a coalition of environmental, human and labour rights organisations.

 

Greek ship owners sold 11 ships to the beaching yards this quarter, which is the highest, followed by South Korea and Singapore at 6 vessels each. Shipping companies from the US sold 5 vessels.

 

 

 

Soures : Dailyshippingtimes.com

Government Plans To Set Rules For Food Exports Packaging

NEW DELHI: The government is working towards new packaging norms for export of food items to address concerns over food safety and health standards even as some Indian food products face rejection in developed markets.

 

The ministry of commerce and industry has constituted a standing committee to formulate packaging standards for export of 500 products including fresh fruits and vegetables, spices, tea, and coffee.

 

The regulations will be in sync with those of developed markets such as the US, Vietnam, the European Union, and Japan, said an official from the ministry.

 

“A large amount of contamination can happen during transit if the packaging is not done properly,” said the official. “The government is keen to promote exports of fresh and processed food products and is hoping that these regulations will help in increased business for exporters,” the person said on condition of anonymity.

 

The standing committee is also mandated to help introduce a degree course in packaging as an initiative to increase awareness about the matter. The committee will also engage in research of innovative materials for packaging of different products.

 

The committee has representation from Indian Institute of Packaging (IIP), Agricultural and Processed Food Products Export Development Authority (APEDA), several research institutes and industry associations such as Tea Board of India and Coffee Board of India. “We have already suggested standards for packaging fresh fruits and vegetables and submitted it to the ministry and are working on packaging for spices and tea,” said NC Saha, director of Indian Institute of Packaging and a member secretary of the standing committee. 

 

The institute is organising three events — International Summit for Packaging Industry, Indiapack Pacprocess exhibition and Pacmachine Awards — to spread awareness about the importance of packaging. The development comes even as some Indian food products continue to be rejected by some western markets.

 

The US Food and Drug Administration (FDA) has on several occasions refused entry to Indian food items such as spices, basmati rice, fisheries and herbal products.

 

Russia had also imposed ban on import of rice and peanuts from India on grounds of contamination. Australia had issued an advisory that Indian exporters involved in the exports of processed food products, especially containing milk, have not been following the relevant regulation of imports into Australia, after detection of cases violating the import regulations.

 

 

 

Soures : economictimes.indiatimes.com

India May Emerge As Key Market For Us Crude Exports

NEW DELHI: India is set to emerge as a key market for American crude exports in coming months, as refineries in that Country are ramping up “test” purchases of U.S. grades to diversify their imports. U.S. exports recently set a weekly record with nearly 2 million barrels of crude a day sent overseas. But shipments to India have been rare, with just a few deliveries since the U.S. lifted its ban on crude exports in late 2015. Indian refineries are starting to increase purchases as the Country seeks to secure more supply from outside the Middle East. Refiners are testing both U.S. sweet and sour crudes in their facilities, a common practice when importing crude from new sources.

 

“A lot of these (Indian refiners) want to see what it’s like if they run it,” said one Houston-based oil broker.

 

“They want to get a taste of U.S. crude.” Those refiners are taking advantage of a wide spread between U.S. oil and other global benchmarks, which has created an attractive discount on American crude grades.

 

Indian refiners Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corporation Limited were given a special permission by the Shipping Ministry to import oil from the United States until March. “They’ve been stepping up to be a sizeable importer; they’re looking to diversify away from the Middle East,” said John Kilduff, partner at energy hedge fund Again Capital LLC in New York.

 

 

 

Soures : Dailyshippingtimes.com

Leather Exports May Rise 10% By 2019'

NEW DELHI : Leather exports may register a 10% increase by 2019 from $5.66 billion last fiscal, according to Minister of State for Commerce and Industry C.R. Chaudhary.

 

He also said the Centre was taking steps to boost the labour-intensive sectors. He, however, denied that cow-related agitations and regulations impacted the sector and added that weak demand in major markets such as European Union had affected the industry.

 

 

 

 

Soures : Dailyshippingtimes.com

Exports Climb 25.67 Per Cent In Sept, Imports Up 18 Per Cent

NEW DELHI: India’s merchandise exports rose sharply in September, belying fears of a slump due to disruption and working capital issues brought on by the introduction of the goods and services tax. Exports climbed 25.67 per cent in September, exceeding an 18.1 per cent increase in imports, helping to narrow the trade deficit to $8.98 billion from $9.07 billion in September 2016.

 

In absolute terms, India’s exports were pegged at $28.6 billion dollars in September against $22.8 billion a year ago, according to data released by the Commerce Department recently. Imports were up at $37.6 billion from $31.8 billion.

 

"We’re doing our best to remove all hurdles in the way of exporters, so that they focus on their core business of exports and we do the rest," said Commerce and Industry Minister Shri Suresh Prabhu. "Many more initiatives are in works to help exporters," he added.

 

"Continued improvement in the pace of growth of merchandise exports, as well as its fairly broad-based nature, suggest that concerns that arose after the transition to GST may be receding in some sectors," said Ms. Aditi Nayar, Principal Economist at ICRA.

 

There were apprehensions that exports would take a hit because of GST, which was rolled out on July 1, with refunds getting blocked.

 

The Government has already eased GST rules for exporters to reduce transition pains and speed up refunds. "In continuation with positive growth exhibited by exports for the last 13 months, exports during September 2017 have shown growth of 25.67 per cent in dollar terms," the Ministry said in a statement.

 

"We need to see if the trend continues for the next quarter and whether this growth trend will be maintained... GST has not had much impact on the export numbers and going forward, with many gaps addressed by the Government, the result should be positive," said Mr. Madan Sabnavis, Chief Economist at CARE Ratings.

 

In rupee terms, both exports and imports grew at a slower pace – 21.3 per cent and 14 per cent respectively – from a year ago, showing the impact of the sharp appreciation of the rupee over this period. The increase in exports was driven by a broad-based performance, with 26 of 30 categories posting positive growth.

 

Outbound shipments of engineering goods grew 44.2 per cent, chemicals (46 per cent), petroleum products (39.7 per cent), pharmaceuticals (14.7 per cent), readymade garments (29.4 per cent) and gems and jewellery (7.1 per cent).

 

Gold imports moderated to $1.7 billion from $1.8 billion in September last year.

 

"In our view, build-up of substantial stocks over the last few months would ease the volume of gold imports during the festive and wedding season," said Nayar.

 

Higher exports will support India’s economy, which expanded 5.7 per cent in the April-June quarter, a three-year low. Part of the increase in both exports and imports was because of the rise in commodity prices. Oil and non-oil imports grew 18.5 per cent and 18 per cent to $8.18 billion and $29.4 billion, respectively.

 

 

 

Soures : Dailyshippingtimes.com

Marine Products Export Body Eyes 12% Growth In Seafood This Fiscal

MUMBAI: The Marine Products Export Development Authority (MPEDA) is looking at a 10-12 per cent growth in seafood exports in the current fiscal.

 

According to MPEDA Chairman A Jayathilak, seafood exports in 2016-17 reached a record $5.8 billion and the trends in the ongoing financial year are just as encouraging.

 

Speaking at the first-of-its-kind interaction with stakeholders from the seafood sector in Gujarat, he said MPEDA has formed 600 farmer clusters across the Country under the National Centre for Sustainable Aquaculture. These clusters are completely under the guidance of MPEDA and they will help the agency to export quality marine products.

 

Moreover, the set up is such that it provides 100 per cent traceability to quality issues in the farms. Such initiatives will help give a major fillip to the export of quality seafood, he said.

 

The meeting organised in Somnath in Gujarat assumes significance at a time when MPEDA stepped up its efforts to increase the share of value added products in total marine exports from 17 per cent to 30 per cent. According to him, such meetings will benefit farmers directly and avoid the intermediaries from the scene.

 

Gujarat State Government officials, aquaculture farmers, exporters and hatchery owners were among those who participated in the meeting.

 

As many as 20 aquaculture farmers participated in the event, which also offered a platform for them to establish direct linkages with exporters.

 

 

 

Soures : Dailyshippingtimes.com

China's September Imports & Exports In High Gear As Economy Expands

BEIJING: China’s import and export growth accelerated in September, suggesting the world’s second-biggest economy is still expanding at a healthy pace despite widespread forecasts of an eventual slowdown.

 

The data also suggested further improvement in the global economy, with business activity and demand having picked up markedly this year in Europe and the United States.

 

Imports grew 18.7 percent in September from a year earlier and accelerating from 13.3 percent in August, Customs data showed. Exports rose 8.1 percent, below forecasts of 8.8 percent but the most in three months and handily beating August’s 5.5 percent.

 

Once again, China’s imports were led by industrial resources as a year-long construction boom shows no signs of flagging and factories kept humming, boosting demand for materials from steel to copper.

 

Higher commodity prices greatly magnified the strength of the bounce, but volumes surged, too, pointing to still-solid underlying demand.

 

That left the Country with a trade surplus of $28.47 billion, less than the near $40 billion expected and down from around $42 billion in August.

 

China’s foreign trade will likely grow at a double-digit pace this year if current conditions continue, the General Administration of Customs said.

 

In addition to pointing to buoyant demand, some of the surge in September imports may have been due to companies “front loading” supplies ahead of a week-long national holiday in early October, analysts said.

 

 

 

Soures : Dailyshippingtimes.com

China's September Imports & Exports In High Gear As Economy Expands

BEIJING: China’s import and export growth accelerated in September, suggesting the world’s second-biggest economy is still expanding at a healthy pace despite widespread forecasts of an eventual slowdown.

 

The data also suggested further improvement in the global economy, with business activity and demand having picked up markedly this year in Europe and the United States.

 

Imports grew 18.7 percent in September from a year earlier and accelerating from 13.3 percent in August, Customs data showed. Exports rose 8.1 percent, below forecasts of 8.8 percent but the most in three months and handily beating August’s 5.5 percent.

 

Once again, China’s imports were led by industrial resources as a year-long construction boom shows no signs of flagging and factories kept humming, boosting demand for materials from steel to copper.

 

Higher commodity prices greatly magnified the strength of the bounce, but volumes surged, too, pointing to still-solid underlying demand.

 

That left the Country with a trade surplus of $28.47 billion, less than the near $40 billion expected and down from around $42 billion in August.

 

China’s foreign trade will likely grow at a double-digit pace this year if current conditions continue, the General Administration of Customs said.

 

In addition to pointing to buoyant demand, some of the surge in September imports may have been due to companies “front loading” supplies ahead of a week-long national holiday in early October, analysts said.

 

 

 

Soures : Dailyshippingtimes.com

Indian Garlic Shipments Zooms Thanks To Output Shrinkage In China

KOCHI: Indian shipments of garlic have zoomed thanks to output shrinkage in China, the world’s largest producer, making it the hottest commodity in India’s spice export basket.

 

In the first quarter of the year India exported 18,000 tonnes valued at Rs 123.84 crore, a staggering increase of 169% in quantity and 107% in value, the highest growth among the spices exported from India including the usual top performing ones like chilli, cumin and spice oleoresins.

 

The rising export trend in garlic from India started last year. The year 2016-17 saw garlic export value shoot up 92% to a record Rs 307.11 crore from a year before. The quantity at 32,200 tonnes showed a 39% rise.

 

Till 2015-16, Indian garlic export stood below Rs 100 crore.

 

 

 

Soures : Dailyshippingtimes.com

Maersk Line Pioneers First Store Door Reefer Import Of Confectionery Into Rudrapur, Uttarakhand

MUMBAI: Maersk Line, the global containerized division of the Maersk Group enables the first store door reefer import of confectionery for Perfetti Van Melle (India) Pvt Ltd into Rudrapur, Uttarakhand. The consignment of confectionery (gums) which left Leixoes, Portugal on the 17th of July reached Rudrapur in Uttarakhand on the 8th of September.

 

At present, reefer importers are currently importing to port and then trucking the cargo to their warehouses. This involves multiple vendor co-ordinations which affect their overall increased cost of logistics. Added to this are shortages of trucks during peak seasons which impact their production cycle.

 

Through Maersk Line’s pioneering offering, these challenges will be a thing of the past. The transportation time between the point of origin and the port reduce considerably, facilitating a one-stop solution closer to the place of origin of cargo.

 

Mr. Steve Felder, MD – Maersk Line (India, Sri Lanka, Bangladesh, Nepal, Bhutan, and Maldives), said, “Our constant efforts to provide a single-window simplified supply chain platform have enabled us to successfully carry out the First ever Store door of reefer import. We are committed to providing unmatched customer-centric services. This does synergize well with our belief of enabling the India growth story by providing customers with a definitive, cost-effective and viable logistical solution,” said a Maersk Line release.

 

 

 

Soures : Dailyshippingtimes.com

Textile Exporters Facing Difficult Times Leading To Constrained Growth: Icra

Indian textile exporters are facing difficult times since the past few months which have led to constrained growth as well as pressures on profitability, according to ICRABSE -0.78 %.

 

In a report released on Wednesday, ICRA said that exporters have been facing subdued demand trends in the key importing countries as well as intense competitive pressures from nations such as Bangladesh and Vietnam over the past few years.

 

In addition, unfavourable currency movements and high raw material prices in the past six to nine months as well as recent revision in duty drawback rates have only added to their woes. With exports accounting for more than one-third of the Indian textile market, this is a matter of concern, notwithstanding a large domestic market.

 

The slowdown in apparels segment has mainly been on account of subdued demand conditions in key textile-consuming regions of United States of America (US) and European Union (EU) which account for a majority of exports from India. This apart, cotton-yarn exports have been under pressure on account of a decline in demand from China, which used to account for more than 40% of total cotton yarn exports from India till last year and accounted for only ~17% of India’s cotton yarn exports in the first four months of FY2018. India appears to be the worst-affected nation amongst cotton-yarn suppliers to China, as is evident in a decline in India’s share in China’s cotton yarn imports to 8% in Q1 FY2018 vis-à-vis 20% and 25% in Q1 FY2017 and Q1 FY2016 respectively.

 

The pressures on textile exporters have become more severe with strengthening of Indian rupee against currencies of key competing nations during the current calendar year, which reduced competitiveness of Indian exporters vis-à-vis their counterparts.

 

Throwing more light on this aspect, Jayanta Roy, senior vice-president and group head, corporate sector ratings, ICRA says, “Notwithstanding the 2% depreciation in the Indian rupee vis-à-vis USD in the month of September 2017, the Indian rupee sustained its strong performance against currencies of most of the countries competing in the global textile space during much of the current calendar year.”

 

While the Indian currency has strengthened by ~5% against USD in 8M CY2017, currencies of other key nations competing in the textile space such as Vietnamese Dong, Bangladeshi Taka as well as Pakistani Rupee depreciated by 0.5-2% against USD during the same period.

 

Further, higher input prices (primarily cotton) this year vis-a-vis last year added to profitability pressures for exporters during H1 FY2018, given the cotton-dominance of textile exports from India. While cotton prices have corrected to an extent from mid-September 2017 onwards which is expected to provide respite during H2 FY2018, recent revision in duty drawback rates is likely to exert some pressure on margins. The Government of India has recently notified revised duty drawback rates under the GST regime which are applicable to exporters with effect from October 2017 onwards. There is a downward revision in duty drawback rates for most product categories in the textile sector under the GST regime, when compared with duty drawback rates for exporters claiming Cenvat under the earlier tax regime.

 

“Considering that GST rates for most product categories in textiles are in line with effective tax rates under the earlier tax regime and the extent of benefit from improved input credit chain post GST implementation remains to be seen. The overall impact of GST and the revised duty drawback rates on the sector is uncertain at present.” adds Roy.

 

Notwithstanding the pressures being witnessed on profitability, debt levels across the sector are expected to decline with the industry focusing on sweating the existing assets and thereby undertaking limited debt-funded capacity additions. Further, with cotton prices easing out from mid-September 2017 onwards, profitability pressures are likely to subside from Q3 FY2018 onwards. As a result, ICRA expects the financial and credit risk profiles of most textile exporters to remain stable.

 

 

 

Soures : economictimes.indiatimes.com

'Mission 2020' To Boost Cashew Export : Cashew Export Promotion Council

PANAJI: Following a suggestion from Suresh Prabhu, Union Minister of Commerce and Industry, the Cashew Export Promotion Council of India (CEPCI) is preparing a strategic business plan ‘Mission 2020’ aimed at boosting the cashew industry and exports of cashew kernels in particular. Mr. Prabhu made the suggestion at the venue of Kaju India 2017, the global cashew meet organised by the CEPCI in Goa from September 17 to 19.

 

CEPCI Chairman P. Sundran said that the suggestion for Mission 2020 from the Minister was one of the major achievements of the meet.

 

He said the Minister said that the Government would consider withdrawing the 5% duty on raw cashew imported outside the Advanced Authorisation Scheme. The CEPCI members brought to the attention of the Minister the threat posed by the Indian cashew sector from kernel import from Vietnam. The Minister said the Government would consider the suggestion to hike the import duty on kernels to 70%.

 

 

 

Soures : Dailyshippingtimes.com

Pharma Exports Declined By 4% In First Five Of Current Fiscal

HYDERABAD: Pharma exports from India registered a negative growth of 4 per cent during the first five months of the current fiscal owing to increased regulatory issues coupled with pricing pressure in global markets, a Pharmexcil official said.

 

According to Udaya Bhaskar, the Director General of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), a Ministry of Commerce and Industry body, the pharma exports to other countries witnessed a decline of

 

7.9 per cent during the April-July period while recovered to 4 per cent in August leaving the over all groPharma Export, Pharmaceuticals, wth at minus four per cent till August this year.

 

"Till July, pharma exports registered minus 7.9 per cent growth. Subsequently it recovered in August and stood at minus four per cent. There was four per cent growth in August. Pricing pressure is one of the factors (for decline in exports). To some extent import alerts (by US FDA on Indian plants), regulatory issues and currency fluctuation, are some of the factors contributed to downward growth," Udaya Bhaskar told.

 

He, however, hoped that the overall exports will recover and come into positive zone for the full year as exports are expected to take an uptick from September.

 

 

 

 

Soures : Dailyshippingtimes.com

Oilmeals Export Revives With Rise Of 85% In April-September 2017

NEW DELHI: The export during September 2017 is reported at 115,083 tonnes compared to 109,309 tonnes in September 2016 i.e. up by 5%, as per data provided by The Solvent Extractors' Association of India. The overall export of oilmeals during April - September 2017 provisionally reported at 1,101,689 tonnes compared to 594,529 tonnes during the same period of last year i.e. up by 85%.

 

In last Six months, the export of oilmeals improved compared to the previous year, thanks to good monsoon, better oilseeds production and price parity. It may be also be noted that India faced drought years during 2014-15 and 2015-16, which lead to lower production of oilseeds which affected export of oilmeals to the lowest level, however with good monsoon last year, export has revived to some extent.

 

 

 

Soures : Dailyshippingtimes.com

Jnpt Gets Supreme Court Nod For Road Transport Tendering Process

NAVI MUMBAI: The Supreme Court recently allowed Jawaharlal Nehru Port Trust (JNPT) to proceed with its road transport tendering process to evacuate import containers from the four terminals of India’s busiest container port to five locations and their nodes.

 

The tender is part of a plan to speed up imports through the direct port delivery (DPD) programme to cut transaction cost and time.

 

The tender — a first of its kind in India — involves selecting as much as seven big road transporters who will deploy some 2665 tractor-trailers (TTs) — both owned and aggregated — manufactured after April 1, 2009, for evacuating 580,747 twenty-foot equivalent units (TEUs) landing at the port to locations in Gujarat, Ahmednagar, Nashik, Aurangabad, Nagpur, Indore and Hyderabad, Goa, Bangalore and local region near Mumbai over distances ranging from 40 km to 1,100 km.

 

The Government has directed JNPT to raise the proportion of DPD volumes to 40 per cent.

 

The Customs have identified and permitted 778 major importers to avail themselves of DPD. “As the volumes of DPD and number of clients increases, the terminals will face the challenge of yard efficiency and congestion on the port roads. The DPD also brings in the challenge of reliable delivery to multitudes of importers,” says a local source from JNPT.

 

Currently, the terminals are stacking containers CFS/ICD wise and containers are allocated to trucks on “best-pick” basis. The port caters to nearly 36 lakh road containers in its yard.

 

When the DPD volumes rise, the port will need to create additional stacks equivalent to the number of DPD clients in order to continue on the “best-pick” mode. This is not possible due to the high number of DPD clients and limitation of the yard area, equipment and manpower capacity.

 

According to the transport solution proposed by JNPT, all DPD containers will be distributed route-wise into the identified routes. Port terminal operators will arrange DPD import boxes route-wise in separate stacking area. A transporter will be selected for each location through a bidding process in which he is required to quote a lump sum rate that includes all costs for transporting containers from the port yard to the premises of the importer as well as movement of empty containers to the empty container yard.

 

The selected transporter has to clear the import containers from the port within 48 hours and deliver them at the factory/premises of the importer/location as designated by the importer, failing which the container will be transferred to the CFS designated by JNPT.

 

JNPT will not enter into any direct commercial arrangement with the transporter. It will be mandatory for importers to hire the selected transporters for taking the DPD import delivery by entering into a commercial arrangement with them.

 

The successful transporter shall have the exclusive right to clear the DPD containers from the port for the corresponding route for which it is selected.

 

 

 

Soures : dailyshippingtimes.com

 

Gst Hits Exporters' Order Book; 15% Drop Till October: Fieo

NEW DELHI: Two months after the roll out of the goods and services tax (GST) regime in July, the order books of exporters are said to have taken a hit with estimates pegging the impact to up to 15 per cent across industries and product categories.

 

According to an assessment by the exporters' body Federation of Indian Export Organizations (FIEO), the large drop was for export orders that were meant to be delivered until October.

 

The dip, registered over a period of two months since July, was largely on account of exporters foregoing orders due to lack of credit, said Ajay Sahai, Director-General at FIEO. The liquidity crunch had forced many to use available resources to manage existing business operations rather than fulfilling orders from abroad, he added.

 

Bhaskar Sarkar, Executive Director at Engineering Exports Promotion Council (EEPC), corroborated this by saying that the percentage hit was higher for exporters handling products with a longer gestation period.

 

“Merchant exporters, as well as those whose products require 2-3 months to be sourced, processed and shipped, have been hit hard owing to their capital being tied up longer," Sarkar said.

 

Exporters were earlier allowed duty-free import of goods that are used for the manufacturing of export products. However, under the GST, they would have to pay the duty upfront and apply for refunds later.

 

The issue of liquidity crunch under the new GST regime was flagged off by exporters as the most challenging issue. Their costs have risen by up to 1.25 per cent (Freight On Board value) following the implementation of the new tax regime, according to estimates.

 

The figure is rising as late refunds pinch smaller players hard, while larger entities face difficulty in streamlining operations, say experts.

 

The wait for GST refunds

 

In addition to this, exporters have continued to point out that the difficulty in getting refunds have not eased.

 

This is mainly because of the refund process that has been delayed due to the Government extending the date of filing of refund documents. The filing of documents for GSTR 1, GSTR 2 and GSTR 3 have been extended to July 10, October 31 and November 10, respectively, the EEPC said.

 

This extension effectively means that the July refunds will only be available in the third week of November at the earliest, added the EEPC. Similarly, exports refunds for the month of August will be pushed back to December and this is expected to have a cascading impact on the September refunds.

 

 

 

Soures : dailyshippingtimes.com

 

New Norms On Anvil To Deal With Sub-Standard Imports

The government is working towards strengthening standards norms and certification for the shipments coming into the country, as a part of its strategy to rein sub-standard imports from countries including China.

 

“We are pushing for certain standardisation of products that come into the country. This will not only result in exports promotion, but also curb cheap imports from countries,” a senior government official told Moneycontrol.

 

Any item that enters the Indian shores must adhere to certain quality and standards, the official said, adding that sector regulators such as Food Safety and Standards Authority of India (FSSAI), Bureau of Indian Standards, Agricultural and Processed Food Products Export Development Authority (APEDA), among others are working towards setting certain standards and technical regulations for imports.

 

Another government official said that the commerce ministry has told other ministries to consistently monitor and review imports of goods pertaining to their industry.

 

Former Commerce Minister Nirmala Sitharaman had said that India should provide quality goods at an affordable price and set standards, rather than following them.

 

In May, Sitharaman also launched the India Standards Portal that acts as a hub for all information on standards, technical regulations, accreditation practices, and the related bodies in India.

 

The development comes at a time when there has also been a growing clamour on for import restriction on items, especially related to renewable energy, electronics and information technology as inward shipments of these products has escalated from China.

 

Indian steel industry had in the last two years faced the brunt of surge in cheap imports, especially from China that rendered local companies uncompetitive.

 

Similarly, in the last two years, government had imposed quality control order on steel products, after imports Indian market was flooded with poor quality imports of the alloy. Of the total inward shipments, China—the largest producer, consumer and exporter of the alloy—accounted for most of it.

 

India's bilateral trade with China was USD 71.4 billion in the last financial year.

 

Of India’s total imports worth USD 384.35 billion, China’s share was nearly 16 percent during 2016-17. Of India’s total exports worth USD 275.85 billion, China’s share was 3.7 percent.

 

 

 

 

Soures : moneycontrol.com

 

Cotton Importers Eye Kochi Port For Storage And Re-Export

KOCHI: The South India Mills Association and Indian Cotton Federation are looking at options to facilitate the import and re-export of containerised cotton through Kochi Port.

 

Kochi’s proximity to spinning mills in Coimbatore, which is less than 200 km away, prompted them to seek a storage facility in the port for the transhipment of containers to facilitate local sales and cotton imports.

 

Moreover, the reduced transit time to Kochi, especially from West and East African Ports and the US, would make the port an attractive destination, said G Radhakrishna, President, Coimbatore Cotton Association.

 

“We opened a similar facility in Tuticorin a month back,” he told recently.

 

According to him, a lot of imports are being made to South India every year, and a majority of the consignments are handled at Tuticorin Port. However, Kochi has a cost advantage to millers in Coimbatore, and the closing down of Walayar check post after GST has resulted in the faster movement of cotton to production units.

 

Cotton Imports

 

Last year, mills in the South consumed around 2-lakh tonnes of cotton imported from the major cotton-growing areas in West and East Africa, US and Australia. India’s cotton season normally starts in September and continues till June.

 

The Country exports a lot of cotton, which is a major revenue earner for growers in North India.

 

However, millers in South India have to depend on imports in the second-half of the year to meet their production requirements, he said.

 

Confirming the development, A V Ramana, Deputy Chairman of Cochin Port Trust, said that the port is in talks with Cochin Customs to come out with a notification to set up a dedicated facility to make Kochi a trading hub of cotton.

 

“Once the notification is out we will start an aggressive marketing campaign among the millers, especially those in Madurai, Dindigul and Coimbatore,” said Ramana.

 

 

 

Soures : dailyshippingtimes.com

Ecgc To Launch Premium Policies To Retain High-End Exporters

NEW DELHI: State-owned Export Credit Guarantee Corporation of India Ltd (ECGC) is planning to bring in “premium policies” for high-end customers, in a bid to prevent top exporters from being lured away by private general insurance companies.

 

“We are thinking to come up with some premium policies for top customers because there is apprehension that this creamy layer will be poached away by private insurers,” said Geetha Muralidhar, Chairman-cum-Managing Director, ECGC.

 

Private general insurers provide cover to the best exporter and the best buyer, where the risk of default is less. Moreover, they know the multinational buyers because of their physical presence as they are in joint venture partnerships with companies operating in that part of the world, Muralidhar said.

 

“Hence, this has become a challenge for ECGC... Private insurers quote very low rates and get away with it because they cover only the cream business,” she added.

 

The company is also planning to introduce new group policies where an export promotion council or an association would be the master policy holder. Its aim is to benefit the small and medium exporters who cannot regularly do the paperwork, documentation, and the remittance of premium by themselves.

 

If export associations are able to stand in and be the master policyholder, then many people will be benefited, said Murlidhar.

 

Currently, there are few takers for such group policies. Only Tirupur Exporters Association has agreed to take up the group policy, and ECGC is working with it closely. The insurance sector regulator, Irdai, has given the company the privilege to try out new products.

 

 

Soures : dailyshippingtimes.com

 

 

India To Hit 170 Mt Steel Production Level In 2019: Minister

India will achieve more than 50 per cent of its 300 million tonne steel production target by 2018-19, says Union Steel Minister Chaudhary Birender Singh.

 

The minister has also assured stakeholders that there will not be any shortage of raw materials for steel-making.

 

"(As of now), I can't say what would be the production this year, but in 2018-19, the domestic crude steel production will be 170 million tonnes (mt)," he told PTI.

 

Under the National Steel Policy (NSP), the government has set a production target of 300 mt, which is to be achieved by 2030-31. The NSP also aims at more than doubling the per capita steel consumption to 158 kg by 2030-31, from 61 kg at present.

 

The minister asked the industry to make full use of the resources available in the country. India has surplus power and the iron ore reserves will last for at least next 30 years, he pointed out.

 

He pointed to recycling reducing demand for iron ore and coal for steel-making. "Scraps can also bring down our demand for raw material for steel-making and is of the best grade. At present, 8 mt scrap is imported," he said.

 

These measures are expected to bring down dependence on imports for raw materials like coking coal from countries, including Australia.

 

According to official figures, at the end of 2016, the domestic crude steel output was close to 100 mt.

 

 

 

Soures : moneycontrol.com

India Exempts Import Duty On Goods For Fifa U-17 World Cup

NEW DELHI: The government has exempted from import duty sports items and a wide range of goods for the upcoming FIFA U-17 World Cup India, which will see 24 nations vying for the coveted trophy.

 

The first FIFA event to be held in India will be spread over six cities starting October 6 and have 52 matches. The final football match, on October 28, will be played at Kolkata's Salt Lake Stadium. 

 

"All sports goods, sports equipment and sports requisites; fitness equipments; team uniform/clothing; spares, accessories and consumables of the same" will be exempt from the whole of the duty of customs leviable subject to certain conditions, said a notification.

 

The notification issued recently by the Central Board of Excise and Customs (CBEC) further said the importers will have to furnish undertakings that all the goods, excluding gift items, souvenirs, mementos will be re-exported within three months of conclusion of the World Cup.

 

Doping control equipment, first aid kits, satellite phones/GPS, dining/kitchen items, and office consumables, are also among the goods that have been exempted from the import duty.

 

Broadcast equipment and supplies used in organising and during the event imported by FIFA Host Broadcasters too falls in the exemption list.

 

These goods will also be exempt from the integrated tax levied under the GST.

 

The 17th edition of the FIFA U-17 World Cup, under the slogan 'Football takes over', will be held in six cities -- New Delhi, Margao, Kochi, Guwahati, Kolkata and Navi Mumbai.

 

India, as the host country, is automatically qualified for the FIFA U-17 World Cup 2017.

 

Brazil, Spain, Germany, France, USA, England, Paraguay, Japan and Korea DPR, are among the nations participating in the Federation Internationale de Football Association (FIFA) World Cup event.

 

 

 

Soures : economictimes.indiatimes.com

Gold Imports Jump Three-Fold To Usd 15 Billion In April-August

The country's gold imports recorded a three-fold jump to USD 15.24 billion during the April-August period of the current fiscal, commerce ministry data showed.

 

Gold imports, which has a bearing on the country's current account deficit (CAD), stood at USD 5.08 billion in April-August 2016-17.

 

In August this year, imports of the precious metal rose to USD 1.88 billion from USD 1.11 billion in the same month of the previous fiscal.

 

Surge in gold imports last month contributed to the widening of trade deficit to USD 11.64 billion as against USD 7.7 billion in August 2016.

 

The imports are expected to increase on account of the forthcoming festival season, which will start from the end of this month.

 

Increase in inbound shipments of gold is also one of the reasons for higher current account deficit (CAD).

 

CAD rose sharply to USD 14.3 billion -- or 2.4 per cent of GDP -- at the end of first quarter of 2017-18.

 

In general terms, CAD refers to the difference between inflow and outflow of foreign exchange that has an impact on the exchange rate.

 

Worried over surge in gold imports from South Korea, with which India has a free trade agreement, the government has restricted inbound shipments of the precious metal.

 

India is the world's second biggest gold consumer after China. The imports mainly take care of jewellery industry demand.

 

At present, gold import attracts 10 per cent duty. The gems and jewellery industry along with the commerce ministry have time and again urged the finance ministry to consider a cut in the import duty. RR CS ABM SBT

Onion Traders Asked To Start Auction Or Face Action

The district administration has asked onion traders to start auction of the kitchen staple from Monday at the major agriculture produce market committees (APMCs).

 

The authorities have warned that if the traders do not start the auction of onions at the APMCs in Lasalgaon, Pimpalgaon Baswant, Umarane, Yeola and others, their permits would be cancelled, the district sub-registrar, Nilkanth Karhe, said on Sunday.

 

Notices in this connection have been served to the traders, he said.

 

The Income Tax department recently searched and surveyed 25 premises of seven major onion traders in Lasalgaon and surrounding areas in Nashik district, one of the largest onion markets in the country.

 

Subsequently, the traders attached to various APMCs stopped onion auction as a mark of protest, causing problems for the growers and leading to decline in the prices of the crop, Karhe said.

 

He said the central government has asked the district administration to send a detailed report on the matter.

 

Last month, the auction (wholesale) prices of onions touched Rs 2,200 to Rs 2,700 per quintal but later the rates came down by about Rs 600 to Rs 700 per quintal.

 

Meanwhile, a local Shiv Sena leader, Bhaulal Tambade, said his party will launch an agitation if traders do not start onion auction from tomorrow.

 

A senior I-T official from Pune region had earlier said they received a specific information that the onion traders in Lasalgaon and adjoining towns were involved in hoarding of the crop and planning to create an artificial scarcity in the market in order to inflate the commodity's prices in future.

 

As per the intelligence, these traders have been purchasing onion from the farmers since currently, the prices of onion are plummeting, he said.

 

 

 

Soures : moneycontrol.com

Government Lifts Ban On Export Of Few Varieties Of Pulses

The government on Friday said it has lifted ban on export of tur, urad and moong dal to help farmers get "remunerative prices".

 

However, exports of these varieties of pulses can be undertaken after taking permission from agri export promotion body Agricultural and Processed Food Products Export Development Authority (APEDA).

 

At present, only organic pulses and kabuli chana are allowed to be shipped in a limited quantity.

 

In a late evening notification, the Directorate General of Foreign Trade (DGFT) said it has "removed prohibition on export of tur, urad and moong dal till further orders. The ban on these varieties has been lifted with immediate effect".

 

"Opening of the export of pulses will help the farmers to get remunerative prices and encourage them to expand sowing area in coming season," it said.

 

Exports should be made through customs electronic data interchange (EDI) ports, the notification said.

 

Exports through Bangladesh and Nepal border will be allowed subject to registration of quantity with the DGFT, it said.

 

"Removal of export restrictions on urad, tur and moong by the government today is a welcome step that has the potential of benefiting the entire value chain beginning with farmer. It will correct price distortions, offer support to pulses selling below MSP and revitalise the milling industry," Pravin Dongre, Chairman, India Pulses and Grains Association, said.

 

This step will improve the returns to farmers and potentially open up greater investments in the sector, he added.

 

Retail prices of tur dal is ruling at Rs 70-75 per kg in Delhi as against Rs 80-85 per kg a year ago.

 

The country's pulses production has touched a record of 22.4 million ton in 2016-17 crop year (July-June) as against 16.35 million ton in the previous year on account of encouragement from the government.

 

 

Soures : moneycontrol.com

6 Nasik Mandis Shut Due To Sudden Fall In Onion Prices

Six out of 16 wholesale mandis here have been shut for onion trading after a sudden steep fall in prices to Rs 11/kg, the district administration said on Friday.

 

The average wholesale price of onion in Nasik, which was ruling at Rs 20/kg early this month, has now declined to Rs 11/kg, as per official data. Wholesale rates in other onion markets in Maharashtra have also fallen.

 

In Lasalgaon, Asian's biggest wholesale market for onion, rates were ruling at Rs 15/kg on Friday. "We have closed trading in six mandis since yesterday and they will open on Monday.

 

Other 10 mandis are open. The mandis are closed due to sudden onion price fall," Deputy District Registrar of Cooperative Society Nilkanth Kare told PTI. Onion prices started falling sharply since yesterday.

 

"The exact reasons are still not known. It is believed the prices fell on reports of income tax raids on onion traders and also because of rise in onion imports," he said.

 

On a daily basis, onion arrival in mandis is about 20,000 tonnes. Onion prices had touched the peak of Rs 25/kg few weeks back and now have come down to Rs 10-11/kg, he added.

 

Kare mentioned that the onion being sold in Nasik mandis at present are of stored ones of last year's crop. The new kharif crop is yet to arrive.

 

The cooperative society regulates wholesale mandis in the district.

 

It may be noted that wholesale onion prices in Maharashtra, the biggest growing state in the country, had shot up sharply in the last one month due to speculation despite new crop expected to be good. Due to which, the retail price had also gone up in most parts of the country.

 

To control consumer price, the government asked private traders to undertake onion import and so far 11,400 tonnes have been shipped.

 

 

 

Soures : moneycontrol.com

Indian Exports Rise For 12Th Straight Month, Grow 10.29% In August

NEW DELHI: Recovery in global demand helped India's exports to rebound in August after slowing in July. India's exports grew 10.3% in August to $23.8 billion. However, imports outpaced exports and grew 21%, widening the trade deficit to $11.6 billion from $7.7 billion in the year ago period.

 

Traditional sectors like leather, spices, drugs and pharmaceuticals, engineering goods and textiles registered a rise in outward shipments.

 

India’s exports growth slowed to an eight-month low in July, weighed down by appreciation in the rupee and goods and services tax (GST) regime-related disruptions.

 

“A pick up in exports during August augurs well for the Indian exporters who seem to be benefiting from recovery in major global markets, including the key economies of the US and Europe,” said EEPC India Chairman T S Bhasin.

 

Merchandise imports recorded a fairly broad-based upsurge in August 2017, led by fuels such as crude oil and coal, electronic goods, precious metals and stones, iron and steel, and machinery.

 

India’s healthy exports growth has come at a time when China’s outward shipments grew 5.5% in August.

 

“Higher crude oil prices boosted both imports and exports in August,” said Aditi Nayar, principal economist at ICRA.

 

Gold imports rose 68.9% to $1.8 billion from $1.1 billion a year ago while gems and jewellery exports declined 25.78%.

 

“With substantial restocking having taken place ahead of the festive season, and the recent monsoon and sowing trends suggestive of modest rural demand, gold imports may moderate in the months ahead,” Nayar added.

 

 

 

Soures : economictimes.indiatimes.com

 

Us Senators Seek Reduction On India's 'High Tariff' On Pecans

WASHINGTON: A bipartisan group of nine top American Senators has urged the Trump administration to take action on removing barriers to the export of tree nuts especially pecans from the US to India.

 

India's current high tariffs on pecans are affecting American pecan farmers, and have created a disparate trade barrier compared to some other tree nut producers, the Senators wrote in a letter to US Trade Representative (USTR) Robert Lighthizer.

 

The letter is also signed by Senators Ted Cruz, John Cornyn, James Inhofe, Johnny Isakson, Tom Udall, Martin Heinrich, David Perdue, Luther Strange and John McCain.

 

"There are fewer nations in the world that hold greater potential for economic cooperation and trade partnership with the US than India. Our shared democratic values and common commitment to free markets present American businesses with tremendous possibilities in South Asia," the Senators wrote in the letter dated September 12, which was released to the press yesterday.

 

"As you and the administration continue to explore new opportunities to grow the economy through trade and promote American agriculture, it is imperative that a key part of strengthening our trade relationship with India is reducing the tariffs that are impeding US agricultural exports," the Senators told Lighthizer.

 

The current tariff on US pecans entering India is approximately 36 per cent, while the tariff for other similar products, such as pistachios and almonds, is much lower at 10 per cent, the letter said.

 

"Reducing the tariff on all tree nuts will encourage increased imports of a type of commodity that enjoys popularity in India and will generate greater revenue for the country," it said.

 

For pecans in particular, any increase in imports from the US would not impact domestic pecan production in India because the country currently produces very little, if any, pecans, they argued.

 

Additionally, increasing US pecans imports to India presents an opportunity to advance issues important to rural America.

 

The pecan industry contributes over USD 3.75 billion to the rural economies of the 15 pecan-producing southern states stretching from the Carolinas to California, and exports alone over the last 10 years added an additional USD 1.25 billion in economic activity in rural America.

 

 

Soures : economictimes.indiatimes.com

Delhi Hc Allows Exporter To Import Without Paying Igst

NEW DELHI: The Delhi High Court has granted interim relief to an exporter, allowing him to import goods without payment of the integrated goods and services tax (IGST) to the extent allowed by advance authorisations received by him prior to July 1, when GST was enforced.

 

Advance authorisation is issued for exporters to allow duty-free import of inputs which are physically incorporated in export products. The relief given relates to export orders placed on the petitioner, an exporter of plastic products, before July 1. The next hearing in this case is on February 22.

 

Prior to GST, import under the Advance Authorisation Scheme (ASS) was exempt from payment of taxes like basic customs duty, additional customs duty, and education cess. A major change since July 1 is additional levy of IGST. While upfront exemption is extended to basic customs duty, exporters are required to pay IGST on import and Central, State or Union Territory GST (as the case applicable) on domestic procurement; thereafter, they may claim a refund.

 

The petitioner in this case had contended that such a mechanism adversely affected his working capital, impacting export orders got prior to July 1, for the fulfilment of which he had to undertake import of inputs. One such export order placed on the petitioner by Walmart Inc, USA, was cited. The petitioner said with the change brought about by the GST regime, he would have no option but to pay IGST out of own sources, causing a working capital blockage. As the petitioner had already used up the overdraft limit with banks, borrowing would have to be done.

 

Counsel for the Customs Department said the petitioner could seek refund of the IGST after completion of the export obligation. Hence, there was no ground for a real grievance. The petitioner replied that the prospect of IGST being ultimately refunded was little consolation, he required liquidity to discharge the additional levy of IGST, failing which the import would get blocked.

 

Abhishek Rastogi of Khaitan & Co, the petitioner's counsel, said while the order was specific to the petitioner, it did lay down the foundation for benefits that should go to exporters. After GST implementation, he said, the Commerce Ministry had asked the Finance Ministry to ensure export benefits continued as these were prior to GST. The Finance Ministry had not acted on this representation, resulting in exporters loss of working capital on a large scale.

 

 

Soures : dailyshippingtimes.com

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 Mr. Hasmukh Adhia would fast track its recommendations so that exporters get much needed clarity ahead of the peak export season and are able to plan accordingly."

 

While one option would have been to provide an exemption in the GST legislation to procurements made by exporters, the Government has provided a mechanism under which exporters pay the applicable tax to vendors and claim a refund on input taxes. "There are very stringent timelines provided for grant of refunds to exporters in the GST law," admitted the person cited above. But exporters aren't sure whether these would actually be followed, based on their past experience with refunds, the person added.

 

Many exporter groups have raised the matter with the Government in the past few months. The Adhia committee is set to evaluate the problems faced by exporters. "Since the export incentives/schemes are regulated by the Commerce Ministry, it's expected that the committee headed by Adhia would also have representatives from the Commerce Ministry in order to fast track the recommendations and to avoid inter-Ministerial roadblocks," said another person close to the development.

 

Sachin Menon, National Head of Indirect Tax at KPMG, said, "There seems to be no harmony between HSN codes in the GST portal and ICEGATE (portal run by the CBEC) for a few products. This means that some of the exporters may not be able to take input credit for the exports and would directly impact their cash flows till this issue is resolved."

 

 

Soures : dailyshippingtimes.com

Soybean Prices To Trade Sideways To Higher: Angel Commodities

NCDEX Soybean Oct futures closed with a steep fall yesterday  on  reports of arrival of new season crops, lower soymeal exports  order and higher  carryover stocks. As per SOPA, India's soymeal exports in 201 7 - 18 (Oct - Sep) are seen falling 1 7% on - year to 15 lakh tn due to uncompetitive prices in global markets. Moreover, India's soybean stocks are is expected to be reported at record high of 17.5 lakh tonnes. As per the agri ministry data, India's soybean acreage was at 10.5 million ha as on last week, down 8.2% from a year ago. The fall in overall acreage has been led by a decline in area under the crop in Madhya Pradesh -- the largest producer -- because of poor rains in the state so far this monsoon season. CBOT November futures closed higher on Thursday, posting a one - month peak on export demand, short - covering and strength in soymeal. The USDA reported export  The Export Sales  report showed 17/18 soybean sales of 1.6 mt for the week of  September 7, exceeding most expectations. China proved to be the largest purchaser of US beans for that week, buying 1.2 mt. Shipments were reported at 1.15 mt, 60.7% large r than a week ago.

 

Outlook

 

Soybean futures are expected to trade on sideways to higher on improved physical demand from oil mills and lower acreage in the country but expectation of new season arrivals may pressure prices.

 

 

 

Soures : moneycontrol.com

India, China To Set Up Working Groups To Promote Exports

NEW DELHI : India and China have agreed to set up industry specific working groups for increasing exports with a view to bridge trade deficit with Beijing, Commerce Minister Suresh Prabhu said. "Concerned about growing trade deficit with China, we agreed to set up industry specific working groups, to promote more exports from India," Prabhu said in a tweet.

 

He is in Manila, the Philippines to attend the fifth East Asia Summit (EAS) Economic Ministers' Meeting. The Minister would also participate in the Trade Ministers' meeting of 16 RCEP member countries.

 

Regional Comprehensive Economic Partnership (RCEP) is a mega trade pact among 16 countries which aims to cover goods, services, investments, economic and technical cooperation, competition and intellectual property rights.

 

India's trade deficit with China narrowed marginally to USD 51.08 billion in 2016-17 from USD 52.69 billion in 15- 16.

 

India wants greater market access in China for its goods and services like IT and pharma products. The Country has also insisted upon China to increase investments.

 

 

 

Soures : dailyshippingtimes.com

Korea Wants More Exports From India To Increase Bilateral Trade : Fieo

CHENNAI : FIEO hosted a high profile Importers Delegation from Korea at Chennai. The Delegation Members comprise multi product importers including Rubber, Adhesives, pigment, dyes Cotton yarn, Natural colour, manmade fiber lighting products, food additives, chemicals and minerals

 

While welcoming the participants Dr. A. Sakthivel, Regional Chairman, FIEO Southern Region said that presently export from India is stagnant for more than 5 years and product profile is also narrow by 50 per cent of value of export from India is of mineral fuels / oil distillates (mainly naphtha). 

 

There is huge opportunity to export wide range of products from India including pharmaceuticals, chemicals, rubber products, textiles, leather etc.  He urged exporters to focus growing Korean market.

 

Mr. M. Rafeeque Ahmed, Vice President, FIEO while addressing the participants said Korea is a developed market and they are conscious on quality as well as timely delivery commitments.

 

He also informed that Korea is providing very low duty for Indian products under CEPA compared to any other countries and exporters need to utilize emerging opportunities for non-traditional products in Korea.

 

Mr Mangat Ram Sharma, Principal Secretary, MSME, Govt. of Tamilnadu in his address said that even though India has signed Comprehensive Economic Partnership Agreement with Korea, due to various reasons our exports as well as investment from Korea have not increased.  He urged the Korean business community to invest in Tamil Nadu which is having huge potential on infrastructure and manufacturing.

 

Mr. Hyung Tae Kim, Consul General of Consulate General of the Republic of Korea in Chennai said that, Korea is looking forward for continuous closer relationship with India not only on trade but also other areas including defence, culture and tourism.

 

Mr. Myoung-Jin Shin, Chairman, Korea Importers Association, Seoul, Korea  in his address said that there is huge opportunity for Indian exporters especially MSMEs to sell their products in Korea. Since Korea lacks natural resources, the import of raw materials and semi-finished goods is essential to the country’s industrial development and economic growth.

 

Korea import market is rapidly growing with 450 billion USD during the year 2016 with double digit growth.  Korea is having FTA with 53 countries including India, US, China, EU, Australia etc. and very active in RCEP negotiations.  He urged Indian exporters to utilize low import tariff offered by Korea, 1.5 per cent without imposing any NTBs.

 

 

 

Soures : dailyshippingtimes.com

China Industrial Output Drops Again In August

China's economy revealed fresh signs of headwinds in August as data showed today that industrial output and retail sales unexpectedly slowed for a second consecutive month.

 

The readings follow disappointing export figures released last week, a one-two punch for the Asian giant, as an official pointed to weak overseas demand and warned the domestic economy still faces "many hidden concerns".

 

Output at factories and workshops expanded six percent last month, the lowest recorded this year and well below the 6.6 percent forecast in a Bloomberg News survey.

 

Retails sales slowed slightly to 10.1 percent while fixed asset investment increased 7.8 percent in the January-August period -- both well below expectations.

 

"In general, the national economy in August kept the momentum of steady increase," national statistics bureau spokeswoman Liu Aihua said at a news conference.

 

"But we should also see that there are still many instabilities and uncertainties in the international circumstance, and the domestic economy ... still faces many hidden concerns."

 

The data comes as the government seeks to rein in huge debt and excess capacity left over from massive government- backed infrastructure spending at the height of the global financial crisis.

 

The Chinese economy enjoyed better-than-expected growth in the first two quarters of the year thanks to debt-fuelled investment in infrastructure and real estate, although warnings of a potential financial crisis have spurred Beijing to clamp down.

 

"The main culprit was a slowdown in infrastructure investment, which also weighed on industrial output," Julian Evans-Pritchard, China economist at Capital Economics, said in a research note.

 

"In particular, infrastructure spending has now begun to cool as the front-loading of fiscal spending this year ahead of the Party Congress means that local governments are now having to pair back their outlays," Evans-Pritchard wrote, referring to the twice-a-decade gathering of the ruling Communist Party in October at which President Xi Jinping is expected to be given a second term.

 

The long-term outlook remains clouded by geopolitical tensions linked to the North Korea nuclear crisis as well as US President Donald Trump's anti-globalisation rhetoric and threats to slap China with tariffs.

 

 

Soures : moneycontrol.com