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

Hike In Coal Output Saved Rs 25,900 Cr Forex In 3 Years: Coal India

Hike in coal production in the last three years has helped mining major Coal India Ltd save Rs 25,900 crore in foreign exchange, interim Chairman and Managing Director Gopal Singh said today.

 

"Coal production has increased substantially in the last three years (fiscals), resulting in savings of Rs 25,900 crore in imports," Singh said in his address to shareholders at the company's annual general meeting here.

 

Singh said coal imports accounted for 25 per cent of the country's total consumption in 2015-16, and 23 per cent in 2016-17.

 

Coal stock in at least over a dozen thermal power plants in the country turned critical, the Central Electricity Regulatory Commission had said in a recent report.

 

Singh emphasised on swift exploitation of domestic fossil fuel reserves in order to meet future demand and reduce imports.

 

"The large planned new coal-based thermal capacity is likely to put pressure on coal resources. Coal-based power generation capacity of 125 gigawatt in 2012 is likely to go up to more than 330-441 GW by 2040 (192 GW in FY2017). The demand for these plants is likely to be first met by domestic coal, which will require quick exploitation of our reserves. "Import dependence in oil and gas is understandable given our poor reserves we have, but import dependence on coal particularly non-coking coal is something that can be addressed by swift exploitation of domestic coal reserves," he said.

 

Singh said the share of coal in India's commercial primary energy supply was 55 per cent in 2015-16, and is expected to remain high at 48-54 per cent, even in 2040.

 

He pointed out that the state-owned miner needs to achieve double-digit growth rate in order to meet the production targets.

 

CIL has maintained its projection of one billion tonne coal production target by 2022.

 

The company produced 554.14 million tonne of coal in 2016-17, while coal off-take was 543.32 million tonne during the same period.

 

 

 

Soures : moneycontrol.com

India Well On Path To Produce 50 Cr Mobile Phones By 2020: Official

'Made in India' phones have seen significant growth, with the number of such devices poised to touch the 50 crore mark by 2019-20, an official said.

 

"In 2014, we produced 6 crore mobile phones. In 2016-17, we produced 17.5 crore mobile phones and we are well on path to producing 50 crore mobile phones by 2019-20," IT Ministry Additional Secretary Ajay Kumar said at an event here.

 

He added that the value addition in these indigenously made phones has also grown significantly over the years.

 

"It was 10 per cent or so and now, it is 20 per cent and hopefully by 2020, it will be 35 per cent or so," he said.

 

Kumar was speaking at an event to mark the 50th anniversary of setting up of ELCINA, an industry body representing electronics manufacturers.

 

Minister of State for Home Affairs Kiren Rijiju lauded the role played by the electronics sector in empowering the country.

 

"The first thing I always stress is it must be Made in India... you can acquire technology by collaboration, by signing MoU... we keep national interest on top of the mind... we will acquire the perfection of the particular item or instrument but in long term, we must ensure that it must be Made in India," he said.

 

He also called on the industry to come forward with their views and suggestions on promoting Indian companies in areas of defence technology.

 

"I seek your opinion and suggestion. Please come up as industry as a whole. You must come up with a clear-cut suggestion, please identify that these are the bottlenecks, please suggest that government adopt this policy so that we become a manufacturing hub," he added.

 

 

 

Soures : moneycontrol.com

Domestic Cargo Registers 8% Growth During Fy07-17, While International Cargo Growth At 6.2%: Assocham

NEW DELHI: Domestic cargo has registered a growth of 8.0% at a CAGR during FY07-17, whereas international cargo grew at 6.2% annually during the same period, according to an ASSOCHAM-Yes Bank joint study.

 

In India, Air Trade to GDP ratio has doubled from 4% to 8% in the last twenty years. Air Cargo contributes about 20% of airlines revenue. Air Cargo industry involves a wide variety of service providers and employs nearly 70,000 thousand persons in the Country, reveals the joint study on ‘Civil Aviation’ released recently at New Delhi.

 

Air Cargo should be treated at par with other Logistics sector like Roads which is subject to 5% tax rate. It is recommended that air cargo tax rate may be reduced from 18.0% and considered for a lower tax bracket.

 

Indian express cargo industry provides fast, reliable, on demand, integrated and door to door (including customs clearance and duty and tax payments) is likely to grow manifold in the coming years. The growth of the industry will be driven by the current major customer segments, namely auto components, banking & finance, garments, pharmaceuticals, IT hardware and mobile phones, e-commerce etc.

 

As per IMF forecast, GDP growth in India is forecast to grow at an average of 7.5 precent-8.2 percent during FY18-21 and thus Air Cargo could be at the centre of supply.

 

In order to promote growth in air cargo by way of cost reduction, efficiency improvement and better inter-ministerial coordination, Air Cargo Logistics Promotion Board (ACLPB) and AAI Cargo Logistics & Allied Services (AAICLAS) have been formed. AAICLAS focus is on three verticals (a) air cargo handling and allied services, (b) warehousing and contract logistics and (c) air cargo road feeder and air freight stations. Creating AAICLAS would bring multiple advantages as there is lot of activities on the cargo front.

 

 

 

Soures : dailyshippingtimes.com

Subsidy On Export Goods May Be Scrapped; Merchandise Export From India Scheme Under Scanner: Report

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.

 

 

 

Soures : moneycontrol.com

Onion Exports Decline 14% In April-June

Onion exports fell 14 per cent to 9.45 lakh tonnes during April-June of this fiscal, as against 10.98 lakh tonnes in the year-ago period, official data showed.

 

Realisation from exports stood at Rs 11,621.97 per tonne in the said period. The total value of exports stood at Rs 1,098.58 crore and the volumes 9.45 lakh tonnes in April-June of 2017-18, according to the data maintained by the National Horticultural Research and Development Foundation (NHRDF).

 

On an average, 2.5-3 lakh tonnes of onions are shipped on a monthly basis. Onion prices are ruling firm in the domestic market driven by speculations and the government is considering restricting exports by imposing minimum export price.

 

The new onion crop from the 2017-18 kharif season has started arriving in the market and the crop is projected to be better despite poor rains in some growing states.

Gst Council To Meet On Oct 24; Rates Of 60 Items Likely To Be Cut

The all-powerful GST Council headed by Finance Minister Arun Jaitley is likely to discuss reducing rates of close to 60 items in its next meeting on October 24 in New Delhi.

 

“Around 100 items was there in the Council meeting's agenda on Saturday. Only 40 items could be taken up for discussion as we were running out of time. Remaining items will be considered in the next meeting on October 24,” a senior government official told Moneycontrol.

 

“Most of the remaining items are demands of individual states now,” the official said.

 

After brainstorming for more than eight hours, the goods and services tax (GST) Council –a body comprising state finance ministers and senior government officials—on Saturday took several crucial decisions that had affected taxpayers since the implementation of the new indirect tax system.

 

The Council, which met in Hyderabad, extended the deadline for filing the first set of returns, a move that will benefit millions of traders who have been struggling to upload invoices in the new tax system’s portal. Apart from discussing the liquidity crunch that the states are going through, the team also discussed the way out for technical glitches on the tax return filing portal GST Network (GSTN).

 

The Council also decided to constitute a group of ministers (GoM) that would look into the problems traders and taxpayers while using the GSTN portal, the information technology (I-T) backbone of the new tax system.

 

GSTN is a portal-driven IT backbone created to enable real-time taxpayer registration, filing returns, handle invoices, execute inter-state tax settlements, and connect states for two-way data flow.

 

Along with these decisions, GST rates of 40 items were brought down keeping in mind the changing time and needs for these products, which included goods such as tamarind, roasted gram, custard powder, dhoop, agarbatti, raincoats and rubber band.

 

“These (the rates) were in some higher category. In some cases the rates have been brought down to from 28 to 18 percent, in some cases from 18 to 12 percent and in some cases from 12 to five percent,” Jaitley had said. “Reduction in rates were required,” he had said.

 

According to another official, the government is mulling rate revision for items that fall in the highest tax bracket of 28 percent. “A decision towards this is yet to be taken as it would require Council's approval,” the official said.

 

GST has four broad slab structure – 5, 12, 18 and 28 percent – along with a cess on luxury and demerit goods such as tobacco, pan masala and aerated drinks. The states would receive provisional compensation from Centre for loss of revenue due to abolition of taxes such as VAT (value added tax), octroi and implementation of new tax system. The compensation would be met through levy of a 'GST Compensation Cess' on luxury items and sin goods like tobacco, for the first five years.

 

 

Soures : moneycontrol.com

India To Step Up Cooperation With Egypt In Textiles Sector

India today vowed to step up its collaboration with Egypt in the textiles sector and said talks were on to increase textile machinery supplies to the Arab country.

 

India's Ambassador to Egypt Sanjay Bhattacharyya, while addressing a press conference ahead of the Cairo Fashion and Tex Exhibition that opens tomorrow, said India and Egypt have have a long tradition of exchanges in the textiles sector.

 

"India astands ready to work with Egypt towards attainment of its new textile policy goals in production as well as in trade and investments," he said.

 

Thirty-seven Indian textile companies are participating in the exhibition that run till September 16 at the Cairo International Convention Centre.

 

The Indian firms are part of a delegation from the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), an apex body of manufacturers/exporter of man-made fibre textiles, in coordination with Federation of Indian Export Organization (FIEO) and the Indian Embassy here.

 

The companies will showcase a very wide range of products, including yarns and fabrics.

 

Bhattacharyya said that India is very well known in the market of man-made fibers and it has a very wide presence globally as India's textile industry is the second in the world.

 

The Indian fabrics have a range of products with both expensive products as well as products with reasonable prices, he said.

 

The other specially of the Indian textile industry is that it manufactures a lot of textile machinery, the envoy said.

 

The Indian side is currently in discussions with the Egyptian side to expand the presence of textile machinery supplies from India to Egypt, he said.

 

"Indian textile machinery are not only very good in terms of quality but also because India and Egypt has similar large populations and large labour force. So this kind of machinery will be very good for the Egyptian market," he added.

 

The exhibition will also host an 'India Pavilion'.

 

"We will be showcasing different varieties of fabrics, made-up items which are ready to wear, yarn and fibre. So, it is an excellent opportunity for the Egyptian buyers and traders to visit this exhibition to see all the participant Indian companies under one roof as it will be also an opportunity for discussing business," Srijib Roy, director of SRTEPC, said.

 

Roy said that Indian companies come to Egypt not to compete with the local industry but to cooperate with their Egyptian counterparts.

 

The participation of Indian companies in the Cairo Fashion and Tex is aimed at forging a win-win partnership between the Indian and Egyptian companies, officials said.

 

The objective is to strengthen the trade between the two countries, particularly in the fast-growing area of Man-Made Fibre (MMF) textiles, they said.

 

India exported around USD 240 million worth of textiles and clothing products to Egypt during 2016.

 

Man-made fibre textiles were one of the important products in the export basket, which is valued at USD 97 million, along with cotton (USD 131 million), apparel (USD 2.32 million), Jute (USD 4.4 million) and carpet (USD 0.36 million).

 

The main items of Indian MMF Textiles that are exported to Egypt include polyester viscose fabrics, polyester blended fabrics, synthetic filament fabrics, shawls/scarves, laces, viscose spun yarn, polyester spun yarn, texturised yarn, and polyester staple fibre.

 

Egypt has traditionally been one of India's most important trading partners in that region.

 

During the year 2016-17, bilateral trade between India and Egypt was about USD 3.23 billion. India is Egypt's 10th largest export destination and also the 10th largest import source.

 

 

Soures : moneycontrol.com

Government Imposes Antidumping Duty On Chemical From 4 Countries

NEW DELHI: The government has imposed an antidumping duty of up to USD 60.35 per tonne for five years on a chemical used in fertiliser industry from four countries -- Russia, Indonesia, Georgia and Iran.

 

The move would help guard domestic players from below- cost imports of 'ammonium nitrate' from these countries.

 

Deepak Fertilizers and Petrochemicals Corporation Ltd and Smartchem Technologies Ltd had jointly filed an application before the Directorate General of Antidumping and Allied Duties (DGAD) for initiation of the antidumping investigations.

 

The finance ministry imposed the duty after the DGAD in its finding concluded that the product has been exported to India from these four countries below its normal value, resulting in dumping.

 

The government, after considering the findings of DGAD "hereby imposes" the antidumping duty, the department of revenue said in a notification.

 

DGAD, under the commerce ministry, has recommended imposition of the duty on the imports.

 

The duty ranges between USD 11.42 to USD 60.35 per tonne.

 

"The anti-dumping duty imposed shall be effective for a period of five years (unless revoked, superseded or amended earlier)," it said.

 

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports.

 

As a counter-measure, they impose duties under the multilateral World Trade Organization (WTO) regime.

 

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.

 

India has initiated maximum anti-dumping cases against below-cost imports from China.

 

 

Soures : economictimes.indiatimes.com

India's Edible Oil Imports To Fall In Coming Crop Year - Analyst

MUMBAI: India's edible oil imports are set to fall in 2017/18 as a bumper crop of oilseeds are carried forward and will boost domestic edible oil production in the year ahead, a leading industry analyst and trade expert said on Wednesday.

 

A drop in imports next year would be the first in seven years, although in July the view was that India's higher oilseed output and crushing would lead to a fall in the current year.

 

Instead, farmers were reluctant to sell this year's bumper oilseed output at low prices and stocks will be carried forward to be crushed next year, said managing director of trading firm G.G. Patel & Nikhil Research Company, Govindbhai Patel.

 

Lower purchases by the world's biggest importer of vegetable oils could put pressure next year on soyoil and palm oil prices, which have surged over the last few months.

 

India is expected to import 15.13 million tonnes of edible oils in the year starting on Nov. 1, down 70,000 tonnes from the current year, Patel told an industry conference on Wednesday.

 

India's edible oil purchases - mainly palm oil from Malaysia and Indonesia and soybean oil from Argentina and Brazil - have increased each year since 2010/11, according to the Mumbai-based Solvent Extractors Association of India (SEA).

 

The country's edible oil imports in the year to Oct. 31 are now expected to rise 4.3 percent from a year ago to 15.2 million tonnes, Patel said, after earlier being expected to fall.

 

That means India is likely to start the new marketing year with carry forward stocks of 1.16 million tonnes of soybeans compared to just 460,000 tonnes a year ago, Patel said.

 

The country's soybean production in 2017/18 is expected to fall 15.2 percent from a year ago to 8.9 million tonnes due to a reduction in planting and lower rainfall in key growing regions, he also said.

 

Still, with the carry forward stocks, domestic output of edible oils is expected to rise 8.7 percent to 7.66 million tonnes in the next season.

 

Palm oil accounts for more than half of India's total edible oil imports. Its purchases are likely to edge lower to 9.13 million tonnes in 2017/18, compared with 9.28 million tonnes in the current year, Patel said.

 

Imports of sunflower oil - perceived to be a healthier option by many Indians - could surge 8 percent to 2.3 million tonnes next year, while soyoil imports could remain largely steady around 3.5 million tonnes, he said.

 

 

Soures : economictimes.indiatimes.com

Major Ports Witness 7% Cargo Growth In August, Jnpt Leads The Growth Rate

MUMBAI:  Efficiency gains from technological advances combined with a slew of Ease of Doing Business schemes are driving up growth at Major Ports that together account for roughly 70 percent of the Country’s total container trade.

 

The newest port data collected by JOC.com shows Major Ports’ cumulative throughput in August increased 7.7 percent to 772,000 TEU from 717,000 TEU in the same month last year.

 

Much of that growth is owed to an 8.5 percent year-over-year volume rise at Jawaharlal Nehru Port Trust (JNPT) during the month, reaching 409,000 TEU from 377,000 TEU previously. With steady productivity improvements, that trend is expected to gain further momentum at JNPT.

 

August throughput at the Chennai Port was up 5 percent to 134,000 TEUs from 128,000 TEUs a year earlier, a clear sign that the busiest Eastern harbor has been vigorously fighting to hold onto its market share amid cut-throat competition from private rivals.

 

A previous JOC.com analysis showed Chennai still commands roughly 40 percent of total South India container trade, but privately-operated Minor Ports, especially Adani Group-owned Kattupalli, are making rapid inroads into the market that is already oversupplied and has limited hinterland cargo potential.

 

JNPT and Chennai together load the majority of India’s containerized freight moving through Major Ports.

 

Like JNPT, Chennai is expanding the Direct Port Delivery (DPD) program to cut dwell times. DPD volume in the April-to-August period increased to about 17 percent, or 63,2497 TEU of the total 380,503 TEU, from 14 percent in the same period last year.

 

August volumes at other Major Ports were as follows: Kolkata, up 9 percent from 64,000 TEU to 70,000 TEU; Tuticorin, or V.O. Chidambaranar, essentially flat at 56,000 TEUs; Cochin (DP World-operated Vallarpadam Transshipment Terminal), up 15 percent from 44,000 TEU to 51,000 TEUs; and Visakhapatnam, down 6 percent from 34,000 TEUs to 32,000 TEUs, new statistics show. 

 

The figures at DP World Cochin are reportedly a monthly volume record, suggesting that it is making headway in meeting the long-term Government goal of recapturing domestic cargo transshipped over foreign hub ports, especially Sri Lanka’s Colombo.

 

On a year-to-date basis, Major Ports’ total throughput was up 6.4 percent to 3.8 million TEU from 3.5 million TEU in the April-to-August period of 2016, with JNPT accounting for 2.02 million TEU, a gain of 6.2 percent year-over-year, according to the collected data. 

 

Technology-backed Ease of Doing Business program at Indian ports will enter a new phase Oct. 1. Customs will begin allowing “electronic self-sealing” services for factory-stuffed export shipments with the use of radio-frequency identification tags, which is expected to significantly enhance supply chain security and facilitate smoother cargo flows by eliminating many physical on-site customs inspections.

 

 

Soures : dailyshippingtimes.com

With Tougher Norms, Importing Toys No Longer A Child’S Play

KOLKATA: The government has imposed tough quality norms for imported toys and mandated certification of compliance by agencies accredited with Indian authorities — a move that can choke Chinese imports and boost local manufacture, but the Rs 5,000-crore local industry is worried about orders already booked for the festive season.

 

The comprehensive notification issued on September 1 prescribes norms for physical and mechanical properties, chemical content, flammability, and testing for indoor and outdoor toys for both electrically and mechanically operated ones — going far beyond the earlier norms. The notification by the Director General of Foreign Trade (DGFT) says import of toys shall be permitted freely only if the manufacturer abides by norms of the Bureau of Indian Standards (BIS).

 

Compliance has to be certified by an independent laboratory approved by an accreditation authority under the Department of Science and Technology. This will hit import from China, which accounts for nearly 70% of toys available in the Indian market. Lob Gupta, CEO, Fun Toys, said the new norms will have a big impact.

 

"Initially, there will be a big drop in imported toys from China. Government too will lose customs duty on account of this move. But safety standards will be ensured which is good for Indian children. The government should introduce BIS certification for India-made toys too," Gupta told ET.

 

Electric toys, swings, slides and similar activity toys come under the ambit of the new government stipulation. The toy industry is worried about consignments already booked before the new norms came into force.

 

"This is the peak time for the toy industry and will continue till January. If some importer has ordered in August and his consignment is to land in September, then he will face a lot of problem to get clearance. We are not sure which are the laboratories from where we will get the conformance certificate," said Manish Kukreja, president of All India Toy Manufacturers Association.

 

Kukreja is of the view that the importers should have been given at least three months' time. However, a section of the toy industry feels the move may help domestic toy manufacturing industry as it is finding it difficult to compete with cheaper Chinese imports. The domestic toy industry, which is largely a mix of organised and unorganised units, employs nearly 25 lakh people. Most of these units are located in West Bengal, Uttar Pradesh, Maharashtra, and Andhra Pradesh.

 

There are more than 2,000 registered units and at least 40% of these have already shut shop in the past five years, an industry executive said.

 

"It is a much-needed quality reform which would be beneficial for Indian children. However, importers should have been given some time so that pending orders lying offshore could have been imported. The DGFT notification comes at a time when the toy business is going through a bad patch since last November, when demonetisation was announced and the overall taxation has increased following the introduction of GST on July 1," Gupta of Fun Toys said. Electric toys attract 18% GST against the earlie.

 

 

Soures : economictimes.indiatimes.com

Reduction In Gst On Supply Of Scrips To Boost Exports: Fieo

MUMBAI: Welcoming the decision of the GST Council of reducing the rate on supply of various scrips from 12 per cent to 5 per cent, the Federation of Indian Export Organizations (FIEO) said the move will give a boost to the exports sector.

 

"Reduction of the GST rate on supply of scrips like merchandise exports from India scheme (MEIS), service exports from India scheme (SEIS), duty free import authorisation (DFIA) from 12 per cent to 5 per cent follows the fitment formula adopted by the Council," FIEO president Ganesh Kumar Gupta said in a statement issued here today.

 

He said the decision will give a boost to premium on scrips which plummeted with restriction on utilisation of scrips in the GST regime.

 

"Wider utilisation of scrips will also be looked by the new Committee as the government's objective is to benefit the exporters through the grant of scrips rather than the importers," Gupta said.

 

 

Sources : economictimes.indiatimes.com