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