chemexcil news

CHEMEXCIL NEWSIssue June - July 2017

Basic Chemicals, Cosmetics & Dyes Export Promotion Council(Set - up by the Ministry of Commerce & Industry Government of India)

MEETING WITHCHIEF MINISTER OF MAHARASHTRA

Shri. Satish Wagh, Chairman, Chemexcil met Hon. Shri. Devendra Fadnavis, Chief Minister of Maharashtra, Shri. Subhash Desai Minister for Industries and Mining, Government of Maharashtra on 23rd July-2017 at Sahyadri Guest House, discussed the various industrial issues related in Maharashtra and Konkans Lote Parshuram, MIDC area and industrial infrastructure.

Standing from left Shri. Bhupendra Bhai Patel, Regional Chairman, Chemexcil, Shri. Ajay Kadakia, Vice Chairman Chemexcil and Shri. Shankar Patel, President, The Green Environmental Services Co.Op Soc. met Shri. Arun Jaitley, Minister of Finance, New Delhi and discussed and submitted the concerns regarding the exports under GST regime on 27th June-2017.

Shri. Sugandh Rajaram, Consulate General of India, Munich, Germany, is inaugurating Chemexcil Pavilion along with Shri. Ramu Deora, Past Chairman, Chemexcil and Shri. S.G. Bharadi, Executive Director, Chemexcil and Chemexcil exhibitors at Chemspec Europe-2017 (Speciality Chemical Show) at Hall A-6, Munich Trade Center, Munich, Germany on 31st May-2017.

Standing from left Shri. Bhupendra Bhai Patel, Regional Chairman, Chemexcil, Shri. Shankar Patel, President, The Green Environmental Services Co. Op Soc. Shri. Mansukh L. Mandaviya, Minister of State for Chemicals & Fertilizers, Shri. Ajay Kadakia, Vice Chairman Chemexcil and Dr. Tiwari, Regional Director, Chemexcil New Delhi. (Meeting on various chemical trade related issues with Honorable Minister of State Chemical & Fertilizers).

1 June - July, 2017

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

Exporting community welcomed the introduction and soft landing of GST from 1st July-2017. To ensure that affects of GST gets absorbed smoothly by the EXIM community, the GST Council has taken a deep insight into various aspects of Exports. However, few anomalies in the system that may become a concern for exporters are being taken up with the GST Council from time to time.Here, I would like to commend the support and prompt clarifications issued by CBEC/GST policy wing in current issues which exporters are facing and efforts to resolve it.

GST is a most progressive tax reform it will be bit difficult period of six months lay ahead of exporters from July. There were some loose ends to be tied up, but the Government and the officials had assured us that they would co-operate fully with the trade and exporters in the switch-over to GST and there would not be any hassles.

Friends it was time to march ahead and "we will have to move into the new tax regime in a positive frame of mind and let us have one nation and one tax."

I request my exporter’s colleague who had not yet registered themselves under the GST regime to register under GST and intimate council about your GST registration details.

Disclaimer:- News, Views, Article, Strategy in this publication are not necessarily those of council. These are provided only for information as a service & reference to members. The Publisher and editors are in no way responsible for these views.

Editorial

Mr. Satish W. Wagh Chairman

Mr. Ajay Kadakia Vice Chairman

Mr. S. G. Bharadi Executive Director

Mr. Prafulla Walhe Dy. Director

Mr. Deepak Gupta Dy. Director

IN THIS ISSUE

1 Chairman Desk

2 Business with Latin America.

3 Dangerous Goods Class 4.3

8 News Article

9 Chemexcil Notices

Chairman’s Desk

1

4Indo - US Chemical Trade

5“GST & Exports”

Export Strategy- USA6

Chemexcil Activities7

Dear Member-exporters,

10 Members Achievement

2June - July, 2017

Chemexcil has already updated you all on various updates on GST by arranging capacity development seminars on GST in order to get you the knowledge on it.

I personally met Hon. Shri. Devendra Fadnavis, Chief Minister of Maharashtra along with Shri. Subhash Desai Minister for Industries and Mining, Government of Maharashtra on 23rd July-2017 and discussed the various industrial issues in Maharashtra and Konkan related Lote Parshuram, MIDC area and industrial infrastructure. It was requested to overcome the issues related to MIDC as early as possible. Hon. Shri. Devendra Fadnavis, Chief Minister of Maharashtra and Shri. Subhash Desai Minister for Industries and Mining, Government of Maharashtra took the note of it and assured me to overcome related issues fruitfully.

Besides this, CHEMEXCIL participated in Chemspec Europe-2017 exhibition being organized by M/s. MACK BROOKS EXHIBITIONS LIMITED UK, 31st May -1st June-2017 at hall A5 and A6 at Munich Trade Fair Centre in Germany. Altogether 49 chemexcil member-exporters participated in this exhibition. Chemexcil Pavilion was inaugurated by Mr. Sugandh Rajaram, Consul General of India, Munich, Consulate General of India, Munich, Germany, on 31st May-2017at 10.00am the show was grand success.

Council also organized awareness seminars on GST in association with Service Tax Commissioner, Ahmedabad on 09.06.2017 at hotel Ramada, Ahmedabad. Shri Aseem Kumar Vaibhav, IRS, Deputy Commissioner, ServiceTax, was a Key speaker of this Seminar. The officer covered important topics such as -Introduction to GST, Overview of GST, Registration, Returns, Refunds, GSTN etc.

Council also organize GST seminars in Bangalore on 14th July-2017, in Mumbai 26th July-2017, In Ahmadabad on 25th July-2017. We also published GST FAQ’s on our website based on feedback from exporting community. I hope you all will be befitted from this capacity building initiative of GST awareness.

Council submitted exporter’s issues in Mid-term review of Foreign Trade Policy, 2015-2020 & re-aligning of FTP schemes in line with rollout of GST during the Board of trade meeting on 20/06/2017 to Department of Commerce and Industry, New Delhi issues like Status of Export Incentives under GSP Framework/ Re-alignment of Schemes, Request for continued Incentives Support To Overcome Trade Barriers In Overseas Markets, Expansion Of Interest Equalization Scheme by Including more tariff Lines for Non-MSME’s & cover Merchant Exporters, Import of technical pesticides, Solution for Persistent Technical Difficulties Related to DGFT Server/ Icegate/ BRC, Caution Listing Of Exporters, Environment Related Controls, Business with Countries on OFAC List, etc. The detailed presentation is stated in this bulletin separately.

I hope you will find this news bulletin informative and useful. The secretariat look forward to receive your valuable feedback and suggestions which help us to improve this bulletin.

Satish Wagh Chairman, CHEMEXCIL

M/s. Swastik Industries, 207/208, Udyog Bhavan,Sonawala Road, Goregaon (East), Mumbai 400063, INDIA. Tel : +91 22 40332727 / 40332718, Fax : +91 22 26860011 E-mail [email protected]; [email protected]

2June - July, 2017

3 June - July, 2017

Mexico has emerged as the

top destination for India’s exports to Latin America with a record high of 3.38 billion US dollars in 2016 (January- December). For those Indians who think that Mexico is too far and less important for India’s trade than the neighbors or the traditional trade partners, here are

the statistics to open their eyes: India’s exports to Mexico in 2016 are more than its exports to the neighbors such as Indonesia –3.13 bn, Thailand-2.96 bn, Iran-2.41 bn and Myanmar-1.13 bn; and more than to the traditional partners: Russia-1.81 bn, Canada-1.97 bn, Australia-2.95 bn, South Africa-3.24 bn, Spain-3.36 bn, and Egypt-2.09 bn.

While India’s exports to Latin America as a whole have declined in 2016, it is heartening to note that the exports to Mexico have increased by an impressive 22 percent from last year (2.77 bn) and doubled from 1.56 bn in 2012. In Latin America, Mexico has overtaken Brazil (2.3 billion dollars) in 2016 as the largest market for India’s exports.

What is even more interesting is that Mexico has emerged as the biggest market for India’s vehicle exports which amounted to 1.83 bn. Mexico accounts for 13% of India’s global exports of vehicles which stood at 14.98 billon in 2016. This is remarkable in view of the fact that Mexico itself exports 80 billion dollars of vehicles and is the fourth largest exporter in the world. India’s vehicle exports to Mexico have increased by an incredible

MEXICO HAS EMERGED AS THE TOP DESTINATION OF INDIA'S EXPORTS TO LATIN AMERICA

56% from 2015 (1.17 bn), 83 % from 2014 ( 1 bn) and from a mere 397 m in 2012.

The major exports to Mexico are: vehicles –1.83 bn, Other engineering goods – 590 million, chemicals – 333 m, textiles- 214 m, plastics-83 m and pharmaceuticals- 47 m.

India’s imports from Mexico were 2.44 billion dollars in 2016, down from 3.44 bn in 2014 due to the drastic fall in the prices of crude oil which accounts for 60 % of India’s total imports from Mexico. Crude imports in 2016 were 1.48 billion dollars, down from 2.74 bn in 2014. India is the third largest destination for Mexican crude exports which have the potential to increase in the coming years. The other import items: engineering products –593 million dollars, gold-77m, chemicals-76m, optical products –57 m, and ores-54m.

Mexico is the second largest market in Latin America with a population of 126 million and GDP of 1.15 trillion dollars. It is a politically stable country with vibrant democratic credentials. The macroeconomic fundamentals are generally healthy and strong. The average inflation in the last decade was just 4.3%. The Mexican economy grew over 2% in the last two years, while Latin America as a whole had suffered GDP contraction in 2015 and 2016. The Mexican GDP growth rate in 2017 is projected to be around 2%. Mexico is the largest trading nation in Latin America, accounting for about 40% of the region’s external trade. Its market is open with low tariffs and predictable and investor-friendly policy regime. In the last four years, it has carried out many reforms opening up the previously restricted sectors such as energy. It has become a manufacturing hub of Americas with global leadership position in some consumer appliances and competitive in aerospace and high-tech industries. Manufactured products account

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

4June - July, 2017

for over 80% of exports unlike the South American countries which are dependent on exports of raw materials and commodities. Mexico is blessed with rich reserves of gold, silver, copper and other minerals as well as oil. However, Mexico has its its own share of challenges which include drug-related violence and Trump’s threats to deport Mexicans from US and disrupt NAFTA.

Thirteen Mexican companies have invested about a billion dollars in India. Around forty Indian companies have invested in Mexico in sectors such as pharmaceuticals, auto parts, IT and chemicals. Indian companies use Mexico as the platform for access to the markets of North and Central America with whom Mexico has signed FTAs. The Mexican Ambassador to India Melba Pria, known for her proactive economic diplomacy and riding in a colorful auto rickshaw with diplomatic number plate, has invited Indian IT professionals to use Mexico as the base for near-shore US operations, after Trump’s H-1B visa restrictions.

The Indo-Mexican trade of 5.82 billion dollars in 2016 have the potential to reach 10 bn in the next five years. After Trump’s trade threats, Mexico is trying very seriously to reduce its over dependence on the US market which accounts for 81% of its exports and 50% of imports. It wants to diversify its trade partnerships and intensify its engagement with large markets such as India. This is, therefore, the most opportune and unmissable time for India to accelerate its trade promotion activities with Mexico.The Indian government could extend an invitation for state visit to the Mexican President Nieto who is keen on a strategic economic partnership with India. It is imperative for India to sign a Free Trade Agreement to remove the tariff disadvantages faced by India’s exports vis-a-vis the exports from the 45 countries which have signed FTA with Mexico.

BASE CHEMICALS (FEED STOCK)

Petrochemicals, Alcohol based Chemicals, Chlor

Alkali Chemicals, Inorganic Chemicals, Organic Chemicals.

COLORENTSDyes, Dye

intermediates, Pigments.

AGROCHEMICALSInsecticides,

Rodenticides, Herbicides, Fungicides and Other Crop

Protection Chemicals.

SPECIALITY CHEMICALSLeather Chemicals,

Construction Chemicals, and other Specialty

Chemicals, Castor Oil and its derivatives.

PERSONAL CARE PRODUCTS

Cosmetics, Soaps & Toiletries, Essential

Oils, Perfumes & Aromatic Chemicals

• Indian chemical industry stood as 3rd largest producer in Asia and 12th in world.

• The chemical industry in India is a key constituent of Indian economy, accounting for about 7% of the GDP.

• India accounts for approximately 7% of the world production of dyestuff and dye intermediates, particularly for reactive acid and direct dyes

INDIAN CHEMICAL INDUSTRY

[email protected]

CHEMEXCILBasic Chemicals, Cosmetics & Dyes

Export Promotion Council(Set up by the Ministry of Commerce & Industry Government of India)

• India is currently the world’s third largest consumer of polymers and fourth largest producer of agrochemicals.

• Indian Chemical Industry is One of the most diversified sectors, covering more than 70,000 commercial Products.

MAJORSTRENGTH

5 June - July, 2017

DANGRAOUS GOODS: CLASS 4.3

Water, water, everywhere, And all the boards did shrink;

Water, water, everywhere, Nor any drop to drink.” = The Rime of the Ancient Mariner

Transport regulations classifies substances

(solids and liquids) which, by interaction with water, are liable to become spontaneously flammable

or to give off flammable gases in dangerous quantities under Class 4.3.

Some of these substances may emit flammable gases which forms explosives mixtures with air and can be ignited with even an unprotected light bulb.

The decision logic for classification of Class 4.3 is based on Test methods given in the United Nations Manual of Tests and Criteria, part III, 33.4.1.

1. Occurrence of spontaneous combustion at any step during the test, or

2. At least 1 litre of flammable gas is generated by per kilogram of substance in an hour.

An example of Class 4.3 is ‘CALCIUM CARBIDE’,

when in contact with water or moisture in air calcium carbide rapidly evolves acetylene, a highly flammable gas, which may be ignited by the heat of the reaction.

According to news reports the infamous ‘Tianjin Blast’ involved vast quantities of calcium carbide.

Another chemical under Class 4.3 is ‘ALUMINIUM PHOSPHIDE’ which is also toxic. Aluminium Phosphide when in contact with moist air or water evolve phosphine, a spontaneously flammable and highly toxic gas.

Pesticides made from aluminium phosphide falls under Class 6.1, toxic, however it will still evolve deadly phosphine gas. The rate of production is lesser than the classification criteria of Class 4.3.

All substances under Class 4.3 must be packed in hermetically sealed packagings. And certain solid substances permitted in bulk containers must be under a nitrogen blanket.

Packing Group for Class 4.3 is assigned on basis of reaction to water and rate of evolution of flammable gas as per below table.

Packing Group I Reacts vigorously with water at ambient temperatures and demonstrates generally a tendency for the gas produced to ignite spontaneously or The rate of evolution of flammable gas is equal to or greater than 10 litres per kilogram of substance over any one minute

Packing Group II Reacts readily with water at ambient temperatures such that the maximum rate of evolution of flammable gas is equal to or greater than 20 litres per kilogram of substance per hour, and which does not meet the criteria for packing group I.

Packing Group III Reacts slowly with water at ambient temperatures such that the maximum rate of evolution of flammable gas is equal to or greater than 1 litre per kilogram of substance per hour, and which does not meet the criteria for packing groups I or II.

Shipboard Emergencies: if a package or container carrying Class 4.3 is on fire the firefighting is to be carried out as per FIRE SCHEDULE Golf.

General comments: In a fire, exposed cargoes may explode or their containment may rupture. Fight

Shashi Kallada Consulting & Training - Dangerous Goods by Rail, Road, River & Sea

6June - July, 2017

Response to spillage on board ships are divided into different categories of Class 4.3 substances as below.

1. Spontaneously Combustible, Water-Reactive Substances

2. Hazard of Spontaneous Ignition

3. Substances Reacting Vigorously with Water

4. Substances Dangerous When Wet (Non-Collectable Articles)

5. Substances Dangerous When Wet (Collectable Articles)

Class 4.3 label is upper half symbol of flame (black or white), figure ‘4’ in bottom corner and background “blue”. The colour blue signifies dangerous reaction with water.

There are substances which are outside the classification criteria of Class 4.3 but still dangerous when carried in large quantities such as Direct Reduced Iron (DRI). Direct Reduced Iron is classified as “MATERIAL HAZARDOUS IN BULK” under The International Maritime Solid Bulk Cargoes (IMSBC) Code.

fire from a protected position from as far away as possible. Use of copious quantities of water at once is recommended to cool down the heat radiation of the fire and to cool down heated cargo nearby. Only as a secondary effect, water will start or intensify burning of that material. Do not use small quantities of water - this will react strongly.

On Deck Container on Fire: If the fire is not igniting nearby cargoes, let the fire burn. Otherwise, cool the burning transport unit with copious quantities of water. Try to avoid getting water into the container.

Under Deck Container on Fire: Stop ventilation and close hatches. The fixed gas fire-extinguishing system should be used. If this is not available: Do not use water onto the material in enclosed spaces under deck. With open hatches, cool nearby cargo with copious quantities of water, although the fire could intensify for a short period of time. Do not spray small quantities of water onto the fire, use copious quantities of water.

Special Firefighting Media: LITHIUM, non-pyrophoric and MAGNESIUM POWDER require the use of dry Lithium chloride or dry sodium chloride or graphite powder to extinguish the fire. Do NOT use water or foam.

4 81

7 June - July, 2017

Indo - US Chemical Trade

THE INDIAN CHEMICAL INDUSTRY

India is the 6th largest producer of chemicals globally and third largest producer in Asia, in terms of output. The chemical industry is a key constituent of the Indian economy, contributing ~3% to the Indian GDP. The country is ranked 3rd in the production of agrochemicals and contributes ~ 16% to the global dye intermediate production and dyestuff.

As per Nirmala Sitharaman, Union Minister of State (independent charge) of Commerce and Industry:

The Indian chemical industry has showcased tremendous flexibility during FY 2016 and is expected to reach USD 226 billion by 2020, growing at a brisk pace.

Although the exports, in terms of value, have showcased a decline of 7.8% from USD

12.66 billion in FY 2014-2015 to USD 11.67 billion in FY 2015-2016. However, in terms of volume, the exports segment witnessed tremendous growth of 7.51%, reaching 56.9 lakh tones in FY 2015-2016 from 52.9 lakh tones in FY 2014-2015.

What are the major chemical categories in India deals with?

Chemical exports of India consistent of various groups namely –

• Dyes and Pigments

• Pesticides and Agrochemicals

• Fine and Specialty Chemicals

• Fertilizers

• Organic and Inorganic Chemicals

• Plastics and Petrochemicals

• Drugs and Pharmaceuticals

In 2014, among the above mentioned categories, organic chemicals and pharmaceuticals were

the top two exports categories of India, and

earned USD 12.1 billion and USD 11.7 billion,

respectively. The Indian chemical industry is

made of large number of small, medium, and

large scale companies in both private and public

sector companies. With the consistently growing

demand for chemicals in the both the domestic

and international market, the chemical companies

and chemical industry in India are expected to

witness growth in the coming years.

INDO-US CHEMICAL TRADE

India is at an all-time high, as the country continues

to open the gateway for global companies by

various economic and entry reforms. The United

States is the second largest trading partner

with India after Europe. According to the joint

report of PWC and Indo American Chamber of

Commerce, the bilateral relationship between

both the countries have been cemented further

and is anticipated to remain the same in the near

future. Targeted trade slab of USD 500 billion from

the current market trade of over USD 100 billion

between India and the United States is projecting

the cementing relationship between both the

countries.

India accounts for 7% of the global dyestuff and

derivatives reactive, acid, vat, and direct dyes.

Due to the large population of skilled, semi-

skilled, and unskilled labor forces, the country

is able to produce dyestuff cheaper than the

global production rate. India is also the 4th largest

producer of agrochemicals after the United States,

Japan, and China, and United States is the major

importer of agrochemicals from India, owing to

the low production cost.

8June - July, 2017

Group Country Rank Value (FY 2014-2015)Dye and Dye Intermediate Exports United States 1 USD 217 millionInorganic, Organic, and Agro-chemical Exports United States 1 USD 1,071 millionCosmetics, Toiletries, and Essential Oils United Arab Emirates 1 USD 179 million

United States 2 USD 146 millionSpecialty Chemicals, Lubricants, and Castor Oil Exports

China 1 USD 216 million

Netherlands 2 USD 126 millionUnited States 3 USD 94 million

How the initiatives taken by the Indian Government and policies of the new president of the United States will affect the Chemical Trade between the two nations?

The recent economic growth of India positioned the country as a major investment destination in the world. As a result, the Indian government has taken several initiatives such as raising FDI limits upto 100% for chemical companies, dropping regulatory barriers, and licensing to position itself as a global business hub over the past two years.

Presently, India’s per capita chemical consumption is 1/10th of the global average. A more lucrative approach from India, on FDI to increase the foreign currency flow in the country is allowing the American chemical manufacturers to easily penetrate into the Indian market at the regional level to grab the potential opportunities in India, especially small and medium size enterprises.

The Union Budget of 2017-2018, focuses on boosting the chemical industry and reduction in corporate tax for MSMEs by 5%, and new Trade Infrastructure Export Scheme will aid exporters in reducing transactions costs and making the domestic industry competitive at global level. Additionally, initiatives such as Make in India, CBEC’s Single Window Interface for Facilitating Trade (SWIFT), relaxation of environmental norms for chemical industry, and the expected GST roll-out, will boost the growth of the chemical industry of the country.

However, actions taken by the newly elected President of America, such as the prompt cancellation of the Trance Pacific partnership (a mega free trade pact) is depicting a different story. The noticeable exclusion of India and China is

likely to affect the India’s trade relation with the United States. Majority of economists in the United States are pointing out the negative outcomes of this decision, as the low cost Indian and Chinese products help the consumers to a certain extent.

DISCLAIMER

Mordor Intelligence Reports and their contents, including all the analysis and research containing valuable market information, are provided to a select group of customers in response to orders. Our customers acknowledge when ordering that Mordor Intelligence strategic analysis services are for our customers’ internal use and not for general publication or disclosure to third parties.

Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. Mordor Intelligence takes no responsibility for any incorrect information supplied to us by manufacturers or users.

No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited.

ABOUT US

Mordor Intelligence is a global market research and consulting firm. Our singular focus is to provide research insights for business success.

Our research team has expertise in diverse fields like Agriculture, Healthcare, ICT, Chemicals, Manufacturing, Logistics, Electronics and Automotive. However diverse the expertise maybe, everyone in our team shares one common trait - we love data and we love providing solutions to clients using that data even more. Seeing your business flourish based on our solutions and strategy is what we love the most.

For information regarding permissions and sales, please contact: [email protected]

9 June - July, 2017

“GST & Exports”

The new system of indirect taxation

“Goods and Service Tax (GST)” has become operative from 1st July, 2017. The new system entirely changes the eco system of import & export, as the word ‘exemption’ will now have a very limited meaning. Most of Foreign Trade Policy (FTP) schemes were revolving around

the word exemption. Advance Authorisation (AA) offered exemption from all duties on import of inputs required for export production. EPCG scheme offered exemption from BCD, CVD, SAD & education cess coupled with time bound export obligation. EOU scheme offered exemption from all duties in respect of inputs & capital goods. Local procurement by EOU was without payment of excise duty. In addition, EOUs were entitled to exemption or refund from import duty & excise duty. In short, the entire policy was primarily for claiming exemptions there by reducing the blockage of funds & interest cost.

Schemes like MEIS/SEIS offered incentives in the form of tax credit which was allowed to be used for payment of indirect taxes i.e. customs duty, excise duty & service tax.

With introduction of GST, all the above schemes now offer exemption from BCD only. In turn MEIS/SEIS Scrips can be used only for payment of BCD.

What would be the impact on export transaction?

All exporters will be subject to payment of applicable GST in respect of their entire procurement (inputs & capital goods plus spares), which will add to cash outflow and interest cost. GST so paid will be available as input tax credit or will have to be taken back by way of refund, when finished goods are exported. Any refund mechanism requires compliances, and under GST

regime compliances are time bound & online, hence, exporters will require knowledgeable workforce. Every serious exporter therefore, must understand the compliance issues & the skill sets required for the same. SMEs need to be particularly aware of the new requirement.

EOUs will have more complications with reference to domestic tariff area (DTA) sales. As per Trade notice no. 11 dtd.30.06.2017 issued by DGFT, the calculation of duty would include paying back whole of the BCD enjoyed on import of inputs utilized, in the manufacturing of finished product sold in DTA. EOUs therefore will have to maintain proper account of utilization of inputs. Earlier they were paying 50% of applicable BCD on the finished products while selling in DTA and there was no need of establishment of co-relation. In the new system this will have to be monitored. Any transfer/supply of goods from one unit of EOU to another would also attract applicable GST.

While one can welcome the idea of GST in general, one has to remember that, the entire supply chain will have to be compliant. The refund mechanism must be robust & sensitive to needs of exporters. If refunds are delayed on account of interpretation, it would have serious impact on exports.

Another very important issue is mentioning the right HS codes in both the documents i.e. Bill of Entry and Shipping bill. In my experience, our knowledge on HS codes is lacking. We haven’t looked into this aspect seriously. There is over dependence on CHA community for deciding the HS code. GST system requires monitoring of HS codes as well.

In short, compliance is the key issue. I am also not very sure about the training of the people handling these issues on both sides. We need to learn expeditiously. Export growth is national priority. Since, exemptions are gone & everything revolves around refund mechanism, we also

Mr. Sudhakar Kasture Director Exim Institute (a division of Helpline

Impex Pvt. Ltd.) E-mail:

[email protected]

10June - July, 2017

need change in attitude of revenue department. They should work as facilitators if GST has to be successful, particularly with reference to exports.

Let me try to make you understand GST & exports in a lighter manner.

GST & Marriage

1. GST is an ECO SYSTEM, so is marriage. Everybody becomes “in-law” instantly, like father-in-law, mother-in-law, brother-in-law, sister-in-law etc. etc. ‘Law’ surrounds you wherever you go except for Honeymoon. And honeymoon is always for short duration worldwide (GST or No GST).

2. GST requires periodic returns, so is marriage. Returns are to be reconciled in a time bound manner, otherwise there are penalties – no reconciliation is possible beyond a certain time limit – so be aware. Periodic returns are also online. So your experience of Facebook, LinkedIn etc. would be extremely useful. Only be aware of cyber security.

3. GST says one country – one tax – but there are many rates – many components of tax like CGST/SGST/IGST etc, so is marriage – “one family” with many components. GST is going to stay, so is marriage – expected to stay. We believe marriages are made in heaven and expect them to last not only in this life but 7 more lives. Input tax credit is however limited to this life only.

4. We believe GST will bring tax compliance and prosperity – so is marriage, we hope it will bring happiness and prosperity. When it comes to GST it is ‘belief’ and when it comes to marriage it is ‘hope’. ‘Belief’ and ‘Hope’ both are interesting words. They are wonderful but subject to realisation.

At the end, I wish you growth in exports.

Sudhakar Kasture Director, EXIM Institute (A Division of Helpline Impex Pvt. Ltd.) Mumbai E-mail: [email protected]

11 June - July, 2017

EXPORT STRATEGY- USA

THE CHEMICAL INDUSTRY IN USA:

The chemical industry is one of the United States’ largest manufacturing industries,

serving both a sizeable domestic market and an expanding global market. It is also one of the top exporting sectors of U.S. manufacturing. Accounting for over 15 percent of global chemical shipments, the United States is a world leader in chemical production and exports.

The industry’s more than 10,000 firms produce more than 70,000 products. In 2015, the U.S. chemical industry had final sales exceeding $800 billion and directly employed more than 810,000 workers, with additional indirect employment by industry suppliers of more than 2.6 million. With investments of $93 billion in research and development in 2015 and a record of strong enforcement of intellectual property rights, the chemicals industry accounts for a significant portion of patents granted in the United States.

Strong product identification and quality, access to low-cost natural gas, a highly educated workforce, world class research centers, protection for intellectual property, and a robust regulatory system make the United States a competitive home for chemicals firms from across the globe.

INDUSTRY SUBSECTORS

Basic Chemicals: These include organic and

inorganic chemicals, plastic resins, dyes and pigments. Plastic resins, in particular, have experienced significant growth as a replacement for traditional materials in the automotive, construction, and packaging end-use markets.

Specialty Chemicals: These include adhesives and sealants, water treatment chemicals, plastic additives, catalysts and coatings. These chemicals are performance-oriented and typically include customer/technical servicing as an aspect of their sales.

Agricultural Chemicals: These play a crucial role in the farm economy and the food processing sector. Thanks to modern agriculture, farmers have doubled the production of world food supplies since 1960, tripled the output of foods like cooking oils and meats, and increased per capita food supplies in the developing world by 25 percent.

Pharmaceuticals: These include diagnostics, prescription drugs, vaccines, vitamins, and over-the-counter drugs for human and veterinary applications. This subsector also includes biotechnology products. Strategic investment in companies, facilities, and research and development is especially important for this subsector.

Consumer Products: These include soaps, detergents, and cleaners, as well as toiletries

12June - July, 2017

and cosmetics. While consumer products are an established segment of the industry, technological innovation and product development are important due to short product life cycles.

FEDERAL PROGRAMS & LEGISLATION

Manufacturing USA: Manufacturing USA – the National Network for Manufacturing Innovation - consists of linked manufacturing innovation institutes with common goals, but unique concentrations. Each institute is designed to be a public-private membership organization where industry, academia, and government partners are leveraging existing resources, collaborating, and co-investing to nurture manufacturing innovation and accelerate commercialization.In the chemicals area, the Institute for Advanced Composites Manufacturing Innovation (IACMI) was created in 2015 with membership from industry, academia, and the public sector. The IACMI will foster the creation and application of next-generation composites by accelerating the development and adoption of advanced manufacturing technologies in the industry with a focus on vehicles, wind turbines, and compressed gas storage.

Manufacturing Extension Partnership: The Manufacturing Extension Partnership (MEP) helps U.S. firms by providing individually tailored services to help companies improve their productivity, economic competitiveness and technological capabilities. The program leverages money and resources in a cooperative effort with the federal government, state and local authorities, and the private sector. The MEP generates approximately $18 in new sales growth for manufacturers for every federal dollar invested.

Department of Energy’s Advanced Manufacturing Office: Through cost-shared projects, tools, training, and information, the Advanced Manufacturing Office (AMO) works with a broad spectrum of public-private partners to develop and commercialize technologies/materials and practices that will result in increased energy

productivity and savings for U.S. industry. Two of the AMOs research and development projects have chemical-related initiatives: the Innovative Process and Materials Technologies Project and the Next Generation Materials Project.

(Source: https://www.selectusa.gov/chemical-industry-united-states )

U.S. CHEMICAL INDUSTRY - STATISTICS & FACTS

The chemical industry is one of the largest and most important industries worldwide. The United States is the largest national producer of chemical products globally. Including the pharmaceutical sector, its chemical output value was more than 797 billion U.S. dollars in 2015. According to the Bureau of Economic Analysis, the value added by U.S. chemistry in 2015 amounted to more than 377 billion U.S. dollars.

Chemical companies from the U.S. are among the industry’s leading global players. With a revenue of nearly 50 billion U.S. dollars in 2015, Dow Chemical is the largest U.S. chemical company, and the world’s number two behind German BASF. Other U.S. top companies are LyondellBasell, DuPont and Praxair. In 2016, several of the leading global chemical companies announced mergers, effectively changing the dynamics of the global chemical industry. The Dow Chemical and DuPont merger were cleared by European regulators in March 2017.

Besides Germany, the U.S. is the world’s top exporter of chemical goods. In 2015, chemical exports were worth some 184 billion U.S. dollars. Most of it was generated through exports to the Asia-Pacific region. The top countries of destination for chemical exports were Canada, Mexico and China. However, the U.S. also has a large demand for chemical imports. In 2015, these imports were worth around 205 billion U.S. dollars.

Corresponding with its dimension, the chemical industry is an important employer. About 810 thousand people work at chemical companies within the United States, including the pharmaceutical sector. This number is distinctly


lower than in the late 1990s, when almost one million employees were reported. In 2015, an average U.S. chemical production worker had a working week of 42.6 hours, and an hourly wage of 21.76 U.S. dollars.

The U.S. chemical industry spends relevant amounts for research and development. In 2015, almost 93 billion U.S. dollars was spent for R&D purposes in the chemical industry. That means that R&D funds have almost doubled over the last decade. Accordingly, the United States is the global leader in developing new chemical and pharmaceutical entities.

(Source: https://www.statista.com/topics/1526/chemical-industry-in-the-us/ )

The outlook for the chemical industry in the United States has shifted dramatically in the space of only a few years. Revenues currently stand at approximately $820 billion, and are expected to exceed $1 trillion

before the end of the decade. Accounting for more than 80% of the overall chemicals market in the North American Free Trade Agreement (NAFTA) region, comprising Canada and Mexico as well as the United States, the space is seeing what is being dubbed by the Boston Consulting Group as a “once-in-a-lifetime renaissance.”

The driver behind this reversal of fortunes is the shale gas revolution, which has provided the United States with a low cost feedstock to rival its main competitors in China and the Middle East, as well as helping to offset the decline in production from conventional gas reservoirs. Advancements in hydraulic fracturing and horizontal drilling technologies, more commonly known as fracking, have facilitated significant productivity increases. Although it was estimated that the United States was sitting on a host of untapped shale deposits during the time of the global financial crisis, it took another five years for the impact of the country’s abundance of natural gas reserves to make its way downstream: wells drilled in January 2014 produced more than nine times as much gas per day as five years previously, according to the U.S.

Energy Information Administration (EIA). The EIA’s most recent projections for U.S. proved natural gas reserves are at a record high of 388 trillion cubic feet, with Texas, Pennsylvania, and Oklahoma taking the top three positions respectively. Texas’ own Barnett shale play is not only the largest in the country, but was also the first deposit to be drilled horizontally; Pennsylvania’s Marcellus shale reserve, which also runs through West Virginia and New York, saw an increase of 10.4 trillion cubic feet of proved reserves added in the last year, out of an additional 50.5 trillion cubic feet in total. The deposits in the Appalachian basin, which were previously thought to have been depleted, have the potential to satisfy demand for natural gas in the entire northeast of the country. Across the United States, shale gas reserves are expected to support requirements for almost a century.

(Source:https:/ /assets.kpmg.com/content/dam/kpmg/

pdf/2016/02/global-business-reports-us-chemicals-2016.pdf)

ECONOMY:-

The economy of the United States is the world’s largest national economy in nominal terms and second largest according to purchasing power parity (PPP), representing 22% of nominal global GDP and 17% of gross world product (GWP). The United States’ GDP was estimated to be $18.46 trillion in 2016. The U.S. dollar is the currency most used in international transactions and is the world’s foremost reserve currency, backed by its science and technology, its military, the full faith of the US government to reimburse its debts, its central role in a range of international institutions since World War II and the petrodollar system. Several countries use it as their official currency, and in many others it is the de facto currency. The United States has a mixed economy and has maintained a stable overall GDP growth rate, a moderate unemployment rate, and high levels of research and capital investment. Its seven largest trading partners are Canada, China, Mexico, Japan, Germany, South Korea, and the United Kingdom.

14June - July, 2017

The US has abundant natural resources, a well-developed infrastructure, and high productivity. It has the worlds ninth-highest per capita GDP (nominal) and tenth-highest per capita GDP (PPP) as of 2013. Americans have the highest average household and employee income among OECD nations, and in 2010 had the fourth highest median household income, down from second highest in 2007. It has been the world’s largest national economy (not including colonial empires) since at least the 1890s.

The U.S. is the world’s third largest producer of oil and natural gas. It is one of the largest trading nations in the world as well as the world’s second largest manufacturer, representing a fifth of the global manufacturing output. The US not only has the largest internal market for goods, but also dominates the trade in services. US total trade amounted to $4.93T in 2012. Of the world’s 500 largest companies, 128 are headquartered in the US.

The United States has one of the world’s largest and most influential financial markets. The New York Stock Exchange is by far the world’s largest stock exchange by market capitalization. Foreign investments made in the US total almost $2.4 trillion, while American investments in foreign countries total over $3.3 trillion. The economy of the U.S. leads in international ranking on venture capital and Global Research and Development funding. Consumer spending comprises 71% of the US economy in 2013. The United States has the largest consumer market in the world, with a household final consumption expenditure five times larger than Japan’s. The labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world. The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, and others.

The US economy went through an economic downturn following the financial crisis of 2007–08, with output as late as 2013 still below potential

according to the Congressional Budget Office. The economy, however, began to recover in the second half of 2009, and as of 2016, unemployment had declined from a high of 10% to 4.7%.

In December 2014, public debt was slightly more than 100% of GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillion.

TRADE REGULATIONS, CUSTOMS AND STANDARDS IN USA

Trade Policy

The US trade regime consists of a complex web of diverse regulatory and policy objectives. These goals are often inter-related and mutually reinforcing. Trade objectives must also co-exist with US foreign and domestic policy goals that address multiple political, economic, security and social considerations. These multi-layered objectives often require US legislators and Administration officials to balance conflicting goals, especially in the areas of international trade and homeland security.

US import policy is also characterised by a balancing act between trade and security concerns. In essence, the US government seeks to facilitate and expedite the inward flow of international goods and services while maintaining national security and ensuring that all pertinent laws and regulations are being observed. The US government is also tasked with ensuring that domestic industries and jobs are safeguarded against unfair trade practices, such as unfairly priced imports, illegally subsidised imports, or surging imports. Additionally, the US administers a range of uni-lateral, bi-lateral, regional and multi-lateral preferential trade arrangements; enforces a number of trade restrictions and restraints; and undertakes various other trade-related functions.

Quotas and Import Licensing

US import quotas may be divided into two types: absolute and tariff rate. Tariff-rate quotas (TRQs)


provide for the entry of a specified quantity of the product at a reduced rate of duty during a given period. There is no limitation on the amount of the product that may be entered during the quota period, but quantities entered in excess of the quota for that period are subject to higher duty rates. The US did not have in place any absolute import quotas or associated visa or licensing requirements as of 1 February 2015.

As provided in the Harmonized Tariff Schedule of the United States (HTSUS), some commodities such as beef, cocoa powder and cotton are subject to TRQ limitations in effect as of the date of publication of Guide to Doing Business with the US. Additionally, CBP administers a considerable number of TRQs that have been included in US trade preference programmes such as AGOA, ATPDEA, CBTPA and HOPE as well as in FTAs negotiated by the US.

Import Tariff

All goods imported into the US are either subject to duty or duty-free, depending on their classification under the applicable items in the HTSUS. When goods are dutiable, ad valorem, specific or compound rates may be assessed.

The country of origin of merchandise imported into the customs territory of the US can affect, among other things, the rate of duty, eligibility for special programmes, admissibility, quota, procurement by government agencies and marking requirements.

Rates of duty for imported merchandise may also vary depending upon the country of origin. Most merchandise is dutiable under the most favoured nation (MFN) — now referred to as normal trade relations (NTR). Duty-free status is available under various exemptions (e.g., GSP, FTA partners, preference programme beneficiaries, and other exemptions listed in HTSUS Chapter 98).

Customs Procedures

The Customs and Border Protection (CBP) is the unified border agency within the Department

of Homeland Security (DHS). Although the primary focus of CBP has shifted heavily towards security since 11 September 2001, CBP has the twin goals of guarding and securing US borders while facilitating the legitimate flow of goods and people. CBP uses multiple strategies and employs the latest technology to accomplish these goals. For example, CBP has developed several collaborative programmes designed to enhance the security of cargo entering the US by eliminating or minimising vulnerabilities throughout the supply chain. These programmes include the Customs-Trade Partnership against Terrorism (C-TPAT) and the Container Security Initiative (CSI).

Goods brought into the US are subject to import duties except from some preference-beneficiary countries. Import licences are generally not required. Imports are usually subject ad valorem and/or specific import duties. Regular rates are applied on imports from countries enjoying NTR or formerly MFN status. CBP has the authority on tariff classification for duty rates purposes. US tariff rates and HS commodities classification can be searched online via the Tariff Information Center of the US International Trade Commission.

Product Safety

Any consumer product offered for importation will be refused admission if it (a) fails to comply with an applicable product safety standard or regulation or with a specified labelling or certification requirement, or (b) is determined to present a substantial product hazard. These requirements are administered by the CPSC.

In order to improve consumer product safety compliance rates, the CPSC strongly recommends that manufacturers fully comply with both CPSC mandatory standards and private sector voluntary standards. Although private sector standards are conceived as voluntary requirements, products that fail to comply with them are nonetheless regarded as substandard in design and may be considered to present a “substantial product

16June - July, 2017

hazard” for that reason alone. Any product that presents a substantial product hazard will be refused entry into the US and, if the product is already in circulation, subject to a CPSC recall. Click here for the list of regulated products provided by the CPSC.

Marking and Labelling Requirements

US customs laws require each imported article produced abroad to be marked in a conspicuous place, as legibly, indelibly and permanently as the nature of the article permits, with the English name of the country of origin to indicate to the ultimate purchaser in the US the name of the country in which the article was manufactured or produced. Articles specifically exempted from individual marking are an exception to this rule.

The research report titled Guide to Doing Business with the US contains special labelling and marking requirements for a wide range of consumer goods such as watch and apparel imported into the US.

Anti-dumping Duties and Countervailing Duties

The US rigorously enforces laws on dumping. When the US Department of Commerce (DOC) determines that a class of foreign goods in the US at less than its fair value, an anti-dumping (AD) duty investigation may be conducted. If all the determinations are affirmative, the DOC will issue a duty order. On the other hand, countervailing (CV) duty orders provide relief from the adverse price impacts of imports that receive foreign government subsidies. CV duty orders impose extra duties on those imports under Sections 701-709 of the Tariff Act.

Documentary Requirements

Entry documents must be filed within 15 calendar days of the date that the shipment arrives at a US port of entry, unless an extension is granted. Entry documents include the following:

A bill of lading, airway bill, or carrier’s certificate (naming the consignee for customs purposes) as evidence of the consignee’s right to make entry.

A commercial invoice obtained from the seller, which shows the value and description of the merchandise. A pro forma invoice may be submitted when the commercial invoice cannot be produced. Entry Manifest (CBP Form 7533) or Entry / Immediate Delivery (CBP Form 3461).

Packing lists, if appropriate, and other documents necessary to determine whether the merchandise may be admitted.

(Source: http://hong-kong-economy-research.hktdc.com/business-news/article/Small-Business-Resources/Trade-Regulations-of-USA/sbr/en/1/1X000000/1X006N12.htm )

FTA INVOLVEMENT

The United States has free trade agreements in force with 20 countries. These are:

1. Australia

2. Bahrain

3. Canada

4. Chile

5. Colombia

6. Costa Rica

7. Dominican Republic

8. El Salvador

9. Guatemala

10. Honduras

11. Israel

12. Jordan

13. Korea

14. Mexico

15. Morocco

16. Nicaragua

17. Oman

18. Panama

19. Peru

20. Singapore


The United States has completed negotiations of a regional, Asia-Pacific trade agreement, known as the Trans-Pacific Partnership (TPP) Agreement and is in negotiations of the Transatlantic Trade and Investment Partnership (T-TIP) with the European Union, with the objective of shaping a high-standard, broad-based regional pact.

(For More details please refer https://ustr.gov/trade-agreements/free-trade-agreements )

Ongoing Negotiations

Currently, the United States is negotiating The Transatlantic Trade and Investment Partnership (TTIP) free trade agreement.

INDIA US Agreement ties

Several agreements were signed, to boost bilateral ties, in the presence of PM Narendra Modi and US President Barack Obama in the White House in Washington DC in 2016.

Below are the six agreements signed between the two nations.

1. Arrangement between the Multi-Agency Centre/Intelligence Bureau of the Government of India and the Terrorist Screening Center of the Government of the United States of America for the exchange of Terrorist Screening Information.

What its about: As per this Arrangement, India and the US shall provide each other access to terrorism screening information through the designated contact points, subject to domestic laws and regulations. The Arrangement would enhance the counter terrorism cooperation between India and the US.

2. Memorandum of Understanding (MoU) between the Government of India and the Government of the United States of America to enhance cooperation on Energy Security, Clean Energy and Climate Change

What its about: The objective of the MoU is to enhance cooperation between India and the US on energy security, clean energy and climate change through increased bilateral engagement and further joint initiatives for promoting sustainable growth.

3. Memorandum of Understanding (MoU) between Government of India and Government of the United States of America to enhance co-operation on Wildlife Conservation and Combating Wildlife Trafficking

What its about: The MOU seeks cooperation in areas such as Wildlife Forensics and Conservation Genetics; Natural World Heritage Conservation and Nature Interpretation; and Conservation Awareness, between India and the US for wildlife conservation and management and combating wildlife trafficking.

4. Memorandum of Understanding (MoU) between Consular, Passport and Visa Division of the Ministry of External Affairs, Government of India and US Customs and Border Protection, Department of Homeland Security of the United States for the Development of an International Expedited Traveler Initiative (the Global Entry Programme)

What its about: The Global Entry is a US Customs and Border Protection programme, which allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States. After joint scrutiny and clearance by both countries, the approved Indian travelers will be extended the facility of expedited entry into the United States through automatic kiosks at select airports.

18June - July, 2017

5. Technical Arrangement between the Indian Navy and the United States Navy concerning Unclassified Maritime Information Sharing.

What its about: The Arrangement would allow sharing of unclassified information on White Shipping between India and the US as permitted by respective national laws, regulations and policies, and provides a framework for mutually beneficial maritime information.

6. Memorandum of Understanding (MoU) between the Ministry of Petroleum and Natural Gas, Government of India and the Department of Energy of the United States of America for Cooperation in Gas Hydrates

What its about: The MOU aims to increase the understanding of the geologic occurrence, distribution, and production of natural gas hydrates along the continental margin of India and in the US.

(Source: http://indianexpress.com/article/india/india-news-india/india-us-ink-six-agreements-including-climate-change-and-terrorism-2841485/ )

NAFTA (North America Free Trade Agreement) Brief.

1. NAFTA (North America Free Trade Agreement) was signed among United State, Mexico and Canada in 1993.

2. NAFTA came in to effect on January 1994.

3. NAFTA was written in order to create free trade area in North America.

4. The NAFTA agreement is 2,000 pages, with eight sections and 22 chapters

5. NAFTA is the world’s largest free trade agreement. Its members contribute more than $20 trillion as measured by gross domestic product.

6. The Purpose of this agreement is

a. Allow free movement of goods and services among United State, Mexico and Canada

b. To promote competition in the free trade area

c. Protect the property rights of people and business in each country

d. To resolve problems that arise among the country.

e. Encourage cooperation among the country

7. NAFTA grants the most-favored-nation status to all co-signers. That means countries must give all parties equal treatment. That includes foreign direct investment.

8. NAFTA eliminates tariffs on imports and exports between the three countries.

9. Exporters must get Certificates of Origin to waive tariffs. That means the export must originate in the United States, Canada or Mexico. A product made in Peru but shipped from Mexico will still pay a duty when it enters the United States or Canada.

10. NAFTA establishes procedures to resolve trade disputes

11. NAFTA countries must respect patents, trademarks, and copyrights. At the same time, the agreement ensures that these intellectual property rights don’t interfere with trade.

12. The agreement allows business travelers easy access throughout all three countries.

GDP (purchasing power parity): $18.56 trillion (2016 est.),$18.27 trillion (2015 est.),$17.81 trillion (2014 est.)

Industries:- highly diversified, world leading, high-technology innovator, second-largest industrial output in the world; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining.


Exports: - $1.471 trillion (2016 est.), $1.51 trillion (2015 est.)

Exports Commodities:- agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines) 15.0% (2008 est.)

Exporting Partners: - Canada 18.6%, Mexico 15.7%, China 7.7%, Japan 4.2% (2015).

Imports: - $2.205 trillion (2016 est.), $2.273 trillion (2015 est.)

Import Commodities:- agricultural products 4.9%, industrial supplies 32.9% (crude oil 8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys) (2008 est.).

Import Partners: - China 21.5%, Canada 13.2%, Mexico 13.2%, Japan 5.9%, Germany 5.5% (2015).

CHEMEXCIL EXPORTS TO USA

CHEMEXCIL’S COMMODITYWISE EXPORTS TO U.S.A.

Chapter No./Panel2014-15

(Actual)

2015-16

(Actual)

2016-17

(Provisional)

% over

2015-16

(32) Dyes & (29) Dye Intermediates 217.14 199.00 188.72 -5.17

(28) Inorganic, (29) Organic & (38) Agro chemicals 1070.73 959.85 957.06 -0.29

(33) Cosmetics, (34) Soaps, Toiletries and (33) Essential oils 145.74 140.60 156.41 11.24

(15) Castor Oil 94.02 71.39 73.34 2.73

Total 1527.63 1370.84 1375.53 0.34

INDIA’s TOP CHEMICAL OF EXPORTS TO USA

DYES - Top Items Exports to USA in USD Million

HSCode Product 2013-2014 2014-2015 2015-2016

32041751 PIGMENT BLUE 15 (PATHALOCYANINE BLUE) 27.13 28.60 25.76

32041761 PIGMENT GREEN 7(PATHALOCYANINE GREEN) 19.13 20.31 19.29

32041759 OTHER PIGMENT BLUE 11.62 14.30 18.92

32042010 OPTICAL WHITENING AGETNS 7.57 8.75 11.50

32041719 OTHER PIGMENTS YELLOW 7.61 8.01 11.35

32041739 OTHER PIGMENT RED 7.72 9.96 8.70

32041982 FOOD YELLOW 4 (TARTRAZINE) 3.55 4.72 5.70

32041213 ACID REDS 1.30 4.62 4.15

32041680 REACTIVE BLACKS 9.75 4.24 4.10

32041215 ACID BLUES 2.76 2.58 3.59

32041981 FOOD YELLOW 3 (SUNSET YELLOW) 2.53 3.13 3.20

32041159 OTHER DISPERSE BLUE 2.22 2.83 3.13

32041971 SOLVENT BASED COLOURING MATTERS: YELLOWS 2.62 3.03 2.75

32041650 REACTIVE BLUES 4.12 3.54 2.70

32041988 FOOD BROWNS 3.01 1.80 2.69

Country Totals 112.64 120.40 127.54

20June - July, 2017

DYE INTERMEDIATES - Top Items Exports to U.S.A.

HSCode Product 2013-2014 2014-2015 2015-2016

29029050 ISOBUTYL BENZENE 15.81 15.27 10.97

29071510 ALPHA NAPHTHOL 0.14 0.53 1.83

29071520 BETA NAPHTHOL 1.34 0.85 1.77

29214330 ORTHO TOLUIDINE 2.42 2.52 1.23

29214226 PARANITROANILINE 1.14 1.34 1.22

29214320 DIMETHYL TOLUIDINE 1.47 1.57 1.14

29222160 H-ACID 1.10 2.62 1.13

29214390 OTHER TOLUIDINES & THEIR DERIVATIVES; SALTS THEREOF 2.01 1.32 1.01

29225012 METHYL ANTHRANILATE 1.01 1.12 0.95

29214222 DIETHYLANILINE 0.67 0.57 0.82

29214223 DIMETHYL ANILINE 0.62 0.69 0.55

29041040 VINYL SULPHONE 0.34 0.46 0.54

29222934 PARA CRESIDINE 0.11 0.81 0.48

29214360 2-CHLORO-5-TOLUIDINE-4-SULPHONIC ACID 0.02 0.00 0.46

29214512 PHENYL ALPHA NAPHTHLAMINE 1.13 0.77 0.38

Country Totals 29.33 30.45 24.47

INORGANIC CHEMICALS - Top Items Exports to U.S.A.

HS Code Product 2013-2014 2014-2015 2015-2016

38151100 SUPPORTED CATALYSTS WITH NICKEL OR NICKEL COMPOUNDS AS THE ACTIVE SUBSTANCE

9.00 15.19 10.69

28332940 MANGANESE SULPHATE 5.05 7.43 7.83

28451000 HEAVY WATER (DEUTERIUM OXIDE) 8.38 6.57 5.30

28273990 OTHER CHLORIDES 5.77 3.46 3.90

28341010 SODIUM NITRITE 2.45 2.60 3.55

28261990 OTHER FLUORIDES 2.75 3.47 3.07

28309010 OTHER SULPHIDES 1.88 1.81 1.90

28281010 COMMERCIAL CALCIUM HYPOCHLORITE (BLEACHING PASTE/POWDER)

0.31 1.61 1.89

28299030 IODATES AND PERIODATES 1.34 2.14 1.75

28416100 POTASSIUM PERMANGANATE 4.39 3.88 1.65

28199000 OTHER CHROMIUM OXIDES AND HYDROXIDES 0.52 0.23 1.23

38151210 PLATINUM OR PALLADIUM CATALYSTS WITH A BASE OF ACTIVATED CARBON

0.00 0.75 1.19

28311020 SODIUM SULPHOXYLATE (INCLUDING SODIUM FORMALDEHYDE SULPHOXYLATE)

1.35 1.20 1.14

28273100 CHLORIDES OF MAGNESIUM 0.07 0.23 0.98

28276090 OTHER IODIDES AND IODIDE OXIDES 3.76 1.62 0.93



ORGANIC CHEMICALS - Top Items Exports to USA

HS Code Product 2013-2014 2014-2015 2015-2016

29022000 BENZENE 168.70 150.53 47.57

29183090 OTHER CARBOXYLIC ACIDS WITH ALDEHYDE OR KETONE FUNCTION BUT WITHOUT OTHER OXYGEN FUNCTION, THEIR ANH

36.55 36.85 36.15

29335990 OTHER COMPOUNDS CONTAINING A PYRIMIDINE RING (W/N HYDROGENTATED) OR PIPERAZINE RING IN STRUCTURE

34.69 36.92 35.86

29053100 ETHYLENE GLYCOL (ETHANEDIOL) 26.85 35.48 34.15

29333990 OTHER COMPOUNDS CONTG. AN UNFUSED PYRIDINE RING (W/N) HYDROGENATED STRUCTURE

20.84 14.92 30.07

29224990 OTHER AMINO ACIDS AND THEIR ESTERS OTHER THAN THOSE CONTAINING MORE THAN ONE KINDOF OXYGEN FUNCTION

32.51 33.91 29.74

29215990 OTHER AROMATIC POLYAMINES & THEIR DERIVATIVES & SALTS

25.36 35.35 29.74

29024300 P-XYLENE 0.00 0.00 29.45

29072990 OTHER POLYPHENOLS/PHENOL-ALCOHOLS 28.62 24.19 26.26

29241900 OTHER ACYCLIC AMIDES (INCLUDING ACYCLIC CARBOMATES) AND THEIR DERIVATIVES SALTS THEREOF

24.50 33.09 25.22

29159090 OTHER SATURATED ACYCLIC MONOCARBAXYLIC ACID ETC & THEIR DERIVATIVES

10.57 16.78 24.00

29173990 OTHER AROMATIC POLYCARBOXYLIC ACIDS, THEIR ANHYDRIDES,HALIDES, PEROXIDES, PEROXYACIDS AND THEIR DERI

15.24 14.58 23.61

29141990 OTHER ACYCLIC KETONES WITHOUT OTHER OXYGEN FUNCTION

5.41 7.94 18.11

29329900 OTHER HETROCYCLIC COMPOUNDS WITH OXYGEN HETERO-ATOMS (S) ONLY

25.71 15.23 17.85

29147090 OTHER HALOGENATED, SULPHONATED, NITRATED OR NITROSATED DERIVATIVES

8.52 10.77 17.51

Country Totals 464.07 466.53 425.29

22June - July, 2017

AGRO CHEMICALS - Top Items Exports to U.S.A.

HS Code Product 2013-2014 2014-2015 2015-2016

HSCode Product 2013-2014 2014-2015 2015-2016

38089390 OTHER HERBICIDES, ANTI-S-SPROUTING PRODUCTS AND PLANT GROWTH REGULATORS

43.49 76.79 128.90

38089199 OTHER INSECTICIDE N.E.S. 136.24 97.14 62.26

38089910 PESTICIDES, NOT ELSEWHERE SPECIFIED OR INCLUDED 49.07 59.97 51.12

38089350 WEEDICIDES AND WEED KILLING AGENTS 20.36 44.83 48.46

38089290 OTHER FUNGICIDES 29.96 16.75 23.78

38089990 OTHER SIMILAR PRODUCTS N.E.S. 3.33 8.22 12.59

38089320 2:4 DICHLOROPHENOXY ACTC ACD & ITS ESTERS 10.10 6.47 7.74

38089135 CIPERMETHRIN TECHNICAL GRADE 2.33 2.96 2.43

38089137 SYNTHETIC PYRETHRUM 1.48 3.18 1.15

38089400 DISINFECTANTS 0.61 0.82 0.77

38091000 PREPARATIONS WITH A BASIS OF AMYLACEUS SUBSTANCES 0.08 0.32 0.22

38089230 THIRAM (TETRAMETHYL THIRAM DI SULPHATE) 0.00 0.00 0.14

38089191 REPELLANT FOR INSECTS SUCH AS FLIES, MOSQUITO 0.00 0.00 0.11

38089340 PLANT GROWTH REGULATORS 0.15 0.00 0.08

Country Totals 297.21 317.45 339.77

COSMETICS & TOILETRIES - Top Items Exports TO U.S.A.

HS Code Product 2013-2014 2014-2015 2015-2016

33030050 PERFUMES CONTAINING SPIRIT FOR RETAIL SALE 21.12 20.11 16.27

38231900 OTHER INDUSTRIAL MONOCARBOXYLIC FATTY ACID 11.50 22.80 14.87

33030090 OTHER PERFUMES AND TOILET WATERS 7.08 4.25 12.52

34021300 NON-IONIC W/N FOR RETAIL SALE 13.48 13.37 11.69

33074900 OTHER ODORIFERROUS PREPNS USED FOR DEODORING ROOM-OTHERS (EXCL.AGARBATTI)

2.11 7.44 10.13

34021190 OTHERS (E.G. ALKYL SULPHATES TECH. DODECYL BENZENE-SULPHONATES, ETC.)

10.47 11.12 8.43

15162039 OTHER HYDROGENATED CASTOR OIL (OPAL WAX) 6.94 8.95 8.06

29157040 HCO FATTY ACID(INCLUDING 12-HYDROXY STEARIC ACID) 15.18 12.80 8.01

33061020 DENTIFRICES IN PASTE (TOOTH PASTE) 7.77 8.70 7.97

34011190 OTHER TOILET SOAPS (INCLUDING MEDICATED PRODUCTS) 3.92 3.90 5.28

33049990 OTHER BEAUTY MAKE-UP PREPARATION 3.45 5.17 4.78

33049120 POWDER TALCUM 1.75 2.24 2.11

33030010 EAU-DE-COLOGNE 2.48 2.10 1.50

38099190 OTHER TEXTILE ASSISTANTS 0.54 1.07 1.45

34029091 WASHING AND CLEANING PREPNS HAVING BASIS OF SOAP/OTHER ORGANIC SURFACE ACTIVE (OTHER PREPNS)

0.83 1.32 1.02

Country Totals 108.64 125.33 114.09


ESSENTIAL OIL - Top Items Exports to U.S.A.

HS Code Product 2013-2014 2014-2015 2015-2016

33012590 OTHER MINT OILS 13.90 9.21 10.15

33012400 PEPPERMINT OIL(MENTHA PIPERITA) 8.64 6.18 5.07

33011990 CITRONELLA OIL CEYLON TYPE INCLUDING & CONCETRATE 1.66 1.83 1.29

33012990 ESSENTIAL OILS OF GERANIUM 0.95 1.14 1.04

33012944 DAVANA OIL 0.18 0.40 0.70

33012938 ROSE OIL 0.41 0.68 0.70

33012933 PALMOROSA OIL 0.12 0.14 0.28

33019033 ESSENCE OF AMBRETTOLIE (AMBRETTE SEED OIL ESSENCE) 0.42 0.31 0.26

33012926 GINGER OIL 0.21 0.14 0.25

33012932 NUTMEG OIL 0.80 0.46 0.23

33021090 OTHER FLAVOURING ESSENCES USED IN THE FOOD OR DRINK INDUSTRIES

0.04 0.18 0.23

33019090 OTHER AQUEOUS SOLUTION OF ESSENTIAL OILS. 0.10 0.17 0.23

33012510 SPEARMINT OIL (EX-MENTHA SPICATA) 0.38 0.12 0.21

33012942 LEMONGRASS OIL 0.23 0.27 0.20

33013099 RESINOIDS OTHER 0.13 0.18 0.15


List of supplying markets for a product imported by United States of America Product: 32 Tanning or dyeing extracts; tannins and their derivatives; dyes,

pigments and other colouring

Unit : US Dollar million

Exporters Imported

value in 2014Imported


value in 2016World 4092.29 3947.87 3864.70

Canada 817.81 783.52 782.03Germany 598.25 530.10 515.78China 576.72 555.65 497.73Japan 327.05 329.88 313.65

India 286.21 279.57 247.26Mexico 226.58 206.65 224.43

24June - July, 2017


ExportersImported



value in 2016World 14264.02 13156.70 11751.00

Canada 2549.24 2658.90 2618.39China 1734.93 1364.81 1258.32Russian Federation 1167.98 1222.22 1169.93Germany 918.38 911.50 969.37

Trinidad and Tobago 1720.68 1461.32 851.91India 100.54 77.03 74.74

List of supplying markets for a product imported by United States America Product: 28 Inorganic chemicals; organic or inorganic compounds of precious

metals, of rare-earth metals.

List of supplying markets for a product imported by United States of America Product: 29 Organic chemicals


ExportersImported



value in 2016World 54711.12 52009.42 49776.50

Ireland 11316.64 10786.78 13839.08China 6968.84 6902.57 6498.35Switzerland 1824.58 1827.09 3440.25United Kingdom 2491.65 5855.01 3023.42

Singapore 3792.45 3554.06 2819.96India 2306.72 2076.27 2067.09


List of supplying markets for a product imported by United States of America Product: 38 Miscellaneous chemical products


ExportersImported



value in 2016World 12661.23 13191.91 13849.89Canada 1986.61 1824.07 1879.57Germany 1647.66 1492.62 1503.19Japan 1515.70 1526.73 1429.88Argentina 150.84 509.53 1268.19China 1008.21 1187.11 1146.24India 239.41 294.02 293.10

List of supplying markets for a product imported by United States of America Product: 33 Essential oils and resinoids; perfumery, cosmetic or toilet

preparationUnit : US Dollar million

ExportersImported



value in 2016World 11547.00 12083.75 12559.46

Ireland 2398.89 2431.44 2279.06France 2198.54 2230.80 2266.97China 999.85 1136.47 1371.12Canada 1246.79 1246.87 1315.09

Mexico 1000.95 989.88 985.48India 265.07 251.58 233.44

26June - July, 2017

List of supplying markets for a product imported by United States of America Product: 34 Soap, organic surface-active agents, washing preparations,

lubricating preparations, artificial


ExportersImported



value in 2016World 3235.60 3243.62 3255.88

Canada 760.77 763.60 702.70China 433.66 465.07 496.02Mexico 384.85 407.23 403.35Germany 349.01 317.24 311.78

Viet Nam 146.13 165.99 196.40India 76.68 81.19 75.27

List of supplying markets for a product imported by United States of America Product: 15 Animal or vegetable fats and oils and their cleavage products;

prepared edible fats; animalUnit : US Dollar million

ExportersImported



value in 2016World 6154.63 6018.38 6413.31

Canada 1857.68 1744.90 1983.31Indonesia 702.55 708.95 967.93Italy 585.73 573.30 605.56Malaysia 922.80 693.58 589.08

Spain 467.70 373.93 569.80India 113.25 117.38 96.21

28June - July, 2017

CHEMEXCIL ACTIVITIES

CHEMEXCIL participated in Chemspec Europe-2017 exhibition being organized by

M/s. MACK BROOKS EXHIBITIONS LIMITED UK, 31st May -1st June-2017 at hall A5 and A6 at Munich Trade Fair Centre in Germany. This project was sanctioned under MAI scheme. Altogether 49 chemexcil member-exporters participated in this exhibition. CHEMEXCIL Booked 957.5 sq. mt. space in hall A5 and A6. 403.5 Sq.mt. space was converted in India Pavilion, Branding INDIA. 5000+ visitors from various countries and regions visited this exhibition.

1. CHEMEXCIL’S PARTICIPATION IN CHEMSPEC EUROPE-2017 EXHIBITION DATED 31ST MAY-2017 AND 1ST JUNE-2017 AT MUNICH,

GERMANY

From left Mr. Ramu Deora, Past chairman Chemexcil, Shri. Sugandh Rajaram, , Consulate General of India, Munich, Germany, Shri. S.G. Bharadi, Executive Director, Chemexcil, Mr. Ravi Raghavan, Editor from Chemical Weekly, Mr. Prafulla Walhe, Dy. Director, Chemexcil, Asheesh Gupta,Consul (E & C ), Consulate General of India, Munich, Germany.

Target visitors :- Agrochemical intermediates, biotechnology, Catalysts, Colours & Pigments, Flavours & Fragrances, Organic Intermediates, Photographic Chemicals and Water treatment chemicals., International Trade Missions are the target visitors.

Chemexcil Pavilion was inaugurated by Mr. Sugandh Rajaram, Consulate General of India, Munich, Germany, on 31st May-2017at 10.00am along with Mr. S.G. Bharadi, Executive Director, Chemexcil.

29 June - July, 201729

From left Mr. S.K. Ranjan, Dy. Sec. EP (CAP), MoC, Dr. Ram Upendra Das –Professor at the Research and Information System for Developing Countries (RIS), New Delhi, Mr. Sunil Kumar, IAS, Joint Secretary, MOC&I, Dept. of Commerce, Government of India, Mr. Vijay Shankar Pandey, Under Secretary, EP (CAP), MoC

2. STAKEHOLDER CONSULTATION MEETING ON EURASIAN ECONOMIC UNION (EAEU) AND INDIA FTA IN MUMBAI ON 8TH JUNE, 2017

Additional DGFT Mumbai Department of Commerce conducted a Stakeholder’s

Consultation meeting, regarding the impending commencement of Free Trade Agreement (FTA) negotiations between the Eurasian Economic Union (EAEU) and India, with the state government officials, Chemexcil and exporters in Maharashtra on 8th June, 2017 at the Cultural Hall, 4th floor, Yashwantrao Chavan Centre, Gen. Jagannath Bhosale Marg, Nariman Point, Mumbai-21.

Presentation on Free Trade Agreement (FTA) negotiations between the Eurasian Economic Union (EAEU) and India was made by Mr. Sunil Kumar, IAS, Joint Secretary, MOC&I, Dept. of Commerce, Government of India and Dr. Ram Upendra Das –Professor at the Research and Information System for Developing Countries (RIS), New Delhi jointly stating the trade related data and importance of this FTA and requested industry to give inputs on their product duty concessions.

It was informed that Policy of integration in the post-Soviet space is one of key directions of contemporary foreign policy of Russia. The EAEU is based on the Customs Union of Russia, Belarus and Kazakhstan. Besides these three states, Armenia and Kyrgyzstan also joined the EAEU. Russia is a key member state of the EAEU but Russia also considers the Union as a both economic and political project. Eurasian integration seems to be an important ideological element in Russian foreign policy, underlining special role of Russia in the world – role of a connecting link between the East and the West. Development of trade and investment cooperation between India and the Eurasian Economic Union is a key factor in their bilateral cooperation. Russia-India bi-lateral trade volume has decreased by 11.8% during 2016 and amounted to $ 3.4 billion. Exports from Russia fell by 17.9% ($ 2.2 billion), while Russia’s imports from India increased by 3.2% to $ 1.2 billion.

With view to boost economic and trade ties between India and member countries of the

30June - July, 2017

Eurasian Union, both the parties had constituted a study group to undertake a Joint Feasibility study on FTA between India and EAEU and its member states.

The Government is presently in the process of finalizing the tariff schedules to be taken up in the next round of negotiations. Towards this the Government is seeking inputs from stakeholders on inclusion of items in the “Negative List” where it is felt that interest of Indian manufacturer could be adversely impacted.

Another presentation on International North-South Transport Corridor (INSTC) was made by Mr. Sunil Kumar, IAS, Joint Secretary, MOC&I, Dept. of Commerce, Government of India it was briefed that Government is in final round of discussion

for International North-South Transport Corridor (INSTC).

INSTC is a multimodal transportation established in September 2000 in St. Petersburg, by Iran, Russia and India for the purpose of promoting transportation cooperation among the Member States. This corridor connects India Ocean and Persian Gulf to the Caspian Sea via Islamic republic of IRAN, and then is connected to St. Petersburg and North Europe via Russian Federation.

The INSTC was expanded to include eleven new members, viz. Republic of Azerbaijan, Republic of Armenia, Republic of Kazakhstan, Kyrgyz Republic, Republic of Tajikistan, Republic of Turkey, Republic of Ukraine, Republic of Belarus, Oman, Syria, Bulgaria.

3. CHEMEXCIL MEETING WITH NEPAL DELEGATION AT AT CHEMEXCIL OFFICE ON 10TH JULY-2017.

Delegates from Trade & Export Promotion center, Ministry of Commerce, Government of Nepal met Chemexcil on 10th July -2017 at Chemexcil office and discussed various issues related to trade in Nepal.


Chemexcil organized awareness seminar on GST in association with Service Tax

Commissionerate, Ahmedabad.

The Office of Commissioner of Service Tax, Ahmedabad had nominated Shri Aseem Kumar Vaibhav, IRS, Deputy Commissioner, ServiceTax,

4 CHEMEXCIL SEMINAR ON “GST TRADE AWARENESS” AHMEDABAD

Mrs. Vaishali Zinuwadia, Regional officer, Chemexcil addressing the gathering during the seminar on “GST trade awareness” held on 09.06.2017 at Hotel Ramada, Ahmedabad

5.CHEMEXCIL SEMINAR ON "EXPORT/IMPORT UNDER GST REGIME” AT VTPC, BANGALORE ON 14TH JULY 2017

As we all know, GST which is The Single Biggest Tax Reform Undertaken Since

Independence to Ease Compliance. In this regard,

the Office of Chief Commissioner, Service Tax, Bangalore And Assistant Director of Customs and Central Excise. Organised a half day seminar on

Shri. S. G. Bharadi Executive Director of Chemexcil addressing the gathering during Export/Import Under GST Regime at VTPC In Bangalore 14th July 2017

Shri Shafeeq, Asst. Commissioner, ST-II, Bangalore briefing Export/Import Under GST Regime Seminar at VTPC, Bangalore on 14th July 2017

and Ahmedabad as a Key speaker of this Seminar.

The officer covered important topics such as -Introduction to GST, Overview of GST, Registration, Returns, Refunds, GSTN etc. Total 100 Member Exporters attended this seminar. The session was quite interactive as the member exporters had come prepared with their questions-queries. All the queries were satisfactorily answered by the Deputy Commissioner.

Many members were of a notion that once the GST is implemented, maximum queries will be generated. So, there were request from the members to organize one more Seminar after GST is implemented.

Few members felt that it will smoothen the exports. Suggestions were made to organise seminar on “E-WAY” and “Returns”.

The seminar was well appreciated by all our member exporters.

32June - July, 2017

"Export/ Import Under GST Regime". For the benefit of member-exporters, the seminar was organized by the council at VTPC, Bangalore on 14th July 2017 in association with Service Tax Dept. The Chief Commissioner, Service Tax, Bangalore had deputed Sri. M.G. Kodandaram Assistant Director of Customs and Central Excise , Sri. Shafeeq, Assistant Commissioner ST – II, Further, Mr. Prabhu MD Of VTPC, Mr. Bharadi Executive Director attended Seminar. The officers of the Service Tax Department covered important

topics such as -Introduction to GST, Overview

of GST, Registration, Returns, Drawbacks, bank

guarantee, Exports & Imports under GST, LUT/

BG/facilities for exporters, refund mechanism

for duty paid on exports, utilization of incentive

scheme for exports, Determination of Place of

supply, Input credit Mechanism, Visualization of

Returns and filing periodicity, Refunds under GST,

Fundamental understanding of GST impact on

Imports & Exports &Transition Provisions etc,

6. CHEMEXCIL SEMINAR ON ”EXPORT/IMPORT UNDER GST REGIME” AT HOTEL NOVOTEL, AHMEDABAD, DT. 25.07.2017

With the onset of GST regime, there were lot of concerns amongst the member-

exporters regarding LUT/Bond/Bank Guarantee, refunds , fate of export promotion schemes etc. to address the concerns of exporters the Council had organized the seminar on Export / Import under GST regime. The following dignitaries were the part of the presentation and Q & A session.

1. Dr. Nilesh Suchak – Chartered Accountant

2. Mr. Amarjeet Singh – Addl Commissioner – CGST

3. Mr. V.V. Dave – Jt. Commissioner – State Tax

4. Mr. C.L. Patel – Dy. Commissioner – State Tax

5. Mr. Raju Jetley – Supt. ICD Khodiyar, CGST

6. Mr. Vijay Thakkar, Asst. Commissioner, CGST

7. Mr. Vivekanand B. Chittar, FTDO, DGFT

From L-R: Shri. Harin Mamlatdarna, Shri. S.G Bharadi, ED Chemexcil, Shri. Shankar Patel, President –GREEN, Shri. Satish Wagh, Chairman-Chemexcil, Shri. V.V Dave, Jt. Commissioner – State Tax, Dr. Nilesh – Speaker, Shri. Ajay Kadakia, Vice Chairman – Chemexcil, Shri. Amarjeet Singh, Addl Commissioner – CGST, Shri. Vijay Thakkar, Asst. Commissioner-CGST, Shri. Bhupendra Patel, Regional Chairman, Ms. Vaishali Zinzuwadia, Regional Director, Shri. C.L Patel – Dy. Commissioner – State Tax and Shri. Raju Jetley, Supt. – CGST.


The Chairman of Chemexcil, Mr Satish Wagh delivered his welcome speech and shared the export statistics with the members. He informed the members to check the Council’s website regularly as it is updated timely with notifications and circulars received from GST and CBEC.

Mr. Amarjeet Singh, Addl. Commissioner delivered his keynote address and also mentioned – GST is aimed at increasing the taxpayer base by bringing SMEs and unorganized sector under its purview. This will make the Indian market more competitive and will create a level between large and small enterprises. His team Mr. Raju Jetley and Mr. Vijay Thakkar presented on the overview of GST including Rates, meaning of supply and transactions as supply and on who the GST is levied. He also covered the Time and supply of services, Valuation, Interstate and Intrastate supply.

Dr. Nilesh Suchak’ s presentation was on Overview of GST, Impact of GST on EXIM related

compliances, GST procedures and Export related compliances and was forward wherein he meticulously covered the topics with answering on the spot questions satisfactorily. He also covered the topic “Container Sailing” requested by Mr. S.G. Bharadi, Ex. Director, Chemexcil, which was also useful for member exporters.

During the Q & A session members utilized the opportunity of interaction with these eminent faculties and address their concerns on the export/ import related issues which were answered satisfactorily by all the faculties.

A vote of thanks was delivered by Mr. Ajay Kadakia, Vice Chairman of the Council. He acknowledged the contribution of all dignitaries during the seminar and also thanked the member exporters for participating actively and making the seminar a success. Also he informed to forward the queries to the Council which can be answered with the help of the faculties.

CHEMEXCIL SMS Alert service Form

1. Name of the Company:

2. Name of the applicant:

3. IEC Number

4. Chemexcil Membership Number

5. RCMC Number

6. Correspondence address.

7. Mobile Number

I undertake to abide by all terms and conditions for SMS alert facility as may be prescribed from time to time by Chemexcil.

Date Place Signature

-------------------------------------------------------------------------------------------------------------------------------------------------

FOR OFFICE USE RCMC No.

The aforementioned standing instruction/ details have been logged and maintained in the system after verification of company and mobile number in use

Date Name of Concern officer Signature of Authorized person.

Please mail above filled form at [email protected]

34June - July, 2017

7. CHEMEXCIL SEMINAR ON "EXPORT/ IMPORT UNDER GST REGIME" ON 26TH JULY 2017 AT MAYFAIR BANQUET, WORLI, MUMBAI

Shri. Satish Wagh, Chairman, Chemexcil delivering inaugural speech, sitting from left Shri. S.G. Bharadi, Executive Director, Chemexcil, Dr. Vijay Risi, Additional Commissioner, NS-1, Jawaharlal Nehru Custom House, Nhava Sheva, Shri. K.M Harilal, Deputy DGFT, O/o Addl. DGFT Mumbai, Shri. Ajay Kadakia, Vice Chairman, Chemexcil, Shri Chaitanya Bhatt, Principal Associate, M/S. Laxmikumaran Sridharan Attorneys (L & S), Dr. Shavak Bhumgara, Vice President, DMAI

With the onset of GST regime, there have been lot of concerns amongst the member-

exporters regarding LUT/ BOND/ Bank Guarantee, refunds, fate of export promotion schemes etc.

To address the concerns of the exporters, the Council has organised a seminar on “Export/ Import under GST Regime” along with Plastic Export Promotion Council & DMAI on 26th July 2017 at Mayfair Banquet, Worli, Mumbai (10.AM to 5.pm).

To provide useful insights into the issues, we had invited senior officers from Jawaharlal Nehru Customs House (JNCH) and DGFT to grace the seminar and also interact with the participants.

The Council had also invited GST domain experts from reputed law firm M/s. Laxmikumaran Sridharan Attorneys (L & S) to give a detailed presentation on the export related topics Post- GST roll-out.

Further, we had also arranged a live demo of Tally services (by M/s BUTMA Enterprises) on the operation of new GST accounting software.

Following external experts/ faculties graced the seminar:

1) Dr. Vijay Risi, Additional Commissioner, NS-1, Jawaharlal Nehru Custom House, Nhava Sheva

2) Shri. K.M Harilal, Deputy DGFT, O/o Addl. DGFT Mumbai

3. Shri Joshua Ebenzer, Director, M/S. Laxmikumaran Sridharan Attorneys (L & S )-

4. Shri. Asish Philip Abraham, Joint Partner, M/S. Laxmikumaran Sridharan Attorneys (L & S )-

5. Shri Chaitanya Bhatt, Principal Associate, M/S. Laxmikumaran Sridharan Attorneys (L & S )-

6. Shri Roshan/ Shri Jignesh Shah- Tally Services/ BUTMA Enterprises

From the council/ Trade side Shri Satish Wagh- Chairman, Shri Ajay Kadakia, Vice Chairman, Shri S.G Bharadi-ED and Officers/ staff of Chemexcil attended the seminar. Shri Shavak Bhumgara, DMAI and officers from Plexconcil also attended Seminar.

The Seminar got excellent response with around 200 Member Exporters of CHEMEXCIL/PLEXCONCIL/ DMAI attending the event.

The participants asked several queries during the seminar which were answered satisfactorily by the officers of JNCH, DGFT and experts from M/S. Laxmikumaran Sridharan Attorneys (L & S ).


8. CHEMEXCIL SEMINAR ON “EXPORT/ IMPORT UNDER GST REGIME AND INTERACTIVE SESSION” AT KOLKATA ON 28-07-2017

From Left are Shri Bhaskar Thakkar, Chief Executive Officer of M/s. BT Associate, Shri Ajay K. Kadakia, Vice Chairman as well as Regional Chairman, Eastern Region Chemexcil, Shri Adesh Kumar, Additional Commissioner, Commercial Taxes, West Bengal and Public Relations Officer and Shri S.G. Bharadi - Executive Director Chemexcil

The Council had organized this Seminar on Export/Import under GST Regime and

Interactive Session at Hotel Lalit Great Eastern, Kolkata. From CHEMEXIL, the seminar was attended by Shri Ajay K. Kadakia, Vice Chairman as well as Regional Chairman, Eastern Region Chemexcil, Shri S.G. Bharadi - Executive Director Chemexcil.

The Key Speaker Shri Adesh Kumar, Additional Commissioner, Commercial Taxes, West Bengal and Public Relations Officer address the gathering. GST is a historical leap, which will help in nation building", said Shri Adesh Kumar, Additional Commissioner, Commercial Taxes, West Bengal

and Public Relations Officer, while addressing the seminar. He said that GST had been based on the concept of one India - one nation - one tax", encompassing all indirect taxes. He spoke on input tax credit and narrated how doing business will be easy under GST regime.

Technical session and the presentation about the EXPORT/ IMPORT UNDER GST REGIME given by one of the versatile exponent on the subject of GST Shri Bhaskar Thakkar, Chief Executive Officer of M/s. BT Associate. With the detailed and suitable illustrations which evoked a good response from the participants. He also clarified several queries raised by the participants to their satisfaction.

36June - July, 2017

Chemexcil submission for Board of Trade meeting on 20/06/2017 at New Delhi

Agenda:

Mid-term review of Foreign Trade Policy, 2015-2020 & re-aligning of FTP schemes in line with rollout of GST

1. Status of Export Incentives under GSP Framework/ Re-alignment of Schemes

Presently under FTP, export incentives can be broadly classified into:

• Duty Exemption Schemes (e.g. advance authorization, EPCG etc)

• Promotional Measures (MEIS, SEIS)

The incentives under these schemes are mostly by way of exemptions with parallel notifications under relevant legislations (customs and excise).

UNDER GST FRAMEWORK:

Advance Authorisation: Only basic customs duty will be exempted on imports made under Advance Authorisation. IGST will have to be paid on imports, which will block funds of exporters as refund will be available only after exports.

MEIS: MEIS will be used only for payment of basic customs duty there by reducing utilization and attractiveness, as currently Chapter 3 schemes are freely transferable and usable for payment of custom duty, excise duty and service tax. In case GST be allowed to be debited in duty credit scrips such as Merchandise Exports from India Scheme (MEIS) that will be helpful and improve cash flows.

Our Request:

In view of above, there is need to re-align the incentives, so exporters fund flows are not impacted. Drawback should also be increased as it was reduced to just 1.5% without any corresponding reduction in BCD. Trades concerns need to be addressed in the upcoming review of FTP by re-aligning the schemes.

2. Request for continued incentives support to overcome trade barriers in overseas markets:

Support is needed from government as exporters are facing following barriers in overseas markets which is impacting their competitiveness:

Partial GSP benefit by EU: - Non availability of GSP benefit by EU on organic & inorganic chemicals which makes Indian exports un-competitive due to incidence of full duty on organic and inorganic

chemicals.


India has FTA with ASEAN nations, but the concessions are only limited. Whereas supplies from China to these ASEAN nations is against NIL duty which impacts competitiveness.

There is a VAT of 13 to 17 % on Indian exports to China which is a major hindrance.

OFAC sanctions negating efforts to drive exports

Brazil- as import duties on fatty alcohols increased sharply from 2% to 14%.

Export tax imposed by Indonesia and Malaysia on the raw materials making Indian Oleochemicals non-competitive due to increased input costs.

‘REACH’ is a major trade barrier, exporters need financial support on REACH which is presently very much insufficient since government is offering only 50% on ECHA fees whereas, major cost is the expenses incurred for data access. Exporter should be compensated adequately to remain competitive in EU.

Our Request:

To overcome the above external barriers while exporting to the impacted markets, incentives be sufficiently increased even under GST framework, which will improve competitiveness of the exporters and boost exports from India.

3. Expansion Of Interest Equalization Scheme by Including more tariff Lines for Non-MSME’s & cover Merchant Exporters

For Non-MSME exports, scheme is restricted to only 416 tariff lines (at ITC HS code of 4 digit). In-fact, in chemicals its only 10 on tariff lines.

Besides, the scheme is not be available to merchant exporters many of whom are our member-exporters.

Our Request:

Export sector should be treated as priority sector which obliges banks to lend a specified share to the sector at cheaper rates which will improve competitiveness of the exporters.

Regarding interest expansion of interest equalisation scheme, the Council has sent representation to the MOC&I for inclusions of more tariff lines and also access of this scheme to merchant exporters which will be helpful.

We request inclusion of more tariff lines and also access of this scheme to merchant exporters which will improve the competitiveness of the exporters.

4. Import of technical pesticides:

Import of technical pesticides is restricted only to approved sources which is a hindrance. This greatly restricts the production capabilities of Indian End product Manufacturers as they are bound to use only those materials that are available in India or imported via approved sources.

Our request is to allow free import of active ingredients (without the need for registration) under advance authorization scheme. This will boost exports.

5. Solution for Persistent Technical Difficulties Related to DGFT Server/ Icegate/ BRC

Exporters are regularly facing issues on account of non reflecting shipping bill, delays in online EODC, MEIS application, uploading of eBRC by Banks etc. As a result exporters are unable to avail the incentives

38June - July, 2017

or close licenses. Email reminders or phone calls to ICEGATE/ DGFT EDI/ NIC sections are seldom replied.

Our Request:

The existing system is not working due to lack of responses and delays in resolution of query. There is a need to have dedicated EDI/ ICEGATE/ NIC personnel who are available to interact with the exporters and help them.

6. Caution Listing Of Exporters:

RBI is periodically issuing caution list of all exporters preventing them from doing normal banking transactions namely handling of import-export bills, disbursement of pre and post shipment credits, booking of foreign exchange etc.

The exporters which are having good track record of realization of foreign exchange also being caution listed due to the problem related to uploading in the EDI system of AD and RBI under EDPMS. It is suggested that exporters who are having good track record should not be put under caution listing and subject to unnecessary scrutiny.

7. Environment Related Controls

It seems that the process for obtaining “No Increase in Pollution Load” certificate / permission from the State Pollution Control Board”, the procedure in principle remain unaltered seeking prior environmental clearance for expansion with increase in the production capacity. The notification has not made any impact on ground reality and units are subject to same scrutiny as usual.

Our suggestion is that well established manufacturing unit with good track record and ISO accredited certified 14001:2015 should be exempted from such lengthy procedure of environmental clearance and only intimation to SPCB should suffice

Other issues like closure of units, installation of online monitoring system, waste disposal etc are already highlighted to the Ministry and await resolution.

8. Business with Countries on OFAC List

OFAC sanctions are a major hindrance to exports. This restricts Indian exporters from doing business with these countries even though some of these countries are in MEIS list.

We can have some arrangements with banks to transact in INR with these countries like the Iran Rupee Payment mechanism which will also continuation of business.

OTHER SUGGESTIONS FOR SIMPLIFICATION OF PROCESS / REDUCTION IN TRANSACTION COST

1. Prompt/ Timely fixation of Norms of Chemical sector.

Council has been following up with DGFT on various long-pending cases of Norms fixation. Due to such delays exporters are not able to redeem the authorisations. They risk being included in DEL and also have to give BG in customs for clearance which impacts cash flows. Norms cases of chemicals sector be disposed of speedily within reasonable time frame which will be a big help to exporters. Further to ease the timelines, DGFT RA’s can be delegated to finalise Ad-hoc norms.

2. Timelines for uploading of S/B’s on DGFT server for MEIS

Transmission of shipping bills by Customs to DGFT server, takes a long time. Exporters have to follow up for getting these activities done, especially for Hazira Port and Petropol customs. This delays the


application of MEIS and affects working capital.

3. Other Suggestions for Ease of Doing business for saving time and reducing transaction costs

For ease of doing business, following are requested:

Advance authorisation / EODC from DGFT: Currently collected personally from DGFT. Needs to be On Line

Advance authorisation application: To eliminate submission of hard copies to DGFT.

MEIS: To eliminate submission of hard copies to DGFT. MEIS can also be issued in digital form

Registration of Licences: Physical Registration of Advance authorisation for Imports and MEIS in the respective Ports to be eliminated.

RA To Issue of Advance release order (ARO) On Line

RA To issue revalidation On Line

To eliminate physical submission of CA certificates.

To eliminate physical submission of documents for Clubbing of advance authorisation under similar customs notification.

Brand rate: Brand rate application and settlement needs to be taken On Line.

Above steps in line with ease of doing business will reduce paper work, save time and reduce transaction costs.

PLEASE PROVIDE FOLLOWING GSTIN DETAILS to [email protected]

NAME OF THE COMPANY

REGISTERED OFFICE

STATE

PAN NO.

GST PROVISIONAL ID

Application Reference Number (ARN)

Contact Person / Designation

Tel / Fax / Email:

Note : Pl. ignore if aready sent the above information.

Chemexcil

APPEAL FORM

40June - July, 2017

NEWS ARTICLE

1. PM MODI GOES TO EUROPE TO INITIATE A NEW SEASON OF BILATERALS

Prime Minister Narendra Modi and Russian President Vladimir Putin react while walking near the Constantine Palace during their meeting in St. Petersburg, Russia, on Thursday. REUTERS

The thing with the European Union (EU) is its mini-bus load of 27members. This after not

counting the one that recently got off, but is yet to complete its divorce negotiations. An outsider might be forgiven, given the names of some of them, for thinking there are just too many freeloaders at the buffet table.

Doing a deal with Germany or France, who drive the bus at their own risk, and a disproportionate, some would say unsupportable, share of the cost, means you just did a deal with Malta as well. Negotiations with Brussels, however, are ponderous and reminiscent of the once-upon-a-time Concert of Europe.

So it is significant that Prime Minister Narendra Modi chose to visit the three top economies in the EU, on a bilateral basis, while missing out Brussels, which is the seat of the EU government of 27 nations.

But Modi took care in Germany to plump for European unity going forward, partly because it may be what his hostess wants to hear and partly because a united EU offers a single market for India. At least for now.

But being told what to do by Brussels, without concomitant benefit to British interests, may have been the very thing that prompted Brexit. Though the officiousness of EU’s Brussels HQ, located in tiny Belgium, allegedly also played its part. It wasn’t just Agatha Christie’s Hercule Poirot, after all, who was often constrained to clarify, with all the dignity he could muster, that he was Belgian, and not French.

Prime Minister Narendra Modi was undoubtedly looking for one-on-one gains during his calls on Berlin, Madrid and Paris, between 29 May and 3 June, with a visit to Russia in between, starting 31 May. So is the Chinese Prime Minister, from Germany’s numero uno trading partner, compared to India’s 24th slot - nevertheless following hot on his heels.

Modi thinks the time is opportune for this European visit, given the financial strains being experienced by the EU, where even Germany is growing at just 1.9% in GDP. He is probably willing to trade on aspects of the Free Trade Agreement (FTA) with the EU, stuck in limbo since 2013, if not the whole thing.

Both sides have been obdurate and self-focused, feeling justified to hold fast. But India may have the winning hand at this juncture.

This has prompted support for its NSG bid from Germany, mutual nods on fighting terrorism, and broad agreement on climate concerns, though short of formal acceptance from India on the last.

But even on bilateral investment agreements, there have been problems. A number of international arbitrations based on the recently expired one, have all gone against India. This suggests that perhaps it was not drafted to secure Indian interests all that well, in the first place.

Though negotiations on the EU’s FTA are expected to resume in July, what Germany, the EU’s biggest


economy, really wants, is a new “Investment Protection Pact” for itself.

The old India-Germany Bilateral Investment Treaty expired in March after India gave a one-year notice, as stipulated, to end it. There are 600 joint ventures with Germany operating in India at present and hundreds more German companies that trade with it. But there is also the matter of the EU proclaiming, in 2012, that its individual members would not henceforth enter into bilateral investment treaties. But after Brexit, and existential threats to the EU’s survival, there may have to be a rethink on the omnibus approach that favours, say, Latvia, more than it favours Germany.

India meanwhile, wants more of the mid-sized German engineering companies to form joint ventures in India. Though of long standing, India’s trade with Germany is at a paltry euro 17.4 billion in 2016. This compares badly with Germany’s euro 169.9 billion trade with China. And moreover, this is more or less evenly balanced.

Nevertheless, Germany is now uncomfortable with China’s opaque One Belt One Road (OBOR) initiative. It does not indicate any road-map for the participation of other countries in the contracts for all its infrastructure development. India made clear that it wants new Make in India deals. Only, it wants them on a bilateral basis, in a “quantum leap” of “outcome-oriented” transactions. So, if Germany wants an Indian concession on multi-brand retail, India just might agree as it frees up its foreign direct investment (FDI) norms, but only in return for a clutch of strategic German engineering collaborations back-to-back.

At this time, as many as eight broad pacts were signed, but reciprocity will be the key to operationalising them going forward. Key amongst them were ones on “cyber politics” and “cooperation on digitalisation”.

Meanwhile, President Donald Trump’s no-holds-barred instruction to NATO to pay up its fair share of the costs, looking squarely at Germany at the time, may be adding urgency to the idea

of expanding German presence in other markets. While Modi visited Germany last in 2015, making little headway beyond friendly atmospherics, this time changed circumstances could produce results.

Next, it was the first time an Indian Prime Minister visited Madrid in three decades. Here too, the most interesting pact signed was on “cyber security.” Not only have cyber attacks been responsible for abstracting millions from Indian banks, but they are suspected to have addled military assets like Army mortars. Most recently, a cyber attack is thought to be responsible for bringing down a mechanically sound Sukhoi fighter in Northeast India, and its pilots, out on a routine sortie.

Spain, the EU’s third biggest economy, has also inked pacts to cooperate in the fields of aerospace and defence with India.

Modi visited St Petersburg after Madrid in order to attend a Russia sponsored International Economic Forum, and tick the box of India’s 18th annual bilateral summit with Russia. Modi is the guest of honour at this first of a kind Russian hosted economic summit. On India’s part, there is a home delegation of 60 business leaders that are participating, with a special India pavilion at the venue. The key bilateral takeaway is expected to be a signing of contracts for the Kundakulam V and VI nuclear power reactors.

The whole gamut of bilateral relations between India and Russia, is also scheduled to be reviewed by President Putin and Prime Minister Modi, especially in a season of shifting alliances.

With several other mega military deals in the balance, including a state-of-the-art anti-ballistic missile shield system and several joint venture manufacturing projects, for helicopters, battle tanks, etc., Russia will be seeking to woo India.

In France, the EU’s second placed economy, it is a first meeting between the newly elected Emmanuel Macron, a Centrist, following on from a Socialist Francois Hollande, and Narendra Modi.

42June - July, 2017

Commerce Ministry aims to better utilise resources in FTP formulation and trade negotiations

The Commerce Ministry has sought to shed from its portfolio non-core areas including

Foreign Trade Policy (FTP) implementation, as well as administrative control over commodity boards and certain Public Sector Undertakings (PSU) such as MMTC, STC and PEC.

This is to better utilise the ministry’s resources in ‘core focus areas’ such as FTP formulation as well as India’s trade talks with other countries (bilateral and regional Free Trade Agreements) and at the World Trade Organisation (WTO)-level, according to official sources.

The Ministry’s move to ensure greater attention to FTP formulation and trade talks assume significance as it comes at a time when India’s goods and services exports are being impacted by rising incidents of protectionism across the

Paris is already in the process of supplying the first 36 state-of-the-art Rafale fighters to India, even as a bigger contract to make hundreds more of the Rafales in India, is being negotiated. Macron has indicated a keenness to participate more vigorously in Modi’s Make in India programme, with other military items to join the Rafale. This even as the French nuclear reactors on offer are found to be much too expensive.

While sections of the international and domestic media have characterised this quartet of visits as

a “power push”, the truth may be in being at the right places at the right time—even as outcomes are measured later.

America has signalled its unwillingness to prop up the European economy and its security going forward. How serious it is, cannot be immediately assessed. Still, there is something of a vacuum to be filled, and realignments to be made.

(Source: http://www.sundayguardianlive.com/opinion/9643-pm-modi-goes-europe-initiate-new-season-bilaterals dated 3rd June 2017)

2. MINISTRY SEEKS TO EXIT NON-CORE AREAS

world as well as trade disputes and weak global demand.

Export target

The apex body for India’s exporters, FIEO, recently said the government’s target for India’s overall exports (goods and services) of $900 billion by 2019-20 is unlikely to be achieved and that it should be scaled down to $700-750 billion.

Negotiations on the WTO’s Doha Development Round as well as India’s proposed FTAs including the Regional Comprehensive Economic Partnership (mega-regional FTA between 16 Asia Pacific nations including India) and the one with the European Union are at a crucial stage.

The Commerce Ministry — in a recent inter-ministerial meeting convened by the Cabinet Secretariat — asked the Central Board of Excise and Customs (CBEC) to take over the role of the nodal body for FTP implementation, the sources said.

They added that the Commerce Ministry is also keen to transfer to the Agriculture and Farmer Welfare Ministry the administrative control it (Commerce Ministry) currently has over the commodity boards (Coffee Board, Tea Board, Rubber Board, Spices Board, and Tobacco Board) as well as the related responsibilities regarding the oversight of production, distribution and development of plantation crops (such as coffee, tea, rubber, spices, tobacco and cashew).


Core competence

The CBEC, however, is learnt to have declined the Commerce Ministry’s request saying FTP was not its core competence, and that such as move may complicate matters as it (the CBEC) will have to create an operational structure similar to the one that the Directorate General of Foreign Trade (DGFT) currently has for FTP implementation.

The DGFT is attached to the Commerce Ministry and is responsible for formulating and implementing the FTP. The CBEC has also opined

that shifting the FTP implementation powers from Commerce Ministry would also require the difficult process of amending the concerned laws — the Customs Act and the Foreign Trade (Development & Regulations) Act, the sources said.

On the issue of jurisdiction over plantations, the Commerce Ministry has begun work on a plan to merge the various commodity boards into a single organisation.

(Source: http://www.thehindu.com/business/Industry/ministry-seeks-to-exit-non-core-areas/article18718570.ece 4th June 2017)

3. GST: EXPORTERS TO GET 90% DUTY REFUND WITHIN SEVEN DAYS

Under the GST regime, the remaining 10% duty refund will be made after verifications by tax authorities

The finance ministry has agreed to refund 90% of the duties paid by exporters in the process

of manufacturing items for export within a period of seven days under the Goods and Services Tax (GST) regime.

The issue was raised at a meeting of state industry ministers under the Trade Promotion and Development Council, chaired by commerce and industry minister Nirmala Sitharaman.

Commerce secretary Rita Teaotia told the state ministers that the revenue department has given an assurance that the revamped ICEGATE portal would make sure refunds are made on time. “If duty refunds could not be made within seven days, then government will pay interest to exporters. However, it is yet to be decided how

much interest will be paid to exporters in such a scenario,” Teaotia said.

The ICEGATE portal provides e-filing services to trade and cargo carriers and other customs department clients.

The remaining 10% refund will be made after verifications by tax authorities.

The commerce secretary’s assurance satisfied exporters and the states.

The proposed GST regime mandates that all duties must be paid at the time of the transaction, while refunds can be obtained after exports.

For exporters, this could mean a working capital crunch as duties may get held up with tax authorities for months before a refund is processed.

Two schemes are especially likely to be impacted by the GST regime: the Advance Authorization Scheme (AAS) that allows duty-free sourcing of raw material and the Export Promotion Capital Goods (EPCG) scheme that allows duty-free sourcing of machinery for export purposes.

“GST clearly provides that taxes must be paid and refunds will be provided. So since the regime is so structured, in order to ensure that there is minimum pain to exporters, duty refunds will be provided within a week’s time,” Teaotia said.

Teaotia said the states also raised the issue of duties to be paid on transferring goods between units in two states.

44June - July, 2017

“This issue has been raised by the commerce ministry before the GST Council on 3 January and we are looking forward to a favourable consideration,” she added.

The commerce ministry has sought exemption from inter-state GST on goods transferred from Special Economic Zones (SEZs) across states, arguing that since SEZs are treated as zones outside the country’s territory, they should not pay duties on transactions among them.

Sitharaman said the commerce ministry has designed a new scheme called Trade Infrastructure for Exports Scheme (TIES) that will come into operation from the next financial year to support states to build export infrastructure.

The scheme, contours of which are still to be finalized, will replace the ASIDE (Assistance to States for Infrastructure Development of Exports) scheme that was discontinued by the centre in 2015-16, when states’ share in net proceeds of union tax revenues was increased to 42% from 32%, in line with the 14th Finance Commission’s recommendations.

However, the states are yet to agree to expediting refunds.

S.C. Ralhan, president, Federation of Indian Export Organizations, said exporters require the support of the states so that exports do not face the liquidity problems under GST.

“The Merchant Exporters, who at present avail exemptions through various forms, may be given the same facility under GST. We have many meetings with the Central Government but they feel it will be possible only if the States agree to the same as exports are subject to IGST which has both Central GST and State GST component. The exemption from IGST on the final product procured for exports would help in easing the liquidity as cost of credit in India is much above the international benchmark,” he said.

(Source: http://www.livemint.com/Politics/3MdUOljN6ZzAuNet17AKUJ/GST-Exporters-to-get-90-of-duty-refund-within-seven-days.html?gclid=EAIaIQobChMI_uTTwMzQ1AIVQSRoCh1xJAznEAAYASAAEgIXbvD_BwE dated 6th June 2017)

4. THE ART OF THE FREE TRADE AGREEMENT

During their recent meeting in Germany, Prime Minister Narendra Modi and German

Chancellor Angela Merkel agreed on the need to resume India-European Union (EU) free trade agreement (FTA) talks. These negotiations, covering trade, investment protection and intellectual property, have remained deadlocked since 2013.

The recent and hasty unilateral termination of bilateral investment treaties (BITs) by India with many EU member countries including Germany has complicated things further, leaving many European businesses worried about investment protection in India. As India prepares to resume FTA negotiations on all issues including investment protection, a recent landmark decision by the European Court of Justice (ECJ) — the highest court in the EU in matters of EU law — which has not attracted much attention assumes importance.

The ISDS mechanism

The European Commission negotiated an FTA with Singapore from 2010 to 2013 covering a wide range of issues such as tariff reductions, intellectual property and investment protection including the investor-state dispute settlement (ISDS) mechanism. The ISDS provision in the


EU-Singapore FTA gives investors a choice between bringing a dispute against a host state before the national court of the country where the investment has been made and submitting the dispute to international arbitration. The European Commission and the EU member states disagreed as to who had the competence to ratify the FTA. The ECJ decided that EU had the exclusive competence over almost all aspects of the FTA barring non-direct foreign investment — also known as portfolio investment — and the ISDS mechanism. In other words, for agreements containing non-direct foreign investment and/or ISDS provisions, EU member states enjoy mixed competence to approve such treaties. The court held that since the ISDS provision allowed the removal of the disputes from the jurisdiction of the courts of an EU member state, it could not be done without the consent of the member states.

This decision will impact the EU’s ongoing FTA negotiations, including with India. As Anthea Roberts of the Australian National University has argued, to honour the ruling, the EU might consider different options. First, it could decide to jettison the ISDS clauses in all its future FTAs. In other words, it may negotiate FTAs where disputes between investors and states would be resolved using the state-state dispute settlement (SSDS) mechanism. Given India’s protectionist stand on BITs and ISDS, as reflected in the 2016 Model BIT, India might be happy with this outcome. However, it is unlikely that the EU would totally abandon the ISDS system. Its FTA-text with Singapore and also the recently signed EU-Canada FTA reveals the EU’s preference for ISDS. Though, one major change is that the EU, in its FTA with Canada, has moved away from arbitration to a bilateral investment court system to settle investor-state disputes. Under this system, both countries nominate a roster of 15 tribunal members for a five-year period, and three members shall be randomly selected to serve on one tribunal. In addition to this, an appellate tribunal will be established to review tribunal decisions. Not just this, the EU is also keen to set up a multilateral investment court (MIC) with an appellate mechanism as reflected in Article 8.29 of the EU-Canada FTA.

Second, the EU could negotiate an FTA with ISDS provisions subject to the treaty being approved by all EU member states. However, this option is not feasible because all EU member countries might not ratify such an FTA. Third, it could negotiate the main FTA without an ISDS provision but make ISDS provisions a subject matter of an optional protocol provided this is permitted under EU law. The optional protocol could theoretically bind the EU’s partner country and only those EU member countries that ratify it and thus give their consent to the removal of investor-state disputes from their jurisdiction.

Challenges for India

Assuming the EU exercises the third option and tailors the ISDS optional protocol on the lines of the EU-Canada FTA, India will have to think about its ISDS negotiating strategy carefully on three fronts. First, will India accept allowing foreign investors to submit cases to international tribunals without first resorting to domestic courts? The 2016 Indian Model BIT requires a foreign investor to litigate in national courts for at least five years before approaching an international tribunal. Second, is India prepared to accept the proposal of setting up a MIC and submit to the jurisdiction of such a court? This would mean that all BIT disputes would be settled by the MIC and not through ad hoc arbitration as India currently proposes in its Model BIT. There is a lot of merit in developing an MIC because it will help fight the vices of current ISDS system based on ad hoc arbitration. The MIC system will bring in tenured-judges with expertise in international investment law (IIL) unlike the party-appointed arbitrators, many of whom are not experts in IIL; usher in transparency in the ISDS system; introduce an appellate mechanism to correct errors of law made by tribunals of first instance, which is missing in the current ISDS system. Third, pending the creation of the MIC, will India accept the creation of a bilateral investment court system with tribunal members being appointed for a five-year period and with an appellate mechanism? The method of dispute resolution in the Indian Model BIT is based on

46June - July, 2017

ad hoc arbitration through party-appointed arbitrators though the possibility of creating an appellate mechanism is recognised.

India should use the ECJ decision to rethink the best way of approaching the ISDS, such as whether it should move forward with the option of negotiating for a MIC. As a democracy based on

the rule of law, India should actively engage with the EU as part of its FTA negotiations, towards creating a robust and transparent international judicial system like the MIC that would protect foreign investment from state’s regulatory abuse.

(Source: http://www.thehindu.com/opinion/lead/india-eu-ties-the-art-of-the-free-trade-agreement/article18732229.ece 7th

June-2017)

5. CABINET APPROVES MOU BETWEEN INDIA AND KOREA FOR EXPORT CREDIT OF USD 9 BILLION

New Delhi: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi

has approved the proposed Memorandum of Understanding (MoU) between Export-Import Bank of India (EXIM Bank) and Export-Import Bank of Korea (KEXIM) for export credit of USD 9 billion for infrastructural development in India and for the supply of goods and services as part of projects in third countries.

The MoU is proposed to be signed between the two banks during the forthcoming visit of the Finance Minister Shri Arun Jaitley, to Seoul, Korea during 14-15 June 2017 for the Annual Financial Bilateral Dialogue. The decision is expected to promote the country’s international exports, and deepen political and financial ties between India and Korea. The export credit will be utilized through lending by EXIM Bank for promoting projects for priority sectors, including smart cities, railways, power generation and transmission etc., in India and for the supply of goods and services from India and Korea as part of projects in third countries.

Implementation Strategy

Under the implementation strategy, the parties to the MoU will hold mutual consultations to structure the financial assistance, review the existing arrangements and related procedures. EXIM Bank will identify viable projects in India. For projects in third countries, both parties will jointly identify viable projects. It is understood from EXIM Bank that the USD 9 billion would be extended by KEXIM by way of Investment Credit (typically export credit facility to finance projects

with a certain level of Korean import content and interest rates as per OECD export credit guidelines). This amount may also be utilized by KEXIM as the financier without the participation of EXIM Bank subject to satisfaction of the purpose.

The supply of goods and services from India and Korea as part of projects in third countries will be an additional avenue which this MoU will enable. It will help in exchanging mutual experience, sharing information on financing export and import operations, project assessment and knowledge generated in respective fields of activities.

Background

The Joint Statement issued in 2015 during the visit of the Prime Minister to the Republic of Korea stated that Korea intends to offer USD 10 billion of infrastructural development in India. The package was subsequently prepared to comprise of USD 1 billion from the South Korean Economic Development Cooperation Fund (EDCF) as government to government funding and USD 9 billion as export credit from KEXIM. The credit of USD 9 billion from KEDIM is to be through a formal MoU to be signed between KEXIM and EXIM Bank.

(Source: https://www.ibef.org/news/cabinet-approves-mou-between-india-and-korea-for-export- credit-of-usd-9-billion?utm_source=phplist740&utm_medium=email&utm_content=HTML&utm_campaign=India+News+Alert%25253A+Indian+media+and+entertainment+industry+to+grow+at+a+CAGR+of+10.6+per+cent+between+2016-21%25253B+Since+last+theears%25252C+3.38+million+ individual+household+toilets+and +128%25252C946+community+ Toilet + seats + have+ been+built dated 8th June


6. COMMERCE MINISTRY SETS UP GST FACILITATION CELL

The commerce ministry today constituted a GST facilitation cell with a view to address issues regarding the new indirect tax regime in respect of foreign trade policy.

The cell is set up in the Directorate General of Foreign Trade (DGFT).

In a notice to all its regional offices, DGFT said: “to ensure smooth and successful roll out of Goods

and Services Tax (GST), it is decided to constitute a GST facilitation cell”.

The cell will be headed by Additional DGFT Nikunj Kumar Srivastava. It would have two Joint DGFT officials as members.

The regional authorities have also been advised to establish similar cells in their respective offices.

The GST would be rolled out from July 1. It will subsume a host of central and state taxes like excise duty, service tax and VAT.

(Source: http://www.moneycontrol.com/news/business/economy/commerce-ministry-sets-up-gst-facilitation-cell-2300511.html dated 8th June-2017)

7. COMMERCE MINISTRY SETS UP GST FACILITATION CELL

The Dollar Business Bureau

The Ministry of Commerce on Thursday constituted a Goods and Services Tax (GST)

facilitation cell with the purpose to address issues related with the new tax regime with regards to the Foreign Trade Policy.

The facilitation cell is to be constituted in the Directorate General of Foreign Trade (DGFT) headquarter.

“To ensure smooth and successful rollout of GST, it is decided to constitute a ‘GST Facilitation Cell’ in DGFT Headquarter and all Regional offices of DGFT to serve as the first point of contact for addressing any issues regarding GST in respect of Foreign Trade Policy,” the DGFT said in trade notice (No.08/2018) dated June 8.

Additional DGFT Nikunj Kumar Srivastava will head the GST facilitation cell. It would also have Rakesh Kumar, Joint DGFT and Kaushlendra Pratap Singh, Dy DGFT as its members.

The regional authorities are also advised to set up similar facilitation cells in their offices.

“On the same lines, all regional authorities have been advised to constitute a similar GST Facilitation Cell,” the notice read.

The new GST regime is set to be rolled out from July 1. This new indirect tax regime will subsume a number of central and state levies such as service tax, excise duty, and VAT.

Last month, the GST Council had fixed the rates for more than 1,200 goods and 500 services under the tax brackets of 5%, 12%, 18% and 28%.

(Source: https://www.thedollarbusiness.com/news/comm-min-sets-up-gst-facilitation-cell-to-address-gst-related-issues/50491 dated 9th June-2017)

48June - July, 2017

8. COMMERCE MINISTRY ENGAGING WITH STAKEHOLDERS TO RESOLVE GST ISSUES

It said that exporters can email their queries concerning GST and pertaining to foreign trade policy to the facilitation cell.

The commerce and industry ministry is organising consultations with all stakeholders,

including exporters, to resolve their issues pertaining to the Goods and Services Tax (GST).

The Directorate General of Foreign Trade (DGFT), under the ministry, has constituted a GST facilitation cell to assist and advise exporters, trade and industry for a smooth transition from present regime to the GST.

“DGFT also convened a meeting of stakeholders to understand the issues being faced by them in GST system. These issues have been taken up with the department of revenue and GSTN,” the commerce ministry said in a statement.

Most of the issues have been resolved by the department and GST Network, it added.

It said that exporters can email their queries concerning GST and pertaining to foreign trade policy to the facilitation cell.

“All regional offices of DGFT have also constituted GST facilitation cell and the cell would be headed by the head of the regional office,” it said. The ministry has announced to align the mid-term review of foreign trade policy with the roll out of GST for the convenience of exporters and industry.

GST is scheduled to be rolled out from July 1.

(Source: http://www.moneycontrol.com/news/business/economy/commerce-ministry-engaging-with-stakeholders-to-resolve-gst-issues-2301515.html dated 10th June-2017)

9. FOREIGN TRADE POLICY REVIEW: COM MIN LIKELY TO EXTEND INCENTIVES FOR EXPORTERS

“Currently we are not getting interest subsidy benefits. The government should consider extending this to us besides other incentives so that we can increase rice exports,” KRBL CMD Anil Mittal said.

KRBL is a leading rice exporter and sells basmati rice under India Gate brand.

The Federation of Indian Export Organisations (FIEO) too said that the cost of liquidity is high and the government should look at ways to reduce that.

“The ministry should look at increasing the interest subsidy and Merchandise Exports from India Scheme (MEIS) each by 2 per cent,” FIEO Director General Ajay Sahai said.

With exporters raising concerns over working capital issue under the upcoming GST regime, the commerce ministry is expected to provide incentives such as enhanced interest subsidy to sectors like agri commodities to boost exports.

The incentives could be announced as part of the foreign trade policy (FTP) review, an

official said.


He added that cost of business would go up for exporters under the Goods and Services Tax (GST), to be rolled out from July 1, as exporters have to pay the duties first and then seek refund.

According to FIEO, due to this, working capital worth over Rs 1.85 lakh crore would be stuck with the government in the new indirect tax regime. Currently they get ab-initio exemptions on duties.

As part of the FTP review, the ministry is consulting all stakeholders on providing support to certain sectors to boost exports. The ministry has aimed at completing the review process before the GST rollout.

Under MEIS, the government provides duty benefits at 2 per cent, 3 per cent and 5 per cent

depending upon the product and country.

In 2015, the ministry had announced 3 per cent interest subsidy for exporters to cut cost of credit for sectors including SMEs, handicrafts, agri and food items.

Although the country’s overseas shipments have started showing positive growth, global economic situation is still not improving at a healthy rate.

India’s exports rose by 19.77 percent to USD 24.63 billion in April.

(Source:- http://www.moneycontrol.com/news/business/economy/foreign-trade-policy-review-com-min-likely-to-extend-incentives-for-exporters-2301609.html dated 11th June-2017)

10. TRADE POLICY EYE ON GST

New Delhi, June 18: The government may come out with incentives, including an enhanced

interest subsidy, to boost shipments in the mid-year review of the foreign trade policy.

The policy is expected to be announced ahead of schedule to ensure a parallel rollout with GST in July.

“The incentives could be announced as part of the foreign

trade policy (FTP) review,” a senior commerce ministry official said.

Officials said the Merchandise Exports from India Scheme (MEIS) is being changed to make exports from India GST-compliant.

The move could address the concerns of exporters who are worried over a working capital crunch

following the implementation of goods and services tax (GST).

Under GST, exporters will have to first pay the required duty and seek a refund.

According to estimates, exporters’ working capital of up to Rs 1.85 lakh crore annually could get stuck because of the refund process.

“The ministry should look to increase the interest subsidy and MEIS (duty benefit) each by 2 per cent,” Ajay Sahai, director-general of the Federation of Indian Export Organisation (FIEO), said.

Under MEIS, introduced by the Foreign Trade Policy 2015-20, the commerce ministry gives benefits to several products as “duty credit scrips” which can be used to import inputs by the exporter or sold to other entities.

Under MEIS, the government provides duty benefits at 2 per cent, 3 per cent and 5 per cent, depending on the product and country.

In 2015, the ministry had announced a 3 per cent interest subsidy for exporters to cut the cost of credit for sectors, including SMEs, handicrafts, farm and food items.

50June - July, 2017

The policy review will focus on propelling small and medium units, which generate jobs, and also look at the possibility of enhancing the scope of rupee trade by getting into a currency swap with the Southeast Asian countries

The commerce ministry may prune the ambitious target of goods and services export of $900 billion set for 2020 fixed in the five-year foreign trade policy.

(Source: https://www.telegraphindia.com/1170619/jsp/business/story_157563.jsp dated 19th June-2017)

11. AFTER GST FACILITATION CELL, DGFT COMES UP WITH HELP DESK FOR GST ISSUES RELATED TO FTP

New Delhi, June 19 (KNN) After coming up with Goods & Services (GST) Facilitation Cell, the

Directorate General of Foreign Trade (DGFT) has launched a Help Desk for GST issues related to Foreign Trade Policy (FTP).

“…it is decided to constitute a GST Help Desk in DGFT Headquarte r s to reply queries on GST related to Foreign Trade Policy,” DGFT said in a

notification.

The GST Help Desk can be contacted over phone at 011-23063080/ over e-mail id [email protected].

Last week, DGFT had constituted a ‘GST Facilitation Cell’ in DGFT Headquarter and all Regional offices of DGFT to serve as the first point of contact for addressing any issues regarding GST in respect of Foreign Trade Policy.

The moves aim to ensure smooth and successful rollout of GST with effect from July 1, 2017.

‘GST Facilitation Ceil’, DGFT is headed by Nikunj Kumar Srivastava, Additional DGFT (email: [email protected]) and Rakesh Kumar, Joint DGFT (email:[email protected]) & Kaushlendra Pratap Singh, Deputy DGFT (email: [email protected]) as members of the Cell.

On the same lines, all Regional Authorities have been advised to constitute a similar ‘GST Facilitation Cell’ for addressing GST related issues in respect of Foreign Trade Policy. (KNN Bureau)

(Source: http://knnindia.co.in/news/newsdetails/sectors/after-gst-facilitation-cell-dgft-comes-up-with-help-desk-for-gst-issues-related-to-ftp dated 19th June-2017)


12. THE FLIP SIDE OF GST: ITS IMPACT ON THE INFORMAL ECONOMY

The move to GST has the potential to cause immense disruption to the shadow economy

that is the source of livelihood for many

The markets are gung-ho about the shift to the goods and services tax (GST). One factor driving this optimism is the anticipated shift of business from small, unorganized firms in some sectors to organized ones. Since the latter are already in the formal economy, comply with regulations, are generally larger in size and pay taxes, the switch will be much easier for them, which will ultimately translate into increased market share.

Analysts have been preparing lists of companies that will benefit in sectors such as apparel, tiles and sanitaryware, plywood, textile, footwear, electrical equipment and appliances, and plastics and packaging. All these sectors have a high composition of unorganized firms (see chart).

For example, analysts expect the share of the informal segment in the tiles industry to decline from 40% currently to 20%. Similarly, nearly 60% of the ready-mixed concrete market is unorganized. In the light electrical segment, more than 35% of the businesses are in the informal sector. Certainly, this augurs well for larger companies in the organized sector. This also comes at a time when volume growth has just recovered from the

Jewelry is one of the sectors which has a high composition of unorganized firms, according to analysts.

effects of demonetisation and corporate India is desperate for a much-awaited earnings recovery.

But the gain in market share of listed companies means a corresponding fall in the share of units operating in the informal economy. GST is sure to take a toll on the financial health of small- and medium-sized enterprises (SMEs) operating in these sectors. Economists say that the informal or unorganized sector accounts for nearly 50% of India’s gross domestic product and is responsible for more than 80% of total job creation in the country.

Many of the firms operating in this part of the economy make profits largely due to tax evasion and non-compliance with regulatory norms, which allows them to offer products at comparatively lower prices. However, in the GST-era, it will be a struggle for survival for such firms because they will be faced with taxes, lower margins and a sharp spike in the cost of compliance. Some firms in the unorganized sector may go under, while others could find their profits curtailed. To be sure, in some instances the two sets of companies cater to different customers, but there is always some overlap. And it is not just the manufacturers in the informal economy who will suffer but also the smaller dealers and wholesalers.

The economics of logistics under the GST regime

52June - July, 2017

also favour large companies in the organized sector.

A final decision on e-way bills, which will have a significant impact on the logistics sector and logistics cost of manufacturers, is pending. When implemented, this should result in a decline in transit time due to elimination of multiple checkpoints and consolidation of warehouses. This will aid large companies that operate across India and offset some of the cost advantages that regional and small firms, usually those in the unorganized sector, enjoy.

The point is that the squeeze on the informal economy may well lead to job losses, which could then start hurting demand. So while companies in the organized sector could benefit, there could be distress in the informal economy. Indeed, the situation could be a repeat of what happened during demonetization, when the informal sector was the hardest hit.

The move to the new tax regime has the potential to cause immense disruption to the shadow economy that is the source of livelihood for many, although it is nobody’s case that firms that survive by flouting regulations and evade taxes continue to do so.

With the 1 July deadline around the corner, there are many SMEs who are ill-prepared for the transition. Those of them who fail to make it on time will be out of business, thus leading to increase in unemployment, at least initially, caution analysts.

The switch to GST will increase the size of the formal part of the economy and increase productivity, but it will also extract a cost from the most vulnerable firms and workers.

(Source http://www.livemint.com/Money/Hr30Wh3Bg3MAyelpa7bOXM/The-flip-side-of-GST-its-impact-on-the-informal-economy.html dated 22nd June 2017):

13. INDIA TO SHARPLY CUT EXPORT TARGET IN MID-TERM REVIEW OF FOREIGN TRADE POLICY

(The previously set USD 900 billion goods and services exports target by 2020 now appear increasingly unachievable given still shaky conditions in the world economy)

Tepid global demand and shaky conditions in

Europe—India’s biggest overseas shipment

market—may force the government to significantly

scale down the previously set USD 900 billion

goods and services exports target by 2020, which

now appear increasingly unachievable.

A new target will be announced on July 1, when Commerce Minister Nirmala Sitharaman presents the review of the mid-term foreign trade policy.

“The revised export target will not be as ambitious. It will be substantially brought down after the conclusion of mid-term review (in the next one week),” a senior government official told Moneycontrol.

India’s total exports in 2016-17 stood about USD 435 billion. This include merchandise exports worth USD 275 billion and about USD 160 billion of commercial services exports, up about 5 percent over last year. If the same trend persists, exports would touch about USD 525 billion by 2020, short by nearly USD 400 billion than the original target.

According to top traders’ body Federation of Indian Exports Organisation (FIEO), the government needs to revisit its export target and set it in line

with prevailing conditions.


“Looking into the performance of India’s export in 2015-16, if we have to reach the figure reflected in the foreign trade policy, you require a compounded annual growth of around 28 percent or so, which is not possible. At 15-17 percent growth, we can reach an export of around USD 700-725 billion. We need to revisit the target and put it around that number,” Ajay Sahai, Director General, FIEO said.

In March 2015, India had released its Foreign Trade Policy (FTP-2015-20), fixing an ambitious target for goods and services exports to USD 900 billion by 2020, in a bid to increase the country’s share of world exports from 2 per cent to 3.5 per cent.

Merchandise exports slumped for two successive years as shipment orders dried out from the big markets in Europe and China. Merchandise exports fell (-) 1.29 percent in 2014-15 at USD 310.34 billion, and plunged nearly 16 percent in the following year with exports at USD 262.30 billion.

Goods exports have revived since the middle of 2016-17, growing 4.7 percent to USD 274.65 billion, but not quick enough to help reach USD 900 billion overall exports target in the next three years.

“The target is challenging,” said Sanjay Budhia, chairman, national committee on exports at the Confederation of Indian Industry (CII). “Exports need to be more cost competitive. Foreign exchange stability is required and India needs to remove logistics and infrastructure bottlenecks”.

According to Sahai, when the export target for 2020 was fixed, the government had thought that the global trade will help the exports of the country.

(Source:http://www.moneycontrol.com/news/trends/current-affairs-trends/india-to-sharply-cut-export-target-in-mid-term-review-of-foreign-trade-policy-2310985.html dated 23rd June-2017)

14. AHEAD OF GST, CUSTOMS DEPT REWORKS SYSTEMS

The Centre is working with exporters and importers to prepare them for the Goods and

Services Tax (GST) that will be implemented from next month.

Customs duty will not be subsumed under the new levy, which includes only central excise duty and service tax. However, imports will be considered an inter-state supply and will attract IGST (Integrated GST), while exports will be zero-rated. Full refund of tax will be available.

For many imports, counterveiling duty and special additional duty of customs will also not be levied. Accordingly, laws and procedures as well as IT systems of the two levies are being synced to process refunds and check duty evasion.

Launch campaigns

While the Department of Commerce and the Directorate General of Foreign Trade have already been working on creating awareness, the Central Board of Excise and Customs has also asked the

customs department to launch such campaigns and clarify doubts.

Apart from the levy of IGST and compensation cess, the refund on exports of goods will depend on the filing of shipping bills along with the GST invoice and export general manifest.

“The readiness of the customs administration and trade shall be crucial for the smoothroll out of GST,” said a recent CBEC missive.

It further said changes in customs law and procedures have to be accompanied by changes in the electronic data interchange system.

The information in the bill of entry by importers will be cross-checked with their GSTN returns. Further, importers will also be expected to declare their GST registration number or GSTIN to claim credit on the IGST paid.

Similarly, the CBEC has modified the shipping bills to electronically capture details such as

54June - July, 2017

GSTIN of the exporter and GST export invoice. Gradually, only details of GSTIN and Permanent Account Number will be required in the shipping bills, CBEC has further said.

Earlier, the Department of Commerce had also announced that it would align the mid-term review

of Foreign Trade Policy with the rollout of GST for the convenience of exporters and industry.

(Source: http://www.thehindubusinessline.com/economy/ahead-of-gst-customs-dept-reworks-systems/article9735253.ece dated 23rd June-2017)

15. INCENTIVE SCHEMES FOR EXPORTERS TO CONTINUE POST GST: COMMERCE SECRETARY RITA TEAOTIA

Deemed exports refer to the transactions in which the goods supplied do not leave the

country and the payment for such supplies is received either in Indian currency or in free foreign exchange.

The incentive schemes designed for promotion of exports will continue even after the GST roll out from July 1, while the government may do away with the deemed export benefits, a top official said on Friday.

Deemed exports refer to the transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian currency or in free foreign exchange.

The government is committed to continuing incentive schemes for export promotion, Commerce Secretary Rita Teaotia said while addressing exporters at an event.

However, she clarified that deemed export benefits may discontinue, as all will get level playing field in the Goods and Services Tax (GST) regime, FIEO said in a statement.

While replying to the concerns of exporters due to regular break down in an icegate server of customs, she said the department is in the process of upgrading the system so that all the issues of the exporters and importers will be solved.

Open House session was organised by the Federation of Indian Exports Organisation (FIEO) to invite suggestions from exporters on the measures needed in foreign trade policy.

Exporters presented in the programme from various sectors, including engineering, textiles, pharma, defence, and silk, argued for a continuation of all schemes to make Indian products competitive as well as the need for exemption route instead of paying tax and then claiming a refund.

Dr. A Sakthivel, Regional Chairman, FIEO (Southern Region) said that paying GST and take refund will block working capital of exporters, which is costly compared to our competing countries.

He also highlighted various anomalies like non-inclusion of garments manufacturers in the 5 percent GST announced for the textiles industry.

(Source: http://www.moneycontrol.com/news/business/incentive-schemes-for-exporters-to-continue-post-gst-commerce-secretary-rita-teaotia-2311531.html dated 23rd June-2017)


16. IN MODI, TRUMP HAS A PARTNER WHO CAN MAKE US-INDIA RELATIONS A WIN-WIN

During his six-day, four-nation tour of Europe last month, Indian prime minister Narendra

Modi injected energy and enthusiasm in India’s relations with Germany, Spain, Russia, and France. The high-profile tour garnered great attention and praise in India and Europe. The prime minister’s visit to the United States this week presents a similar opportunity for the Trump administration to chart a more ambitious course for US-India relations. President Trump should use the summit meeting to signal his intention to elevate bilateral ties to new heights.

Upgrading US-India relations is a safe and winning long-term bet for an administration facing a surfeit of near-term challenges and bad press. There is broad bipartisan support in the US Congress for stronger ties as well, as a deep affinity between the people of both countries. A closer partnership with a democratic and economically vibrant India that shares many of the United States’ interests in East Asia would be a clear win for the administration. To achieve it, the administration will need a successful summit followed by sustained diplomatic attention on India.

The administration can build on the strong foundation of defense and security cooperation already in place. But a realistic blueprint for closer ties will involve traversing thorny issues of mutual concern, while developing a shared set of

principles for cooperation in South and East Asia. The administration will also need to push for a tangible agreement that advances economic ties, the area where the two countries have made the least progress in recent years.

At the summit, the first step for the two leaders will be to get to know one another and commit to continuing the extensive diplomatic engagement that started under the George W Bush administration and became a norm during the Obama administration. The announcement of an official visit by Trump to India in the next year would set the right tone. Equally important will be scheduling regular diplomatic visits between the two capitals and an early date for the next round of the US-India Strategic and Commercial Dialogue.

Second, it would be prudent for Trump to relay that his government will maintain regular dialogue with India on two of its primary areas of concern—the United States’ Afghanistan strategy and its immigration policy.

On Afghanistan, India will look for assurance that the United States is committed to the stability of the current government, primarily by continuing its troop, investment, and aid commitments. A signal from Trump that he understands and appreciates India’s concerns and that his administration will keep India apprised of any upcoming policy changes would go a long way in building trust.

Modi is also likely to push for limited changes to the US H-1B worker visa program, of which it is the largest beneficiary, and raise concerns about troubling attacks against Indians and Indian-Americans in the United States. The president can allay India’s fears by conveying that he will work with Congress to find a balanced approach to worker visas that targets abuse but does not explicitly reduce the number of visas on offer. Regarding hate crimes, he should reiterate that he will speedily and unequivocally condemn any

56June - July, 2017

future attacks. In both cases, follow through will be critical.

Third, in their meeting, the two leaders should strive to develop a shared understanding of their interests in the Asia-Pacific and Indian Ocean region, where the United States would appreciate greater engagement from India in supporting a rules-based regional order, managing peace and stability, and promoting shared prosperity through regional economic integration. Modi has gone further than any previous Indian leader in publicly siding with the United States on critical issues in East Asia. He has echoed US concerns about resolving maritime disputes in the South China Sea peacefully. As part of his Act East policy, Modi has literally put India’s money where its diplomatic mouth had been for years. Trump should be ready to display his commitment to this vision—perhaps by finally supporting India’s bid to join the Asia Pacific Economic Cooperation (APEC) forum.

Identifying a set of shared strategic priorities will help advance bilateral security cooperation, which is closer today than ever before, including in areas likes counter-terrorism that are priorities for the President. India has become a major buyer of US arms, and the two militaries hold numerous joint exercises every year. The 2016 Logistics Exchange Memorandum of Agreement, which envisions interoperability of US and Indian forces, is groundbreaking, but making it a reality will depend on the two governments’ ability to build trust and facilitate greater strategic convergence.

Fourth, to take the relationship to the next level, the two leaders will need to elevate their

economic partnership, which holds great promise but has cooled in recent years. Market access and intellectual property disputes have impeded progress and are unlikely to disappear. However, there are positive signs as well. Under Modi, India has significantly liberalized its foreign investment regime and is at work to become an easier place to do business. Until now, India has shown little appetite for a serious bilateral investment treaty (BIT) much less as a free trade agreement with the United States. Trump should encourage Modi to make a high-caliber US-India BIT a joint goal that imbues the economic relationship with the kind of optimism and momentum the relationship has seen on other fronts.

Such a move, along with pushing for a closer

partnership with India, is timely. In Modi, Trump

has a counterpart that he can work with. Much like

the president, Modi is a nationalistic, pro-business

leader who is willing to make compromises and

act decisively in pursuit of a larger goal.

Coming off landslide victories in recent state

elections in India, Modi also has the political capital

to make bold decisions. He is well positioned to

win re-election in 2019, giving him the capability

and time to see through a real advancement in

US-India relations.

The June meeting will be a celebration of how far

US-India relations have come, and an ice-breaker

for the two leaders. Then—if president Trump

wants—the real work can begin.

(Source: https://qz.com/1014331/donald-trump-and-narendra-modi-meeting-in-washington-an-opportunity-in-us-india-relations/ )

17. ADOPTING SECURITY MEASURES WILL EASE CHEMICAL EXPORTS: EXPERTS

Ahmedabad, Jun 26 () There are economic incentives for Indian chemical industry to

improve security measures of their facilities as per requirements of US authorities, chemical security

experts from the USA, said here today.

Compliance to certain security programmes will help speed up exports to the USA, they said. “Indian chemical industry is definitely ascending


in terms of security. There are economic incentives to comply with security programmes. There are also economic incentives in ensuring you have safe and secure facilities,” said Allan Milojevich, a non-proliferation specialist with Oak Ridge National Laboratory, a unit of US Department of Energy.

USA accounts for Rs 10,000 crore of Rs 26,600 crore chemical exports from India annually. Gujarat accounts for around 18 per cent of total chemical exports from India.

James Snyder, a US-based risk management advisor, said that compliance to security guidelines will reduce costs by expediting the process of export.

He urged industry units to also obtain Customs-Trade Partnership Against Terrorism (C-TPAT), a voluntary supply chain security programme led by the USA. “Compliance to security requirements reduce cost. By thinking about global best practice and security measure, we can secure our world. There are no hard and fast requirements but there are incentives. The C-TPAT applies to US companies as well. This helps reduce customs inspection,” he said.

Snyder said that other countries are also adopting the same criteria in order to create a world-wide security regime so that chemical products are not diverted for their use to make chemical weapons and explosives.

The experts were talking to the media ahead of their participation in a five-day workshop on chemical security assessment organised by the Gujarat Chemical Association (GCA), an industry association with around 700 members.

Jaimin Vasa, president of GCA, said that chemical security assessment of the industry will help decide necessary actions to assure that risks inherent with the use and application of chemicals by adversaries are minimised to protect the environment, infrastructure, and life.

He said nearly 80 per cent of the industry in the state, which contributes to 18 per cent of India’s chemical exports, still need to comply with security standards.

(Source: http://timesofindia.indiatimes.com/business/india-business/adopting-security-measures-will-ease-chemical-exports-experts/articleshow/59321536.cms dated 26th June-2017)

18. PM MODI TO VISIT PORTUGAL, NETHERLANDS, US BEGINNING JUNE 24

Announcing Modi’s tightly packed schedule, External Affairs Ministry spokesperson Gopal

Baglay said the Prime Minister would hold talks with Antonio Costa, the Portugal Prime Minister of Indian origin, in Lisbon before flying to the USA where he would meet President Donald Trump.

Prime Minister Narendra Modi will visit Portugal, the Netherlands and the U.S. beginning June 24, during which he will hold talks on key bilateral issues including boosting of trade and security ties.

On June 26, he is scheduled to hold talks with President Donald Trump on a wide range of issues. However, after India cancelled a bilateral

investment treaty with the Netherlands previous year, that will have to wait until India and the European Union ink a trade and investment agreement which will apply to all 27 European Union countries.

“All areas of bilateral cooperation and also concerning with the region, the global situation, security, terrorism, stability will be discussed”. During the forthcoming visit of the Prime Minister Modi to Portugal, we look forward to continue that momentum.

Trump’s recent withdrawal from the Paris Agreement on fighting climate change created fissures in the India-US ties, especially with Trump

58June - July, 2017

commenting that India signed the pact only because it expected “billions and billions” in aid.

Asked about any event being planned with the Indian community in Washington, he said it was being explored but nothing has been finalised. “However, I might say that the programme is still evolving”, Baglay said.

“We are working on several documents to strengthen India-Portugal economic, scientific and cultural engagements and we expect to finalise and sign these documents essentially which are in the nature of memorandum of understanding”, Baglay said.

The spokesperson said Prime Minister Modi will hold official talks with the Prime Minister of

Portugal- Antonio Costa and is also expected to call on the King of that country.

Costa, who is of a Goan descent, visited India earlier this year as the chief guest at the Pravasi Bhartiya Divas in Goa.

PM Modi will meet US President Donald Trump during his visit to Washington.

Modi’s trip to the European country marks New Delhi and Amsterdam marking 70 years of diplomatic ties. The Netherlands is one of India’s biggest investors, with one of the largest sovereign wealth funds which India could tap into. Economic relations form the core of bilateral relations between India and The Netherlands.

(Source: http://normangeestar.net/2017/06/27/pm-modi-to-visit-portugal-netherlands-us-beginning-june-24/ dated 27th June-2017)

19. INDIA ALLOWS SELECT COMMODITY EXPORT TO MALDIVES

It added that the shipments of these items to

Maldives will be exempted from any existing

or future restrictions or prohibition on exports.

To increase domestic availability of potato and

onion, India sometimes imposes minimum export

price on these agri commodities.

The government has allowed export of certain

quantity of select commodities to Maldives

for 2017-18 without any policy restrictions and

prohibitions under a bilateral trade agreement.

The Directorate General of Foreign Trade (DGFT),

under the commerce ministry, in a notification has

said this decision is effective till April.

It has permitted shipments of potato (11,714.45

tonnes), onion (19,466.36 tonnes), rice (67,640.24

tonnes), wheat flour (59,442.17 tonnes) and

sugar (11,706.3 tonnes). Export of these essential

commodities “has been permitted to Maldives

under the bilateral trade agreement between India

and Maldives during 2017-18”.

It added that the shipments of these items to

Maldives will be exempted from any existing

or future restrictions or prohibition on exports.

To increase domestic availability of potato and

onion, India sometimes imposes minimum export

price on these agri commodities.

In a separate notification, the DGFT has restricted

the number of countries to which certain chemicals

under the Special Chemicals, Organisms,

Materials, Equipment and Technologies (SCOMET)

category can be exported without licence.

Earlier, the export was allowed to states party to

the Chemical Weapons Convention (CWC) without

an export licence. However, these shipments are

permitted subject to certain conditions.

The exporter will have to notify the national

authority CWC, the Cabinet secretariat, the

Department of Chemicals and Petrochemicals, the

Disarmament and International Security Affairs

division of the external affairs ministry and the

DGFT, within 30 days of such export in a prescribed

format.

(Source: http://indianexpress.com/article/business/world-market/india-allows-select-commodity-export-to-maldives-4725827/ dated 28th June 2017)


20. MID-TERM REVIEW OF FOREIGN TRADE POLICY TO BE RELEASED IN SEPTEMBER

NEW DELHI, JUNE 29:

The mid-term review of the Foreign Trade Policy will be released in September this year and

not simultaneously with the rollout of the Goods & Services Tax (GST) regime on July 1 as earlier planned by the Commerce Ministry.

“During one of the stakeholder consultations, it was announced that an effort will be made to release the mid-term review before July 1, 2017 to align this with the rollout of GST. A number of representations have been received from the exporters regarding GST. Accordingly, it has been decided to release the reviewed Foreign Trade Policy in September 2017,” a release from the Commerce Ministry issued on Thursday stated.

This will allow the government to factor in the exporters’ feedback on relevant issues post GST, it added.

FTP, which was released in April 2015 for a five-year period — laying an ambitious target of achieving annual exports worth $900 billion — provides for a mid-term review of existing policies.

The FTP review will focus on propelling SMEs, which generate jobs, and also look at the possibility of enhancing the scope of rupee trade by getting into currency swap mechanism with the South-East Asian countries, Commerce & Industry Minister Nirmala Sitharaman had earlier said.

(Source:- http://www.thehindubusinessline.com/economy/commerce-ministry-to-release-reviewed-foreign-trade-policy-in-september/article9741428.ece dated 30th June-2017)

21. MIS REPORT ON EXPORT PROMOTION SCHEMES 2017 OF DGFT

On the occasion of the 11th Statistics Day

celebration on 29th June 2017 to mark the birth

anniversary of late Professor Prasanta Chandra

Mahalanobis, the Father of Indian Statistics, in

recognition of his valuable contribution in the

fields of statistics and economic planning, Mrs

Rita Teaotia, Commerce Secretary, Ministry of

Commerce & Industry, released the MIS Report

on Export promotion Schemes 2017” of the

Directorate General of Foreign Trade (DGFT) in the

presence of DG and other senior officers of the

Department of Commerce.

The Report is an initiative taken by Statistics

Division of DGFT as part of the monitoring and

evaluation of the Foreign Trade Policy (2015-20).

The publication contains up-to-date information

on key parameters under various export

promotion schemes in the form of data tables,

visual displays and data analysis. It provides All

India, Zone-wise and Regional Authority wise

information on Import Export Codes (IECs) issued,

Authorisations/Scrips issued and their CIF and FOB

values under various export promotion schemes

for the period 2014-15 to 2016-17. The Report also

provides RA wise and Sector (Product group)

wise information on number of Authorisations

issued and FOB and Duty saved/CIF values under

Advance Authorisation and EPCG Schemes of FTP.

The Report also exhibits the status of RA wise

Export Obligation fixed, fulfilled, pending etc

under these schemes.

The Report is expected to serve as a handy tool

for the key stakeholders in the evaluation of the

foreign trade policy and for undertaking review

for midcourse correction.

(Source:- http://www.business-standard.com/article/government-press-release/mis-report-on-export-promotion-schemes-2017-of-dgft-117062901147_1.html dated 30th June-2017)

60June - July, 2017

22. CENTRE MODIFIES EXPORT INCENTIVESCHEMES TO ALIGN WITH GST

Most exemptions on input taxes removed; exporters to get input tax credit

NEW DELHI, JULY 1:

The Centre has modified existing export incentive schemes removing most exemptions

provided on input taxes to align them with the Goods & Services Tax (GST) regime which has rolled in from July 1.

Exporters importing inputs including machinery under popular schemes such as Advance Authorisation (AA) and Export Promotion Capital Goods Scheme without paying import duties (customs duty, countervailing duty and special additional duty) up to a given limit will now have to pay GST on it and later apply for refund.

“Under the GST regime, no exemption from payment of Integrated GST (IGST) and compensation cess would be available for imports under Advance Authorisation. Importers would need to pay IGST and take input tax credit as applicable under GST,” a trade notification issued by the Directorate General of Foreign Trade (DGFT)

modifying provisions under the Foreign Trade Policy (2015-20) on Friday night stated.

However, imports under Advance Authorisation would continue to be exempted from payment of basic customs duty, additional customs duty and education cess. Exemptions will also be provided wherever penal duties such as anti-dumping, safeguard and transition product specific safeguard duty are applicable.

The notification added that under the EPCG scheme (Chapter 5 of the FTP), too, importers of capital goods would need to pay IGST and take input tax credit.

Benefits under the Merchandise Export from India Scheme (MEIS) and the Services Export from India Scheme (SEIS), which provides exporters with duty free scrips based on the value of their exports, have also been curtailed. “The scrips cannot be used for payment of IGST and GST compensation cess in imports, and CGST, SGST, IGST and GST compensation cess for domestic procurement,” the notification stated.

Imports by Export Oriented Units (EOUs), which were allowed duty free imports of goods for their authorised operations, will now get exemption on only the customs duty. “Such goods would attract integrated tax and compensation cess. The taxes so paid on imports will be neutralised by ITC (input tax credit),” the notification said.

(Source: http://www.thehindubusinessline.com/economy/policy/centre-modifies-export-incentive-schemes-to-align-with-gst/article9744780.ece dated 1st July-2017)

23. CHANGES IN FTP WITH THE IMPLEMENTATION OF GST

The Dollar Business Bureau

The DGFT has issued a notification giving details of the changes in the FTP with the

implementation of the GST regime.These changes have been mentioned chapter wise. Given below

are the changes made in the FTP as prescribed in

the notification no. 11/2018 dtd June 30, 2017.

With effect from July 1, 2017, the term “Central

Excise Authority” used in Foreign Trade Policy


2015-20 and Foreign Trade procedures 2015-20 will be read as “Jurisdictional Customs Authority”.

Chapter 2: Changes in IEC have already been notified through Trade Notice No.09/2018 dated 12.06.2017

Under Chapter 3 The Duty Credit Scripps cannot he used for payment of IGST and GST compensation cess in imports, and CGST, SGST, IGST and GST compensation cess for domestic procurement.

In Chapter 4 the following changes have been implemented in the FTP:

Under the GST regime, no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation.

Importers would need to pay IGST and take input tax credit as applicable under GST rules.

However, imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty, Additional Customs Duty specified under Section 3(1), 3(3) and 3(5) of the Customs Tariff Act, Education Cess, Anti-dumping Duty, Safeguard Duty and Transition Product-Specific Safeguard Duty, wherever applicable.

Applicable GST would need to be paid while making local procurement, using an invalidation letter of Advance Authorisation/DFIA. Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement. This Input Tax Credit can be utilised as per GST rules.

Advance Release Order facility shall not be available for procurement of inputs under Advance Authorization scheme except for inputs listed in Schedule 4 of Central Excise Act, 1944 read with The Taxation Laws (Amendment) Act 2017 No.18 of 2017, with effect from July 1, 2017. Regional Authorities are directed not to issue ARO except for Schedule-4 items as stated above.

Imports/exports under the replenishment schemes for the Gems and Jewellery sector covered under Chapter 4 of FTP and HBP shall be subject to Customs Notification issued/ to be issued in this regard.

Under Chapter 5 the FTP has the following changes:

Importers would need to pay IGST and take input tax credit as applicable under GST rules.

ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously

Chapter 6

The following changes have been implemented in the FTP in relation to Imports

Export Oriented Units(EOU)/Electronics Hardware Technology Park (EHTP)/, Software Technology Park (STP)/ or Bio-Technology Park (BTP)

EOU’s are allowed duty-free Imports of goods for their authorised operations. In GST regime, the import of goods covered under GST would be exempted from the whole of the duty of customs specified under the First Schedule to the Customs Tariff Act, 1975 (BCD) enabled by Notification no.52/2003-Cus. But such goods would attract integrated tax and compensation cess leviable under sub-section (7) and (9) of the said Act. The taxes so paid on imports will be neutralised by ITC.

The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty of customs specified under the First Schedule to the Customs Tariff Act, 1975 (BCD) and also from the additional duty leviable under sub-sections (1), (3) and (5) of section (3) of the said Act (CVD & SAD) enabled by Notification no.52/2003-Cus.

Domestic procurements:

For the indigenous procurement of goods covered under GST, the EOU will not get ab-initio exemptions. Such supplies would be on payment of CGST/SGST/UTGST/IGST. The taxes so paid will be neutralised by ITC. For the indigenous procurement of goods covered under Fourth Schedule, the EOU will continue to get ab-initio exemptions from central excise duty.

62June - July, 2017

DTA clearances of finished goods covered under GST

EOUs would be required to pay only CGST & SGST or IGST, as the case may be, besides paying back of whole of the duty of customs specified under the First Schedule to the Customs Tariff Act, 1975 (BCD) exemptions, if availed, on inputs used in the manufacture of such finished goods.

The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act, 1944, the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act, the effective rate of such duties being covered by Notification no.23/2003-CE

Inter unit transfer/supply for EOU to other EOUs

Applicable GST would be payable on the transfer/supply of goods from one unit of EOU/EHTP/ STP/BTP to another

Chapter 7

Supplies made prior to the date of the operationalization of GST:

The supplies made to different deemed exports categories till the date prior to the date of the operationalization of GST, the benefits would be available as per the provisions existed till the date of the operationalization of GST.

Supplies after the date of the operationalization of GST:

Advance Authorization benefits under Chapter 4 shall be available for supplies under Chapter-7. The duty exemption benefits under AA would be limited to exemption from basic customs duty only. The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise Act, 1944 provided the items are eligible under the Advance Authorization.

Deemed Export Drawback:

The drawback as provided under Chapter 7 would be limited to the refund of basic customs duty only. In respect of eligible items covered under Schedule 4 of Central Excise Act, 1944 refund would also be covered under the drawback provided the item is eligible for such supply.

The TED refund:

TED refund would be available only if exemption is not available in respect of items covered under Schedule 4 of Central Excise Act, 1944 provided the items are eligible for supply under the said category of deemed exports

(Source: https://www.thedollarbusiness.com/news/changes-in-ftp-with-the-implementation-of-gst/50646 dated 1st July-2017)

24. MODI IN ISRAEL: INDIAN AND ISRAELI INDUSTRIALISTS PRESS LEADERS FOR FREE-TRADE DEAL

Coinciding with Indian Prime Minister Modi’s visit to Israel this week, business figures from the two countries are convening a joint forum aimed at increasing bilateral trade tenfold

Indian Prime Minister Narendra Modi, left, and Israeli Prime Minister Benjamin Netanyahu at the King David Hotel in Jerusalem, July 5, 2017.

Trade between Israel and India is rather small, amounting in 2016 to less than $2 billion

(excluding diamonds). Israeli and Indian business leaders would like it to grow and are pressing


their leaders to reach a free-trade agreement to boost that figure substantially.

Shraga Brosh, the president of the Israel Manufacturers Association, and Pankaj Patel, president of the Federation of Indian Chambers of Commerce and Industry, an association of some 250,000 businesses in India, according to its website, will be inaugurating a forum of Israel-India CEOs on Thursday with the purpose of increasing the countries’ bilateral trade tenfold, to around $20 billion a year.

Prime Minister Benjamin Netanyahu and Indian Prime Minister Narendra Modi, who is now on a visit to Israel, are both expected to attend the event.

The forum has actually already developed recommendations, which include the signing of a free-trade agreement between the two countries, agreements on protecting foreign investments and reexamining regulations that limit trade relations between the two countries.

The forum also proposes relaxing visa requirements for workers and increasing the number of flights between Israel and India. The recommendations also include proposals to unify quality standards and to boost tourism between the countries in both directions.

Israeli exports to India amounted to $1.5 billion in 2016, down 13 percent from the year before. Most Israeli exports, with the exception of diamonds, consisted of machinery,electrical equipment and chemicals. Indian exports to Israel totaled $800 million last year, a figure that was also 13 percent lower than 2015’s figure, and consisted primarily of chemicals, textiles, plastics and rubber.

Eye on more deals

“What’s it going to take to get Israeli money to take India seriously? Just open their eyes,” Jon Medved, CEO of Israeli equity crowdfunding group OurCrowd said. “The problem is their eyes are ... blinded by the China opportunity,” he added.

There have only been a handful of Indian investments in Israel over the past decade, as opposed to the $16.5 billion received from China in 2016 alone.

OurCrowd just closed three deals with India, joining with Reliance Industries for a hi-tech incubator that helps to grow young companies in Jerusalem, bringing Israeli technology to India with Reliance Capital, and collaborating with India’s Lets Venture to invest in start-ups.

During Modi’s visit, Zebra Medical Vision, a company from a kibbutz near Tel Aviv, and Bangalore-based Teleradiology Solutions will sign a partnership to use analytics in 150 health-care centres.

Looking to reorient Israel’s economy toward Asia, Netanyahu hopes more deals will follow, setting a goal of increasing exports to India by 25 percent in the next four years. But it may take a while before the Modi-Netanyahu relationship sparks a serious expansion in investment and trade, both of which remain relatively negligible.

In many respects export-dependent Israel and India, which is focused on supplying its huge population, are complementary.

Israel is a global leader in water and food systems, two critical fields India needs to upgrade. India wants to strengthen its manufacturing base and is looking to do so with technologies coming from Israel. Both countries host major diamond trading and polishing hubs.

Israel’s foreign direct investment in India totals only $100 million.

“It’s nothing, it’s a blip. Why hasn’t the relationship grown to the level it should have?” said A. Didar Singh, secretary general of the Federation of Indian Chambers of Commerce.

Singh said more needed to be done to ease regulations, lower non-tariff barriers and solve licensing problems.

Incentives and lifting of red tape could help overcome what diplomats, lobbyists and business owners say is a cultural divide between the breakneck pace of Israel’s start-up scene and India’s more gradual approach.

(Source: http://www.haaretz.com/israel-news/1.799736 dated

5th July-2017)

64June - July, 2017

25. CBEC RELAXES NORMS ON BONDS UNDER GST TO HELP EXPORTS TAKE OFF

In a significant relief for exporters who have been facing difficulties under the new tax regime,

the Finance Ministry has now relaxed rules for Goods and Services Tax and has said that exports can continue under existing bonds and letters of undertaking till July 31. Exporters can now submit bonds or LUTs in the revised format for GST by the end of the month.

“Various communications have been received from the field formations and exporters that difficulties are being faced in complying with the procedure prescribed for making exports of goods and services without payment of integrated tax with respect to furnishing of bonds or LUT,” said the Central Board of Excise and Customs (CBEC) in a recent circular.

Under rule 96A of Central GST, exporters have to furnish a bond or LUT in Form GST RFD-11 instead of payment of integrated GST to release their consignments. The CBEC has clarified that exporters can submit a running bond instead of a consignment-wise bond, which would cover the amount of tax involved in the export as estimated by the exporter.

Further, the bank guarantee should not exceed 15 per cent of the bond amount and jurisdictional Commissioner can make a relaxation based on the track record of the exporter.

12-month validity

The CBEC has also said that the LUT will be valid for a period of 12 months. The CBEC has notified persons who are eligible to submit an LUT instead of a bond. These are status holders under the

Foreign Trade Policy 2015-2020 or those who have received foreign inward remittances of over `1 crore in the preceding year. Urging Central tax officers to help exporters, the CBEC further said that exporters can submit the bond or LUT to the jurisdictional Deputy or Assistant Commissioner having jurisdiction over the principal place of business of the exporter.

“The exporter is at liberty to furnish the bond or LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented,” it has said. The existing practice of sealing containers with a bottle seal will also continue till September 1, it said.

“These clarifications bring much needed relief for the exporters with regard to export without payment of IGST… Now, the assessees can continue exports without payment of IGST under the relaxed procedure,” said PwC in a note.

The relaxations by the CBEC come after reports that exports were stuck at the factory gate due to a lack of procedural clarity on submitting the bond or LUT. The other option of payment of IGST (which is levied on exports and is refundable later) would have created cash flow problems. While the Commerce Ministry and CBEC were trying to ensure a smooth roll out for exporters, there were worries that the lack of clarity could also impact exports in the coming month.

(Source: http://www.thehindubusinessline.com/money-and-banking/cbec-relaxes-norms-on-bonds-under-gst-to-help-exports-take-off/article9756506.ece dated 9th July-2017).


Chemexcil Notice

NOTICE 1

EPC/LIC/GST 7th June 2017

ALL MEMBERS OF THE COUNCIL SUBJECT:- GST: Final Transition Rules/ Approved Formats

Dear Members,

Kindly note that as per updates on the Central Board of Excise and Customs (CBEC) website, Final Transition Rules have been amended and final Transition Rules and related formats as approved by GST Council have been uploaded on CBEC website.

The Final Rules/ Approved Formats are for following:

• Composition - Rules and Formats

• Valuation Rules

• ITC - Rules and Formats

• Invoice, Debit & Credit Notes - Rules

• Payment - Rules and Formats

• Refund - Rules and Formats

• Registration - Rules and Formats

• Return- Rules and GSTP Formats, Mismatch Formats, Return Formats

• Transition Rules - Rules and Formats

• Proposed CTD Document

For further information, members may download the above using below link on CBEC website- http://www.cbec.gov.in/htdocs-cbec/gst/index

Members are requested to take note of the same.

Thanking You,

NOTICE 2


ALL MEMBERS OF THE COUNCIL SUBJECT:- Constitution of GST Facilitation Cell in DGFT

Dear Members,

As you are aware, GST is expected to roll-out from 1st July 2017. To ensure smooth and successful transition, O/o DGFT has decided to constitute a “GST Facilitation Cell” in Office of DGFT Headquarters and all DGFT RA’s to serve as the first point of contact for addressing any issues regarding GST in respect of the Foreign Trade Policy.

66June - July, 2017

“GST Facilitation Cell” DGFT is headed by Shri Nikunj Srivastava, Addl. DGFT (email: [email protected]) and Shri Rakesh Kumar, Joint DGFT (email: [email protected]) and Shri Kaushlendra Pratap Singh, Dy. DGFT (email: [email protected]) as member of the Cell.

On the similar lines, all DGFT RA’s have been advised to constitute a similar 'GST Facilitation Cell' for addressing GST related issues in respect of Foreign Trade Policy.

Members are requested to kindly take note of the same, which has been notified vide Trade Notice No: 08/2018 dated 8th June 2017.

Thanking You,

NOTICE 3


ALL MEMBERS OF THE COUNCIL SUBJECT:- Imp- Changes in IEC with the introduction of GST

Dear Members,

We draw your attention to an important Trade Notice No.09/2018 dated 12th June 2017 issued by DGFT regarding changes in IEC with the introduction of GST.

As you are aware, as per Foreign Trade Policy (Para 2.05), Import Export Code (IEC) a 10 digit number, is mandatory for undertaking any import export activities. As on date PAN has one to one correlation with IEC.

However, with the implementation of the GST w.e.f. (the notified date), GSTIN would be used for purposes of (i) credit flow of IGST on import of goods, and (ii) refund or rebate of IGST related to export of goods. Registration No. under GST, called GSTIN, is a 15-digit alpha numeric code with PAN prefixed by State Code and suffixed by 3 digit details of business verticals of the PAN holder. As GSTIN will be used for the purposes mentioned above, it thereby assumes importance as identifier at the transaction level. In view of this, it has been decided that importer/exporter would need to declare only GSTIN (wherever registered with GSTN) at the time of import and export of goods. The PAN level aggregation of data would automatically happen in the system.

Since obtaining GSTIN is not compulsory for all importers/exporters below a threshold limit of turnover, all exporters/importers may not register with GSTIN [barring compulsory registration in certain cases as provided in section 24 of the Central Goods and Services Tax Act, 2017 (12 of 2017) or in cases where either credit is claimed of IGSTI, therefore, GSTIN cannot become universal, as IEC is for import/export business. Further, DGFT recognizes only the corporate entity (single identity) and not individual transactions.

As a measure of ease of doing business, it has been decided to keep the identity of an entity uniform across the Ministries/Departments. Henceforth (with the implementation of GST), PAN of an entity will be used for the purpose of IEC, i.e., IEC will be issued by DGFT with the difference that it will be alpha numeric (instead of 10 digit numeric at present) and will be same as PAN of an entity. For new applicants, w.e.f. the notified date, application for IEC will be made to DGFT and applicant’s PAN will be authorized as IEC.


Further, for the existing IEC holders, necessary changes in the system are being carried out by DGFT so that their PAN becomes their IEC. DGFT system will undertake this migration and the existing IEC holders are not required to undertake any additional exercise in this regard. IEC holders are required to quote their PAN (in place of existing IEC) in all their future documentation, w.e.f. the notified date. The legacy data which is based on IEC would be converted into PAN based in due course of time.

Members are requested to take note of the same. For downloading the above said TN, you may use below link- http://dgft.gov.in/Exim/2000/TN/TN17/TN0918.pdf

Thanking You,

NOTICE 4


ALL MEMBERS OF THE COUNCIL SUBJECT:- GST Help Desk at DGFT HQ- Contact Details

Dear Members,

This is in continuation of our mailer dated 9th June 2017 regarding constitution of “GST Facilitation Cell” in Office of DGFT Headquarters and all DGFT RA’s to serve as the first point of contact for addressing any issues regarding GST in respect of the Foreign Trade Policy.

In this regard, O/o DGFT has now issued Trade Notice no. 10/18 dated 14/06/2017 providing following contact details of GST Help Desk in DGFT Headquarters:

• The DGFT HQ GST Help Desk Phone No- 011-23063080

• E-Mail id: [email protected]

Members are requested to kindly take note of the same and can contact above for addressing any issues regarding GST in respect of the Foreign Trade Policy.

Thanking You,

NOTICE 5

EPC/LIC/GST_DGFT_FAQ’s 16th June 2017

SUBJECT:- DGFT Related GST FAQs

Dear Members,

We would like to inform you that O/o DGFT has issued “DGFT related GST FAQs” to clarify your queries, if any, regarding export promotion schemes under GST Framework.

The document having DGFT related GST FAQ’s can be downloaded using below link http://dgftcom.nic.in/exim/2000/DGFT-GST-FAQ.pdf

Members are requested to take note of the same and for further clarification, may contact their DGFT Regional Authority Office. Alternatively, you may also contact DGFT HQ GST Help Desk on following number/ e-mail id:

68June - July, 2017

• Telephone No- 011-23063080

• E-Mail id: [email protected]

Thanking You,

NOTICE 6

EPC/LIC/GST_RETURNS 19th June 2017

Subject: Relaxation in return filing procedure for first two months of GST

To All Members Dear Members,

Pursuant to GST Council meeting on 18th June 2017, a press note is issued by the Ministry regarding filling of returns.

To ensure smooth rollout of GST and address the concerns expressed by the trade and industry regarding filing of the returns in GST regime, it has been decided that, for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month.

As per relaxed timetable for filing returns, the assesses could file their detailed invoice-based returns by September 5th for July. Similarly, for August, these returns could be filed by September 20th.

For further details, members can download the press note by using below link-

http://www.cbec.gov.in/resources//htdocs-cbec/press-release/press-note-on-return-filing.pdf


Thanking You,

NOTICE 7


To,

All Members of council Subject: Contact Details of O/o GST Council and Sectoral Groups

Dear Members,

Kindly note that as per CBEC website, the relevant contact details pertaining to GST Council & sectoral groups are as follows:

• GST Council Contacts

Please use below link-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/GST%20Council%20address%20and%20contacts.PDF


• Sectoral Groups on GST

The sector wise working group contact details of Central/ State officers are available on below link-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/sectoral-working-gp-contactdtls-14june2017.pdf

Further, the dedicated Website of GST council is - http://gstcouncil.gov.in/


Thanking you.

NOTICE 8

EPC/LIC/SB-BE-Formats 28th June 2017

To,

ALL THE MEMBERS OF THE COUNCIL SUBJECT:- New Shipping bills and Bill of Entry formats for Exporters/ Importers

Dear Members,

Kindly note that the new Shipping Bills & Bills of Entry Formats are uploaded on CBEC & ICEGATE portals for use of Exporters/ Importers etc.

Hopefully, your CHA/ service providers might have informed you already about the new B/E & S/B’s forms and shall also do the needful as per advisory issued by Member (Customs) which is available on the below link-

http://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/doltr-membr-cs-gst-advisory-revision3.pdf

Member exporters are any case requested to take note and also get familiar with the modified formats of S/B and B/ E.

Thanking You,

NOTICE 9

EPC/LIC/Export_Procedure_GST 3rd July 2017

To,

ALL THE MEMBERS OF THE COUNCIL Subject:-Export procedures under GST Regime

(Format of LUT/ Bond, Sealing of containerized cargo etc)

Dear Members,

In the GST regime, the governing provisions related to exports are contained in section 16 of the Integrated Goods and Service Tax Act, 2017 (IGST Act). Supplies of goods and services for exports have been categorized as 'Zero Rated Supply' implying that goods could be exported under bond or Letter of Undertaking without payment of integrated tax followed by claim of refund of unutilized input tax credit or on payment of integrated tax with provision for refund of the tax paid.

70June - July, 2017

With the onset of GST, existing procedures relating to export of goods viz. claim of rebate/refund, stuffing of containers at the factory, warehouse or any other place from where the goods are intended to be exported etc. would require review of the existing procedures.

In this regard, the CBEC has issued Circular No. 26/2017-Customs dated 1st July 2017 and Notification No. 15/2017 – Central Tax 1st July, 2017 regarding Export procedure and sealing of containerized cargo/ Format of LUT or Bond.

The gist of above circulars/ notifications and their important portions are reproduced below for your convenience.

A. Procedure of Export (Submission of LUT/Bond, Format etc)

Any person making zero rated supply (i.e. any exporter) shall be eligible to claim refund under either of the following options, namely: -

(a) Exporter may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilized input tax credit; or

For exporters availing the option to supply goods or services for export without payment of integrated tax. Such exporters shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner.

The relevant Rule as incorporated under 96A is reproduced below: :

96A Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking.- (1) Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of — (a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or(b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.

(2) The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system.

(3) Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accordance with the provisions of section 79.

(4) The export as allowed under bond or Letter of Undertaking withdrawn in terms of subrule (3) shall be restored immediately when the registered person pays the amount due.

(5) The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond.

(6) The provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax.”;


The formats for furnishing bond or LUT for export of goods have been separately notified and are attached herewith for easy reference.

For the option (a) above, procedure to file refund has been outlined in the Central Goods and Service Tax Rules, 2017. The exporter claiming refund of unutilized input tax credit will file an application electronically through the Common Portal, either directly or through a Facilitation Centre notified by the GST Commissioner. The application shall be accompanied by documents as prescribed in the said rules. Application for refund shall be filed only after the export manifest or an export report, as the case may be, is delivered under section 41 of the Customs Act, 1962 in respect of such goods.

(b) Exporter may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 (Refunds) of the Central Goods and Services Tax Act or the rules made there under (i.e. the Central Goods and Service Tax Rules, 2017).

For the option (b), broadly the procedure is that a registered person shall not be required to file any application for refund of integrated goods and services tax paid on supply of goods for exports. The shipping bill, having inter-alia GST invoice details, filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when the person in charge of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export and the applicant has furnished a valid return in FORM GSTR-3. The details of the relevant export invoices contained in FORM GSTR-1 shall be transmitted electronically by the common portal to the Customs system and the said system shall in turn electronically transmit back to the common portal a confirmation that the goods covered by the said invoices have been exported out of India. Upon receipt of information regarding furnishing of valid return in FORM GSTR-3 from the common portal, the Customs system shall process the claim for refund and an amount equal to the integrated tax paid in respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant mentioned in his registration particulars.

Government has allowed a grace period to the registrants to file returns under the new GST Law. Therefore, this refund procedure shall as a consequence come into operation only when the registrants file the above mentioned returns. Further, the exporters are free to avail option (a) or option (b). The refund shall be governed by the provisions of the section 16 of the IGST Act.

In order to ensure smooth transition from the earlier export procedure to the procedure being laid down for export of goods under the GST regime, the existing Shipping Bill formats (both manual/ electronic) have been modified to make them compliant with the IGST law. New formats of the Shipping Bill have been made applicable already. ARE-1 procedure which was being followed is dispensed with except in respect of commodities to which provisions of Central Excise Act would continue to be applicable.

B. Sealing of Containers

At present, there are three categories of containers which arrive at the port/ICD:

Containers stuffed at factory premises or warehouse under self-sealing procedure.

Containers stuffed / sealed at factory premises or warehouse under supervision of central excise officer.

Containers stuffed and sealed at Container Freight Stations/ Inland Container Depot.

For the sake of uniformity and ease of doing business, CBEC has decided to simplify the procedure relating to factory stuffing hitherto carried out under the supervision of the Central Excise officers.

72June - July, 2017

It has been decided to do away with the sealing of containers with export goods by CBEC officials. Instead, self-sealing procedure shall be followed subject to the following:

The exporter shall be under an obligation to inform the details of the premises whether a factory or warehouse or any other place where container stuffing is to be carried out, to the jurisdictional customs officer.

The exporter should be registered under the GST and should be filing GSTRI and GSTR2. Where exporter is not a GST registrant, he shall bring the export goods to a Container Freight Station/Inland Container Depot for stuffing and sealing of container. However, in certain situations, an exporter may follow the self-sealing procedure even if he is not required to be registered under GST Laws. Such an exception is available to the Status Holders recognized by DGFT under a valid status holder certificate issued in this regard.

Any exporter desirous of availing this procedure shall inform the jurisdictional Custom Officer of the rank of Superintendent or Appraiser of Customs, at least 15 days before the first planned movement of a consignment from his/her factory/ premises, about the intention to follow self- sealing procedure to export goods from the factory premises or warehouse.

The jurisdictional Superintendent or an Appraiser or an Inspector of Customs shall visit the premises from where the export goods will be stuffed & sealed for export. The jurisdictional Superintendent or Inspector of Customs shall inspect the premises with regard to viability of stuffing of container in the premises and submit a report to the jurisdictional Deputy Commissioner of Customs or as the case may be the Assistant Commissioner of Customs within 48 hours. The jurisdictional Deputy Commissioner of Customs or as the case may be the Assistant Commissioner of Customs shall forward the proposal, in this regard to the Principal Commissioner/Commissioner of Customs who would grant permission for selfsealing at the approved premises. Once the permission is granted, the exporter shall furnish only intimation to the jurisdictional Superintendent or Customs each time self-sealing is carried out at approved premises. The intimation, in this regard shall clearly mention the place and address of the approved premises, description of export goods and whether or not any incentive is being claimed.

Where the visit report of the Superintendent or an Appraiser or an Inspector of Customs regarding viability of the stuffing at the factory/ premises is not favorable, the exporter shall bring the goods to the Container Freight Station /Inland Container Depot/Port for sealing purposes. Self-Sealing permission once given by a Principal Commissioner/Commissioner of Customs shall be valid for export at all the customs stations. The customs formation granting the self sealing permission shall circulate the permission along with GSTIN of the exporter to all Custom Houses/Station concerned.

Transport document for movement of self-sealed container by an exporter from factory or warehouse shall be same as the transport document prescribed under the GST Laws. In the case of an exporter who is not a GST registrant, way bill or transport challan or lorry receipt shall be the transport document.

The exporter shall seal the container with the tamper proof electronic-seal of standard specification. The electronic seal should have a unique number which should be declared in the Shipping Bill. Before sealing the container, the exporter shall feed the data such as name of the exporter, IEC code, GSTIN number, description of the goods, tax invoice number, of the authorized signatory (for affixing the e-seal) and Shipping Bill number in the electronic seal. Thereafter, container shall be sealed with the same electronic seal before leaving the premises.

The exporter intending to clear export goods on self-clearance (without employing a Customs Broker) shall file the Shipping Bill under digital signature.

All consignments in self-sealed containers shall be subject to risk based criteria and intelligence, if any, for examination / inspection at the port of export. At the port/ICD as the case may be, the customs


officer would verify the integrity of the electronic seals to check for tampering if any enroute. The Risk Management System (RMS) is being suitably revamped to improvise the interdiction/ examination norms. However, random or intelligence based selection of such containers for examination/scanning would continue.

CBEC has decided that the above revised procedure regarding sealing of containers shall be effective from 01.09.2017. A future date has been prescribed since the returns under GST have been permitted to be filed by 10.09.17 and also with the purpose to give enough time to the stakeholders to adapt to the new procedures. Therefore, as a measure of facilitation, the existing practice of sealing the container with a bottle seal under Central Excise supervision or otherwise would continue. The extant circulars shall stand modified on 01.09.2017 to the extent the earlier procedure is contrary to the revised instructions given in this circular.

The above-said circulars and notifications are available on below link for download:

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ26-2017cs.pdf

http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-15-central-tax-english.pdf

Member-exporters are requested to take note of above points regarding export under Bond/ LUT, Self Sealing etc and do the needful accordingly.

In case of issues/ feed-back, please mail us on [email protected] & [email protected] .

Thanking You,

NOTICE 10

EPC/LIC/DBK 4th July 2017

To,

ALL THE MEMBERS OF THE COUNCIL Subject:- Duty Drawback- Amendments effective from 1.7.2017 to the All Industry Rates of Duty

Drawback and other Drawback related changes.

Dear Members,

Kindly note that CBEC has issued Circular No. 22/2017-Customs regarding Amendments effective from 1.7.2017 to the All Industry Rates of Duty Drawback and other Drawback related changes.

Some of the important transition arrangements as per above-said circular are reproduced below for your convenience-

a) Transition period:

In order to ensure smooth transition to the GST regime, Government has allowed the extant Duty Drawback scheme to continue for a period of three months i.e. from 1.7.2017 to 30.9.2017.

The exporter may, for exports made during this period, continue to claim the composite rates i.e. rates and caps given under columns (4) and (5) respectively of the Schedule of AIRs of duty drawback, subject to certain additional conditions. During the transition period, exporters can also claim Brand rate of duty/tax incidence as they have been doing earlier. The conditions imposed for claiming these

74June - July, 2017

composite rates aim to ensure that the exporters do not claim composite AIRs of duty drawback and simultaneously avail input tax credit of Central Goods and Services Tax (CGST) or Integrated Goods and Services Tax (IGST) on the export goods or on inputs and input services used in manufacture of export goods or claim refund of IGST paid on export goods. Further, an exporter claiming composite rate shall also be barred to carry forward Cenvat credit on the export goods or on inputs or input services used in manufacture of export goods in terms of the CGST Act, 2017. The exporters have to give a declaration and certificates as prescribed in this Notification at the time of export. Similar checks shall apply while determining the Brand rate of drawback. While a transition period of three months has been allowed, the exporters shall have an option to claim only Customs portion of AIRs of duty drawback i.e. rates and caps given under column (6) and (7) respectively of the Schedule of AIRs of duty drawback and avail input tax credit of CGST or IGST or refund of IGST paid on exports.

(b) Changes in AIRs:

For chemical products, there are no changes as of now.

Members are requested to take note of the above circular provisions. For full text of the circular, please download using below link-

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ22-2017cs.pdf

Thanking You,

NOTICE 11

EPC/LIC/GST_DGFT 4th July 2017

To,

ALL THE MEMBERS OF THE COUNCIL Subject:- Important FTP provisions in the context of the implementation of the GST regime applicable

w.e.f. 01.07.2017

Dear Members,

With the rolling out of GST, there have been concerns amongst the member-exporters regarding status of Export Promotion Schemes under FTP 2015-20.

In this regard, O/o DGFT has issued Trade Notice No.11/2018 dated 30/06/2017 having information on chapter wise provisions under FTP 2015-20.

The above-said Trade Notice is available on the below link for additional information-

http://dgft.gov.in/Exim/2000/TN/TN17/Trade%20Notice%20No.11%20dt.30.06.2017.pdf

Members are requested to take note of the same. For further queries, you may write to GST Help Desk, DGFT HQ, New Delhi (e-mail id: [email protected]) under cc to the Council.

Thanking You,


NOTICE 12

EPC/LIC/GST_SevaKendra 4th July 2017

TO

ALL THE MEMBERS OF THE COUNCIL SUBJECT:- GST - Contact Details of GST Seva Kendras (All India)

Dear Members,

With the onset of GST, we are receiving queries regarding various issues related to existing documentation/export procedures etc.

While we will take-up the same with concerned authorities from our side, Kindly note that the CBEC has also notified “Contact details of GST Seva Kendras” all over India. The list is available on below link- http://www.cbec.gov.in/resources//htdocs-cbec/gst/gsk-contactdtls.pdf

The above contacts are in addition to GSTN and CBECMitra contacts we have already given to you.

In case of issues, members may also contact the above GST Seva Kendras for resolution.

Thanking You,

NOTICE 13

EPC/LIC/LUT_BOND 5th July 2017

To,

ALL THE MEMBERS OF THE COUNCIL SUBJECT: Bond / Letter of Undertaking for Exports:- CBEC clarification on Issues

Dear Members,

As you are aware, under GST regime, Supplies of goods and services for exports have been categorized as 'Zero Rated Supply' implying that goods could be exported under bond or Letter of Undertaking without payment of integrated tax followed by claim of refund of unutilized input tax credit or on payment of integrated tax with provision for refund of the tax paid.

However, we have received several queries from the members on the submission of LUT/ Bond which we have taken up the CBEC/ GST Officers.

Taking cognizance of the representations from the trade/ industry, CBEC has issued Circular No. 2/2/2017-GST dtd., 4th July 2017 giving clarifications on where, whom and how to submit the LUT/ BOND.

For the convenience of the members, we reproduce below the clarifications given in the above-said circular-

Whereas, as per rule 96A of the Central Goods and Services Tax Rules, 2017, any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking. This bond or Letter of Undertaking is required to be furnished in FORM GST RFD-11 on the common portal. Further, Circular No. 26/2017- Customs dated 1st July, 2017 has clarified that the procedure as prescribed under rule 96A of the said rules requires to be followed for the export of goods from 1st July, 2017.

76June - July, 2017

Another issue being raised by various stakeholders is that the Bond/Letter of Undertaking is required to be given through the proper officer which is to be furnished to the jurisdictional Commissioner as per sub-rule (1) of rule 96A of the said rules. Taking cognizance of the fact that a large number of such Bonds/Letter of Undertakings would be required to be filed by the registered exporters who would be located at a distance from the office of the jurisdictional Commissioner, it is understood that the furnishing of such bonds/undertakings before the jurisdictional Commissioner may cause hardship to the exporters. Thus, in exercise of the powers conferred by sub-section (3) of section 5 of the CGST Act, 2017, it is hereby stated that the acceptance of the Bond/Letter of Undertaking required to be furnished by the exporter under rule 96A of the said rules shall be done by the jurisdictional Deputy/Assistant Commissioner.

Further, in exercise of the powers conferred by section 168 of the said Act, for the purpose of uniformity in the implementation of the said Act, the Bond/Letter of Undertaking required to be furnished under rule 96A of the said rules may be furnished manually to the jurisdictional Deputy/Assistant Commissioner in the format specified in FORM RFD-11 till the module for furnishing of FORM RFD-11 is available on the common portal. The exporters may download the FORM GST RFD-11 from the website of the Central Board of Excise and Customs (www.cbec.gov.in) and furnish the duly filled form to the jurisdictional Deputy/Assistant Commissioner.

The above specified provisions shall be applicable to all applications which have been filed on or after 1st July, 2017.

Member-exporters are requested to take note of above points regarding export under Bond/ LUT and do the needful. The original circular can be downloaded from the below link-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-2-gst.pdf

In case of persistent issues, please mail us on [email protected] & [email protected] so that we can take up with CBEC/ GST accordingly.

Thanking You,

NOTICE 14

EPC/LIC/LUT_BOND 10th July 2017

To,

ALL THE MEMBERS OF THE COUNCIL SUBEJCT:- CBEC Clarifications on LUT/BOND/Bank Guarantee

Dear Members,

As you are aware, there have been several queries/ concerns over LUT/BOND, bank guarantee exemption

etc which has impacted export shipments since the onset of GST. In this regard, council has already sent

several representations to CBEC/GST for clarifications.

Taking cognizance of the queries from the trade/industry, CBEC has issued Notification No. 16/2017-

Central Tax and Circular No. 4/4//2017-GST both dated 07/07/2017 on the issues related to BOND, LUT,

Validity, container sealing etc.


For the sake of your convenience, the major points from the Circular/ Notification are reproduced/ highlighted as follows:

• Applicability of Letter of Undertaking (LUT)

The following shall be eligible for submission of Letter of Undertaking in place of a bond:

(a) Status holders as specified in the Foreign Trade Policy 2015- 2020;

or

(b) Exporters who have received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore Rupees, in the preceding financial year.

And he has not been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in case where the amount of tax evaded exceeds two hundred and fifty lakh rupees.

The Validity of LUT shall be twelve months. If the exporter fails to comply with the conditions of the LUT he may be asked to furnish a bond.

The Letter of Undertaking shall be furnished in duplicate for a financial year in the annexure to FORM GST RFD – 11 referred to in sub-rule (1) of rule 96A of the Central Goods and Services Tax Rules, 2017 and it shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor on the letter head of the registered person.

• Applicability of Bond:

All exporters, not covered by the above said LUT criteria would submit bond. The procedure for submission and acceptance of bond has already been prescribed vide circular No. 2/2/2017-GSTdated 4th July, 2017.

The bond shall be furnished on non-judicial Stamp paper of the value as applicable in the State in which bond is being furnished. Regarding validity, exporters shall furnish a running bond, in Case he is required to furnish a bond, in FORM GST RFD -11. The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. The exporter shall ensure that the outstanding tax liability on exports is within the bond amount. In case the bond amount is insufficient to cover the tax liability in yet to be completed exports, the exporter shall furnish a fresh bond to cover such liability.

• Bank Guarantee:

FORM RFD -11 under rule 96A of the CGST Rules requires furnishing a Bank guarantee with bond. In this regard, the jurisdictional Commissioner may decide about the amount of bank guarantee depending upon the track record of the exporter. If Commissioner is satisfied with the track record of an exporter then furnishing of bond without Bank guarantee would suffice. In any case the bank guarantee should normally not exceed 15% of the bond amount.

• Place of submission of BOND/ LUT:

LUT/Bond shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the bond/LUT before Central Tax Authority or state Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, if in a State, the Commissioner of State Tax so directs, by General instruction, to exporter, the Bond/LUT in all cases be accepted by Central

78June - July, 2017

tax officer till such time the said administrative mechanism is implemented.

• Transition Arrangements

• Container sealing under Central Excise supervision: The existing practice of container sealing by bottle seal under Central Excise supervision or otherwise would continue till 1st September, 2017. Such sealing shall be done under the supervision of the officer having physical jurisdiction over the place of business where the sealing is being done. A copy of the sealing report would be forwarded to the Deputy/ Assistant Commissioner having jurisdiction over the principal place of business.

• Exports may be allowed under existing LUTs/Bonds till 31st July 2017. Exporters shall submit the LUTs/bond in the revised format latest by 31st July, 2017.

The above instructions shall apply to exports on or after 1st July, 2017.

Members are requested to kindly take note of the above points regarding LUT/Bond/ BG etc to facilitate exports. You may also refer to the notification No. 16/2017- Central Tax and Circular No. 4/4//2017-GST both dated 07/07/2017

NOTICE 15

EPC/LIC/GST_ITC_REFUND 11th July 2017

To,

ALL THE MEMBERS OF THE COUNCIL ITC Refund Calculation Formula for Exports against LUT/ Bond as per CGST Rules

Dear Members,

As you are aware, export of goods and/or services are to be treated as “zero rated supplies” and a person making Zero Rated Supply can opt for either of the following options as per Section 16(3) IGST:

a) Supply of goods or services or both under bond or LUT without payment of IGST and claim refund of unutilized ITC

b) Supply of goods or services or both on payment of IGST and claim refund of such tax paid on goods & services or both supplies

In our view the Export under Bond/LUT will be preferred by the Exporters.

Kindly note that ITC Refund as per CGST Rules are available in Chapter X and it’s important to understand the formula which will be used in calculation of refund for export shipments.

For the sake of your convenience , we reproduce the text from the CGST Rules 2017(Chapter X) as under-

(4) In the case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), refund of input tax credit shall be granted as per the following formula –

Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷ Adjusted Total Turnover

Where,-

(A) "Refund amount" means the maximum refund that is admissible;


(B) "Net ITC" means input tax credit availed on inputs and input services during the relevant period;

(C) "Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking;

(D) "Turnover of zero-rated supply of services" means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:- Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;

(E) "Adjusted Total turnover" means the turnover in a State or a Union territory, as defined under subsection (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;

(F) “Relevant period” means the period for which the claim has been filed

Members are requested to please take note of the above methodology for calculation of ITC refund for exports against LUT/ Bond. For full text of CGST Rules, 2017 (as amended up-to 01/07/2017), please use below link- http://www.cbec.gov.in/resources//htdocs-cbec/gst/cgst-rules-01july2017%20.pdf

For any comments/feed-back on ITC refund formula, members may revert to us on [email protected] and [email protected] .

Thanking you,

NOTICE 16

EPC/LIC/GSTIN_LINK 13th July 2017

To,

ALL THE MEMBERS OF THE COUNCIL SUBJECT:- Link for checking availability of GSTIN in Customs EDI System

Dear Members,

We understand that some members have faced issues in creating SB or BE as there GSTIN is not available in Customs EDI system.

In this regard, CBEC has created following dedicated link for checking the availability of GSTIN in Customs EDI System:

https://www.icegate.gov.in/Webappl/gstn_idenq.jsp

Members are suggested to check in advance, so that no issues are faced at the time of SB or BE creation. In case of issues, you can write to [email protected]/ [email protected] / [email protected] under copy to us.

Thanking you,

80June - July, 2017

31

FORM GST RFD-11 [See rule 96A]

Furnishing of bond or Letter of Undertaking for export of goods or services

1. GSTIN

2. Name

3. Indicate the type of document furnished Bond: Letter of Undertaking

4. Details of bond furnished

Sr. No. Reference no. of the bank guarantee Date Amount Name of bank and branch

1 2 3 4 5

Note – Hard copy of the bank guarantee and bond shall be furnished to the jurisdictional officer.

5. Declaration -

(i) The above-mentioned bank guarantee is submitted to secure the integrated tax payable on export

of goods or services.

(ii) I undertake to renew the bank guarantee well before its expiry. In case I/We fail to do so the

department will be at liberty to get the payment from the bank against the bank guarantee.

(iii) The department will be at liberty to invoke the bank guarantee provided by us to cover the

amount of integrated tax payable in respect of export of goods or services. Signature of Authorized Signatory

Name

Designation / Status -------

Date ----------

81 June - July, 201732

Bond for export of goods or services without payment of integrated tax (See rule 96A)

Signature(s) of obligor(s). Date : Place : Witnesses (1) Name and Address Occupation (2) Name and Address Occupation

Accepted by me this.............................day of ......................... (month).................…….. (year)

………………………………..of …………….. (Designation) for and on behalf of the President of India.".

I/We.................of....................,hereinafter called "obligor(s)", am/are held and firmly bound to the President of India (hereinafter called "the President") in the sum of......................rupees to be paid to the President for which payment will and truly to be made. I/We jointly and severally bind myself/ourselves and my/our respective heirs/ executors/ administrators/ legal representatives/successors and assigns by these presents; Dated this...................day of....................; WHEREAS the above bounden obligor has been permitted from time to time to supply goods or services for export out of India without payment of integrated tax; and whereas the obligor desires to export goods or services in accordance with the provisions of clause (a) of sub-section (3) of section 16;

AND WHEREAS the Commissioner has required the obligor to furnish bank guarantee for an amount of............................................ rupees endorsed in favour of the President and whereas the obligor has furnished such guarantee by depositing with the Commissioner the bank guarantee as afore mentioned; The condition of this bond is that the obligor and his representative observe all the provisions of the Act in respect of export of goods or services, and rules made thereunder; AND if the relevant and specific goods or services are duly exported; AND if all dues of Integrated tax and all other lawful charges, are duly paid to the Government along with interest, if any, within fifteen days of the date of demand thereof being made in writing by the said officer, this obligation shall be void;

OTHERWISE and on breach or failure in the performance of any part of this condition, the same shall be in full force and virtue:

AND the President shall, at his option, be competent to make good all the loss and damages, from the amount of bank guarantee or by endorsing his rights under the above-written bond or both; I/We further declare that this bond is given under the orders of the Government for the performance of an act in which the public are interested; IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written by the obligor(s).

82June - July, 2017

33

Letter of Undertaking for export of goods or services without payment of integrated tax

(See rule 96A)

To

The President of India (hereinafter called the "President"), acting through the proper officer

I/We .................................. of..........................…………… (address of the registered person) having Goods &

Services Tax Identification Number No………………………………………… , hereinafter called "the undertaker(s) including my/our respective heirs, executors/ administrators, legal representatives/successors and assigns by these presents, hereby jointly and severally undertake on this .................. day of ................... to the

President

(a) to export the goods or services supplied without payment of integrated tax within time specified in sub-rule (1) of rule 96A ;

(b) to observes all the provisions of the Goods and Services Tax Act and rules made thereunder, in respect of export of goods or services;

(c) pay the integrated tax, thereon in the event of failure to export the goods or services, along with an amount equal to eighteen percent interest per annum on the amount of tax not paid, from the date of invoice till the date

of payment.

I/We declare that this undertaking is given under the orders of the proper officer for the performance of enacts in which the public are interested.

IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written by the undertaker(s)

Signature(s) of undertaker(s).

Date : Place : Witnesses (1) Name and Address Occupation (2) Name and Address Occupation Date Place

Accepted by me this.............................day of ......................... (month).................…….. (year)

………………………………..of …………….. (Designation)

for and on behalf of the President of India


NOTICE 17

Date 18th July-2017

To,

ALL MEMBERS OF THE COUNCIL

Sub: Enhancement in the Membership Subscription for the year 2017-18 due to the implementation of IGST/CGST/SGST/UTGST @ of 18%.

As you all are aware that Government of India has announced the implementation of Goods Services Tax (GST) to be effective from 1st July-2017.

Please note the existing service tax rate of 15% for Chemexcil Membership shall be replaced by a GST rate of 18% as applicable for membership club and association services.

The revised rates of Membership Subscription for the year 2017-18 as per the category which are given as under:-

REVISED RENEWAL OF MEMBERSHIP SUBSCRIPTION FOR THE YEAR 2017-18 (POST GST)

Category Membership

Fees

GST @ 18% (WITHIN

MAHARASTRA)

IGST @ 18%

(ANYWHERE IN

INDIA)

Total

Amount to

be paidCGST @ 9% SGST @ 9%

Large Scale Manufacturer (LSM) 29500 2655 2655 5310 34810

Small Scale Manufacturer (SSM) 6500 585 585 1170 7670

Merchant Exporter 9000 810 810 1620 10620

LSM cum Merchant Exporter 38500 3465 3465 6930 45430

SSM cum Merchant Exporter 15500 1395 1395 2790 18290

NEW MEMBERSHIP FEES POST GST

CategoryMembership

Fees Entrance

Fees Total

Amount

GST @ 18% (WITHIN

MAHARASTRA)

IGST @ 18% (ANYWHERE

IN INDIA)

Total Amount to

be paid

Large Scale Manufacturer

(LSM)

29500 10500 40000 3600 3600 7200 447200

Small Scale

Manufacturer (SSM)

6500 2000 8500 765 765 1530 10030

Merchant Exporter 9000 3500 12500 1125 1125 2250 14750

LSM cum Merchant

Exporter

38500 14000 52500 4725 4725 9450 61950

SSM cum Merchant

Exporter

15500 5500 21000 1890 1890 3780 24780

PLEASE NOTE

1. The Member Exporters who have not yet paid their Membership Subscription for the year 2017-18 shall be charged as per above rates. (THOSE WHO HAVE ALREADY PAID THE MEMBERSHIP SUBSCRIPTION FOR THE YEAR 2017-18 ARE REQUESTED TO PLEASE IGNORE THIS CIRCULAR)

84June - July, 2017

2. Member Exporters will get the Invoice and Receipt only after the payment of Membership Subscription. Provision of sending the Proforma Invoice has been discontinued as per the new GST regime.

3. Members outside Maharashtra state shall be charged IGST @ 18% instead of CGST and SGST.

4. Member Exporters are requested to upload their GSTIN details by login in the programme. If you are unable to upload it then please send us the details on your letter head to our office marked to Chemexcil Membership Section.

5. DD/At par Cheque should be drawn in favour of CHEMEXCIL SBI A / C NO: 10996680736, Mumbai. (Do not deposit the cheque from your end in bank).

6. For RTGS/NEFT payment the Bank Details are as under. Kindly send the UTR NO and the Name of the Company after completing the payment process.

Bank Name : STATE BANK OF INDIA

Bank Address : Mumbai Main Branch Mumbai Samachar Marg, Mumbai- 400 023:

Name of A/c : CHEMEXCIL

A/C NO : 10996680736

Swift Code No : SBININBB110

IFSC CODE : SBIN 0000 300

Branch Code No : 0300

We request you to take the note of above.

Thanking you,


MEMBERS ACHIEVEMENT

Shri. Bhupendra Patel, President, the Gujarat Dyestuff Manufacturers Association (GDMA welcoming chief guest Shri Satish Wagh, Chairman, Chemexcil during GDMA export award function on 10th June, 2017 at Rajpath Club, Ahmedabad

Chief guest Shri Satish Wagh and other dignitaries presenting memento to Shri Bipin Patel, President, Gujarat Chamber of Commerce and Industry (GCCI) during GDMA export award function on 10th June, 2017 at Rajpath Club, Ahmedabad

Chief Guest Shri Satish Wagh, Chairman -Chemexcil and other dignitaries presenting memento to Shri. Shailesh Patwari, Senior Vice President of Gujarat Chamber of Commerce and Industry (GCCI) during GDMA export award function on 10th June, 2017 at Rajpath Club, Ahmedabad

June - July, 2017

86June - July, 2017


CHEMEXCIL BULLETIN ADVERTISEMENT TARIFF

In `

SR. NO.

POSITION OF ADVERTISEMENT

SIZE OF ADVERTISEMENT

RATE OF COLOR ADVERTISEMENT RATE

RATE OF BLACK AND WHITE ADVERTISEMENT

AMOUNT GST

@18%TOTAL

AMOUNT AMOUNT

GST @18%

TOTAL AMOUNT

1 FULL PAGE 18 CM WD X 23.5 CM HT 10500 1890 12390 8625 1552.5 10177.5

2 HALF PAGE (HORIZONTAL)

18 CM WD X 11.5 CM HT 7000 1260 8260 4600 828 5428

3 HALF PAGE (VERTICAL)

8.5 CM X 23.5 CM 7000 1260 8260 4600 828 5428

4 QUARTER PAGE 8.5 CM WD. X 11.5 CM HT. 5000 900 5900 2300 414 2714

5 STRIPS ADVTS 4 CM HT X 18 CM WD NA NA NA 2300 414 2714

6 INSIDE COVER PAGES (FULL PAGE)

18 CM WD X 23.5 CM HT 15000 2700 17700 NA

7 BACK COVER INSIDE (FULL PAGE)

18 CM WD X 23.5 CM HT 12000 2160 14160 NA

8 BACK COVER (FULL PAGE)

18 CM WD X 23.5 CM HT 20000 3600 23600 NA

NOTE• Rates quoted above are per insertion basis (For single insertion) and not for whole year.

• 10% discount will be extended after 2nd insertion onwards if member would like to continue for all 6-issues of year and for next 2-3 years.

• If member want to publicize the advertisement for whole year we shall issue full amount invoice as per the discounted rate and member shall pay the full amount in advance.

• All payments by Cheque/ Demand Draft/RTGS in advance only to be made in favor of “CHEMEXCIL SBI account No. 10996680725”, Payable at Mumbai

• SPECIAL DISCOUNTS can be consider on Series of Advertisements at least 4 insertions

• For Colour advertisements, high resolution images to be sent to us.

• Advertisement material must reach us 7 days before the date of publication

• Positioning of the Advt other than Cover Positions will be at Chemexcil discretion

• Only ColourAdvts will be entertained on Cover Positions.

• No Classified Advertisements will be entertained

• For further details such as series discounts, etc

please contact on : [email protected];[email protected]

88June - July, 2017

India : 117, The Summit Business Bay, Near WEH Metro Station, Opp. Cinemax Theatre, Off Sir M. V. Road, Andheri (E), Mumbai - 400 093. IndiaTel.: 91-22-2684 9600 (10 Lines) • Fax: 91-22-2684 9060 • Email: [email protected] • URL: www.indenta.com

Factory: Plot no. 1405, G.I.D.C, Sarigam, Dist. Valsad, Gujarat – 396 195China : No.603, Tower 1 Dongjun Plaza, 836 Dongfeng Road, Guangzhou 510080, P.R. CHINA. • Email: [email protected] : One Town House Drive, Newton, MA – 02460. Phone: 001 – 617 953 1080 • Email: [email protected]

Indenta Group, established in 1970, is a global enterprise with core competencies in the fields of Health care, Reagents Chemicals and Flavor & Fragrance ingredients. As an innovation company, it sets trends in research-intensive areas. At the same time, the Group aims to create value through innovation, growth and high earning power.

SODIUM HYDROXIDE PELLETS & POTASSIUM HYDROXIDE PELLETSPioneers in Manufacturing of Sodium Hydroxide Pellets (Caustic Soda Pellets) and Potassium Hydroxide Pellets (Caustic Potash Pellets) with more than four decades of reputation. The different grades that we manufacture are: LR/AR/ACS/BP/ EUR.PH/USP/GR/NF/PHARMA

ESSENTIAL OILS & INGREDIENTSAt INDENTA, we extract, encapsulate and distill Natural essential oils ensuring the potency of the volatile aromatic compounds. We also produce Natural Identical Oils, which are relatively competitive substitutes.

Black Pepper Capsicum Cardamom Cassia CeleryCinnamon Clove Coriander Cumin Dill SeedFennel Ginger Mace Nutmeg PaprikaRosemary Turmeric Bergamot Lemon LimeLavender.

•• • • • •• • • • •• • • • ••

• • • •

LABORATORY REAGENTS & CHEMICALSINDENTA manufactures and markets innovative and reliable laboratory reagents of AR, LR, and HPLC Grades with quality you can count on and delivery you can trust, specializing in consolidated shipments of multiple products in FCL and LCL lots.

Acetone

Nitric Acid 70 % Ortho-Phosphoric acid 85 %Perchloric acid 60/70 % Potassium Iodide

• • •• • •• •• • •

Acetonitrile Crystal violetIodine Gentian violet Hydrochloric acid

Sulphuric acid 98%

SODIUM HYDROXIDE PELLETS & POTASSIUM HYDROXIDE PELLETS

ION PAIR REAGENTS••••••••

1-BUTANE SULPHONIC ACID SODIUM SALT1-PENTANE SULPHONIC ACID SODIUM SALT1-HEXANE SULPHONIC ACID SODIUM SALT1-HEPTANE SULPHONIC ACID SODIUM SALT1- OCTANE SULPHONIC ACID SODIUM SALT1-DECANE SULPHONIC ACID SODIUM SALTDODECANE SULPHONIC ACID SODIUM SALT1-PROPANE SULPHONIC ACID SODIUM SALT

Glimpses of Chemspec Europe-2017

Prin

ted

at:

On

loo

ker

Pres

s Tel

. :22

18 3

544

/ 221

8 29

39

chemexcil news

Documents