Govt seeks inputs from exporters to check shipment decline

Commerce Minister Nirmala Sitharaman today discussed with exporters the measures to curb the decline of outbound shipments, and sought their inputs on issues plaguing the sector to improve ease of doing business.
India's merchandise exports contracted for the 15th month in a row in February amid tepid global demand and a volatile global currency market. During the meeting, exporters demanded incentives to reverse the trend and requested the government to provide better market access.
Some of the other issues flagged by exporters include non-tariff barriers of other countries, currency volatility, special economic zones, problems in dealing with customs authorities and service tax.

"The issue was mainly to check the downward trend of exports. We have requested the Commerce Ministry to at least add some markets where there is better scope where the decline is not so much... Commerce Secretary has assured that they (Government) will certainly look into all the issues," Federation of Indian Export Organisation President S C Ralhan said.
"We have requested that the interest subvention be extended to merchant exporters because they buy from MSME manufacturers," he told reporters on the sidelines of an interaction between representatives of export promotion councils (EPCs) and Commerce Ministry. The previous meeting was held on February 2.

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Later in a statement, the commerce ministry said it has decided to extend the market coverage to all countries in respect of Merchandise Export from India Scheme (MEIS) 2787 lines.
"Henceforth, landing certificates shall not be required under MEIS with effective from May 4...Accordingly, revenue foregone under the scheme has been revised from Rs 21,000 crore per annum to Rs 22,000 crore per annum." it said.
This step has been taken as part of ease of doing business and reduction of transaction cost of the exporters, it added.
MEIS aims to incentivize export of merchandise which are produced/manufactured in India.

Products which were not eligible to get incentives in all markets required submission of landing certificate as a proof of landing in the designated market.
Government had received many representations pointing out difficulties in obtaining landing certificate from shipping lines/agents and exporters also had to bear associated charges/cost on account of this procedure.
"Keeping in view these facts, the government ...Has decided to extend the market coverage to all countries in respect of these 2787 lines," it added.
Commenting on the move, exporters body FIEO said it has been taking up regularly with the government this issue of landing certificate, which is required for all claims under the MEIS and for which exporters were paying around Rs 2000 per shipping bill to shipping companies.

"Exporters were incurring overall around Rs 700 crore per year to obtain landing certificate. By inclusion of additional markets for 2787 tariff lines, the government has extended MEIS benefit for these items to all group of countries," it said in a statement.
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Tirupur Exporters Association termed the decision as a positive measure which will help increase the competitiveness of products being exported to Group C Countries.
TEA President A Shaktivel in a letter to the minister said, "Due to this measure, knitwear garment exports to countries like Australia, New Zealand and Hong Kong will also get eligibility to get two per cent reward rate under MEIS and thereby, we could increase our market share also in these countries."

"We wish to add that as all countries, 239 countries have been now under the beneficiary list,there is no need to submit landing certificate and this announcement would be one of the added advantages to the exporting units," Shaktivel said.
Garment exports from Tirupur were Rs 23,050 crore in 2015-16 against Rs 21,000 Crore achieved in 2014-15, a growth rate of 10 per cent. With these positive measures, exports would grow in the coming years, he said.