Page 4 - Exporters

Govt working to help exporters deal with countervailing duty cases

The government is working on a verification system to help exporters deal with countervailing duty cases on domestic products over the RODTEP scheme, an official said. The exercise is important as countervailing or anti-subsidy duties were imposed on certain domestic units by the US and European Union (EU). The products which were investigated by these countries involved reimbursement of levies like electricity duty, VAT on fuel or APMC taxes under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP). The scheme is a WTO (World Trade Organisation) compliant measure. The official explained that the duties have been imposed on certain units only and that too because they could not produce the right documents to the investigation authorities. The commerce ministry is helping Indian exporters to keep proper documentation to deal with these cases. "We will be giving guidance notes from DGTR (directorate general of trade remedies) to units so that whenever an ...

Exporters urge government to extend interest equalisation scheme

In a statement, the apex body for exporters, Federation of Indian Export Organisations (FIEO), on Monday said that the scheme provides competitiveness to Indian exports, particularly to MSMEs

Small exporters seek continuation of amnesty scheme till Sep: Industry body

Several small exporters have requested the government to continue the amnesty scheme for one-time settlement of default in export obligation till September, an industry body said on Monday. Ludhiana-based Hand Tools Association President S C Ralhan said the number of small exporters have not been able to avail of benefits of the scheme due to fulfilling their obligations to make make payments to MSMEs within 45 days. According to Section 43B(h) of the Income Tax Act, introduced through the Finance Act 2023, if a larger company does not pay an MSME on time -- within 45 days in case of written agreements -- it cannot deduct that expense from its taxable income, leading to potentially higher taxes. "Due to this, we diverted our funds to make payments and several of us were not able to apply for the amnesty scheme. We urge the government to continue the scheme till September," Ralhan said. The last date for payment of customs duty plus interest ended on March 31, 2024. In the new fore

Exporters urge exemption from 45-day payment rule for supplies from MSEs

Indian exporters have urged the government to exempt them from the 45-day payment rule for goods bought from micro and small enterprises (MSEs) as it will impact their businesses. In a letter to Prime Minister Narendra Modi, chiefs of major export promotion councils and federation of Indian export organisations have appealed to waive the export companies from section 43B(h) of the Income Tax law. The new rule, Section 43B(h) of the Income Tax Act, introduced in the Finance Act 2023, is designed to make sure small businesses get paid on time. It allows companies to get tax breaks if they pay their small business suppliers within the time limits set by the MSMED (Micro, Small and Medium Enterprises Development) Act, 2006. Especially, companies must pay within 45 days if there is an agreement, and within 15 days in the absence of such a pact. If they do not meet these deadlines, they can not deduct these expenses for tax purposes. "Our humble request is to consider the export communit

S P Apparels announces acquisition of Young Brand Apparel for Rs 223 cr

This includes the garment unit situated at Palladam of Bannari Amman Spinning Mills, and the land and building situated at SIPCOT

Finance ministry asks banks to expeditiously resolve issues of exporters

The finance ministry on Monday asked banks and insurance companies to expeditiously resolve issues of exporters and facilitate overseas trade. The meeting chaired by Financial Services Secretary Vivek Joshi was attended by senior officers from the Ministry of External Affairs, the Department of Commerce and the Ministry of Finance. They discussed issues faced by exporters and importers. During the meeting, Joshi advised banks to classify issues faced by them in different categories and indicated that they may consider seeking necessary regulatory guidance from the RBI and also develop a standard operating procedure through the Indian Banks Association (IBA), an official statement said. Functionaries of the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority (IRDAI), the chairman of the State Bank of India (SBI) and senior executives of major commercial banks were also part of the meeting. Insurance related issues faced by traders were discussed with .

'Date of DBK payment is date of credit to exporter's bank account'

In my opinion, you have to close the EPCG authorisations taken for the capital goods installed in unit 'A' only, the DTA unit that is being converted into EOU

Indian toy manufacturers receive orders worth $10 mn at German fair

Indian toy makers, who have participated in the five-day international toy fair in Germany have received orders worth over USD 10 million as they showcased high-quality products, according to exporters. The exporters said buyers from countries such as the US, the UK, South Africa, and Germany showed interest in their products and placed a good number of orders. There were more than 55 participants from India this year in the Nuremberg fair in Germany, held from January 30 to February 3. Initiatives by the Department for Promotion of Industry and Internal Trade (DPIIT) like mandatory quality norms, increase in custom duty and a National Action Plan on Toys (NAPT), helped in the manufacture of high-quality products that received appreciation at the international platform. "The Indian toy sector is growing at a healthy rate and competing with global players. Among the most popular categories at the fair were those pertaining to wooden toys and educational learning toys," the DPIIT sai

Budget 2024 LIVE news: Auto firms seek continued push for green mobility

Budget LIVE: Ahead of Lok Sabha elections, Finance Minister Nirmala Sitharaman will be presenting the interim budget on February 1, catch all the Budget related updates here

Customs can ask for purchase invoices from exporters claiming DBK, Rodtep

Rule 9 of the Customs and Central Excise Duties Drawback Rules, 2017 and proviso at Para 2(1)(b) of notification no.76/2001-Cus (NT) dated 23rd September 2021 put a cap on the amount of drawback

Red Sea crisis: Comm dept asks FinMin to maintain credit flow to exporters

Shipping ministry asked to monitor trade volume at major ports in India

Centre, state, exporters to discuss ways to boost exports on Jan 16

The Centre, state governments and industry representatives will meet on January 16 to discuss ways to boost the country's exports, an official said. Issues which are expected to figure in the meeting include rupee payment challenges, need of global shipping, and challenges being faced by traders on account of the Red Sea crisis, and uncertain global economic situation due to the Russia-Ukraine war and Israel-Hamas conflict. The meeting will be chaired by Commerce and Industry Minister Piyush Goyal. They all are members of the Board of Trade (BoT). "There are over 135 members of BoT. It is meeting on January 16 at Bharat Mandapam," the official said. Headed by the minister, the board includes participants from various states, Union Territories, and senior officials from the public and private sectors. In the meeting, representatives of export promotion councils present their views on the export sector. The board provides an opportunity to have regular discussions and consultations

Indian exporters gear up to comply with EU's paperless customs system: Rpt

Indian exporting firms need to gear themselves up to comply with new EU norms as the European Union is moving towards a paperless customs process from June 3 this year. The development assumes significance for domestic exporters as the European Union (EU) accounts for about 17 per cent of India's total merchandise exports. In 2022-23, India exported goods worth USD 75 billion to EU as against the country's total exports of USD 451 billion in that financial year. The EU has proposed to implement the second phase of its Import Control System (ICS) from June 3 this year. ICSD 1 was applicable to the air mail and express deliveries from March 15, 2021, and then it was extended to air cargo from March last year. The 'ICS2' will now be extended to cover all type of imports using ships, trains, trucks also on June 3, 2024. First two phases covered 15 per cent imports into the EU, third and final phase cover balance 85 per cent of the imports by value. According to a European Commission .

Commerce ministry sets up task force to resolve trade issues for exporters

The commerce ministry has set up a task force to identify and resolve trade barriers being faced by exporters in other countries, a move which would help provide greater market access to domestic goods, an official said. The development assumes significance as many times India's exports suffer from these barriers such as time taking prior registration requirements and unreasonable domestic standards/rules in many countries. "We have constituted a task force within the ministry where we will be looking at the trade barriers, and technical barriers. The ministry has been focusing on how to improve systems, and improve standards," the official said. The ministry is also looking at improving mutual recognition agreements (MRAs) with different countries so that product standards are as per the requirements of the importing countries. Standards for goods and services should help in promoting global trade and not act as non-tariff barriers, the official added. According to a report of th

Indian exporters cautiously watching respiratory illness in China

Expressing concern over the current influenza situation in China, domestic exporters on Sunday said that they are cautiously watching the situation as any spread of the disease may again hurt global supply chains and impact world trade. They said that the present situation is not alarming but if the illness spreads to other parts of the globe, it will have an impact on world trade as China is a hub of global manufacturing and exports. The government on November 24 stated that India is prepared for any kind of exigency that may emerge from the current influenza situation in China and it is monitoring the outbreak of H9N2 and clusters of respiratory illness in children in that country. There is a low risk to India from the avian influenza, H9N2, cases reported in China as well as the clusters of respiratory illness, the Union health ministry has said. Some media reports indicated a clustering of cases of respiratory illness in children in northern China for which the World Health ...

India-Australia ECTA: 77% utilisation by Indian exporters in 9 months

In a free trade agreement (FTA), the utilisation rate is one of the key parameters to assess how a trade agreement is faring or the real gains from the deal

Comm min expects to issue 20,000 status holder certificates to exporters

The Commerce Ministry, which automated the process for issuance of exporter status certificates, is expected to issue about 20,000 such documents by the end of this year, a senior official said on Wednesday. Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said this would be a big jump in the issuance of these certificates, and so far, they have issued over 40,200 status-holder certificates. "There are another 2,000 applications, which are under scrutiny because of their prior history. But ultimately, those will also get issued, and by the end of this year, we expect about 20,000 status holders to be recognised through this automated process," he told reporters here. Last month, DGFT said that an exporter status certificate will now be issued based on the available electronic data, and traders will not have to apply to get the recognition. These certificates provide certain privileges, including simplified procedures under foreign trade policy (FTP), priority custom .

Amazon slashes subscription fee for exporters by 99% to $1 for 1st 3 months

E-commerce company Amazon has slashed subscription fees for new exporters to USD 1 from USD 120 per month for the first three months of onboarding the platform, the company said on Wednesday. Amazon will start the annual Black Friday and Cyber Monday (BFCM) sale event between November 17 and 27, 2023 on its global website where it will list products from Indian exporters. "To enable more businesses to leverage e-commerce exports and sell globally during the upcoming holiday season, Amazon has slashed the subscription fee for Indian exporters joining its global selling program for the first three months from USD 120 (39.99 per month) to just USD 1. This limited time offer is available to exporters joining this program on or before March 31, 2024," the company said in a statement. In the recently concluded Prime Big Deal Days Sale on October 10 and 11, 2023, Indian exporters on Amazon Global Selling saw their business grow nearly 70 per cent year-on-year (YoY) and 170 per cent compare

Exporters should help EODC camps succeed

The DGFT has now brought into sharp focus the urgency to deal with the EODC applications quickly and get the statuses of the authorisations updated where the EODCs are issued

Exporter status certificates to be issued based on available data: Govt

Exporter status certificate will now be issued based on the available electronic data, and traders will not have to apply to get the recognition, the commerce ministry said on Monday. These certificates provide certain privileges, including simplified procedures under foreign trade policy (FTP) and priority custom clearances on a self-declaration basis, exemption from compulsory negotiation of documents through banks, and exemption from filing bank guarantees for FTP schemes. Upon achieving prescribed export performance, status recognition as one, two, three, four and five-star export houses is accorded to the eligible applicants as per their export performance. The new system-based automatic 'Status Holder' certificates under the FTP 2023 were unveiled in a meeting of Commerce and Industry Minister Piyush Goyal with the Export Promotion Councils here. "Now, the exporter will not be required to apply to the office of Directorate General of Foreign Trade (DGFT) for a Status Certific