Page 2 - Exim Matters

Preparing for the promise of Trump

The election of Donald Trump as the next president of the USA has enhanced the uncertainties in the global trading environment

Seasonal call for positive stock!

In the World Bank report on 'Ease of doing business', India is static at 130 out of 190 countries but this is what they have to say on our Customs

DRI summons for no clear reason

DRI has issued a standard letter to many exporters, to return incentives availed of for shipments during 2014-15 for which the proceeds hadn't been realised within the prescribed time limit

Extra conditions for metal scrap import

The Director General of Foreign Trade (DGFT) has restricted the import of unshredded metallic scrap through only designated ports, having radiation portal monitors and container scanners, and the consignment is so examined in line with Customs protocol. However, any Inland Container Depot (ICD) can handle clearance of unshredded metallic scrap, provided this passes through any of the designated sea ports or any new ports to be notified from time to time,The present policy is to allow import of any form of metallic waste or scrap, as long as it doesn't contain any hazardous material, toxic waste, radioactive contaminated waste or scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridges or any other explosive material in any form. The importer has to show a copy of the contract with the exporter which stipulates compliance to this effect.Also, a Pre-shipment Inspection Certificate from the authorised agencies must be presented, that the

Sand remains in the Customs grease

The finance ministry has amended the notification relating to re-import of exported goods, giving more time for re-import from Bhutan

A leg-up for trade but clarity eludes traders

Physical copies of advance authorisations registered at non-EDI Customs ports will continue to be debited manually

Change in law to ease exporters

The finance ministry has revised the declarations to be furnished by exporters who manufacture export goods by using inputs procured from domestic sources without payment of excise duty or under claim of rebate of excise duty paid on them. The amendment aims to remove an unnecessary difficulty that exporters face.Till September 17, 2010, the notifications governing duty drawback at All Industry Rates (AIR) provided that the rates of drawback in the drawback schedule would not be applicable to products manufactured or exported by availing the rebate of the central excise duty paid on materials used in the manufacture of export goods in terms of Rule 18 of the Central Excise Rules, 2002, or if such raw materials were procured without payment of central excise duty under Rule 19(2) of the Central Excise Rules, 2002. The exporters were required to give a declaration in form ARE-2 (the form they are required to fill out before removal of export goods manufactured from inputs they had procur

Rectifications such as these are welcome

This is a welcome dispensation. It will give needed relief to exporters who were facing duty demands, penalties and litigation

Tax rebates for garment export

The rebate will be disbursed by the Customs along with duty drawback

DGFT's sloppy and arbitrary decisions

The petitioners contended DGFT had powers only to clarify an existing provision and none to introduce a new provision in the Foreign Trade Policy (FTP) through a circular

New assessment rules remove security burden

The essence of the new guidelines is that importers having certification as AEO, public sector companies and govt undertakings will get a favourable dispensation by way of waiver of security or reduced security

New scheme for apparel export

The commerce ministry has notified a special advance authorisation scheme for articles of apparel and clothing accessories

Using GST lens to let in more light

'One nation, One tax'. This slogan has gained currency to justify introduction of the proposed national Goods and Services Tax (GST). This catchy slogan is rather misleading but deserves to be taken seriously, as an objective to be achieved in due course.GST as envisaged at present is far from the ideal of a single tax working seamlessly through the supply chain of all goods and services. Many items will be out of its net. Some types of taxes will not be covered. Exemptions will be there. States will have the right to levy new taxes. Taxes levied by local bodies continue. Even so, it is a beginning. In its present form as envisaged, GST promises to widen the base, simplify processes, bring greater compliance and make it easy to carry on business. More important, it gives an opportunity to raise questions regarding continuation of some other exemption schemes.India is fragmented by way of different tax dispensations for special economic zones (SEZ), export oriented units (EOU) and the d

Needed simplifying in EOU schemes

The EOU scheme was launched on December 31, 1980, when the domestic operating environment was highly restrictive

Shifting directives on a fluid dispute

In the light of a judgment, CBEC has said in the case of all bulk liquid cargo import, whether for home consumption or warehousing, the shore tank receipt quantity should be taken as the basis for levy of customs duty

DGFT needs to cut this red tape

Many exporters have a new, not wholly unexpected, problem. Their claims under the Merchandise Exports from India Scheme (MEIS) are being held on the ground that the description of the product in the shipping bill does not exactly match the description given in the MEIS rate schedule.However, it is well known that these cannot always match. Under MEIS, exporters get duty credits at a notified percentage of the free on board value for exports to notified countries. Appendix-3B of the Handbook of Procedures, Vol 1, gives the list of eligible items and the entitlement rates. The list gives the description and classification code under the Harmonised System. Broadly these are aligned with the Customs Tariff. Many exporters, however, cannot use the same description in invoices to their customers.For example, an exporter of a chemical under the classification 29343000 can give the name of his product in the invoice but not describe it as 'compounds containing a phenothiazine ring-system (whe

Duty-free shops and what they should do

The Central Board of Excise and Customs (CBEC) has permitted duty-free shops in Customs areas to accept payment in rupees till a ceiling of Rs 25,000 from those going out of or coming into the country.They will also be required to display the prices in rupees alongside those in foreign currency and the exchange rate adopted.The decision follows the Reserve Bank's notification which revised the limit for export from and import into this country of Indian currency, from Rs 5,000 to Rs 25,000 per person. CBEC has prescribed the procedures to be followed by operators of the duty-free shops for accounting of receipt, storage, operations and removal of goods at their boned warehouses and shops.The Customs Act was amended on May 14 this year, introducing a provision for licensing special warehouses that will be subject to physical control by the Customs.CBEC issued the notification for supply to duty-free shops in a Customs area in the class of goods which shall be deposited in a licensed sp

Seeing some reason after much time

CBEC justified this on the ground that mere filing of an appeal does not operate as a stay or suspension of the order appealed against

Opening of the door over these 25 years

Despite global economic slowdown from 2008 onwards, exports soared from about $63 bn in 2004 to $185 bn by 2009 and $314 bn in 2014, before falling off to $262 bn in 2015-16It was exactly 25 years before when then Commerce Minister P Chidambaram began trade reforms with many far-reaching announcements. Since then, the foreign trade policy has moved in the direction set by him, with less dramatic changes every now and then.On July 4, 1991, Chidambaram abolished cash assistance for exporters and several categories of licences. Till then, most items were not allowed for import without a licence. Chidambaram turned that policy on its head by allowing import of all goods without a licence, except those specifically restricted. Within a year, he had introduced a new Foreign Trade (Development & Regulation) Act and put in place a simpler five-year export and import policy.Chidambaram retained the schemes for free trade zones, export-oriented units, deemed exports, duty-free import of inp

Some suggestions regarding SEIS

It gives duty credit scrips of three or five per cent of net foreign exchange earnings through export of select services