DGFT sets up helpdesk
The Directorate-General of Foreign Trade (DGFT) has set up a helpdesk to assist exporters/importers in surmounting technical problems faced by them while filing applications or making online payments for trade related licences.
An official release said that the trading community can access the helpdesk by dialling the toll-free number 1800 111 550 or through e-mail at dgftedi@nic.in.
The helpdesk would be available between 10.00 a.m. to 7 p.m. on all working days, the release added.
The problems usually faced by the trading community include non-availability of relevant documents, malfunctioning of system etc.
Filing claims for reimbursement of CST The government has made some significant changes to the Foreign Trade Policy (FTP) and Procedures (HB-1). With a view to incentivising exports of high technology products in free foreign exchange, the FTP allows duty credit of 1.25 per cent of the free on board (FOB) value of exports or 5 per cent of incremental growth, subject to a ceiling of Rs 15 crore.
The benefit will now be available for export of public call office using wireless (GSM/ satellite) technology, covered under ITC HS Code 84702100, and at the point of sale terminals/ transaction terminals (ePOS) using GSM/ CDMA/ Ethernet/ WiFi/ Serial/ PSTN technology, covered under ITC HS Code 84713000.
The recognition of status, such as export house, trading house etc., now will not expire at the end of the current five year FTP. The recognitions will be valid for 5 years from April 1 of the relevant year in which the status is granted, provided the next FTP (2009-14) continues to recognise the status. The status will also continue during the grace period of six months within which renewal applications can be made.
The export-oriented units (EOU) can now file supplementary claims for reimbursement of the central sales tax (CST), and such claims and delayed claims will be considered with cuts in entitlements, as applicable for other claims of other exporters.
Under the Focus Market Scheme (FMS), the exports made from April 1, 2006, through non-EDI enabled customs stations, will also be granted the entitlement.
As a proof of landing of export consignment in specified markets, the exporters can submit a self-attested copy of the import bill of entry filed by the importer in specified market or delivery order, issued by port authorities or arrival notice issued by goods carrier or tracking report from the goods carrier, evidencing arrival of export cargo to destination focus market.
China turns to India for supplies
China, which has drastically cut down soyameal imports from India in the early part of the current year, has again turned to India for the animal feed. During the period, it was largely dependent on US for getting soyameal. But with the freight of soyameal cargo from the US on the rise, it has booked 70,000-80,000 tonnes of soyameal from India for shipment between October and November this year.
During the first five months of the current year (April-August), China totally bypassed India, while sourcing soyameal and purchased around 65,175 tonne of rapeseed meal from India. This was a small buy from India because during the corresponding period last year, its import of rapeseed meal recorded 2,62,465 tonne.
Industry sources said China booked the soyameal for October-November delivery at $310-$330 a tonne, which was $100 less than the freight cost for bringing it from the US and other south American countries. If this price differential continues, China is expected to purchase another 1,00,000 tonne of soyameal from India in the last quarter of the current fiscal. Piggeries in China are mainly driving up demand for animal feed in China.
Apart from the higher freight rate, Chinese soyameal importers are worried about quarantine authorities, who have stepped up inspection of soyameal cargoes from the US and Argentina in a possible trade backlash following a massive recall of Mattel toys made in China, they said.
Vietnam nonetheless continues to remain India’s largest market for all types of oilmeal. Its import of oilmeal from India increased 11% to 382,600 tonne in April-August 2007.
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According to the Solvent Extractors’ Association of India (SEA), it purchased from India 277,950 tonne of soyameal, 24,975 tonne of rapeseed meal and entire quantity of 79,200 tonne of ricebran extraction in that period.
Exporters cry foul over rising Re
The rise in value of the Indian rupees in dollar terms appears not to have augured well for country's export community, affecting exporters' competitiveness in the global market and causing the closure of many companies.
In Punjab, the textile industry, which gives employment to nearly 30 million people in the country, is said to be the worst hit.
Till recently, stitching with perfection used to be the USP of Raghu Exports, one of Asia's leading manufacturers and exporters in leather tool bags, garments and upholstery.
Established in 1986 in Jalandhar, the company has clients in 19 countries, including major players like Home Depot, Wal Mart and Lowes Sears.
But for the past one year, Raghu Exports, like many other exporters, is facing a dilemma due to the rupee strengthening against the dollar.
Praveen Kumar, the Chief Managing Director (CMD) of Raghu Exports, said: When we ask our clients to pay more as our currency has strengthened against the US dollar, they say they have nothing to do with it. We continue fighting, but now it is vulnerable. We are not able to get any prize increase from the customer."
Industry experts say that if the present trend continues, it would not only render Indian exports unviable, but force manufacturers to give up their expansion plans. It might lead to cheap imports flooding the domestic market and finishing off the Indian industry.
A major integrated textile producer in India, the Vardhman Group, feels that bigger competitors like China are taking the edge.
S P Oswal, the Managing Director of the Vardhman Group of companies in Ludhiana, said: "The industry will remain weak, and if it remains weak for another four-five years, it will have very little chance of survival against world competition. Because today, our biggest competitor is China."
Mexico, India plans to double trade
Trade between India and Mexico has been targeted to double in the next three years from the figure of $1.8 billion in 2006, visiting Mexican President, Mr Felipe Calderon Hinojosa, recently indicated.
India and Mexico signed a double taxation avoidance agreement (DTAA) for prevention of fiscal evasion with respect to taxes on income.
“Mexico can offer Indian companies, preferential access to one billion customers through the trade agreements with 44 countries including the USA,” Mr Hinojosa said at a meeting on ‘India-Mexico: Opportunities for Business,’ organised jointly by the CII, ASSOCHAM and FICCI.
Training programme on exports A three-day training programme on exports is being organised by the Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) in Hyderabad from September 12.
The target group is entrepreneurs, who are successful in the domestic market but need guidance on the export front.
Speakers from various trade organisations, export bodies and Director General of Foreign Trade are expected to participate, according to a FAPCCI release.
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