Budget 2021-22 impact on Export Import

December-2020 Export Import Status of India

 

December-2020 Export-Import Status

 

India’s exports shrank for the third straight month in December but the pace of contraction slowed to 0.8% from 8.74% decline in November even as the country’s trade deficit widened.

Preliminary data released by the commerce and industry ministry showed Saturday Outbound shipments in December were $26.89 billion and in sectors like petroleum, leather and marine products witnessed contraction,

The trade deficit in December widened to $15.71 billion, as imports grew by 7.6% to $42.6 billion due to a sharp increase in gold imports. Gold imports rose 81.8% in December 2020 to $2.01 billion.

Other items that witnessed an increase in imports include electronic goods, vegetable oil, chemicals, textile yarn and fabric, machine tools, pharmaceuticals and precious & semi-precious stones.

The ministry said in a statement that  “India is thus a net importer in December 2020”

 

Followed by the US and UK. Singapore was the top destination for India’s exports last month with an increase of $241.63 million led by petroleum products and engineering goods,

Major commodities of export which recorded growth during the month under review include Oil meals (De-oiled cake, Iron ore, Carpet, pharmaceuticals, spices, electronic goods, fruits and vegetables, and chemicals.

FIEO - Federation of Indian Export Organisations President, Sharad Kumar Saraf said  “The monthly exports have moved towards positive territory as major export products show signs of further revival as expected,” The order booking position have continuously improved besides more new orders in the offing.

In December 2020, oil imports declined 10.37% to $9.61 billion.

Exports during April-December 2020-21 fell 15.8% to $200.55 billion compared to the same period last fiscal. Imports posted a decline of 29.08% to $258.29 billion

To give a leg up to exports, FIEO sought notification of the RoDTEP- Remission of Duties and Taxes on Exported Products
rates, addressing issues such as adequate availability of containers, softening of freight charges, release of the required MEIS benefits and clarity on SEIS benefits and risky exporters.

Complied by:

Bhatia Jagdish owner of Bhatia Export Training & Consultancy, having 44 years of Export Import knowledge.

bhatiajd@gmail.com www.bhatiaexports.in    +91 7878045651

RoDTEP from 1.1.2021 for Exporters

 For Exporters RoDTEP from 1.1.2021

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Export Import News 21.10.19

WTO

1.      New rules of origin initiative to help firms better utilize trade preferences

The World Trade Organization is partnering with the International Trade Centre (ITC) and World Customs Organization (WCO) in an initiative which will enable firms to take fuller advantages of benefits under free trade agreements and preferential trade arrangements by helping them comply with product rules of origin requirements.

We have also advised in our last video that applying GSP certificate is now on line at DGFT site.

https://www.wto.org/english/news_e/news19_e/roi_17oct19_e.htm

DGFT

2.      Regarding import of flag

DGFT has issued Notification No. 24/2015-2020 on 11.10.15 regarding
Import of Indian National Flag not adhering to the specifications prescribed under Part - I, Section 1.2 or Flag Code of India, 2002 is prohibited

3.      DGFT: Import policy of Urea is free  now.

DGFT has issued notification No.23 dated 11.10.19 about Import policy for Urea for industrial or non-agricultural shall be "free" with immediate effect the same can be imported through Rashtriya Chemicals & Fertilizers (RCF)

http://dgft.gov.in/sites/default/files/Notification%20No.%2023%20dated%2011.10.2019%20in%20E.pdf

Ministry of Finance Revenue department

4.      Antidumping duty  on flat rolled products of steel

Ministry of Finance Revenue department has issued NOTIFICATION No. 40/2019-CUSTOMS (ADD) on 15.10.19  About anti-dumping duty imposed on Flat rolled product of steel, plated or coated with alloy of Aluminium and Zinc, imported from China, Vietnam and Korea due to :

i)                    Goods are exported to India below their normal values.;

 (ii)     The domestic industry has suffered material injury;

https://www.indiantradeportal.in/uploads/General%20Documents/NU_SPS-TBT/17-10-2019/csadd40-2019.pdf

5.      Onion

MMTC’s 2,000 ton onion import tender fails to draw bids

After prices went up to Rs.80/- (Euro 1.02) per kg in domestic retail market, Govt run MMTC called tender for import of 2,000 tons of onion from any country. There were no bidders in MMTC's tender

"The objective of the tender was to control prices (of onion). Now that the new crop from Karnataka has started arriving in the market, prices are almost under control. So, the failure to draw bids wouldn't matter much.

https://www.freshplaza.com/article/9153823/india-mmtc-s-2-000-ton-onion-import-tender-fails-to-draw-bids/

6.      Flipkart: Fresh groceries via Farmermart

A commerce ministry official told Reuters that

The Indian government is looking into whether hefty discounts offered on Walmart-owned Flipkart and Amazon.com during their online festive sales violate foreign investment rules,

https://www.reuters.com/article/us-india-ecommerce/india-looks-into-flipkart-amazon-festive-discounts-after-retailer-complaints-idUSKBN1WU0VY

7.      ICC has published INCOTERM 2020 With the new rules set to come into force from 1^st January 2020

With the new rules set to come into force from 1^st January 2020, exporter, importers, shipping, logistics, supply chain and freight professionals need to refresh their knowledge now if they want to be able to use the Incoterms® 2020 confidently and without errors, to avoid costly mistake.

Some of the changes in the Incoterms® 2020 rules include:

• Updates to the FCA rule regarding bills of lading
• Updates to the levels of insurance coverage required in CIF and CIP
• Renaming of the DAT rule to make it more fit for purpose

https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/

EXPORT IMPORT NEWS 24.6.19

EXPORT IMPORT NEWS LETTER:

1.      Textile body seeks Ministry’s support to tackle readymade imports, help local industry

https://www.thehindubusinessline.com/news/national/textile-body-seeks-ministrys-support-to-tackle-readymade-imports-help-local-industry/article27902083.ece

2.      Commerce & Industry Minister Meets Industry Stakeholders on E-Commerce & Data Localization

https://economictimes.indiatimes.com/news/economy/policy/piyush-goyal-meets-industry-stakeholders-on-e-commerce-data-localization/articleshow/69829304.cms?from=mdr

3.      16th WTO-WIPO colloquium for intellectual property teachers opens in Geneva

https://www.wto.org/english/news_e/news19_e/trip_17jun19_e.htm

4.      India's exports grew by 3.93% to $30 billion in May on account of healthy growth in sectors such as chemicals, pharmaceuticals and engineering, according to a commerce ministry data released Friday. Imports too rose by 4.31% to $5.35 billion, widening the trade deficit to $15.36 billion in May

https://www.livemint.com/news/india/trade-deficit-widens-to-a-six-month-high-1560519632041.html

5.      Commerce Minister reviews free trade pactsCommerce & Industry Minister Piyush Goyal has reviewed India’s free trade agreements (FTAs) with partner countries such as Japan, South Korea, Sri Lanka and the 10-member ASEAN to identify problem areas for the Indian industry and the opportunities they could offer.

“The Minister reviewed in details the impact of the existing FTAs on the Indian industry and the extent to which the partner countries had gained from it. The idea was to explore if there are ways in which concerns of the Indian industry could be addressed and what should negotiators look out for in future pacts,” a government official told BusinessLine.

https://www.thehindubusinessline.com/economy/commerce-minister-reviews-free-trade-pacts/article27891028.ece

6.      India responds to US moves at last with tariff hike on 29 US products

https://www.business-standard.com/article/economy-policy/india-responds-to-trump-moves-at-last-with-tariff-hikes-on-29-us-products-119061500097_1.html

7.      50% tariff on US motorcycles by India unacceptable, says US President

https://economictimes.indiatimes.com/news/economy/foreign-trade/50-tariff-on-us-motorcycles-by-india-unacceptable-says-donald-trump/articleshow/69735534.cms

8.      US Secretary of State says India 'perfect partner', great place to figure out how to grow economies

https://economictimes.indiatimes.com/news/economy/foreign-trade/pompeo-says-india-perfect-partner-great-place-to-figure-out-how-to-grow-economies/articleshow/69777582.cms?from=mdr

9.      Indian, Chinese officials hold dialogue to break deadlock in RCEP (Regional Economic Partnership) trade negotiations

https://www.thehindubusinessline.com/economy/indian-chinese-officials-hold-dialogue-to-break-deadlock-in-rcep-trade-negotiations/article27819699.ece

10. India-LAC trade up 20-fold yet since 2002; huge potential untapped: MEA official,

http://ficci.in/pressrelease-page.asp?nid=3425

11.  Commerce Ministry plans to boost exports through e-commerce

https://www.moneycontrol.com/news/economy/policy/commerce-ministry-plans-to-boost-exports-through-e-commerce-4082871.html

12.  Centre removes export incentives for onion

https://economictimes.indiatimes.com/news/economy/agriculture/centre-removes-export-incentives-for-onion/articleshow/69740119.cms?from=mdr

13.  Ease in government clearances

https://india.mongabay.com/2018/08/government-comes-out-with-standard-conditions-for-environment-clearances/

14.  Electronics manufacturers seek ban on television imports from Vietnam

https://economictimes.indiatimes.com/news/economy/foreign-trade/electronics-manufacturers-seek-ban-on-television-imports-from-vietnam/articleshow/69764519.cms

15.  Index Numbers of Wholesale Price in India (Base: 2011-12=100)

https://india.mongabay.com/2018/08/government-comes-out-with-standard-conditions-for-environment-clearances/