Exporters seek clarity on incentives under GST

download (1)Source: The Economic Times, Sept 13, 2017

MUMBAI: Exporters say they’re facing difficulties owing to ambiguity about benefits continuing under goods and services tax (GST) from the previous tax regime and queries over accessing input credit, further clouding their prospects amid a dull global market and an appreciating rupee. Some of them have sought clarity on the matter from the government ahead of the peak export season, said people in the know.

The development has led to exporters being unsure about pricing products set for the European Union (EU) and the US and warnings that overseas sales could suffer a setback in the upcoming quarter. The Foreign Trade Policy, FTP 2015-2020, has several incentives based on the earlier levies such as excise duty and service tax. It had been expected that these incentives would be recalibrated under GST but that hasn’t happened, exporters said.

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Gems & jewellery Q1 exports rise 4%

download (3).jpgSource: The Economic Times, Aug 10, 2017

NEW DELHI: Gems and jewellery exports grew by about 4 per cent to USD 9.17 billion during the first quarter of the current fiscal, driven largely by demand in major markets like the US. In the April-June quarter of last financial year, the sector’s exports aggregated to USD 8.84 billion, according to the data from Gems and Jewellery Export Promotion Council (GJEPC).

The labour intensive sector contributes about 14 per cent to the country’s overall exports.

The rise in shipments was mainly supported by exports of silver jewellery, and gold medallions and coins.

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Rules may be eased to help e-commerce companies boost exports

Source: The Economic Times, July 23, 2017

NEW DELHI: To enable homegrown ecommerce players such Myntra, Snapdeal and a host of handicraft and garment platforms to expand their global footprint, India is looking to revamp the export framework governing overseas sales by them. The measures under consideration include a complete switchover to e-enabled filing systems and even doing away with the current cap of Rs 25,000 on a purchase.

“A number of steps have been identified to make it easier for the ecommerce sector to trade,” said a senior finance ministry official. A pilot has already been launched in Mumbai and will be expanded to other customs ports. Exports via these online marketplaces rely on couriers and small packages and often involves a lot of paperwork at the ports. Essentially, these couriers act as aggregators for ecommerce platforms.

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US moves to bridge $24-billion trade deficit with India

Source: The Hindu Business Line, Apr 25, 2017

New Delhi: After the IT industry, it is now the turn of the manufacturing sector to brace itself for a possible jolt from the Donald Trump regime in the US. Washington DC has officially sounded out to New Delhi that it would soon take steps to bridge the $24-billion bilateral trade gap, which is in India’s favour.

Assistant US Trade Representative Mark Linscott, who met senior officials from the Commerce Ministry last week, said his government would identify the barriers to trade impeding American exports through trade policy dialogue so that steps could be taken to redress the problem, a government official told BusinessLine.

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India likely to host key RCEP meeting in July

index.jpgSource: The Economic Times, Dec 27, 2016

NEW DELHI: India is expected to host in July next year the negotiations for mega trade deal RCEP which aims at liberalising norms for trade in goods and services and boost investment among 16-member countries.

“This will be a crucial meeting of the Regional Comprehensive Economic Partnership (RCEP),” an official said.

Currently the member countries are deliberating upon the single-tier system of duty relaxation under the proposed pact.

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Government working to give services trade a reforms push

index.jpgSource: The Economic Times, Sept 27, 2016

NEW DELHI: Worried by the shrinking trade surplus in services, the government is working on a bouquet of reforms to play to the country’s core strengths of technology, leisure travel and medical tourism.

The commerce department has circulated a cabinet note on domestic reforms to enhance earnings from services exports, detailing measures that can be implemented after due deliberations. “It is work in progress. There are services like IT, tourism, medical tourism, legal and education, which are not our jurisdiction…We can apply our mind but it is up to the line ministries,”said an official, requesting anonymity. The services trade surplus narrowed 9% to $5.36 billion in July from $5.88 billion a year ago.

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Seafood exports increase by 7 per cent

Source: The Economic Times, Sept 27, 2016

KOCHI: In a sign of strong recovery, seafood exports in first five months of the current fiscal rose 7 per cent from a year ago to touch 333,832 tonnes, according to data from Marine Products Export Development Authority (Mpeda). In value terms, the year-on-year increase was 17 per cent to Rs 13,426 crore, Mpeda’s provisional data for the five months to August showed.

“The good performance has come in the lean season, which augurs well for the coming months,” Mpeda chairman A Jayathilak said.

In 2015-16, marine exports dipped 9 per cent from the previous year to Rs 30,421 crore as the unit value realisation of frozen shrimp, which constitutes over 70 per cent of total exports, fell by $2 to $8.28 per kg. Jayathilak said the loss of the previous year has been made good in the first few months of the current year. He said seafood exports are expected to touch the targeted $5.6 billion in the current year.

As per Mpeda data, production of aquaculture shrimp, which is driving exports, touched an alltime high of 550,000 tonnes in 2015-16.