Issues discussed with officials during Open House
|
|
| Sitting on the dais, from right are, Mr. B.S. Meena, DGFT; Dr. R K Dhawan, Chairman, FIEO(NR); Mr. G.K. Pillai, Commerce Secretary; Mr. R.G. Bagla, President, Merchants’ Chamber of Commerce of UP; and Mr. Atul Kumar Gupta, Indl. Dev. Commissioner, UP |
Query: Appreciation in the value of Rupee by 10% during the last few months has put a question mark on the viability of export of many products. Exporters are feeling the heat and we request you to provide some relief.
Response: C&IM has already announced a package for exporters on 13th June to deal with the problem of appreciation of Indian Rupee which proposes duty entitlement pass book (DEPB) and duty drawback rates to be enhanced by 5%, rate of interest on pre-shipment and post-shipment credit to be reduced for exporters to 6%, exchange earners’ foreign currency (EEFC) accounts to be made interest bearing, scheduled commercial banks to be mandated to meet 15% export credit disbursement target, service tax exemption/refunds for exports to be notified as early as possible, and ECGC premia to be reduced by upto 10%. All these recommendations, except the one concerning with ECGC, have been taken up with the Ministry of Finance.
Query: Reduction of Transaction cost for exports is proposed to be achieved by measures such as doing away with the penal interest being charged by banks, fixing the interest rates on EPC at a level matching with the rates in the competing countries, etc. Government should consider reimbursement of cost disadvantage due to infrastructure gap, transaction cost and high interest charges on export finance which has witnessed an increase of almost 2.5 percent in the last one year. A recent study has indicated that owing to various cess, levies, export & import procedures and infrastructural constraints, out leather industry is at 17.06% disadvantage vis-à-vis our neighbors.
Response: Government is committed to refund all central taxes. State taxes such as octroi, electricity duty and cess on petrol and diesel are also being considered for re-imbursement through a separate mechanism. For reducing transaction cost, the Government is identifying the procedures which add to cost and shall try to simplify such procedures. All departments like DGFT, Customs and Excise are doing their own in-house evaluation to reduce transaction cost. Development Commissioners in SEZs are acting as single window for providing all clearances to units in SEZs in order to reduce the transaction costs.
Query: Hon’ble Finance Minister has reduced excise duty on Footwear Components from 16 percent to 8 percent in this year’s Budget, but inputs to make these components still attract 16% excise duty. As Cenvat towards duties suffered on inputs is more than the excise duty on the end product, so there is no cost reduction on components. This issue may be taken up with Finance Ministry.
Response: Council for Leather Exports (CLE) may furnish the list of such inputs where inverted duty structure is faced by the industry.
Ministry of Commerce and the CLE have taken major initiatives to increase the exports of leather and leather products to USD 7 billion by 2010-11. in order to achieve the same, following aspects need to be considered.
a) In the new IDLS scheme, the maximum cap be increased to 100 lacs, further civil cost of building to augment the existing capacities be also applied.
b) Labour laws need simplification.
c) A major challenge faced by SME’s is the scarcity of trained manpower. Ministry of Commerce should take up the issue of training with the Ministry of Labour to import vocational training under PPP model as ITI’s programmes in the state of UP are not tuned with today’s requirement.
Response: Funds to the extent of Rs. 4000 crore have been earmarked for development and modernization of ITIs. The selection of ITIs may be made by the State Governments as per the requirements of local Industry. Commerce Secretary agreed to recommend to DIPP for increasing the maximum cap from Rs. 50 lakh at present to Rs 100 lakh under IDLS scheme.
Query: Under the IDLS Scheme, there is a provision of 20% grant/subsidy on expenses incurred on the visit of Foreign Technical Experts if required to be called to visit the unit in India. Logically, if the technical staff of the units under IDLS scheme is required to be sent abroad for training etc., the cost of the visit/training, including passage and maintenance in the country of visit should be subsidized by at least 50% as the training received by the staff will become a permanent asset to the unit and the country. Similar treatment should be given to Textile Industry also.
Response: Commerce Secretary feels it is doable and a proposal for overseas training of technical experts can also be considered under MAI scheme if detailed proposal is submitted by the Association (UPLIA).
Query: In order to keep existing EOUs competitive with units in SEZ, the income tax exemption for EOU units must continue after 31st March 2007. This will save many EUO’s turning sick and also save the livelihood of lacs of workers.
Response: This is a major policy decision to which the Finance Ministry is apparently not inclined. The industry should wait and continue to create pressure through state government.
Query: Exports to countries such as Colombia, Honduras, Brazil, Mexico and Guatemala in the Latin American region and Algeria, Sudan, Egypt, South Africa, Kenya and Tanzania in Africa suffer high freight cost besides other disabilities. Since the objective of the Focus Market Scheme is to offset the high freight cost and other disabilities such as payment risks, high bank charges, etc., these countries should be included under Focus Market Scheme.
Response: The fund available under Focus Market schemes is only Rs 1000 crore. More countries may be included once there are more funds.
Query: Ministry of Commerce should assist exporters in selling products in Focus Market countries. Updated buyer’s data should be made available to exporters and market studies should be conducted by reputed professionals of these countries in addition to the studies done by our embassies. Warehouses should be set up by independent bodies for stock and sale in these countries.
Response: Export promotion councils should take the responsibility of updating buyers’ database. For setting up warehouses, the MAI scheme can be availed.
Query: Kanpur is developing into Safety Footwear Capital of the world. Appropriate ministry may be requested to set up a world-class testing facility for Safety Footwear in Kanpur.
Response: Money is no constraint for such activity, let a formal proposal come from the Trade.
Query: As per Para 4.7.6 of Hand Book of Procedure where SION norms are not finalized by norms committee within four months from the date of issue of authorization norms as applied for should be treated as final and no adjustment should be made. However, in a recent case, norms committee did not respond for almost 8 months and meanwhile the exporter completed 100% of export & import. Later, the norms committee intimated the exporter about changes in norms, thus, putting the exporters in a fix. Norms committee is requested to follow the policy in its true spirit.
Response: DGFT promised to check it in future and assured that no retrospective change will be done. Commerce Secretary said that exported quantity would not be subject to revised norms unless the same was communicated within the stipulated time limit of four months.
Query: There is a mounting demand for Finished Chrome Tanned Upholstery Leather for use in home furnishing, furniture and automotive seat covers etc. Since the tanning process of this product is different from that of normal finished leather, the tanning and finishing chemicals required for the two products are also different. Fixation of ADHOC Norms for the former product is pending with the ALC in the office of DGFT, New Delhi for the last 16 months and exporters are finding difficult to cope up with the increasing demand of the product in the overseas market.
Response: Commerce Secretary advised the CLE to take the matter with DGFT.
Query: Export of handicraft Items such as glassware for table, kitchen, toilet, office, indoor decoration (excluding handicrafts under ITC HS 7010 & 7018) is entitled for benefit under Focus Product Scheme as per Para 3.10 of the Foreign Trade Policy. As per Appendix 37-D of the Policy, handicrafts made of cast iron, iron & steel, galvanized iron with brass and copper, are also eligible for benefits under this scheme. Logically, composite handicraft items made of glass and one or more of the above materials such as iron, brass or copper should also qualify for benefits under the said scheme. A proper notification is required to clarify this.
Response: Commerce Secretary agreed to it in principle and assured to clarify the matter within a month.
Query: In the Union Budget for 2007-08, no change is proposed in customs duty on raw-materials for manmade textiles such as fiber/filament yarn. The reduction in custom duty is proposed only on polyester fiber/filament yarn. However, with the increase in education cess by 1%, the net impact of this reduction is marginal. Further, although manmade textiles comprises of over 60% in the total global textiles trade, India’s share in this is only about 2%. Besides, exports of manmade fibre textile have been declining in the last few months as the products are not competitive. Therefore, an increase in the DEPB rates will go a long way in increasing the exports of manmade fibre textiles. The DEPB rates need to be increased for all manmade textiles items covered under Product code 89 and 62 of the DEPB schedule.
Response: Commerce Secretary advised that industry may take the matter with DGFT.
Query: Although 4% SAD paid on imports are allowed to be taken as Cenvat credit, there are many manufacturers in various sectors who are out of the purview of the Central Excise Rules due to optional duty and therefore such manufacturers cannot take Cenvat credits. DEPB Rates need to be revised to include 4% Special Additional Duty. Alternatively, 4% SAD should not be levied on imports against DEPB. Duty on fuel should also be factored in the new DEPB rates.
Response: DGFT informed that the DEPB Committee was working on it and the decision is expected in a month.
Query: In terms of Para 4.4.2 of Foreign Trade Policy updated as on 19.04.2007, the concept of pre & post DFIA is not clear. In both the cases, application has to be filed with concerned RLA before export takes place. As such, there appears no demarcation between the two. Alternatively, in case of post export, the DFIA should be issued after the exports are completed like erstwhile DFRC and the CVD part of DBK is claimed at the time of exports and CVD is paid on inputs at the time of Imports.
Response: Commerce Secretary asked FIEO to send a note for further consideration.
Query: The Release of BG/LUT by the Customs against DES & EPCG needs simplification. At present, the Redemption Certificate issued by the JDGFT in respect of Advance Licence/EPCG Licence is not considered sufficient by the Customs to discharge/release the BG/LUT. The same procedure is repeated by the Customs which has already been adopted by the JDGFT for the issuance of the redemption certificate. This sort of duel monitoring of these schemes and the repeat formalities required by the Customs are harassing and time consuming besides adding to the transaction cost. It must be monitored by one agency.
Response: This is accepted in principle. Custom may issue a Circular reiterating their earlier circulars so that the same procedure of redemption is not repeated.
Query: Composition fees should be revised to nil and 2% on the duty saved in case of extension in EO period for first six months and for the second six months respectively. This is against the spirit of the Commerce Ministry towards procedural simplifications.
Response: Very few cases require extension of EO and incorporation of force majeure clause takes care of extraordinary problems faced by the industry.
Query: 10% cut on late submission of ‘the application of issue of DEPB and other incentive scripts’ is too harsh. It should be revised to only 2% for first six months and 5% for the second six months.
Response: DGFT agreed to the above proposal with regard to change in late cut.
Query: Leading producers and exporters of gold jewellery are affected by the reduction in duty free entitlement for import of consumables from 2% to 1% of FOB value of exports of the preceding year for Gold and Platinum Jewellery. With exports expected to increase in coming years, the consumption of consumables is also expected to go up substantially. Thus, the reduction is a retrograde step. The entitlement should be increased to 3%-4% for duty free import of consumables, tools, machinery and equipments on the FOB value of exports of the preceding year for Gold and Platinum Jewellery.
Response: Commerce Secretary informed that no reduction has been made in the recently announced Policy. If the trade has found anything otherwise, it will be corrected.
Query: Once transferability is endorsed, imports against DFIA or transfer of imported inputs are subject to payment of CVD/excise duty. Transferability is endorsed on the DFIA only after the completion of the export obligation. Therefore, there is no justification for imposing CVD/excise duty. Further, to get back such CVD/Excise Duty through the drawback route is cumbersome and time consuming. Secondly, since most of the units in the manmade textiles sector have opted out of the Cenvat chain, they cannot avail of Cenvat credit also. Imports/transfers against DFIA with transferability endorsement should be free from the payment of CVD/excise duty
Response: Commerce Secretary observed that the intention of modification is to plug loopholes for double benefit where industry is both availing CENVAT and exemption from additional customs duty. However, he promised to address the concern of the industry.
Query: At present, the Export Obligation is fixed as average of the past three years of export performance in addition to the additional export obligation depending upon the duty amount saved. In order to ensure that the exporters having large export performance are not at a disadvantageous position as compared to those having low past export performance, the EPCG applicant should have two options - 5 times of the CIF value of capital goods imported or the average of the last three years of same/similar product whichever is lower; OR, 5 times of the CIF value of Capital Goods imported or the total Average performance of the exporter, independent of the resultant products to be manufactured with the use of machines whichever is lower.
Response: Commerce Secretary asked the DGFT to get the matter examined.
Query: At present, the practice of calculating the equivalent US$ of the export proceeds realized in different convertible currencies for the entire period of export obligation is as per Policy Circular No. 8 (RE-98)/98-99 dated 28.05.98 which is to sum up the total FOB value realized in Indian Rupees for the entire duration of fulfillment of E.O. from different convertible currencies and divide by the exchange rate of US$ against Indian Rupees as mentioned in the licence or as applicable on the date of issuance of Authorization. This procedure needs to be reviewed and replaced by the following method.
(a) Total FOB Value in Indian Rupees realised during a licensing year from different freely convertible currencies including US$ - Say Rs. X
(b) Average of US$ rates against Indian Rupee, as notified by the customs every month Covering the period of exports- Say Rs. Y
(c) Equivalent US$ = Rs. X/Rs. Y per US$ = US$
(Note: If the exports realisation period is say from July to November, the average of exchange rate applicable for July to November as notified vide monthly custom notifications would be applicable.)
Response: Commerce Secretary asked the DGFT to get the matter examined.
Query: Installation certificate is also required to be issued not only for capital goods but also for Spare Parts, to comply with the requirement of Para 5.3.2 of Handbook of Procedures. Trade has clarified that on many occasions spare parts are imported to build up the inventory so that at the time of breakdown of any machinery the same can be replaced without any loss of time. Thus it is difficult to adhere to the timeframe of six months stipulated in the procedures. Moreover, as per Para 5.3.4 (iii) of the FTP, at the time of final redemption of export obligation, licence holder shall submit certificate of the independent Chartered Accountant confirming use of spares so imported in the installed capital goods on the basis of their stock and consumption register. The submission of installation certificate for spares should be dispensed with.
Response: Commerce Secretary announced that this has already been accepted and suitable change will be made by DGFT.
Query: At present, terminal excise duty is to be paid on Capital Goods procured against an EPCG licence. This duty is subsequently refunded by the DGFT. However, such refunds take quite a long time. It is understood that substantial value of terminal excise duty paid on capital goods procured under the EPCG scheme remain pending to be refunded for a long time. Exporters’ working capital is blocked which is hampering their export efforts. Suitable Bond procedures may be devised to allow those units, which are registered with the Central Excise departments, to procure Capital goods against EPCG licences without payment of Terminal Excise duty. Also, there should be provision for interest payment on delayed refund of terminal excise duty (beyond three months).
Response: The issue will again be taken up with the DOR.
Query: At times, exporter is bound to file more than one application against one Invalidation letter for claiming refund of Terminal Excise Duty. In terms of Para 8.3.1 (ii) of Hand Book of Procedures, one TED refund claim is not allowed to be filed against one invalidation letter irrespective of its supply period length. Other claims of same half yearly of other invalidation letters are treated as supplementary claim, attracting a cut of 10% against same EPCG Licence. Treating such claims, as "Supplementary" and imposing "Cut" is not justifiable. It would lead to loss to the exporters as Terminal Excise Duty refund claim is of Central Excise Duty already paid. To simplify the procedure, It is suggested that Para 8.3.1(ii) of Hand Book of Procedures may be amended as: "In cases where payment is received in advance, last date for submission of application may be correlated with the date of supply instead of date of receipt of Full/Final payment. Where the supply is against one ‘Invalidation Letter’, one TED application against that ‘Invalidation Letter’ can be filed irrespective of its ‘Total Supply Period Length’. However, the supply period would have a ‘Moratorium Period’ of ‘License Validity for Imports + 12 months" to complete supplies against ‘Invalidation Letter / ARO". The TED claim can be filed on the basis of ‘Invalidation Letter-wise’ also i.e. more than one claim may be filled in any Half Yearly/Yearly period against particular license(s)."
Response: DGFT agreed to the proposal to amend the Handbook as suggested.
Query: Once the Advance authorization is invalidated for import and release advice is given to the domestic manufacturers to supply the material under Deemed Export Scheme, sometimes, small quantity remains unsupplied due to various reasons. Current practice being followed by JDGFT Office in such cases is to demand confirmation of short supplies by indigenous suppliers & their respective JDGFT Office. The suppliers give Certification of their short supplies to JDGFT Office who issues release advice. This should be accepted by the Advance Release order issuing JDGFT to allow the re-credit.
Response: Commerce Secretary agreed to the proposal.
Query: Shoe and cap are in fact parts of the apparel of a person and hence should be given the same treatment in the Central Excise Policy of Taxation and Foreign Trade Policy for incentive etc. as is available for the "Apparels". The Raw Materials used in their manufacture (viz Leather) should also receive the same treatment as is available to the "Textiles". The rejected leather goods of export orders should not be subject to central excise like the textile ones.
Response: Commerce Secretary said that the issue concerns Finance Ministry and advised CLE to make out a case so that DOC can recommend.
Query: It has transpired that there is a move to include electricity as a constituent input in determining the DEPB rates. If happens so, it will be unfair to the units using their own Power Generating plants as per unit cost of electricity generated by this system is very high and such units will suffer a great disadvantage. So, the DEPB rates in these case should be suitably enhanced.
Response: Commerce Secretary suggested that UPLIA should submit a paper giving justification for inclusion of electricity as constituent for calculation of DEPB rate.
Query: Quantitative Norms per unit of export products have been fixed for consumption of fuel for generation of electricity and specified in SION items of some export products e.g. G-1, G-14, G-39, etc. This provision has been made for units having Captive Power plants only. A detailed study of power requirements and proportionate Diesel consumption in the manufacturing process of various leather products e.g. finished leather, leather footwear, leather garment and small leather products (purses, wallets etc) has been conducted by chartered engineers and government laboratories e.g. C.L.R.I. and the quantity of fuel consumed per unit for various items has been determined. A detailed report supported with detailed study charts etc of the above Agencies has already been sent to the DGFT by the then Chairman, Central Region L.E.P.C. vide his letter dated 20.09.2005. It is requested that based on the above study reports, fuel may also be included in SION of the above leather products for units having their Captive Power Plants in addition to G1, G14 & G39 only as at present.
Response: CLE was asked to submit a proposal.
Query: DGFT Notification No. 49 (RE-2006/2004-2009) dated 20th February 2007 restricts the Import of Betel Nuts through Mangalore port only. Lack of Infrastructure facilities at Mangalore leads to delayed clearance of Cargo. Mangalore being a small port, clearance takes much time due to high congestion resulting in payment of higher detention charges. Having no testing lab at Mangalore, the testing of imported goods takes long time and further delays the clearance of Import shipment and results in payment of higher additional cost. It also results in higher cost of Inland movement of goods from Mangalore to Northern parts of the Country. Export from Mangalore being very small, the containers bringing Betel Nuts from abroad do not get any cargo and are to be brought back empty. This adds to the freight costs charged by the Foreign Shipping Company from the Indian Importer, thus raising the overall freight costs further. Similar restrictions imposed earlier on the import of rubber, iron & steel scrap and timber were lifted subsequently on representations from the trade. The above Notification should also be withdrawn.
Response: Commerce Secretary justified the restriction on imports from Mangalore and said that this was done on the request of the farmers of that area. We are watching the situation and shall take a decision at appropriate time, he said.
Query: A Premier recognized Export House of Kanpur availing benefits of DFCE against export of Pan Masala & Pan Masala Gutkha has been granted DFCE for exports already affected. The condition imposed on the License stipulates as "Goods allowed to be imported under this scheme shall have a broad Nexus with the Products exported….." In terms of Para 3.7.6 of the then Foreign Trade Policy, it also stipulates" "The Duty Credit may be used for Import of any inputs; capital gods including spares, office equipments, professional equipment and office furniture provided the same is freely importable under ITC (HS) classification of export & import items for their own use or that of supporting manufacturers as declared in Appendix 17 D"
In this regard, the exporter stated that in the export product, one of the major inputs is Betel Nut which constitutes 68% in Pan Masala Gutkha and more than 74% in Pan Masala. The same is otherwise freely importable under ITC (HS) classification of export and import items and has a direct and broad Nexus with their export product. But the Customs do not allow the import of Betel Nuts against their aforesaid licenses on the ground that Betel Nut falls under Chapter 8 of ITC (HS) and as such it is not permissible for import under the Scheme.
Since Betel Nut is a major ingredient in the product of export, the exporter should be provided relief against this unjust restriction by way of suitable amendments in the provisions so that they may be able to import the required input (Betel Nut) for fulfillment of export commitments and further export production.
Response: CS assured to take up the matter as a special case with the Ministry of Agriculture.
Query: Suitable provisions should be made to make the MDA grant accessible for small exporters. Exporters marketing their products under a brand name should also be encouraged and compensated for the extra expenses incurred by them to establish their brands in the international market.
Response: Commerce Secretary asked to submit a proposal in this regard through proper channel and promised to consider it.
Query: Exporters making more than 3 shipments per day are facing lot of difficulties in procurement of the GSP forms ‘A’ from the Export Inspection Agency. It is suggested that GSP form ‘A’ should be allowed to be printed by FIEO, PHD Chamber and other reputed organizations and sold to their members, albeit, the authority to issue GSP form ‘A’ should continue to remain with EIC to avoid any possible misuse.
Response: Commerce Secretary informed that the restriction was imposed due to short supply. Now more printing press have been authorised to print GSP forms and restriction on number of GSP forms given to a firm/company will go, he said.
Query: Recently the Minister of State for Commerce, Sri Jairam Ramesh offered technical support and skill training to top diamond and gold producing African countries including South Africa. We have been informed that a top level delegation is likely to visit these countries to formalize ties. The Merchants’ Chamber of Uttar Pradesh wishes to be a part of this delegation.
|
FIEO (Karnataka Chapter) has been awarded as the Best Export Facilitation Organisation in Karnataka for year 2006-07. At a ceremony organised by Federation of Karnataka Chamber of Commerce & Industry in Bangalore on 16th June to honour top exporters in Karnataka for various product categories, Mr. P B. Mahishi, Chief Secretary, Government of Karnataka gave away this award to Mr. K Unnikrishnan, Jt. Director of FIEO. FIEO has got this award for the second year in a row. FIEO scored the highest points among 22 Export Facilitation Organisations operating in Karnataka in a poll organised by the Chamber among the exporters in Karnataka. |
 |
Response: Commerce Secretary agreed to look into it.
Query: Quantitative and Conditional Restrictions on the Import of Sandalwood (Raw Material) announced by Ministry of Commerce vide Notification No. 2 dt. 7th April 06 followed by DGFT Policy Circular No. 1 of the same date has created an anomalous situation by permitting Free Import of Sandalwood Oil (Finished Product). The conditions imposed are impracticable to follow. The conditions are:
"Certificate of Origin from the exporting country: This certificate is issued only at the time of shipment and hence it cannot be furnished at the time of submission of Application for grant of Import Licence.
Phytosanitary certificate indicating sandalwood species-wise and the country from which it is to be imported: The procedure for issue of the required certificate is that the cargo is handed over to the Customs authorities and Port authorities and then it is put in the Container and Fumigation takes place and thereafter Container is sealed. After this stage is over, Phytosanitary certificate is issued. Hence the certificate cannot be furnished at the time of submission of application for grant of Import Licence for Sandalwood.
As a result, not a single Licence could be availed of by any applicant. It is a peculiar case where Import of finished product is allowed freely and the Raw Material is restricted with conditions. This needs immediate attention.
Response: Commerce Secretary agreed that it was an anomalous situation and promised to have a meeting with the Ministry of Environment within a month to discuss the problem.
Query: The data submitted to the office of JS DBK was based on a FOB value derived on the basis of average exchange rate for the financial year 2006-2007 which incidentally was Rs.45.45 to USD 1.00 while average exchange rate of USD for the month of May 2007 is Rs.40.79 to USD, i.e. our currency has appreciated by almost 10.25%. As there is no change in the incidence of Central Excise duties suffered on inputs for export production in the current financial year. Moreover, in manufacture of Leather & Leather Products almost 70% of inputs being indigenous, the incidence of customs duty in value terms also remains almost the same. So, the All Industry DBK rates should be revised upward by almost the same percentage besides factoring in service tax, cess, levies, sales tax, transaction cost, infrastructure gap etc.
Response: Commerce Secretary said that Customs had recommended for inclusion of service tax in Drawback.
Query: In the All Industry Rate DBK Schedule for Leather Footwear/Footwear Components, all subheadings start with words "All" Leather. The Customs field formations at times, especially at New Delhi Airport, have objected on shoes with side elastic other trimmings to be not "All" Leather. While announcing New Rates for 2007-2008, this anomaly should be removed. Moreover, under heading Parts of Footwear 6406, when constituents export leather cut components or leather foot bed the same is classified by Customs under heading 640613 – others at 1%, which is not correct as at least the rate of finished Leather should be applicable
Response: The representative of Drawback Directorate, New Delhi informed that this problem appeared in ICD Dadri Kalan and JNPT but clarification has already been issued
Query: The customs department does not register the above licences the same day without verifying from the concerned issuing authority although the licences are issued online and the verification by post is uncalled for.
Response: Commerce Secretary said that the Customs would be advised to carry out the verification online.
Query: DFCE Scheme (Policy period 2002-07) is covered by Custom Notification No. 53/2003 dated 1st April 2003, wherein it exempts various goods when imported into India from the whole of duty of customs leviable thereon other than agricultural and dairy products. While DGFT vide its two Public Notices No. 41 (RE-2004) 2004-2009 dated 4th January 2005 and 42/2004-09 dated 6th January 2005 allowed import of Agricultural Products, the Custom Notification was not amended to permit clearance of the agricultural goods. This has resulted in utter confusion. This appears as an error and an amendment to Custom Notification is imminently required.
Response: Commerce Secretary advised DGFT to take up the matter with DOR for amendment of notification.
Query: Applications for fixation of brand rate for drawback should be decided within a time bound framework. There are cases where such applications have been pending for over three years.
Response: Commerce Secretary suggested that Customs might have a Regional Committee to finalize such cases.
Query: The issue of irregular schedule of trains at ICD Kanpur was raised in a meeting on 18th July 2006 with Hon’ble Minister of State for Commerce Sri Jairam Ramesh who categorically assured that fixed schedule of movement would be notified and adhered to. It was started also but unfortunately it is not being followed now. This is preventing exporters to maintain their schedule of export commitments.
Response: Commerce Secretary agreed to take up the issue with Ministry of Railways.
Query: CONCOR has raised handling and factory stuffing charges from Rs. 830 to Rs. 2500 and from Rs. 2480 to 3600 respectively within a year. Secondly, as regards container charges from Kanpur to JNPT and from Tuglakabad to JNPT, parity should be brought out as distances between the two pairs of stations are the same. The present rates are Rs. 38350 and Rs. 33000 respectively for a 40’ container (above 18 MT).
Response: Commerce Secretary agreed to take up the matter with CONCOR.
Query: There should be a second approach road to ICD-JRY, Kanpur under ASIDE Scheme.
Response: The MD UPSIDC advised FIEO to meet him for further action in the matter.
|
Online Processing of DEPB FIEO has been receiving references from exporters that a large number of shipping bill processed at EDI System get stuck in the "error queue" and do not get reflected in the DGFT System for online processing of DEPB Licences. The Federation had taken up the matter with the Directorate General of Safeguards, Customs & Central Excise and the Directorate General of System. The Federation was told that non-appearance of shipping bills in the DGFT System was generally happening due to one of the following reasons.
To tackle this issue, the Directorate of System has issued letters to all Chief Commissioners for giving necessary directions to all concerned officers to take utmost care while entering data particulars in the goods arrival module as well as to finalise the provisional assessment cases. The shipping bills returned by DGFT System with error message are retransmitted to DGFT System immediately after rectification. In addition, a facility is already available for viewing the current status of any shipping bill, including the shipping bills stuck in the ‘error queue’, through Document tracking’ facility provided in the ICEGATE website (http://icegate.gov.in/jsp/Tracking_at_ICES.jsp). Further, to ensure more effective monitoring of the status of transmission of S/Bs to the DGFT System, the Customs System now receives both the positive as well as the negative acknowledgements of the Shipping Bill transmission compared to only negative acknowledgement received in the past. Additionally, the Systems Managers are also being advised to take daily printout of the list of Shipping Bills stuck in the "error queue" and display the same on the Custom House Notice Board on periodical basis and also make available the same to the local office of FIEO through E-Mail. As may be observed from the above, exporters may themselves track the status of their Shipping Bills on the ICEGATE Website and take up the matter with the concerned Agencies in case any document is held up for any reason. |
