Foreign Trade Policy 2013-14 announced Trade Policy 1 Toys ... Foreign Trade Policy 2013-14 announced ... and Africa have been added with the objective to increase India’s share

Inside this issue:-

Foreign Trade Policy 1

Toys– The Cutural

Divide/ Revised

MDA Guidelines

2-3

Toy Retailers in the

UK Industry Market

Research Report/

2013 Sporting Goods

Retailer Satisfaction

4-5

FTP continued/

Export Promotion

Activities for the year

2013-14

6

Notification

No.21/2013-Customs

7

Procedure for re-

fund / revalidation

of DEPBs/

Reward Scrips for re-

credit of 4% CVD

8

Presentation by

Adani /Presentation

by GMR/ SGEPC

Info

9

Foreign Trade Policy 2013-14 announced

HIGHLIGHTS OF ANNUAL SUPPLEMENT (2013-14) TO THE

FOREIGN TRADE POLICY 2009-14

Incremental Exports Incentivisation Scheme

Government has announced Incremental Export Incentivisation Scheme on

26.12.12 for the exports made during January 2013 to March 2013. This

scheme is available for exports made to USA, EU and Asia. It has been

agreed to extend this scheme for the year 2013-14. The calculation of the

benefit shall be on annual basis under the extended scheme. The

Government has also agreed to include additional countries under

Incremental Exports Incentivisation Scheme. 53 countries of Latin America

and Africa have been added with the objective to increase India’s share in

these markets. The present

exports to each of these

markets is less than US $

100 million.

Widening of items

eligible for import for

Handloom/Made ups

and Sports Goods

5 additional items have

been added pertaining to

sports goods exports. These 5 items are (i) PVC Leather Clot (to be used in

the manufacture of Inflatable Balls & Sports Gloves), (ii) Latex Foam (to be

used in the manufacture of Shin Guard & Goal Keeper Gloves & other

Sports Gloves), (iii) Peva / Eva Foil (to be used in the manufacture of Shin

Guard & Sports Gloves), (iv) Stitching Thread (to be used in the

manufacture of Inflatable balls & Sports Gloves), (v)Printing Ink (to be

used in the manufacture of Inflatable balls & Sports Gloves).

Item descriptions shall be amended, from Synthetic Rubber Bladder to

PVC/Synthetic Rubber Bladders for Inflatable Balls and from PU Leather

Cloth/PU laminated with cotton for Inflatable Balls to TPU/PU Leather

cloth/TPU/PU laminated with cotton for Inflatable Balls, in Notification

No.12/2012 – [Cus (Sl.No.521 (f) and (k)] in relation to sports goods

exports. (Notification appears on Page 5)

(cont. on page 4)

S p o r t s G o o d s E x p o r t P r o m o t i o n C o u n c i l

June, 2013

Volume 1, Issue 1

Page– 1

Toys – The Cultural Divide

The large toy manufacturers in the U.S. and Europe do not agree on too many things but

they do agree on one point – while the business today is in the U.S. and Europe, the long

-term potential is elsewhere. To illustrate the point, the chart below compares the six

Continents on three parameters – population of

children below 15 years of age, toy sales, and per

capita income.

What this tells us is that the consumption of toys

by the <15 population is by far the highest in North

America, followed by Europe, Latin America and

Oceania. The gap between the two metrics is by far

the widest in Asia and Africa. While economic

factors play a major role in this – see the

comparison between Toy Sales and Per capita

income – the graph suggests a major unexploited

market opportunity in, again, Asia and Africa

followed by Latin America.

Yet, when we listen to what the leading American manufacturers – Mattel, Hasbro, LeapFrog – have to

say about their business, their focus is virtually totally on North America and Europe. This is

understandable since the majority of their sales is in these two places – see the chart below:

The problem with this approach is that the North

American toy market has been flat to down for

virtually a decade now and that Europe is pretty

much going the same way.

Yes, there is today also more emphasis on Mexico

and Brazil than has traditionally been the case

but the chart shows that Latin America is

relatively small potatoes in terms of potential. So,

why should this be the case? What is wrong with

Asia and Africa?

One answer is that North American

manufacturers appear to instinctively shy away

from both Continents because they are much

more comfortable with the North American, European and Latin American environments – culturally,

linguistically, demographically and, most importantly, in the approach to play and hence to toys.

Yes, there are differences between the Mom in Wichita, the Hausfrau in Darmstadt and the Carioca in

Rio, but these differences are totally unimportant if you look at the similarities. The opposite is true

when you go to Africa or Asia. The explanation most often given is that pricing is too low, costs of

adapting products to local mandates too high, the political risks too extreme. While all true up to a

point, these are in reality mere justifications for "not going where no one has gone before."

Page– 2

Toys start with product development, and in the case of the three companies,

development is done in the U.S. by highly talented and extremely well educated people

who have mostly lived all their lives in North America. If they travel at all, they do so

within an American cocoon.

They most likely see Bangkok from an air-conditioned hotel room, or discuss marketing

with their U.S-educated Egyptian colleagues in a Cairo skyscraper or think that the shops on Cape

Town’s Cavendish Square represent the African mainstream. They most probably never sat down and

talked to a Buddhist abbot in a Lao monastery, or shared a midday meal of rice and fish with a farmer

in upcountry Thailand, or lived with a Muslim family in a village in the Nile Delta.

But these are the people who epitomize the way a country, or a culture, or a religion, sees play, and

hence determine what toys are or are not appropriate for their children.

One company learned this the hard way in China. Barbie is still today the number one fashion doll in

the world and Mattel Inc. spent literally millions on a several-story flagship store in Shanghai in an

effort to finally get a foothold in China. That was in 2009. By 2011, the store was history.

Where they went wrong was that they did not even suspect that China was different from the United

States on a very fundamental level. The bedrock of the Chinese worldview is Confucianism, and two of

the guiding principles governing behavior are Renqing, which broadly translates as the absolute need

to adhere to decorum, propriety and politeness; and Keqi which mandates modesty, humility and good

manners in all situations.

Barbie, in the eyes of the Chinese mothers, does not meet the mandates of these two precepts for their

daughters and so they stayed away in droves.

For complete story, kindly click here

Source: TDmonthly

Page– 3

Revised Market Development Assistance Scheme

In a major push to market development in International trade, Government has revised some of the

guidelines in the MDA scheme:-

1. Exporting companies with an FOB value of exports of up to Rs. 30 crores in the preceding year

will be eligible for MDA assistance now. (Earlier this limit was of 15 crores.) No such ceiling is

applicable for participation in Focus LAC region.

2. The revised guidelines have also substantially enhanced in the financial ceiling for participation

in Trade Fairs & Exhibitions from Rs.1,80,000/- to Rs.2,50,000/- (for Focus Latin American countries),

from Rs.1,50,000/- to Rs.2,00,000/- (for focus African countries, focus CIS countries, focus ASEAN,

Australia and New Zealand) and from Rs.80,000/- to Rs.1,50,000/- (for general areas).

3. For EPC etc. led BSMs only air-fare by Economy Excursion class up to a maximum of Rs.

70,000 (Rs. 1, 00,000 in case of Focus LAC) shall be permissible.

For complete MDA guidelines, kindly click here

Toy Retailers in the UK Industry Market Research Report

Over the past five years, the Toy Retailers industry has been influenced by increasing

competition, fluctuations in the level of disposable incomes, consumer confidence and

trends in the proportion of the UK population aged 14 or under. Industry revenue is

expected to rise marginally to £1.46 billion over the five years through 2013-14, at a compound annual

rate of 0.4%. Revenue is estimated to contract by 0.8% in the current year, but this figure is still an

improvement on the figures for the previous three years.

According to IBISWorld industry analyst Andrew Johnson, ―The industry is subject to competition

from a range of external players including department stores, supermarkets, pound shops and online

retailers." UK consumers have rapidly embraced the convenience and lower prices that internet stores

offer. Department stores, supermarkets and pound shops have buying power that has enabled them to

compete fiercely for toy sales on price.

In 2009-10, the industry benefited

from the closure of Woolworths, which

had been one of the main price-setting

competitors in the UK Toy Retailers

industry. Changes in consumer

preferences have also played a part

in industry performance. Toys

aimed at the younger section of

the market have done relatively

well, thanks to the growing number of

children under 14 in the United

Kingdom. However, older

children now have far more

entertainment alternatives to

traditional toys, which they are

actively taking up. This has reduced the amount of revenue that can be generated by targeting this

section of the market.

Toy retailers will continue to face difficult trading conditions over the five years through 2018-19, but

industry revenue is still forecast to increase marginally. Johnson adds, ―Online retailers and

technological developments are expected to shape competition for industry operators in the coming

years." This competition will mainly affect retailers of mass-market toys. Independent retailers are

expected to move into niche areas, where demand for traditional toys will remain relatively robust.

The UK Toy Retailers industry has a medium level of market share concentration with the top four

players in the market are estimated to have a 56% share of industry revenue. The level of concentration

in the industry has been declining, as the largest players have lost a significant amount of revenue to

external competitors, such as supermarkets, department stores and online retailers.

Source: IBISWorld

Page– 4

2013 Sporting Goods Retailer Satisfaction Report

J.D. Power and Associates Reports: Satisfaction is Higher among Sporting Goods

Retailer Club Members than among Non-Members

Club memberships, while not necessarily creating more loyal customers, positively impact overall

customer satisfaction, according to the J.D. Power and Associates 2013 Sporting Goods Retailer

Satisfaction ReportSM released today.

Now in its second year, the report measures the overall sporting goods retailer customer satisfaction

experience by examining five key factors: staff, cost, merchandise, facility, and sales/promotions.

The report finds that overall satisfaction with sporting goods retailers is 823 (on a 1,000-point scale)

among club members, compared with 800 among non-members. However, club membership does not

always create brand advocacy or loyalty. Among the four retailers with the highest proportion of club

members, three of the brands have less than 45 percent of their customers saying they "definitely will"

recommend the brand. Additionally, only two of those four

brands have an above the report average (44%) percentage of

customers who say they "definitely will" repurchase the brand.

The report finds that a courteous and knowledgeable sales staff

is the key driver of customer satisfaction with a sporting goods

brand. Among the five study factors, staff (30%) has the

highest importance weight in determining overall satisfaction,

followed by cost (22%), merchandise (18%), facility (17%) and

sales/promotions (14%).

"While there is a link between club membership and higher customer satisfaction with a brand,

membership does not always impact loyalty and advocacy," said Sally Lombardo, research director at

J.D. Power and Associates. "Instead, customer satisfaction is more influenced by the sales staff, cost

and merchandise options above all else. Sporting goods retailers must understand that while club

memberships may create inclusiveness, they need to be able to provide a complete experience to impact

loyalty in order to keep customers coming back."

Among the nine retail brands included in the report, Cabela's ranks highest with an overall score of 828

and performs particularly well in the staff, merchandise, facility and sales/promotions factors.

Following Cabela's in the rankings are Academy Sports + Outdoors (824), Bass Pro Shops (818) and

REI (814), all outperforming the report average of 808.

According to the report, 62 percent of Cabela's customers say they "definitely will" recommend the

brand, which is significantly higher than the report average (50%). In addition, 51 percent of Cabela's

customers say they "definitely will" repurchase the brand, which is higher than the report average of 44

percent and the majority of the brands included in the report.

The 2013 Sporting Goods Retailer Satisfaction Report is based on responses of more than 1,600

customers who purchased a product at a sporting goods retailer store in the previous 30 days. The

report was fielded in December 2012 and January 2013.

Page– 5

(cont. from page 1)

Recredit of 4% SAD Utilization of recredited 4% SAD scrips shall be allowed upto 30.09.13 as a trade

facilitation measure. However, no further extension shall be considered by Government

and this would be the last such opportunity. The importers are advised to make the initial payment of

4% SAD in cash in future if they want a refund. (Notification appears on Page 6)

Ease of Documentation and procedural simplification

It has been decided to dispense with submission of hard copy of EP copy of shipping bills in case of (a)

advance authorization, (b) duty free import authorization for grant of Export Obligation Discharge

Certificate (EODC) if exports are made through EDI ports.

Facility to close cases of default in Export Obligation

Requests have been received for grant of relief to close cases where there is default in export

obligations pertaining to advance authorizations and EPCG authorizations. It has been decided to allow

a facility to close such cases after payment of required duty, along with applicable interest. The duty +

interest have to be paid within a limited period of six months from the date of notification of this

scheme. The total payment shall not exceed two times the duty saved amount on default in Export

Obligation.

Market and Product Diversification

Norway has been added under Focus Market Scheme and Venezuela has been added under Special

Focus Market Scheme. The total number of countries under Focus Market Scheme and Special Focus

Market Scheme becomes 125 and 50 respectively.

Approximately, 126 new products have been added under Focus Product Scheme. These products

include items from engineering, electronics, chemicals, pharmaceuticals and textiles sector.

Page– 6

Export Promotion Activities for the year 2013-14

Sr. No. Events Sector Dates

1 Exhibition of Indian Sporting

Goods & Toys in LAC (Brazil,

Argentina and Chile)

Sports Goods and

Toys

September, 2013

2 Sports Source Asia 2013,

Hongkong

Sports Goods 29th – 31st October,

2013

3 Hong Kong Toys and Game

Fair 2014, Hong Kong

Toys 6th – 9th January,

2014

4 ISPO 2014 Sports Goods 26th – 29th January,

2014

5 Spielwarenmesse International

Toy Fair, Nurnberg, Germany

Toys 29th January – 03rd

February, 2014

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA

MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)

New Delhi, the 18th April, 2013

Notification No.21/2013-Customs

G.S.R. (E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act,1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2012-Customs, dated the 17th March,2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R.185 (E), dated the 17th March,2012, namely:-

In the said notification, in the Table,-

(i) against serial number 284, in column (3), after item (j), the following items shall be inserted, namely:-

― (k) Embroidery threads

(l) Sewing threads

(m) Poly wadding materials

(n) Quilted wadding materials

(o) Printed bags‖.

(ii) against serial number 521, in column (3),- (a) for item (f) and entries relating thereto, the following item and entries shall be substituted, namely:-

―(f) PVC / Synthetic Rubber bladder for inflatable balls‖ ;

(b) for item (k) and entries relating thereto, the following item and entries shall be substituted, namely:-

―(k) TPU /PU leather cloth or TPU / PU laminated with cotton, for inflatable balls‖

(c) after item (p), the following items shall be inserted, namely:- ―(q) PVC leather cloth for inflatable balls or sports gloves

(r) Latex foam for shin guard or goal keeper gloves or other sports gloves

(s) PEVA / EVA foil for shin guard or sports gloves

(t) Stitching thread for inflatable balls or sports gloves

(u) Printing ink for inflatable balls or sports gloves‖.

[F. No. 354/57/2013-TRU]

(Akshay Joshi) Under Secretary to the Government of India

Note.- The principal notification No. 12/2012-Customs, dated the 17th March, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 185(E), dated the 17th March, 2012 and last amended vide notification No-. 18/2013-Customs, dated the 26th March, 2013 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.193 (E), dated the 26th March, 2013.

Page– 7

-COPY OF-

PUBLIC NOTICE

No. 6 (RE-2013)/2009-2014

Dated 18th April, 2013

Procedure for refund / revalidation of DEPBs/

Reward Scrips for re-credit of 4% CVD (SAD). In exercise of powers conferred under Para 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby amends Paragraph 2.13.2A of the Handbook of Procedures (Vol.1), 2009-14 by substituting contents of the said para with the following:-

“(i.) Only for the purpose of utilisation of re-credit of 4% Special Additional Duty (SAD) of customs, the freely transferable duty credit scrips (including DEPB), shall be deemed to have been revalidated till 30.09.2013. No further endorsement by the respective RA on such scrips shall be required. (ii.) If the consolidated certificate (Credit Note) has already been issued by Customs or gets issued by 30.06.2013, then the amount (4% SAD) indicated in the consolidated certificate by customs shall be deemed to have been re-credited in the scrips in such cases, without any further reference to any RA of DGFT. “

2. This is the last and final extension to use the re-credited scrips. No further extension shall be considered by the Government under any circumstances. Importers desirous of such refund in future must make the payment of SAD in cash. Effect of Public Notice: The exporters will now be able to utilize 4% re-credited SAD till 30.09.2013. No further endorsement is required from RA for revalidation. No further extension would be considered. (Issued from File. No. 01/94/180/DEPB-SAD recredit/AM10/PC-4)

Sd/-

(Anup K. Pujari)

Director General of Foreign Trade

Page– 8

ACHIEVEMENT

It gives us great pleasure to inform that

‘ISEO CHEMDIS PRIVATE LIMITED,

GURGAON’ has been awarded a seal of

compliance from the ‘ICTI CARE FOUN-

DATION’, the only company in India

to achieve this feat.

IMPORTANT DATES

1. Export returns for the year 2012-13

along with Trade contribution and C.A.

Certificate: 30th June, 2013

2. Sports Source Asia application last date:

Immediate

3. ISPO application last date: 28th June,

2013

Presentation by Adani on

the

‘Adani Port & Special

Economic Zone’

being conducted in

Jalandhar on 27th April,

2013

Page– 9

SGEPC Newsline is the electronic newsletter of the Sports Goods Export Promotion Council

For any suggestions/ queries, please contact us at:-

SPORTS GOODS EXPORT PROMOTION COUNCIL

1-E/6, Swami Ram Tirth Nagar, New Delhi - 110055 (INDIA)

Tel:+91-11-47761100 Fax: +91-11-23632147

E-Mail: [email protected]

Website: www.sportsgoodsindia.org , www.toysindia.in

Regional Office

201 Shakti Nagar Jalandhar-144001

Tel:+91-181-2403734

E-Mail: [email protected]

Presentation by GMR on

the

‘GMR Sports Goods &

Toy Manufacturing

Zone’ being conducted

in Meerut on 10th May,

2013