Issue April - May 2018 CHEMEXCIL 46th EXPORT AWARDS 2018€¦ · Number (ARN), is generated online. The DGFT has launched the facility to check status of Importer Exporter Code (IEC)

Basic Chemicals, Cosmetics & Dyes Export Promotion Council(Set - up by the Ministry of Commerce & Industry Government of India)

Issue April - May 2018

Lighting of lamp at Chemexcil Export Award function at Hyatt Regency, Mumbai on 21st April-2018. From left Shri Shyamal Misra, IAS, Joint Secretary, Ministry of Commerce and Industry, Govt. of India, Shri Ajay Kadakia, Vice Chairman, Chemexcil, Shri Suresh Prabhu, Hon’ble Minister of Commerce & Industry and Civil Aviation, Government of India, Shri Satish Wagh, Chairman, Chemexcil, Shri S. G. Bharadi, Executive Director, Chemexcil.

CHEMEXCIL46th EXPORT AWARDS 2018

GLIMPSES OF CHEMEXCIL’S 46TH EXPORT AWARD FUNCTION DATED 21ST APRIL-2018 IN MUMBAI

Shri Shyamal Misra, IAS, Jt. Secretary Ministry of Commerce & Industry, Government of India addressing the gathering during Export Award function at Hyatt Regency, Mumbai on 21st April-2018

Shri Satish Wagh, Chairman, Chemexcil felicitating Shri Suresh Prabhu, Hon’ble Minister of Commerce & Industry and Civil Aviation, Government of India during Export Award function at Hyatt Regency, Mumbai on 21st April-2018

Shri Suresh Prabhu, Hon’ble Minister of Commerce & Industry and Civil Aviation, Government of India addressing the gathering during Export Award function at Hyatt Regency, Mumbai on 21st April-2018.

1 April - May, 2018

I have pleasure to bring to you bimonthly issue of the CHEMEXCIL Bulletin for the month of APRIL - MAY - 2018, which contains various activities undertaken by the Council and other useful information/Notifications, etc.

The GSTN has made facility available for online submission of the RFD-11(Letter of Undertaking) for FY 2018-19. Online submission of LUT will save time & transaction costs. Members now can apply online for LUT on the GST Portal.

I hope, all member-exporters may be aware that the Central Board of Excise and Customs (CBEC) has been renamed as the ‘Central Board of Indirect Taxes and Customs (CBIC)’w.e.f 1st April 2018.

CBIC has announced the smooth roll out of e-Way Bill system from 01st April, 2018 for inter-state movement. The implementation of the nationwide e-Way Bill mechanism under GST regime is being done by GSTN in association with the National Informatics Centre (NIC) and is being run on portal namely https://ewaybillgst.gov.in

The Jawaharlal Nehru Custom House(JNCH), NhavaSheva has constituted “Environment Protection Unit” & Compliance of E-Waste (Management) Rules, 2016, respectively.

CBIC has clarified the renewal of online Letter of Undertaking (LUT ) for 2018-19. The registered person (exporters) shall fill and submit FORM GST RFD-11 on

Disclaimer:- News, Views, Article, Strategy in this publication are not necessarily those of council. These are provided only for information as a service & reference to members. The Publisher and editors are in no way responsible for these views.

Editorial

Mr. Satish W. Wagh Chairman

Mr. Ajay Kadakia Vice Chairman

Mr. S. G. Bharadi Executive Director

Mr. Prafulla Walhe Dy. Director

Mr. Deepak Gupta Dy. Director

IN THIS ISSUE

1 Chairman Desk

2 Export Statistics

3 India’s trade with Latin America has started growing again

4 The changing shape of the world’s synthetic food colour industry

5 Dangerous Goods:- Classification of Corrosive Substances - Class 8

8 News Article

9 Chemexcil Notices

Chairman’s Desk

6 Export strategy - South Africa

Chemexcil Activities7

Dear Member-exporters,

32April - May, 2018

the common portal. An LUT shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. No document needs to be physically submitted to the jurisdictional office for acceptance of LUT. An LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online.

The DGFT has launched the facility to check status of Importer Exporter Code (IEC) application made to them.

CHEMEXCIL Participated in the 18th China Interdye Exhibition 2018 show for Dyes and Dye Intermediates, Pigments and Textile Chemical industry which was held at Shanghai World Expo Exhibition & Convention Centre (SWEECC), Shanghai, CHINA from 11th -13th April 2018. The India pavilion was inaugurated by Shri Anil Kumar Rai, Hon'ble Consul General of India to Shanghai. He also visited India Pavilion and interacted with Indian exhibitors.

Altogether 92 member-companies of CHEMEXCIL and 11 member-companies of SHEFEXIL participated in this event, which was a grand success.

I have pleasure to inform you that Chemexcil organized its 46th Export Awards function on 21st April-2018 at Ball Room, Hotel Hyatt Regency, Sahar Airport Road, Ashok Nagar, Andheri (East), Mumbai, 400099. The Chief Guest of the function was Shri Suresh Prabhu, Hon’ble Minister of Commerce & Industry and Civil Aviation, Government of India, who conferred the Export Awards to 73 outstanding exporters who had excelled in their export performance during the year 2016-17. In the said function, CHEMEXCIL had also felicitated two Life Time Achievement Award Winners, namely Shri Ashwin C. Shroff, Chairman and Managing Director of M/s.Excel Industries Limited and Shri Jayanti Meghjibhai Patel, Director of M/s. Meghmani Organics Limited.

The total export performance of the items coming under the purview of CHEMEXCIL during the period April 2017 to March, 2018 was USD 15.91 billion as compared to USD 12.06 billion of the corresponding period of previous year, registering growth of 31.94% in terms of value and 44.40% in terms of volume.

I compliment my exporter-friends for their efforts taken in achieving such a commendable export performance.I assure you all that the Council will continue to extend its assistance and co-operation in resolving your problems, if any being encountered, in your export efforts.

I hope, you will find this news bulletin informative and useful. The Secretariat look forward to receive your valuable feedback and suggestions which will help us to improve this bulletin

Satish Wagh Chairman, CHEMEXCIL

M/s. Swastik Industries, 207/208, Udyog Bhavan,Sonawala Road, Goregaon (East), Mumbai 400063, INDIA. Tel : +91 22 40332727 / 40332718, Fax : +91 22 26860011 E-mail [email protected]; [email protected]

2April - May, 2018

3 April - May, 2018

Trend in CHEMEXCIL’s Exports

USD in Million

Month 2016-17 2017-18 % Increase/Decrease

April 889.17 1120.73 26.04

May 972.68 1137.44 16.94

June 1020.41 1175.34 15.18

July 979.16 1211.00 23.68

August 929.44 1273.10 36.97

September 945.72 1463.19 54.72

December 1021.56 1264.82 23.81

November 886.59 1446.07 63.10

December 1133.01 1592.55 40.56

January 1005.04 1342.53 33.53

February 1103.31 1441.68 30.66

March 1239.02 1689.17 36.33

Source: DGCI&S

Panel wise export of CHEMEXCIL for the period March 2018 over March 2017

Exports Statistics

54April - May, 2018

Chapter No./Panel2016‐17 2017‐18 2016‐17 2017‐18 % as compared

to similar period of previous year

March, 2017 (Actual)

March, 2018 (Provisional)

April,2016/ March, 2017 (Actual)

April,2017/ March 2018 (Provisional)

(32) Dyes & (29) Dye Intermediates

206.96 258.75 2,108.20 2,403.62 14.01

(32) Dyes 190.93 232.56 1923.12 2191.86 13.97(29) Dye Intermediates

16.03 26.19 185.08 211.76 14.42

(28) Inorganic, (29) Organic & (38) Agro Chemicals

795.04 1170.13 7712.75 10665.67 38.29

(28) Inorganic chemicals

81.80 102.65 727.63 975.82 34.11

(29) Organic chemicals

481.79 801.70 4844.39 7130.46 47.19

(38) Agro chemicals 231.45 265.78 2140.73 2559.39 19.56(33) Cosmetics, (34) Toiletries & (33) Essential oils

159.79 168.99 1566.60 1801.33 14.98

(33) Cosmetics, (34) Toiletries

148.65 155.44 1454.15 1654.42 13.77

(33) Essential oils 11.14 13.55 112.45 146.91 30.64

(15) Castor oil 77.23 91.30 674.73 1043.99 54.73

Total 1239.02 1689.17 12062.28 15914.61 31.94

SOURCE:DGCI&S

CHEMEXCIL’S EXPORTS TO TOP 25 COUNTRIES FOR THE YEARS 2015-16, 2016-17 & 2017-18

USD in Million

Country2015-16 (Actual)

2016-17 (Actual)

% over previous year

2017-18 (Provisional)


CHINA P RP 982 978 0 2333 138

U S A 1371 1372 0 1724 26

BRAZIL 443 581 31 708 22

SAUDI ARAB 487 507 4 695 37

NETHERLAND 432 400 -7 599 50

INDONESIA 504 472 -6 542 15

U ARAB EMTS 400 393 -2 494 26

JAPAN 332 384 16 444 16

GERMANY 380 342 -10 402 17

SINGAPORE 294 274 -7 389 42

MALAYSIA 255 321 26 388 21

BANGLADESH PR 301 342 14 384 12

BELGIUM 333 301 -10 378 26

PAKISTAN IR 235 341 45 366 7

TURKEY 292 303 4 361 19

5 April - May, 2018

USD in Million


2016-17 (Actual)




KOREA RP 325 325 0 357 10

SPAIN 251 249 -1 336 35

THAILAND 279 247 -11 315 28

FRANCE 262 244 -7 311 28

ITALY 215 226 5 256 13

TAIWAN 178 198 11 231 17

MEXICO 183 173 -5 211 22

U K 194 184 -5 210 14

VIETNAM SOC REP 122 142 16 196 38

SWITZERLAND 137 142 4 183 29

TOP 25 COUNTRIES TOTAL 9187 9440 3 12812 36

GRAND TOTAL 11686 12063 3 15915 32

SHARE % TOTAL CHEMEXCIL’S EXPORTS

79% 78% 81%

Source: DGCI&S

REGIONWISE EXPORTS FOR THE YEAR 2015-16, 2016-17 & 2017-18

USD in Million


2016-17 (Actual)




AFRICA & WANA 901.24 943.23 4.66 1113.62 18.06

ASEAN + 2 1653.33 1649.52 -0.23 2032.98 23.25

CIS 83.81 121.29 44.72 147.97 22.00

EU 2339.45 2206.41 -5.69 2792.72 26.57

GCC 1001.74 1033.16 3.14 1409.03 36.38

GENERAL 3248.31 3532.84 8.76 5213.83 47.58

LATIN AMERICA 803.5 930.6 15.82 1140.4 22.54

NORTH AMERICA 1619.43 1606.17 -0.82 2001.98 24.64

Source: DGCI&S

76April - May, 2018

Export of Dyes top 10 countries for the period April-March 2017-18 over April-March 2016-17

DYES (Chapter 32) EXPORT

USD in Million

Country April-March

2016-17

April- March

2017-18

(%)

Growth

Rate

U S A 168.24 184.89 10

TURKEY 142.77 169.97 19

CHINA P RP 86.79 126.77 46

BANGLADESH

PR 115.40 120.094

GERMANY 91.71 103.45 13

ITALY 89.90 100.52 12

NETHERLAND 68.34 97.28 42

BRAZIL 89.27 93.19 4

INDONESIA 76.49 81.07 6

SINGAPORE 54.02 77.36 43

Source: DGCI&S

Export of Dyes top 10 countries for the period April-March 2017-18 over April-March 2016-17

DYE INTERMEDIATES (CHAPTER 29) EXPORT

USD in Million

Country April-March

2016-17April- March

2017-18

% Growth

Rate

CHINA P RP 47.62 63.05 32

KOREA RP 40.97 43.06 5

TAIWAN 20.84 21.01 1

U S A 19.96 20.73 4

THAILAND 6.02 5.77 -4

GERMANY 3.98 5.61 41

HUNGARY 2.01 5.43 169

INDONESIA 4.54 5.39 19


TURKEY 3.67 5.13 40

Source: DGCI&S

7 April - May, 2018

Export of Inorganic, Organic & Agro Chemicals to top 10 countries for the period

April-March 2017-18 over April-March 2016-17

INORGANIC CHEMICALS (CHAPTER 28) EXPORT

USD in Million

Country April-March

2016-17April- March

2017-18

% Growth

Rate

U S A 53.36 85.36 60

CHINA P RP 40.17 61.03 52

SRI LANKA DSR 27.48 40.73 48

BANGLADESH

PR 36.23 39.7710

INDONESIA 22.95 39.52 72

KOREA RP 31.69 39.39 24

VIETNAM SOC

REP 25.21 39.3756

U ARAB EMTS 33.05 38.11 15

MALAYSIA 13.88 25.78 86

JAPAN 14.45 24.89 72

Source: DGCI&S

ORGANIC CHEMICALS (CHAPTER 29) EXPORT

USD in Million

Country April-March

2016-17April- March

2017-18

% Growth

Rate

CHINA P RP 452.81 1559.62 244

U S A 535.13 628.99 18

SAUDI ARAB 387.94 563.55 45

INDONESIA 277.53 312.90 13

MALAYSIA 243.57 291.37 20

U ARAB EMTS 158.08 238.02 51

SPAIN 159.81 228.09 43

NETHERLAND 149.48 216.34 45

GERMANY 175.45 208.74 19

BELGIUM 153.55 208.14 36

Source: DGCI&S

AGRO CHEMICALS (CHAPTER 38) EXPORT

USD in Million

Country April-March

2016-17

April- March

2017-18

%

Growth

Rate

U S A 365.93 485.75 33

BRAZIL 363.34 386.06 6

JAPAN 104.93 125.81 20

FRANCE 78.21 107.75 38

VIETNAM SOC

REP 57.01 87.0353

BELGIUM 62.29 78.43 26

BANGLADESH

PR 55.79 74.5134


CHINA P RP 60.98 69.33 14

INDONESIA 51.00 60.80 19

Source: DGCI&S

Export of Cosmetics, Toiletries & Essential Oils to top 10 countries for the period


COSMETICS (CHAPTER 33) & TOILETRIES

(CHAPTER 34) EXPORT

USD in Million

Country April-March

2016-17

April- March

2017-18

%

Growth

Rate

U ARAB EMTS 171.17 182.74 7

U S A 132.96 175.41 32

NEPAL 94.56 97.92 4

BANGLADESH

PR 86.57 97.9013

SAUDI ARAB 77.20 85.72 11

SINGAPORE 61.53 74.39 21

SRI LANKA DSR 80.74 73.31 -9

PAKISTAN IR 51.94 61.10 18

SOUTH AFRICA 37.13 43.57 17


Source: DGCI&S

98April - May, 2018

ESSENTIAL OILS (CHAPTER 33) EXPORT

USD in Million

Country April-March

2016-17

April- March

2017-18

%

Growth

Rate

U S A 22.70 33.05 46

FRANCE 16.62 18.69 12

INDONESIA 14.61 14.33 -2

HONG KONG 7.74 9.79 26

GERMANY 4.49 6.47 44

U K 4.24 4.24 0

NIGERIA 2.14 4.11 92

U ARAB EMTS 3.44 3.64 6

SPAIN 3.09 3.52 14

BANGLADESH

PR 2.49 2.8213

Source: DGCI&S

Export of Castor Oil to top 10 countries for the period


CASTOR OIL ( CHAPTER 15) EXPORT

USD in Million

Country April-March

2016-17April- March

2017-18

% Growth

Rate

CHINA P RP 264.93 424.30 60

NETHER-LAND 88.53 153.91

74

FRANCE 81.98 110.97 35

U S A 73.31 109.55 49

THAILAND 17.84 42.47 138

JAPAN 25.48 38.76 52

ITALY 13.75 18.38 34

KOREA RP 11.15 15.84 42

BRAZIL 6.39 14.98 134

BELGIUM 19.03 14.49 -24

Source: DGCI&S

BASE CHEMICALS (FEED STOCK)

Petrochemicals, Alcohol based Chemicals, Chlor

Alkali Chemicals, Inorganic Chemicals, Organic Chemicals.

COLORENTSDyes, Dye

intermediates, Pigments.

AGROCHEMICALSInsecticides,

Rodenticides, Herbicides, Fungicides and Other Crop

Protection Chemicals.

SPECIALITY CHEMICALSLeather Chemicals,

Construction Chemicals, and other Specialty

Chemicals, Castor Oil and its derivatives.

PERSONAL CARE PRODUCTS

Cosmetics, Soaps & Toiletries, Essential

Oils, Perfumes & Aromatic Chemicals

• Indian chemical industry stood as 3rd largest producer in Asia and 12th in world.

• The chemical industry in India is a key constituent of Indian economy, accounting for about 7% of the GDP.

• India accounts for approximately 7% of the world production of dyestuff and dye intermediates, particularly for reactive acid and direct dyes

INDIAN CHEMICAL INDUSTRY

[email protected]

CHEMEXCILBasic Chemicals, Cosmetics & Dyes

Export Promotion Council(Set up by the Ministry of Commerce & Industry Government of India)

• India is currently the world’s third largest consumer of polymers and fourth largest producer of agrochemicals.

• Indian Chemical Industry is One of the most diversified sectors, covering more than 70,000 commercial Products.

MAJORSTRENGTH

9 April - May, 2018

INDIA’S TRADE WITH LATIN AMERICA HAS STARTED GROWING AGAIN

Highlights

India’s trade with Latin America grew by 24%

in 2017 to 35 billion dollars, after the decline in 2015 and 2016. The exports have increased by 15% to 11.6 billion and imports by 28 %to 23.4 bn in 2017 from the previous year. The trade is poised to grow in the coming years

in view of the increase in the economic growth forecast for the region and the higher global prices of commodities.

India’s exports to some Latin American countries were more than the exports to neighbouring countries and traditional trade partners. India exported more to the distant Costa Rica than to the neighbouring Cambodia: more to Mexico than to Thailand, Canada or Russia.

Vehicles are the largest part of India’s exports to Latin America, which accounted for 3.7 billion dollars ( 23%) of India’s global exports. Mexico is the top destination of India’s global vehicle exports.

The Trump factor and the fear of China has motivated the Latin Americans to attach more importance to India, which is their fourth largest destination for global exports. They export more to India than to their old trade partners such as Germany, Spain, France, UK or Japan.

This is an opportune time for India to intensify its engagement with serious and systematic trade promotion with Latin America. Twenty billion dollars of exports in the next five years is an achievable target.

India- Latin America trade in 2017

India’s trade with Latin America in 2017 ( January to December) was 34.967 billion dollars, of which

exports were 11.584 billion and imports 23.383 billion.

Trade with the region increased by 24% in 2017 from the previous year, helped by the recovery of Latin American economies and the increase in their global imports. After reaching a peak of 49 billion in 2014, the trade had come down in 2015 and 2016 due to the recession in the region and the drastic fall in the global prices of crude oil and minerals imported by India from the region.

Brazil is the top trading partner of India with 7.9 billion dollars followed by Mexico, Venezuela and Argentina, as seen from the table below.

India’ trade with Latin American countries in 2017 (January-December) in Million US dollars

CountryIndia’s exports

importsTotal trade

Brazil 2873 5099 7972

Mexico 3700 3532 7232

Venezuela 82 5898 5980

Argentina 661 2486 3147

Peru 729 2068 2797

Chile 745 1700 2445

Colombia 912 647 1559

Dominican Rep 196 595 791

Bolivia 99 598 697

Ecuador 265 329 594

Panama 234 135 369

Paraguay 150 155 305

Guatemala 282 18 300

Uruguay 189 24 213

Costa Rica 134 69 203

Honduras 142 15 157

Nicaragua 79 4 83

El Salvador 66 9 75

Cuba 46 2 48

Total 11584 23383 34967

Mr. R. Viswanathan, also known as Rengaraj Viswanathan, is a retired Indian diplomat, writer and speaker specializing in Latin American politics, markets, and culture.

1110April - May, 2018

India’s exports to Latin America

India’s exports have gone up by 15% in 2017 from the previous year, although they have fallen by almost 50% from the peak of 2014. Diesel exports to the region which reached several billion dollars in 2013-14 has come down to just about hundred million in 2017.

Mexico was the top destination (3.7 billion dollars) of India’s exports to Latin America, having overtaken Brazil (2.8 billion) in recent years. Colombia ranked as the third largest destination, followed by Chile, Peru and Argentina. It is interesting to note that Guatemala has emerged as the sixth largest destination with 282 million dollars.

In 2017, India’s exports to some Latin Americans countries were more than the exports to neighbouring countries and traditional trade partners. Examples:

- India’s exports of 134 million dollars to Costa Rica (distance 15000 km, population 5 million) was more than the exports of 120 million to Cambodia which is just 3500 km away and has a population of 16 million

- India’s exports of 142 m to Honduras which is 15000 km away with a population of 9 m was more than the exports of 118 m to Kazhakstan, just 1600 km away with a population of 18 m.

- India ‘s exports of 282 million to the distant Guatemala are more than the combined exports to Cambodia or Kazhakstan.

- Exports to Mexico ( 3.7 bn) were more than the exports to Thailand ( 3.59 bn), Canada ( 2.3 bn) and Russia ( 2.14 bn).

- exports to Brazil ( 2.87 bn) were more than to Iran (2.6 bn) and Egypt ( 2.34 bn).

- Exports to Colombia ( 911 m ) were more than the exports to Scandinavian countries such as Sweden ( 754 m) and Denmark( 760 m).

- Exports to Chile (745 m) were more than the exports to Portugal (736 m)

- Exports to Peru (729 m) were more than the exports to Ireland (517 m), Austria ( 437 m), Greece ( 423 m).

India ranked as the 7thlargest supplier of goods to Latin America in 2017.

The composition of the main exports is given in the table below:

Major exports of India to Latin America - in million US Dollars

Commodity USD Million

Vehicles 3672

Organic chemicals 910

Iron and steel products 781

Pharmaceuticals 725

Equipments and machinery 650

Chemical products 607

Synthetic fibres and filaments 603

Plastic products 451

Raw cotton 354

Aluminium products 316

Dyestuff 304

Garments and made ups 276

Vehicles (mainly cars and two wheelers) continue to be India’s top exports to the region, reaching 3.67 billion in 2017. Vehicle exports in 2017 have increased by 12% from 2016 and an impressive 38% from 2015. Vehicles are the number one item of India’s exports to Mexico, Colombia, Argentina, Peru, Chile, Guatemala, Ecuador and Panama. India is the sixth largest supplier of vehicles to Latin America.

Mexico is the leading destination for India’s vehicle exports to the world accounting for 12% of the total exports of 16.2 billion. With 2 billion dollars of imports, Mexico’s share is 55% of India’s exports to the region. India’s vehicle exports to Mexico have been consistently growing in the last few years and has doubled from 2015 and tripled from 2013 figures. This is incredible in the light of the fact that Mexico itself is the fourth largest exporter of vehicles in the world with 101 billion dollars in 2017.

Surprisingly, India’s vehicle exports to Colombia have declined from 546 million dollars in 2014 to 254 m in 2017.

Organic chemical exports which remained around 800million dollars in the last four years has

11 April - May, 2018

crossed 900 million dollars in 2017. Brazil and Mexico account for 60% of India’s exports to the region.

It is heartening to note that India’s pharma exports have increased to 724 million dollars in 2017 from 650 m in 2016. Brazil has maintained its position as the largest market for Indian pharma with 212 million dollars, followed by Chile-63 m, Venezuela-57 m and Colombia 52 m. India is the sixth largest supplier of pharma to Latin America. It is important to note that India’s pharma exports to Latin America are more than that of China (343 million in 2017)

India’s imports from Latin America

India’s imports have increased to 23 billion dollars in 2017 from 18 billion in 2016. This is mainly due to the rise of crude oil prices and the growth in imports of gold from the region. Gold imports have overtaken the imports of vegetable oil and copper which are being sourced regularly from the region.

The top imports of India from Latin America are given in the table below:

Main items of India’s imports from Latin America – in million US Dollars

Crude oil 10597

Gold and other precious metals 3206

Vegetable oil 2812

Copper 2589

Raw sugar 1045

Equipments and machinery 812

Wood 350

Plastic products 195

Organic chemicals 182

Fresh fruits and vegetables 112

Pharmaceuticals 82

Venezuela has remained as the top source of India’s imports from the region. Out of the 10.59 billion crude imports from the region, Venezuela accounted for 5.89 billion, Mexico-2.39 billion and Brazil-1.72 bn. Crude imports from Colombia have been down to just 270 million dollars in 2017

from 4.1 bn in 2013. Imports from Ecuador have also come down to just 225 million from almost a billion in 2014.

India has started importing gold from Latin America in recent years. Peru is the major source of import in the region with 1.47 billion dollars, followed by Bolivia with 593 million dollars. Imports from Bolivia started only in 2015. Dominican Republic has supplied gold worth 536 million dollars while Colombia supplied 266 million, Brazil 247 m and Mexico 92 m.

India imports 44% of its copper requirements from Latin America. Chile is the world’s largest supplier of copper to India with 1.4 billion dollars, followed by Brazil-590 million dollars and Peru-536 m.

Argentina is the second largest global supplier of edible oil to India accounting for 20% of India’s total imports. In 2017, Argentina supplied 2.27 billion dollars worth soy oil while Brazil supplied 390 million and Paraguay 144 million.

Renuka Sugar of India imports a billion dollar worth raw sugar from Brazil, refines it in India and reexport the refined sugar to Asia and Middleeast.

Prospects

Given the increase in the growth of the economies of the region in 2018-19 and the higher prices of commodities, India’s trade with the region should continue to grow in the coming years. The GDP growth of Latin America is projected to increase to 2.2% in 2018 from 1.3 % in 2017. Before that, the region’s GDP had contracted in 2015 and 2016. The growth of the region in 2018 will be driven by increase in domestic demand, higher exports and favourable growth of global economy and trade. The commodity prices which increased by 13% in 2017 are expected to maintain the same level of prices in 2018 too. Except for Venezuela(whose GDP has been shrinking in the last four years), all the other countries will increase their economic growth. Brazil, the largest economy in the region has turned around already with positive growth.Inflation, external debt and other macroeconomic indicators of the region are generally under control in the region except for Venezuela which

1312April - May, 2018

could suffer more economic and political disasters in the future.

Mexico, Brazil and Colombia, the three largest markets for India’s exports to the region, will have presidential elections this year. While the leftist Lopez Obrador is leading in the opinion polls in Mexico, there is no clear leader in Colombia. In Brazil, the conviction of Lula has compounded the political uncertainties. Irrespective of the electoral outcome, the three countries are expected to sustain their economic growth in the coming years.

The Trump factor has forced the Latin Americans to review their dependence on US and reach out to other large markets. China has, of course, become the largest investor, creditor and the second largest trading partner for the region. However, the Latin Americans are very uncomfortable with the hidden agenda and non-transparent investment and trade practices of the Chinese. The Latin Americans do not find Europe appealing, given Brexit and the protectionist trends there. In this context, the large and fast-growing Indian market has become the focus for Latin American political and business leaders. Latin America has been exporting more to India than to their old trade partners such as Germany, France, Italy, Spain, UK or Japan. In 2017, India was the fourth largest market for Latin American exports after US, China and Canada. India is the top destination for Latin American vegetable oil exports: second largest market for crude exports; and the fourth largest for copper and gold exports. India is the 9thlargest supplier of goods to Latin America and is the seventh largest trading partner.

The ongoing talks to expand the Indo-Mercosur PTA and the proposed Trade Agreement with Peru should help the trade to grow. In addition, India should consider signing FTAs with Mexico and Colombia which are the number one and number three markets for India’s exports in the region. The Central American region of seven countries including Dominican Republic accounts for over a billion dollars of India’s exports with a 10% share in the region. The Commerce Ministry and

the Export Promotion Councils should focus on these markets which have been under explored by Indian exporters.

For India’s exports, Latin America is a large and growing market of 620 million people, 5.5 trillion dollars of GDP and close to a trillion dollars of imports. The region is also useful to India’s strategic energy security and to some extent food security (edible oil and pulses). For the Latin Americans, India is even more important as a long term export market. Over one hundred Indian companies have invested about twelve billion dollars in Latin America and a dozen Latin American companies have invested over a billion dollars in India. The businesses from both sides are discovering and exploring new complementarities and synergies between the two markets, laying the foundation for a win-win long term economic partnership.

This is an opportune time for India to intensify its engagement seriously and systematically and invest more resources in trade promotion with Latin America. India should target 20 billion dollars of exports in the next five years and 1.5 billion dollars of increase per year. To reach this achievable target, the government should invest annually atleast 15 million dollars which is just one percent of the expected increase. The Chinese have given a cumulative credit of 150 billion dollars to Latin America while the Indian credit to the region is just under 300 million dollars. India should consider giving atleast one percent ( 1.5 billion dollars) of the Chinese figure, to promote exports and investment in the region. India should intensify its export promotion (more business delegations, participation in trade fairs, market studies and buyer-seller meets) to Latin America in collaboration with export promotion councils and chambers of commerce and industry who should be asked to prepare annual plans as well as 3-5 year plans. The government of India should invest in the upcoming CII India-LAC Business Conclave in Santiago, Chile 26-27 September to make it in a bigger scale and make the Conclave a not-to-be missed annual event for Indian and Latin American business.

Sources: ITC Geneva for trade and ECLAC Santiago for economic data.


The Changing Shape of the World’s Synthetic Food Colour Industry

Food colour additives have long been in use for

enhancing the aesthetic value of foods, beverages and cosmetics, and for identifying and differentiating drugs and other products. Archaeological evidence dates the use of colour

additives in cosmetics to 5000 B.C. Romans have been using colours to colour bread and Wine Rose and Violet sugar was very popular with the English. The uses of saffron and Haldi (Turmeric) have been in vogue for a long time.

Before the Industrial Revolution started, the colours which were used were of natural origin. They were extracted by means of solvents from natural products most of these natural colours are solvent soluble colours. Many of these colours have now become permitted natural food colours throughout the world, albeit with stringent specifications based on improvement in technology for extraction and testing over the last decades.

The British scientist William Henry Perkin accidentally developed the first synthetic coal tar dyestuff in 1856, Mauve. This was an alcohol-soluble colour, giving violet purple shade. Later on, it was used for dyeing silk.

With this development many manufacturing units in Germany entered into manufacturing coal-tar dyestuffs. Today of course, the east is predominant supplier of dyestuffs to the world market with India becoming an important player in field of food colours and cosmetic pigments.

Colourants for food & cosmetic is niche area within the dyestuffs sector, requiring specialised expertise.

During the last two decades the global structure

of the synthetic food colour manufacturers has changed significantly.

In the west, synthetic food dyestuff manufacturers have disappeared or been acquired.

In the UK & Germany, historically one of the originating countries for the manufacture of synthetic food colors, there is today not a single independent producer. Japanese producers are traditionally strong in their local market only.

In the east, mainly from the India the reverse has happened. A whole generation of synthetic dyestuff manufacturers has emerged. Today, India happens to be the largest supplier of synthetic food dyes to the world market.

The Indian dyestuff industry has traditionally been small and fragmented with numerous producers of industrial and textile dyes. Most of these manufacturers are concentrated in industrial states in western India namely Maharashtra and Gujarat.

Recognising a market place for higher quality dyes, few Indian manufacturers like Neelikon have risen to become global suppliers of food colours and cosmetic lakes & pigments which adhere to various international legislations.

Mukund bhai Turakhia, promoter and Managing Director of Neelikon can be considered the father of the Indian food colour industry. He was responsible for introducing indigenous technology for the production of food dye in India in 1973-1974. For this, he was presented a National Award from the President of India. Apart from introducing common food colours like Tartrazine, Sunset Yellow, Brilliant Blue FCF, Ponceau 4R meeting international legislative requirements; Mukund bhai also introduced specialty food colours like Fast Green FCF, Brown HT, Green S, Patent Blue V, Black PN which are used in many international market.

Satyen Turakhia BCOM,MBA

Managing Director Neelikon Food Dyes

& Chemicals Ltd.

1514April - May, 2018

One common mistake buyers make while buying from India, is buying based on checking of samples, websites and brochures! Buyers should visit the factory of the manufacturer before taking final decision. This will help in getting good reliable suppliers for food colours & cosmetic pigments from India.

In food colours, more than the dye strength of the product, it is the presence of minimal impurities which defines its quality. The first reaction normally makes the dye achieve close to 80% dye content. However a series of purification steps leads to the dye reducing the impurities levels considered safe for human use. There are 5 main categories of impurities namely, metallic impurities, unreacted dyes intermediates, subsidiary dyes, water insoluble and microbiological contamination. These needs to be suitably controlled to minimal levels as required by legislation and specific customer requirements.

Buyers need to ascertain during their factory visit, ability of manufacturers to truly control these impurities. This is where a plant audit before commercial supplies help.

Following due diligence should be carried out by buyers while dealing with Indian producers –

Buyers should conduct a quality audit of the manufacturer’s factory.

During the audit, the buyer should pay close attention to –

• Plant hygiene and safety

• Effluent treatment plant

• Competency in offering quality and consistency-In-house laboratory with basic instruments like UV spectrophotometer, AAS (For metallic impurity checking), HPLC and computerised colour matching system.

• Traceability (From Raw Material to Finished Lot)

Over the years, few Indian producers like Neelikon have improved their quality to meet international legislations and due to cost competitiveness India offers in manufacturing; have been able to provide a good product at reasonable prices. This has led to India becoming the largest producer of synthetic food colours in the world.

Coming Soon


Dangerous Goods:-Classification of Corrosive Substances – Class 8

Shashi Kallada Consulting & Training - Dangerous Goods by Rail, Road, River & Sea

During transport corrosive substances pose health

hazard, physical hazard or combination of both. Primary safety concern is of course health hazard however, leakage of

corrosive substances may materially damage the cargo transport unit or the vessel itself and when in contact with other cargo they may cause dangerous reactions resulting in explosion and fire.

What are corrosive substances?

Any solid or liquid which will cause severe damage when in contact with living tissue or will materially damage or destroy other goods or means of transport are corrosive substances of Class 8.

Properties of corrosive substances

There are varying properties for different corrosive substances which may cause severe health or physical hazard.

If a substance poses severe personal damage then IMDG Code in column 17 of dangerous goods list will state “causes (severe) burns to skin, eyes and mucous membranes”.

If IMDG Code states “corrosive to most metals” it means that any metal likely to be present in a ship, or in its cargo, may be attacked by the substance or its vapour.

“Corrosive to aluminium, zinc, and tin” implies that iron or steel is not damaged in contact with the substance.

Some of these substances can corrode glass, earthenware and other siliceous materials. Many corrosives substances only become corrosive after having reacted with water, or with moisture in the air.

How are the health hazards determined for corrosive substances?

Corrosive substances are divided into three packing groups according to their degree of hazard.

• Packing group I: Very dangerous substances and preparations;

• Packing group II: Substances and preparations presenting medium danger;

• Packing group III: Substances and preparations presenting minor danger.

For named substances the variations in danger levels through packing groups assigned in dangerous goods list of IMDG Code are based on the destructive properties on living tissue through experience, inhalation risk and reactivity with water.

For new substances and mixtures assignment of packing group must be based on length of time of contact required to cause full thickness destruction of human skin.

Below table summarizes this criterion

Packing group Exposure time Observation period Effect

I ≤ 3 min ≤ 6 0 min Full thickness destruction of intact skin

II ˃ 3 min ≤ 1 h ≤ 14 days Full thickness destruction of intact skin

III ˃ 1 h ≤ 4 h ≤ 14 days Full thickness destruction of intact skin

Assignment of packing group on basis of above table must take account of human experience in instances of accidental exposure and in absence of human experience assignment of packing group must be as per data obtained by experiments in accordance with below standards

1716April - May, 2018

• OECD Guideline for the testing of chemicals No. 404, Acute Dermal Irritation/Corrosion, 2002.

• OECD Guideline for the testing of chemicals No. 435, In Vitro Membrane Barrier Test Method for Skin Corrosion, 2006.

• OECD Guideline for the testing of chemicals No. 430, In Vitro Skin Corrosion: Transcutaneous Electrical Resistance Test (TER), 2004.

• OECD Guideline for the testing of chemicals No. 431, In Vitro Skin Corrosion: Human Skin Model Test, 2004.

A substance which is determined not to be corrosive in accordance with OECD Test Guideline 430 or 431 may be considered not to be corrosive to skin for the purposes of IMDG Code without further testing.

How are the physical hazards determined for corrosive substances?

Any substance which is judged not to cause full thickness destruction of intact skin tissue but which exhibit a corrosion rate on either steel or aluminium surfaces exceeding 6.25 mm a year at a test temperature of 55°C when tested on both materials is considered as corrosive and be assigned to packing group III. Method of testing is prescribed in the Manual of Tests and Criteria, part III, section 37.

Emergency Response on board ships for incidents involving Corrosive Substances

Corrosive substances are extremely dangerous to humans, and many may cause destruction of

safety equipment. Burning cargo of class 8 will produce highly corrosive vapours. Consequently, wearing self-contained breathing apparatus is essential. Corrosive solids and liquids can permanently damage human tissue. Some substances may corrode steel and destroy other materials (e.g. personal protection equipment). Corrosive vapours are highly toxic, often lethal by destroying lung tissue. All corrosive chemicals will be dangerous to human health (toxic). Avoid direct contact with the skin, protect against inhalation of vapours or mists.

The use of self-contained breathing apparatus and appropriate chemical protection (e.g. chemical suit) is recommended in all cases. Washing spillages and forcing vapours overboard with water-spray is the method in all cases. It is important to shut off, close and secure all ventilation leading into the accommodation of choice, machinery spaces and the bridge. All personnel should stay away from effluent (see SPILLAGE SCHEDULE S-B in Emergency Response Procedures for Ships Carrying Dangerous Goods (EmS Guide) published in the supplement of IMDG Code).

Some corrosive substances are also flammable. In these cases, the safety advice for both flammable and corrosive substances should be followed. Use of copious quantities of water and water-spray is recommended. In general, the flammability hazard is more important than the corrosive properties for the safety of the ship and the crew (see e.g. SPILLAGE SCHEDULES S-C and S-G in Emergency Response Procedures for Ships Carrying Dangerous Goods (EmS Guide) published in the supplement of IMDG Code).


EXPORT STRATEGY - SOUTH AFRICA

BRIEF OF COUNTRY SOUTH AFRICA

South Africa the Republic of South Africa is called the ‘Rainbow Nation’. This is because

of its multicultural diversity, after different groups came here in previous centuries. The country’s more recent history of apartheid is better known. Now people can live anywhere if they have the right opportunities, such as a good education. Total Population of South Africa is 50.5 million (UN, 2011 estimate). Capital Pretoria (executive), Bloemfontein (judicial), Cape Town (legislative).

Geographical area is 1.219,089 sq km (470,693 sq miles), 11 official languages - Afrikaans, English, Ndebele, Pedi, Sotho, Swati/Swazi, Tsonga, Tswana, Venda, Xhosa and Zulu. Main religions: Christianity, Islam, Hinduism.

Dutch traders landed at the southern tip of modern day South Africa in 1652 and established a stopover point on the spice route between the Netherlands and the Far East, founding the city of Cape Town. After the British seized the Cape of Good Hope area in 1806, many of the Dutch settlers (Afrikaners, called “Boers” (farmers) by the British) trekked north to found their own republics, Transvaal and Orange Free State. The discovery of diamonds (1867) and gold (1886) spurred wealth and immigration and intensified the subjugation of the native inhabitants. The Afrikaners resisted British encroachments but were defeated in the Second South African

War (1899-1902); however, the British and the Afrikaners, ruled together beginning in 1910 under the Union of South Africa, which became a republic in 1961 after a whites-only referendum. In 1948, the Afrikaner-dominated National Party was voted into power and instituted a policy of apartheid - the separate development of the races - which favored the white minority at the expense of the black majority. The African National Congress (ANC) led the opposition to apartheid and many top ANC leaders, such as Nelson MANDELA, spent decades in South Africa’s prisons. Internal protests and insurgency, as well as boycotts by some Western nations and institutions, led to the regime’s eventual willingness to negotiate a peaceful transition to majority rule.

The first multi-racial elections in 1994 following the end of apartheid ushered in majority rule under an ANC-led government. South Africa has since struggled to address apartheid-era imbalances in decent housing, education, and health care. ANC infighting came to a head in 2008 when President Thabo MBEKI was recalled by Parliament, and Deputy President Kgalema MOTLANTHE, succeeded him as interim president. Jacob ZUMA became president after the ANC won general elections in 2009; he was reelected in 2014. His government has been plagued by numerous scandals, leading to gains by opposition parties at the municipal level in 2016.

1918April - May, 2018

ECONOMY OF SOUTH AFRICA

South Africa is a middle-income emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; and a stock exchange that is Africa’s largest and among the top 20 in the world.

Economic growth has decelerated in recent years, slowing to an estimated 0.7% in 2017. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 27% of the workforce, and runs significantly higher among black youth. Even though the country’s modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability but has been plagued with accusations of mismanagement and corruption and faces an increasingly high debt burden.

South Africa’s economic policy has focused on controlling inflation while empowering a broader economic base; however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness, and frequent work stoppages due to strike action. The government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas, to increase job growth, and to provide university level-education at affordable prices. Political infighting among South Africa’s ruling party and the volatility of the rand risks economic growth. International investors are concerned about the country’s long-term economic stability; in late 2016, most major international credit ratings agencies downgraded South Africa’s international debt to junk bond status.

CHEMICAL INDUSTRY IN SOUTH AFRICA:

Chemistry is the science of matter, its structure, composition, properties and interactions of substances. It draws on the language of mathematics and the laws of physics to describe the world around us. It is this science that forms the basis of the chemical industry, making it highly technical. Due to the hazardous nature of the chemical industry, all spheres of Government have strict regulations on consumer and environmental protection, occupational health, chemical processes, transport and management of chemicals.

The South African chemical sector is of considerable economic significance to the country, with the export and import values of industry products amounting to approximately R41 billion and R75 billion respectively in 2012 (Quantec Research (Pty) Ltd, www.quantec.co.za). This equates to a trade deficit of about R34 billion. It contributed 25% to the manufacturing sector and 4% to GDP (Quantec, 2012) and impacts on the development of other industrial sectors such as agriculture, healthcare, clothing and textile. The chemical sector employment figures (formal and informal) for 2012 were 145684 (Quantec, 2012). According to the Chemical Industries Education and Training Authority (CHIETA) Workplace Skills Plan (WSP) submissions, June 2012 employment figures in the chemical sector were as follows: petroleum 44 371; base chemicals 22 466; specialty chemicals 15 381; surface coatings 8 261; fertilizers 5 651; and explosives 5 287.

The Department of Trade and Industry (the dti) has classified the sector into 11 sub-sectors, namely: liquid fuels; commodity inorganic chemicals; commodity organic chemicals; fine chemicals; pure functional and speciality chemicals; bulk formulated chemicals; pharmaceuticals; consumer formulated chemicals; rubber products; plastics products; and primary polymers and rubbers. This is the most appropriate classification of the sector in terms of strategic and business perspectives. The Standard Industrial Classification (SIC), which


is generally used for statistical reporting, is not user friendly in providing information for chemical sector development. Pharmaceuticals, Plastics and Cosmetics are standalone directorates within the dti to better focus on the ARVs, higher numbers of people employed per capital expenditure and diverse yet interrelated numbers of business lines respectively. The chemicals sector desk therefore excludes these standalone directorates.

The chemical industry can be classified into two broad categories, i.e. upstream and downstream. Upstream is generally technology intensive in the manufacture of basic chemicals as raw materials/feedstock, while downstream turns these raw materials into intermediate and final products. The capital-intensive operations of the upstream chemical sector tend to be automated to ensure that products meet the required quality and specification consistency. The upstream sector is not well structured to accommodate either high numbers of employment or the development of Small or Micro Enterprises (SMEs).

The downstream chemical sector has operations that are typically labour intensive and consists of formulation production processes. It has greater potential to contribute significantly to large numbers of employment and the development of SMEs. It is within the downstream sector that the incubator programme of Government can have a positive impact in creating vibrant SMEs.

(Source: http://www.thedti.gov.za/industrial_development/sec_chemicals.jsp)

POTENTIAL STRATEGIC OPPORTUNITIES

South Africa exports most of its fluorspar mineral resource in an unbeneficiated form. This is contrary to Government policy to beneficiate the country’s abundant natural resources. Beneficiation adds more value to domestic mineral resources ahead of export to provide the country with greater economic value and increased numbers of people employed. This is necessary for industrialisation, inclusive growth and poverty alleviation.

the dti has commissioned market research

on potential opportunities in downstream fluorochemicals, with an aim of establishing a globally competitive fluorspar beneficiation industrial cluster in South Africa. This is to take advantage of South Africa’s largest single fluorspar reserves globally and to manufacture fluorochemicals that are critical in the production of agrochemicals, pharmaceuticals, semi-conductors for the electronics industry as well as domestic and industrial refrigeration and air-conditioning.

The possibility of shale gas exploration and exploitation in the Karoo provides South Africa with a possible game changer. Although the potential extent of the Karoo shale gas reserves are not yet known, the chemical industry may be one of the huge beneficiaries, considering that two South African companies, Sasol and PetroSA, operate world-scale facilities to produce liquid fuels, chemicals and electricity from natural gas.

If shale gas is proven to be commercially viable, urea is one chemical that has the potential to immediately attract investment in manufacturing facilities in South Africa. Currently, urea is not manufactured in the country, but is imported by big players in the fertiliser industry due to huge import barriers including the smallest viable shipload requirement (with urea being a scarce product globally and supply being dependent on the availability of ships).

SOUTH AFRICAN CHEMICALS INDUSTRY HAS GROWTH POTENTIAL

The South African chemicals industry contributes 5% to the country’s gross domestic product (GDP), while the local petrochemicals sector is the largest sector contributor to the chemicals industry in South Africa, with a contribution of 55%.

However, analyst notes that the South African chemicals industry is expected to have moderate growth of between 3% and 4% over the next five years, through innovation and increased operation efficiency, making the chemicals industry more competitive and attractive.

2120April - May, 2018

“Petrochemicals growth will be driven by the demand from end-users, such as the paints and coatings, automotive, mining and construction sectors, where large amounts of chemicals are still procured locally, as the local refinery capacities meet the bulk of local demand.

“The market for petrochemicals is expected to grow at a compound yearly growth rate of close to 2%, owing to limited investment in local refineries and old technology limiting efficiency,” Analyst asserts.

She notes that the greatest potential for growth in the chemicals industry lies in the plastics sector, with moderately high growth expected, amidst the slow GDP growth and market maturity.

Also, the demand for additives used in fuels is expected to increase as the local Clean Fuels II regulation, which aims to lower the sulphur content of fuels, is expected to come into effect in 2017. In addition, the biofuels-based legislation for fuels, to be implemented in 2015, will impact on this demand. This legislation requires all diesels produced to have a 5% blend of biodiesel, and ethanol to have a bioethanol blend of between 2% and 10%.

Meanwhile, Analyst points out that the local chemicals market is becoming increasingly competitive, owing to intensified regulations on emissions and waste, which puts chemicals manufacturers and end-users under pressure.

“The biggest challenges in the South African chemicals market are the large volumes of raw chemical materials that continue to be imported and are subject to exchange rate fluctuations. “Delays at ports when importing chemicals, and strikes, add to the costs of chemicals, which are, in most cases, absorbed by the manufacturer to remain competitive, resulting in lower profit margins,” she asserts.

Analyst adds that another challenge is the outdated technology and processes used to refine and produce chemicals in South Africa. As a result, the chemical products manufactured are not

competitive, compared with similar international goods, lowering demand for locally produced chemicals.

“Upgrading technologies requires high capital investments, which are not easily accessible in South Africa, owing to product cost implications. However, more investment could potentially result in more efficient production processes and lower operating costs,” Analyst says.

Currently, there are limited research and development activities in the local chemicals industry. She explains that technological advances are primarily driven by multinational corporations as they want to maintain their global brand image and standards, which results in these corporations adopting foreign technologies, thereby advancing the local chemicals manufacturing sector.

“The local chemicals industry offers major input materials, such as solvents and polymers, to the manufacturing sector,” Analyst outlines.

There has, however, been slow growth over the past two years and the sector is expected to continue being a slow-growth market for the chemicals industry,” she posits.

Analyst suggests that government’s emphasis on the local development of pharmaceuticals will help drive advocacy for local input materials, such as excipients and active pharmaceutical ingredients, through tenders.

“The agricultural chemicals sector is also expected to register significant growth, though future regulations could potentially slow down the increase in the supply of crop-protection chemicals,” Analyst concludes

(Source:http://www.engineeringnews.co.za/article/south-african-chemicals-industry-has-growth-potential-2014-03-21 )

MARKET CHALLENGES-SOUTH AFRICA

• There is serious, growing concern about a host of political, economic and regulatory factors that affect foreign businesses adversely. These include increasingly persistent reports about corruption and ineptitude


in high government circles, significant unemployment, violent crime, insufficient infrastructure and poor government service delivery to impoverished communities. The increasingly rhetorical political debate over the direction of economic policy has been exacerbated by very low economic growth and a governing party reeling from setbacks in local government elections in August 2016.

• Overseas firm entering this market must contend with a mature and competitive market marked by well-established European and Asian competition. A trade agreement with the European Union enables many European products to enter South Africa duty-free or at lower rates.

• The volatile rand-dollar exchange rate can complicate planning especially for smaller or new-to-market firms. Although forward cover is readily available, and the rand is one of the most heavily traded currencies in the world, the cost does reflect interest rates, which tend to be higher than in United States and developed markets because of South Africa’s relatively higher historical rates of inflation.

• Broad-Based Black Economic Empowerment (B-BBEE) policies aim at redressing economic imbalances among historically disadvantaged communities to facilitate socio-economic transformation, specifically to increase the number of black South Africans that either own or manage companies. B-BBEE requirements demand due consideration by all firms planning to do business with the South African Government, but also within the general business community. New, more ambitious ascriptive requirements were introduced in 2013 and continue to be tightened up in order to induce improved economic opportunities by awarding more points in the equity/ownership requirement than previously. As in the past, entities gain credits if they include in their upstream and downstream supply chain partnering with other entities that qualify as being compliant

on employment equity and other criteria. B-BBEE fronting that creates the appearance of regulatory compliance is a criminal offense and may lead to a fine of up to 10% of an entity’s turnover or up to 10 years’ incarceration by directors and complicit staff. A few foreign companies have addressed the ownership element of B-BBEE by implementing “equity equivalent” programs that emphasize training and development of local companies, although it can be difficult to get government approval for these proposals. Also see Selling to the Government below.

• For new-to-market overseas exporters, these ascriptive trading requirements have encouraged low-exposure market entry modes by teaming up with qualified local importer-resellers and service providers who act as the prime contractor to the South African Government and large economic players. The South African Government is continuously changing the mandatory industrial localization requirement for foreign suppliers that often view this as a cost and risk factor for doing business in South Africa.

• Since 2012, the South African government has announced plans to tighten labor and foreign ownership laws and mandated industrial localization. Sectors of specific concern have included the extractive industries, security services and agriculture. It remains uncertain in which direction government will go to address rigidities in labor regulations in the face of popular discontent around unemployment, poverty and inequality.

• Despite current uncertainties, as the most advanced, broad-based economy on the continent, South Africa still offers exporters and investors a diverse and mature economy with vibrant financial and other service sectors, as well as preferential access to export markets in the United States, the European Union and the Southern African Development Community (SADC).

• Commercial standards are generally similar to those in most developed economies,

2322April - May, 2018

overseas investors find local courts fair and consistent, and institutions are well-developed. Similarly, democratic life is well-established with transparent and contested elections, an appreciation for the rule of law, and citizens maintaining significant pride in the constitution and the peaceful formation of the post-Apartheid state.

• Despite socio-economic and political uncertainties, South Africa is still a destination largely conducive to overseas investment, and should remain so as the dynamic business community is highly market-oriented and the driver of economic growth. South Africa offers ample opportunities and continues to attract investors seeking a location to access the rest of the African continent.

• Despite increasing unemployment (while the nominal rate is 26%, most observers find the broader definition including those who have given up looking for a job, which is currently 37%), skilled labor can be difficult to find in many, if not most, technical and professional segments, due to the poor state of the public education system. In addition, HIV/AIDS affects approximately one in ten South Africans with unfortunate implications for labor availability, productivity and healthcare costs. Annual labor negotiations have been marked by violence in previous years, although the last two years have been relatively peaceful.

• 2016 saw a 104-year record drought in the central and northeastern part of the country come to an end, but water scarcity will remain a major concern for agriculture, power generation and human consumption. The Western Cape currently has an unrelated significant water crisis that has led to a declaration of emergency that severely limits water supply.

• (Source: https://www.export.gov/article?id=South-

Africa-market-challenges )

EXPORTING TO SOUTH AFRICA - MARKET OVERVIEW

• South Africa is a country of 55 million people, enjoying relative macroeconomic stability and a largely pro-business environment.

• South Africa is a logical and attractive option for overseas companies seeking to enter the sub-Saharan Africa marketplace. The country covers 1.22 million square kilometers and is the world’s largest producer of platinum, vanadium, chromium and manganese.

• South Africa is the most advanced diversified and productive economy in Africa. However, its actual growth does not match that of other African economies.

• In 2016, its gross domestic product (GDP) grew by 0.5% to an estimated $ 736.3 billion (based on purchasing power parity – ppp, or $350 billion in the more widely used standard GDP definition). The mature nature of the South African economy is reflected in the mix of economic sectors:

a) Primary (including agriculture, fishing and mining): 10%.

b) Secondary (manufacturing, construction and utilities): 21%.

c) Tertiary (trade, transport and services): 69%.

• The tourism sector has experienced above global average growth, capitalizing on South Africa’s natural beauty, wildlife reserves and good infrastructure. The sector is a major foreign exchange earner, along with minerals, agricultural products and some niche, high-tech sectors.

The country’s urban areas boast well-developed infrastructure, comparable to OECD standards. Its growing service sector is a major employer, and the private, corporate side of the economy is well-managed, although facing slow productivity gains. The banking and financial services sector is stable and weathered the 2008 financial crisis well. The Johannesburg Stock Exchange (JSE) ranks among the top emerging market exchanges in the world.


South Africa is well integrated into the regional economic infrastructure as formalized by membership in the Southern African Development Community (SADC). In addition, the Southern African Customs Union (SACU) agreement with Botswana, Namibia, Lesotho and Swaziland facilitates commercial exchanges. South Africa is a member of the World Trade Organization (WTO), the G20, and BRICS (Brazil, Russia, India, China and South Africa).

The African Growth and Opportunity Act (AGOA), renewed for a final 10-year period in 2016, provides duty-free access to the U.S. market for most sub-Saharan African countries, including South Africa. The United States and South Africa signed a new Trade and Investment Framework Agreement (TIFA) in 2012. The United States and SACU concluded a Trade, Investment and Development Cooperation Agreement (TIDCA) in 2008.

Five reasons why overseas companies should consider exporting to South Africa:

1) South Africa remains a must-consider country in sub-Saharan Africa when new-to-market (NTM) companies consider location options; the logistics infrastructure, English language and benign legal processes make this a low entry-threshold country.

2) The business management environment (legal, publicity, marketing, accounting, forensics, process outsourcing, etc.) is arguably the best in Africa.

3) South Africa is a business incubator for NTM ideas; as the middle class in Africa grows, business models launched in and from South Africa will find easier acceptance in other sub-Saharan Africa markets.

4) The penetration of South African companies and agencies into Africa makes finding the right partner to collaborate with in third markets a low-risk business development model.

5) South African companies are receptive to various partnering arrangements with overseas companies; these range from agency, to licensing, to JV’s, to mergers and acquisitions.

(Source: https://www.export.gov/article?id=South-Africa-Market-Overview)

SOUTH AFRICA - MARKET OPPORTUNITIES

Several factors benefit overseas exports:

• Sophisticated financial services, legal and business services sectors;

• Transportation infrastructure;

• South Africa’s position as an entryway to other countries and markets in sub-Saharan Africa;

• The strong reputation enjoyed by overseas branded goods and

• A few, centralized South African government-owned / sponsored capital expenditure programs with partly secured funding.

In general, the best prospects for exports are in capital goods, though opportunities exist in a wide range of consumer products, services and franchising. Due to cyclical, structural and regulatory / policy challenges in the economy, Government capital and operational expenditure is expected to decrease further in 2016 – 2018, and the triple deficit (trade, budget and households) does not bode well for the immediate future.

Of particular note are:

• Electricity Power Systems and Renewable Energy;

• Oil and gas supplies and equipment;

• Transportation Infrastructure;

• Pollution Control Equipment;

• Medical Equipment and Healthcare Services;

• Telecommunications; and

• Inforation Technology.(Source: https://www.export.gov/article?id=South-Africa-market-opportunities)

2524April - May, 2018

SOUTH AFRICA’s FTA INVOLVEMENT

Summary of Main Trade Agreements between South Africa and the rest of the World

Type of AgreementCountries Involved

Main Objective/Terms Products Involved

Customs Union

Southern African Customs Union (SACU)

Customs Union

South Africa, Botswana, Lesotho, Namibia and Swaziland

Duty free movement of goods with a common external tariff on goods entering any of the countries from outside the SACU

All products

Free Trade Agreements (FTAs)

Southern African Development Community (SADC) FTA

Free Trade Agreement

Between 12 SADC Member States

A FTA, with 85% duty-free trade achieved in 2008. The 15% of trade, constituting the “sensitive list”, is expected to be liberalised from 2009 to 2012 when SADC attains the status of a fully-fledged FTA with almost all tariff lines traded duty free.

Most products

Trade, Development and Cooperation Agreement (TDCA)


South Africa and the European Union (EU)

The EU offered to liberalise 95% of its duties on South African originating products by 2010. In turn, by 2012, South Africa offered to liberalise 86% of its duties on EU originating products.

There is currently a review of the agreement underway, which is aimed at broadening the scope of product coverage. This is taking place under the auspices of the Economic Partnership Agreement (EPA) negotiations between SADC and the EU

EFTA-SACU Free Trade Agreement (FTA)


SACU and the European Free Trade Association (EFTA) -Iceland, Liechtenstein, Norway and Switzerland

Tariff reductions on selected goods

Industrial goods (including fish and other marine products) and processed agricultural products. Basic agricultural products are covered by bilateral agreements with individual EFTA States

Economic Partnership Agreement between the SADC EPA States, of the one part, and the European Union and its Member States, of the other Part

Economic Partnership Agreement

South Africa, Botswana, Namibia, Swaziland, Lesotho and Mozambique (referred to as the SADC EPA Group) and the European Union (EU)

SA’s core interest has been to harmonise trading regime between SACU and the EU; to secure further market access in agriculture (beyond the SA-EU Trade Development and Cooperation Agreement (TDCA) provisions) and claw back on some policy space lost under the TDCA.

The agreement covers most products. It will replace the Trade Chapter of the TDCA. New market access accrued better than the TDCA will be implemented after entry into force of the SADC-EU EPA.

Preferential Trade Agreements (PTAs)

SACU-Southern Common Market (Mercosur) PTA

Preferential Trade Agreement

SACU and Argentina, Brazil, Paraguay and Uruguay

Tariff reductions on selected goods. It is not expected to enter into force before some time in 2012

About 1,000 product lines on each side of the border

Zimbabwe/South Africa bilateral trade agreement

Bilateral Preferential Trade Agreement

South Africa and Zimbabwe

Preferential rates of duty, rebates and quotas on certain goods traded between the two countries

Selected goods. A most recent version of the agreement was signed in August 1996, which lowers tariffs and quotas on textile imports into South Africa.


Non-reciprocal Trade Arrangements

Generalised System of Preferences (GSP)

Unilateral preferences granted under the enabling clause of the WTO that are not

Offered to South Africa as developing country by the EU, Norway, S w i t z e r l a n d , Russia, Turkey, the US, Canada and Japan

Products from developing countries qualify for preferential market access

Specified industrial and agricultural products

Africa Growth and Opportunity Act (AGOA)

Unilateral assistance measure

Granted by the US to 39 Sub-Saharan African (SSA) countries

Preferential access to the US market through lower tariffs or no tariffs on some products

Duty free access to the US market under the combined AGOA/GSP programme stands at approximately 7,000 product tariff lines.

Other Agreements

Trade, Investment and Development Cooperation Agreement (TIDCA)

Cooperative framework agreement

SACU and US Makes provision for the parties to negotiate and sign agreements relating to sanitary and phyto-sanitary measures (SPS), customs cooperation and technical barriers to trade (TBT). It also establishes a forum of engagement of any matters of mutual interest, including capacity-building and trade and investment promotion.

None

Trade and Investment Framework Agreement (TIFA)

Bilateral agreement

South Africa and US

Provides a bilateral forum for the two countries to address issues of interest, including AGOA, TIDCA, trade and investment promotion, non-tariff barriers, SPS, infrastructure and others.

None

Current Trade Negotiations

SACU-India PTA Preferential Trade Agreement

SACU and India Tariff reductions on selected goods

SACU and India are in the process of exchanging tariff requests

SADC-EAC-COMESA Tripartite FTA


26 countries with a combined GDP of US$860 billion and a combined population of approximately 590 million people

The Tripartite Framework derives its basis from the Lagos Plan of Action and the Abuja Treaty establishing the African Economic Community (AEC), which requires rationalisation of the continent’s regional economic communities. The FTA will be negotiated over the next three years, with the possibility of an additional two years for completion.

The Tripartite initiative comprises three pillars that will be pursued concurrently, in order to ensure an equitable spread of the benefits of regional integration: market integration, infrastructure development and industrial development. The FTA will, as a first phase, cover only trade in goods; services and other trade-related areas will be covered in a second phase.

(Source: https://www.thedti.gov.za/trade_investment/ited_trade_agreement.jsp )

2726April - May, 2018

SOUTH AFRICA - IMPORT REQUIREMENTS AND DOCUMENTATION

South Africa has a complex import process. The South African Revenue Service (SARS) defines approximately 90,000 product tariff codes that are strictly enforced on all imports. New-to-Market overseas exporters are actively encouraged to engage the services of a reputable freight forwarding/customs clearance agent well versed in South African convention.

Customs South Africa (Customs SA), a division of SARS, requires that an importer register with its office and obtain an importer’s code from SARS. This impacts many importers and may cause delays to clearance of goods.

SARS uses a Single Administrative Document (SAD) to facilitate the customs clearance of goods for importers, exporters and cross-border traders. The SAD is a multi-purpose goods declaration form covering imports, exports, cross border and transit movements.

The following is required for shipments to South Africa:

• For customs purposes in South Africa, one negotiable and two non-negotiable copies of the Bill of Lading are required. The Bill of Lading may be made out either “straight” or “to order”.

• A Declaration of Origin Form, DA59, is to be used in cases where a rate of duty lower than the general rate is claimed as well as for goods subject to antidumping or countervailing duty. DA59 is a prescribed form with stipulated format, size and content. This form does not require Chamber of Commerce certification. One original signed copy of the form must be attached to the original commercial invoice covering goods, which require such a declaration.

• Four copies and one original Commercial Invoice are required. Suppliers must give, in their invoices, all data necessary for the importer to make a valid entry and for the South African Customs to determine value for duty purposes.

• Invoices from suppliers will not be accepted as satisfying the requirements of the customs regulations unless they state, in addition to any proprietary or trade name of the goods, a full description of their nature and characteristics together with such particulars as are required to assess the import duty and to compile statistics.

• One copy of the insurance certificate is required for sea freight. Follow the importer’s and/or insurance company’s instructions in other matters.

• Three copies of the Packing List are required. Data contained in this document should agree with that in other documents.

To reduce the likelihood of a dutiable assessment of samples, the shipper must state the following:

“Sample: Of no commercial value / Value for customs purposes is USD xxx.”

Zero-value invoices are not accepted by South African customs authorities; the correct value must be stated of the shipment in question.

Import licenses are required for restricted items. Importers must possess an import permit prior to the date of shipment. Failure to produce a required permit could result in the imposition of penalties. The permit is only valid in respect of the goods of the class and country specified. It is non-transferable and may only be used by the person to whom it was issued. Import permits are valid only for the calendar year in which they are issued.

Import permits required for specific categories of restricted goods are obtainable from the Director of Import and Export Control at the Department of Trade and Industry. These categories have been reduced, but still must be obtained for most used / second-hand items.

Department of Trade and Industry

International Trade Administration Commission (ITAC) Import Control Private Bag X753 Pretoria, 0001 Tel: +27 (0)12 394 3590/1; Fax: +27 (0)12 394 0517

(Source: https://www.export.gov/article?id=South-Africa-import-requirements-and-documentation ).


GDP (purchasing power parity): $757.3 billion (2017 est.),$752.1 billion (2016 est.),$750 billion (2015 est.)

Industries: - Mining (world’s largest producer of platinum, gold, chromium), automobile assembly, metalworking, machinery, textiles, iron and steel, chemicals, fertilizer, foodstuffs, commercial ship repair.

Exports: - $78.25 billion (2017 est.),$75.16 billion (2016 est.)

Exports Commodities: - Gold, diamonds, platinum, other metals and minerals, machinery and equipment.

Exporting Partners: - China 9.2%, Germany 7.5%, US 7.4%, Botswana 5%, Namibia 4.8%, Japan 4.6%, India 4.3%, UK 4.2% (2016)

Imports: - $80.22 billion (2017 est.),$74.17 billion (2016 est.)

Import Commodities: - Machinery and equipment, chemicals, petroleum products, scientific instruments, foodstuffs.

Import Partners: - China 18.1%, Germany 11.8%, US 6.7%, India 4.2% (2016)

(Source: https://www.cia.gov/library/publications/the-world-factbook/geos/sf.html )

CHEMEXCIL’S COMMODITYWISE EXPORTS TO SOUTH AFRICAUS$ in million

Chapter No./Panel2014-15 (Actual)

2015-16 (Actual)

%over 2014-15


% over 2015-16

(32) Dyes & (29) Dye Intermediates 22.52 20.30 -9.86 20.74 2.17

(28) Inorganic, (29) Organic & (38) Agro chemicals 82.11 92.87 13.10 119.46 28.63

(33) Cosmetics, (34) Soaps, Toiletries and (33) Essential oils 31.23 29.88 -4.32 37.29 24.80

(15) Castor Oil 4.51 3.95 -12.42 4.09 3.54

Total 140.37 147.00 4.72 181.58 23.52Source:DGCI&S

DYES-TOP ITEMS EXPORTS TO SOUTH AFRICA

US$ in Million

HSCode Product2014-2015

Value 2015-2016

Value2016-2017

Value

32050000 COLR LAKES 2.77 3.78 4.39

32042010 0PTICAL WHITENING AGENTS 1.81 1.72 2.06

32041751 PIGMENT BLUE 15 (PATHALOCYANINE BLUE) 2.06 1.93 1.99

32041761 PIGMENT GREEN 7 (PATHALOVYANINE GREEN) 2.30 2.01 1.76

32041759 OTHERS PIGMENT BLUE 1.94 1.42 1.47

32041218 ACID BLACKS(AZO) 1.12 1.43 1.20

32041981 FOOD COLOURING YELLOW 3 (SUNSET YELLOW) 0.89 0.89 1.06

32041739 OTHERS PIGMENT RED 0.76 0.99 0.96

32041990 OTHR INCL MIXR OF COLRNG MATR OF TWO OR MORE OF SUB-HDNG 320411 TO 320419 N.E.S.

1.33 0.80 0.94

32041989 OTHER FOOD COLOURING 1.53 1.16 0.90

Total 16.51 16.13 16.73SOURCE:DGCI&S

2928April - May, 2018

DYE INTERMEDIATES-TOP ITEMS EXPORTS TO SOUTH AFRICA

US$ in Million


Value 2015-2016

Value2016-2017

Value29173500 PHTHALIC ANHYDRIDE 0.20 0.00 0.23

29215190OTHR O-M-P-PHNYLENEDIAMINE DIAMINOTOLUENE AND THEIR DRVTVS SALTS THEREOF

0.140.37 0.19

29214320 DIMETHYL TOLUIDNE 0.26 0.32 0.1129214223 DIMETHYL ANILINE 0.01 0.01 0.1129214390 OTHR TOLUIDINES AND THR DRVTVS SLTS THEREOF 0.0029072200 HYDROQUINONE (QUINOL) AND ITS SALTS 0.0429215130 P-PHENYLENEDIAMINE 0.0829093019 OTHER ANISOLE AND THR DRVTVS 0.0829270090 OTHER DIAZO-AZO-OR AZOXY-COMPOUNDS 0.0329072100 RESORCINOL AND ITS SALTS 0.00 Total 0.93

SOURCE:DGCI&S

List of supplying markets for a product imported by South Africa

US Dollar Million

ExportersImported value in

2015

Imported value in

2016

Imported value in

2017World 413.07 428.46 481.90Germany 85.00 82.04 86.21China 44.42 40.54 47.07India 27.38 33.35 40.65Netherlands 20.71 29.14 31.54United Kingdom 27.49 28.25 29.24Japan 22.02 26.75 27.29

SOURCE:INTRACEN

INORGANIC CHEMICALS-TOP ITEMS EXPORTS TO SOUTH AFRICA

US$ in Million


Value 2015-2016

Value2016-2017

Value28321090 OTHER SODIUM SULPHITE 7.88 8.64 8.5328020010 SUBLIMED SULPHUR 2.28 1.49 1.6628112200 SILICON DIOXIDE 3.42 2.13 1.45

28139090 OTER SULPHIDES OF NON-METALS NES 0.93 0.87 1.25

28151110 FLAKES OF SODIUM HYDROXIDE(NAOH),SOLID 0.47 1.46 1.20

28311010 SODIUM DITHIONITES (SODIUM HYDROSULPHITE) 1.28 0.96 0.92

28391900 OTHER SODIUM SILICATES 1.64 0.83 0.44

28299030 IODATES AND PERIODATES 0.53 0.33 0.39

28273200 CHLORIDES OF ALUMINIUM 0.43 0.25 0.36

28417020 SODIUM MOLYBDATE 0.76 0.66 0.36 Total 19.62 17.62 16.56

SOURCE:DGCI&S

China6% Germany

12%

India5%

Netherland4%

Unit

ds

ted Kingdom4%

W

Japan4%

World65%

Chapter - 32 Dyes Imported value in 2017



US Dollar Million


2015

Imported value in

2016

Imported value in

2017World 908.30 964.23 1226.19Australia 255.77 285.88 446.54China 156.10 161.15 189.45

United States of America 40.93 58.04 92.25Germany 47.62 58.61 73.64Brazil 1.82 57.94 55.77India 28.89 25.70 26.35

SOURCE:INTRACEN

ORGANIC CHEMICALS-TOP ITEMS EXPORTS TO SOUTH AFRICA

US$ in Million


Value 2015-2016

Value2016-2017

Value

29173600 TEREPHTHALIC ACID AND ITS SALTS 0.00 7.01 23.69

29335990OTHER CMPNDS CNTNG A PYRIMIDINE RING (W/N HYDRGNTD) OR PIPERAZINE RING IN STRUCTURE 1.83 8.13 17.57

38237090 OTHER INDUSTRIAL FATTY ALCOHOL 3.15 2.82 2.23

38249025 PRECIPITATED SILICA AND SILICA GEL 2.68 3.18 2.05

29319090 OTHER 0.00 0.00 1.63

29251900 OTHR IMIDES AND THR DRVTVS SLTS THEREOF 0.73 0.35 1.35

29161590OTHER OLEIC LINOLEIC ACIDS AND THEIR SALTS ANDESTRS 1.30 1.65 1.35

29053100 ETHYLENE GLYCOL (ETHANEDIOL) 0.95 0.89 1.30

29241900OTHER ACYCLIC AMIDES AND THEIR DERIVTVS, SALTS 1.06 0.62 1.18

38190010 BRAKE FLUIDS (HYDRAULIC FLUIDS) 0.71 0.83 1.17 Total 12.41 25.48 53.52SOURCE:DGCI&S


US Dollar Million


2015

Imported value in

2016

Imported value in

2017World 1309.82 1212.17 1348.14China 330.96 346.86 409.33India 145.06 134.07 158.16Saudi Arabia 89.11 108.17 117.87Germany 107.97 81.98 107.28U.S.A. 81.61 86.92 89.25Netherlands 66.03 58.30 72.33SOURCE:INTRACEN

Chapter-28 Inorganic chemicals Imported value in 2017

India7%

Saudi Arabia5%

China18%

Germany5%

U

2.S.A.4%

Netherlan3%

World58%

nds

Chapter-29 Organic chemicals Imported value in 2017

3130April - May, 2018

AGRO CHEMICALS-TOP ITEMS EXPORTS TO SOUTH AFRICA

US$ in Million


Value 2015-2016

Value2016-2017

Value38089390 OTHER HERBICIDES-ANTI-SPROUTING PRODUCTS 10.92 14.19 14.7538089290 OTHERS FUNGICIDE NES 6.62 6.86 7.7538089910 PESTICIDES, NOT ELSEWHERE SPECIFIED OR INC 2.85 3.39 3.3538089990 OTHER SIMILAR PRODUCTS N.E.S. 1.19 2.09 2.0038089199 OTHER INSECTICIDE NES 3.71 4.89 1.7638089135 CIPERMETHRIN TECHNICAL 1.32 0.57 0.68

380893202:4 DICHLOROPHENOXY ACTC ACD AND ITS ESTERS 0.19 0.43 0.33

38089310 CHLOROMETHYL PHENOXY ACETIC ACID (M.C.P.A) 0.00 0.00 0.1738089210 MANEB 0.37 0.19 0.1438089250 COPPER OXYCHLORIDE 0.00 0.00 0.07 Total 27.17 32.61 31.00SOURCE:DGCI&S


US Dollar Million


2015

Imported value in

2016

Imported value in

2017World 1444.42 1375.90 1575.72U.S.A. 292.46 253.01 272.88Germany 132.33 161.56 189.68China 171.08 114.89 153.55Swaziland 136.87 125.61 137.22France 116.05 94.99 120.95India 25.11 35.86 39.46source:intracen

COSMETICS AND TOILETRIES-TOP ITEMS EXPORTS TO SOUTH AFRICA

US$ in Million


Value 2015-2016

Value2016-2017

Value

33061020 TOOTH PASTE 2.03 4.27 7.7434021300 NON-IONIC W/N FOR RTL SALE 1.19 1.17 1.67

34011190OTHR SOAP AND ORGNC SURFACE ACTIVE PRODUCTFOR TIOLET 0.91 1.31 1.41

34021190OTHERS(E.G.ALKYLSULPHATES,TECHNICAL DODECYLBENZENE-SUL 1.41 1.20 1.37

33049910 CREAMS FACE (EXCL TURMARIC) 1.58 1.30 1.2833059040 HAIR DYES ( NATURAL,HERBAL 0R SYNTHETIC ) 0.96 1.25 1.2529157050 D.C.0. FATTY ACID 1.17 0.85 1.04

38231900OTHER INDUSTRIAL MONOCARBOXYLIC FATTY ACID 0.49 0.81 0.86

25262000 NATRL STEATITE CRUSHED/POWDERED 0.68 0.69 0.74

15162039 OTHR HYDROGNTD CASTOR OIL(OPL WAX) 0.88 0.66 0.69 Total 11.30 13.51 18.05

SOURCE:DGCI&S

U.1

Germ8%

Chin6%

.S.A.1%

many%

na%

Swaziland5%

FFrance5%

India2%

World63%

Chapter-38 Agro and Misc. chemicals Imported value in 2017



US Dollar Million


2015

Imported value in

2016

Imported value in

2017

World 274.64 271.33 280.23

Germany 43.94 50.38 53.95

United States of America 42.62 37.90 40.94

United Kingdom 20.43 25.01 24.01

China 21.34 20.89 21.39

France 14.12 14.35 16.49

India 5.87 6.10 8.09

SOURCE:INTRACEN

ESSENTIAL OILS-TOP ITEMS EXPORTS TO SOUTH AFRICA

US$ in Million


Value 2015-2016

Value2016-2017

Value

33012926 GINGER OIL 0.25 0.47 0.2633021010 SYNTHETIC FLAVOURING ESSENCES 0.24 0.00 0.21

33012590 OTHERS 0.06 0.03 0.1833012932 NUTMEG OIL 0.21 0.14 0.12

33011990 OTHERS 0.04 0.06 0.0633012990 OTHERS 0.03 0.03 0.04

33012922 CORIANDER SEED OIL 0.06 0.03 0.03

33012945 CUMIN OIL 0.01 0.02 0.03

33012942 LEMON GRASS OIL 0.01 0.01 0.02

33019090

OTHR CONC OF ESNL OILS IN FATS/FIXD/WAX LIKE TRPNC BYPRDCTS OF DETERPENATION OF ESNL OILS AQUS DISTLTS/SOLTN ESNL OL 0.01 0.04 0.02

Total 0.92 0.83 0.97SOURCE:DGCI&S


US Dollar Million


2015

Imported value in

2016

Imported value in

2017World 869.06 894.16 1039.25Swaziland 315.46 307.36 381.39France 82.91 93.12 97.12U.S.A. 84.14 74.85 84.46Germany 58.77 73.91 80.56United Kingdom 54.56 49.27 53.12India 35.38 38.82 47.98

SOURCE:INTRACEN

Germany12%

U.S.A.9%

U.K.5%

ChapChina5%

Franc4%

pter‐34 Soapce

%India2%

ps Imported

World63%

value in 2017

France5%

U.S.A.5%

Germ5

Chapter‐33 Co

Swaziland21%

many%

Unite

osmetics and ed Kingdom3%

Ind3

Essential oils

World58%

dia%

Imported vallue in 2017

3332April - May, 2018

CHEMEXCIL ACTIVITIES

The 18th China Interdye Exhibition 2018 was a premier show for Dyes and Dye Intermediates,

Pigments and Textile Chemical industry which was held at Shanghai World Expo Exhibition & Convention Centre (SWEECC), Shanghai, CHINA from 11th -13th April 2018.

It is an annual exhibition organized jointly by the China Dyestuff Industry Association, China Dyeing and Printing Association and China Council for the Promotion of International Trade, Shanghai Sub-Council. The co-organiser of this exhibition was Shanghai International Exhibition Service Co., Ltd. It was held concurrently with 2018 China International Digital Textile Printing, Printing and Dyeing Automatics Exhibitions to create a one-step sourcing platform for textile printing and dyeing Industry.

The profile of exhibits included low-carbon environment-protecting textile chemicals such as dyestuffs, pigments, intermediates, auxiliaries, biological enzyme, high-tech energy-saving and emission-reduction equipments, analytical and testing instruments, tank/packing container, color card, etc. The exhibition occupied an area of 40,000-square meter and was held in two Halls namely Hall 1 & 2 of SWEECC.

CHEMEXCIL along with SHEFEXIL had organised an India Pavilion which was spread over an area of 1744sq m in the Hall 1 with 92 member-companies

of CHEMEXCIL and 11 member-companies of SHEFEXIL participated in it. The India pavilion was inaugurated by Shri Anil Kumar Rai, Hon’ble Consul General of India to Shanghai along with Mr. Shi Xianping President of China Dyestuff Industry Association, Mr. Fu Xiangsheng Vice President of China Petroleum and Chemical Industry Federation and Industry, Mr. Yang Jianrong Chairman of Council for the Promotion of International Trade Shanghai, Shri Shankerbhai Patel, President, The Green Environment Services Society Ltd, Shri Satish Wagh - Chairman & Shri Ajay Kadakia - Vice Chairman of CHEMEXCIL & Chairman - SHEFEXIL After the inauguration, all the dignitaries visited the India Pavilion and interacted with the exhibitors.

The show was attended by 630 domestic and overseas exhibitors from 17 countries and visited by 16462 visitors (69,663 arrival times) from 53different Countries and regions. India Pavilion was the largest at this show. The exhibitors profile can be categorised as Dyestuffs, Auxiliaries, Intermediates, textile chemicals, dyestuff pigments and organic pigments. Along with the exhibition, 14 high-quality seminars and professional events were also organised which upgraded the exhibition level with more than 4000 industry insiders participated in it. The exhibition provided an excellent opportunity to the Indian manufacturers/ exporters to showcase their products and interact with the prospective buyers of the dyes and dyestuff industry on a common platform for expansion of their business in the International marketplace.

1. Chemexcil’s Participation in China Interdye 2018 Exhibition

Inauguration of the India Pavilion at the China Interdye Exhibition 2018 held from 11-13th April 2018 at Shanghai by the hands of Shri Anil Kumar Rai, Hon'ble Consul General of India, Shanghai, Chairman and Vice-Chairman CHEMEXCIL and other VIPs

Coming Soon


2. Chemexcil Hosts 46th Export Award Function

CHEMEXCIL hosted its 46th Export Awards function on 21st April-2018 at Ball Room, Hotel

Hyatt Regency, Sahar Airport Road, Ashok Nagar, Andheri (East), Mumbai, 400099.

The Chief Guest of the function was Shri Suresh Prabhu, Hon’ble Minister of Commerce & Industry and, Civil Aviation, Government of India, who confer Export Awards to 75-Nos. of outstanding exporters who have excelled in their export performance during the year 2016-17.

In the said glittering function, CHEMEXCIL felicitated two Life Time Achievement Award Winners who are Shri Ashwin C. Shroff, Chairman and Managing Director of Excel Industries Limited and Shri Jayanti Patel, Director Meghmani Organics Limited

Chemexcil distributed total 75-awards viz. 2-Lifetime achievement awards, 11-Trishul award, 12- Gold awards, 11- First awards, 9- Second awards, 19- Certificate of merit, 11-Award of Excellence.

Shri Ashwin C. Shroff, Chairman and Managing Director

of Excel Industries Ltd.Mumbai, receives the Life Time

Achievement Award

Shri Satish Wagh, Chairman Chemexcil addressing the

gathering during Chemexcil Export award function

Shri Ajay Kadakia, Vice Chairman Chemexcil proposing

vote of thanks during Chemexcil Export award functionShri Jayanti Patel, Director Meghmani Organics Ltd.

Ahmedabad, receives the Life Time Achievement Award

3534April - May, 2018 34

3. Chemexcil’s Participation in Beauty World Middle East Exhibition held in Dubai, UAE during 8th to 10th May 2018

The 23rd Beauty World Middle East Exhibition wasa three day event held from 8th to 10th May

2018 at Dubai International Convention Centre (Formerly Dubai World Trade Centre), Dubai.

As the largest International Trade fair for beauty products, Hair, Fragrances in the Mid-East& Africa (MEA), this exhibition attracts more than 40,000 trade visitors and beauty professionals from across the world. The show provides the participants an opportunity to tap the lucrative beauty and personal care market in MEAwhich is valued at approximately USD 32.7 Bn (2017) and expected to grow by around 10% in future.

The 2018 edition of the show featured 1736 exhibitors from 62 countries spread overs a sprawling area of 61,000 sqm which is a growth of 11% over the previous year.

The show also had excellent international presence of 25 country pavilions including India, China, Thailand, Morocco, Turkey, USA, Pakistan, Korea, France, Singapore, Russia etc.

In order to promote exports of Cosmetics and toiletries from India and also to assist our members to explore the market potential in GCC countries, CHEMEXCIL along-with India Trade Promotion

Organisation (ITPO) and SHEFEXIL had organised an India Pavilion booking space of 90 sqm each in Arena (Hall 2) reserved for International Pavilions. There were total 30 stalls in the Indian Pavilion, out of which 10 exhibitors had showcased their products under the umbrella of CHEMEXCIL.

The Indian Pavilion was also graced by H.E Shri Vipul, Consul General of India, UAE who interacted with the stall holders in the Indian Pavilion to understand about their activities in the MEA region.

Chemexcil stall holders were also pleased to interact with Shri Vipul and briefed him about their products, current exports to MEA etc.

The India pavilion attracted good visitor interest from Local buyers and also global business professionals/ dealers/ buyers etc from countries such as Kuwait, Saudi Arabia, Turkey, Jordan, Egypt, Pakistan, Nigeria, Russia etc. Indian exhibitors networked with them for tapping the future business opportunities.

Chemexcil’s stall inside the Indian Pavilion was also visited by several local and overseas Buyers/consultants/ service providers etcwho were provided leaflets and information about the exhibitors in the Indian Pavilion and also about the activities of the council.

H.E Shri Vipul, Consul General of India, UAE at CHEMEXCIL stall in Indian Pavilion

Coming Soon


1. COMMERCE MINISTRY AGREES IN PRINCIPLE NOT TO LEVY GST ON EXPORT OF RESEARCH SERVICES

The Union ministry of commerce & industry has in

principle agreed to sort out the GST issue faced by

the Indian pharma industry with regard to export

of research services. The government is expected

not to levy GST for research services.

Under Section 13(3) (a) of the Integrated Goods

and Services Tax Act 2017, “The place of supply is

to be determined as per location of performance

of services are in relation to the goods made

available by the recipient.” Now the biotech

industry required a clarification on this. Association

of Biotechnology Led Enterprises (ABLE) which

initiated a dialogue with the ministry of commerce

has managed to solve the issue.

An ABLE delegation recently met Union commerce

minister Suresh Prabhu and his team to discuss

the issue on the sector being levied a service tax.

“For a lot of services being rendered for overseas

clients, the government had the strange way of

interpreting the research services carried out on

any imported analytical material even through

the analytical data was being exported,” Kiran

Mazumdar-Shaw, ABLE's non executive chairman

said at the BioEconomy India conclave held in

Bengaluru recently.

Information technology services sector are not

levied the service tax. “In our case, the government

had decided to levy it because the work is

physically being done in India and there is actually

material coming into India and therefore GST

was being levied. So we made the government

understand that this was not the way to interpret

research services or export of services. Now if this

was what the government wanted, it was making

the sector uncompetitive,” she added.

After our dialogue with the government, from now

on the research services will no longer be levied

GST, stated Shaw who is also the chairperson

Vision Group on Biotechnology in Karnataka and

CMD, Biocon.

In a communication to the ministry of commerce

& industry, ABLE has requested that for the grant

of the much-needed relief to the R&D sector, there

was a need for the initiation of two steps. One

was that the Central Board of Excise and Customs

needed to issue a clarification regarding GST

levy on research services, in-house development

of molecules, in-vivo and assay, DMPK stability

etc. The second was the need for an amendment

required to the place of supply provisions under

services of R&D and in nature of clinical testing

and analysis of newly developed drugs etc.

Commenting on the development, Rashmi

Deshpande, associate partner, Khaitan& Co. said,

“Relatively cheap and highly skilled workforce

has made India an attractive destination for

pharmaceutical companies seeking to outsource

their R&D functions. While such R&D units will

undoubtedly boost employment and foreign

exchange earnings for our economy, it is imperative

for the government to create a conducive tax and

regulatory environment. Abolition of GST on

research services is a good first step to provide

a boost to the Indian pharmaceutical sector.

However, GST exemption will mean denial of

input tax credit for such R&D units, pushing up

their tax costs. The government should consider

devising a mechanism to provide relief on this

count”.

(Source:http://www.pharmabiz.com/NewsDetails.aspx?aid=108103&sid=1 dated 2nd April 2018)

NEWS ARTICLE

3736April - May, 2018

2. COMMERCE MINISTRY CONSIDERS APPOINTING AAMIR KHAN AS INDIA’S BRAND AMBASSADOR TO CHINA TO BOOST TRADE

That Aamir Khan is much loved in China is not news to anyone. Khan’s movies tend to

do exceptionally well in the Chinese box office and are superhit with the audience. To tap in on that potential, the commerce ministry has made a proposal to the external affairs ministry to appoint the superstar as India’s brand ambassador to China to boost services exports and narrow the trade deficit.

According to a report in Mint, a commerce ministry official who wishes to remain anonymous said, “Aamir Khan has won the hearts of millions of common Chinese citizens. He can create tremendous goodwill for India in China. He can be our brand ambassador to China and present our prowess in services sectors.”

He said that the proposal made to the MEA is under consideration.

India has a USD 51 billion merchandise trade deficit and around USD 270 million services

trade deficit with China. The Indian government has already termed this deficit ‘unsustainable’. In the recent 11th joint economic group between India and China, the latter’s trade minister Zhong Shan agreed to sketch a medium and long term blueprint to address this massive deficit.

Khan, who could be instrumental in this move, is already a beloved figure in the country. His movies 3 Idiots, PK, Dangal and the recent Secret Superstar all performed exceptionally well in the often-unexplored Chinese market. Dangal went on to earn Rs 1,200 crore putting it on the list of one of the highest Indian grosser in history. Even Secret Superstar, where the actor has a cameo role earned an whopping Rs 800 crore. His movies also paved way for other Indian hits like Bajrangi Bhaijaan which is still running in Chinese theatres and has earned Rs 278 crore so far.

If this trend continues, China could very well emerge as the next biggest market for Bollywood movies. Nevertheless, it must be mentioned that a substantial portion of the earnings from the Chinese market go to their local distributor. China also only allows a handful of foreign films in the country, which means that the quota for Indian movies to release in the country gets even smaller.

(Source: https://www.businesstoday.in/current/economy-politics/commerce-ministry-considers-appointing-aamir-khan-india-brand-ambassador-china-boost-trade/story/273935.html dated 2nd April-2018)

3. DG SAFEGUARDS TO SOON COME UNDER COMMERCE MINISTRY

New Delhi, Apr 3 () The Directorate General of Safeguards (DGS) will soon be shifted to the

commerce ministry as part of government’s plan to create a single authority for imposing trade remedies to protect domestic industry, an official said today.

DGS is currently under the finance ministry.

As per the plan, the government would merge DGS with the Directorate General of Antidumping and Allied Duties (DGAD), the investigating arm of commerce ministry, to streamline the process of imposing trade remedies.


Trade remedies which include anti-dumping, countervailing and safeguard duties are allowed under global trade norms to guard domestic industries from significant imports or cheap inbound shipments.

“By merging the two Directorate Generals, the government wants to create a single point contact which can conduct investigations related to international trade and remedial duties,” the official told .

The official said the shifting of DGS to the commerce ministry will happen “very soon, definitely by end-June”.

Under the Goods and Services Tax (GST) regime, DGS has also been entrusted to investigate complaints of profiteering.

The investigating agency submits its reports to the National Anti-profiteering Authority, which then takes its own view and decides on the penalty.

Once DGS is shifted to the commerce ministry, the directorate general will be renamed and will continue to be under the Department of Revenue in the finance ministry to carry out profiteering investigations.

“It could be renamed as Directorate General of Anti-Profiteering or GST Anti-Profiteering Investigation wing. A final decision will be taken by the finance ministry,” the official added.

Currently, DGAD conducts probe into allegations of cheap imports, by domestic industries.

If established that dumping has caused material injury to domestic players, it recommends imposition of anti-dumping or countervailing duty.

While DGAD recommends the duties, the finance ministry imposes the same.

On the other hand, DGS is mandated to investigate

the existence of serious injury or threat of serious injury to the domestic industry as a consequence of “increased” import of an article into India.

Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.

India is one of the largest users of these trade remedies.

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. These measures do not restrict imports or cause an unjustified increase in cost of products. JD RR SBT

Get latest news & live updates on the go on your pc with News App. Download The Times of India news app for your device. Read more Business news in English and other languages.

(Source:https://timesofindia.indiatimes.com/business/india-business/dg-safeguards-to-soon-come-under-commerce-ministry/articleshow/63599403.cms dated 3rd April-2018)

Coming Soon

3938April - May, 2018

4. INDIA AND THE EU GET CLOSE TO REVIVE TALKS ON PROPOSED FREE TRADE AGREEMENT

At a moment in history, where US “trade war” is targeting China and protectionism is on

the rise, there’s one country that has the potential to gain momentum on the stage of international trade: India. New Delhi has indeed the potential to write a totally new chapter of its history of trade with the West, as it is preparing to accelerate talks on a Free trade pact with the European Union. Senior officials from the two fronts are meeting in Brussels this week to try and revive the negotiations, which have been stalled for long. Substantial difference and open questions remain, but it looks like Brussels and the Asian giant are closer than even before.

Background

The EU and India are currently officially committed “to further increase their bilateral trade and investment” through the Free Trade Agreement negotiations that were launched in 2007. Since June 2007, both the sides have completed 16 rounds of talks and five stock-taking meetings on the proposed pact, officially dubbed as Bilateral Trade and Investment Agreement (BTIA). The negotiations for the pact have been held up since May 2013, hanging on some substantial gaps on crucial issues such as intellectual property rights, duty cut in automobile and spirits, and liberal visa regime.

Re-launch of negotiations

Last month, when a European Investment Banking delegation signed a historic loan to support solar investment in India, it became clear that the conversations between the EU and the Asian country were likely to revamp soon. French President Emmanuel Macron’s presence in New Delhi, when he co-chaired the first edition of the International Solar Alliance summit with Indian Prime Minister Narendra Modi at the beginning of March, has also raised hopes for the revival of negotiations on a free trade pact between India and Brussels. He and Mr. Modi indeed openly expressed their support to increase bilateral cooperation and to “timely relaunching” of negotiations on an India-EU free trade agreement.

At the end of last month then Indian Commerce and Industry Minister Suresh Prabhu indicated that negotiations on long-stalled free trade pact between India and the European Union could “resume soon”. “We have started working on India-EU FTA (free trade agreement) again. We have invited them and are looking at it,” the minister said at an event on March 26, a couple of weeks after Mr. Macron’s visit.

12 April meeting

Minister Prabhu’s words then assumed significance as, just a few days later, senior officials of India and EU announced they will meet in Brussels this week. In the April 12 meeting, India and the EU are purportedly expected to deliberate upon the long-stalled negotiations on the proposed trade pact, and to try and iron out differences. Which is something the two front have been chasing for long.

Key points

Discussions between Brussels and New Delhi are currently focused on key outstanding issues


that include improved market access for some goods and services, government procurement, geographical indications, sound investment protection rules, and sustainable development. Brussels formally recognizes that India has embarked on a process of economic reform and progressive integration with the global economy, but a final agreement with the Asian giant is still pretty far. In general, the EU considers India’s trade regime and regulatory environment still very restrictive. Besides demanding significant duty cuts in automobiles, the EU also wants India’s import duties on wines and spirits and dairy products substantially reduced, and a strong intellectual property regime. European banks are also wary of India’s restrictive rules on priority sector lending and obligation on financial inclusion.

On the other hand, India is asking to granted data secure nation status by the EU, which is something difficult at the time being, as India is among the nations not considered as data secure by the Brussels. The matter is particularly important for all those Indian IT companies currently wanting market access, and for the prohibitive costs of compliance with the existing data protection laws the Asian country currently faces. Also, India

claims there are still many barriers to movement of professionals including rules on work permits, wage parity conditions, visa formalities and non-recognition of professional qualifications.

Size of the game

The potential of the opportunity is huge. The total value of EU-India trade stood at €77.5 billion in 2015. The EU is currently India’s largest trading partner, accounting for 13% of India’s overall trade, ahead of China (9.6%) and the United States (8.5%). India is the EU’s 9th largest partner, (2.2% of EU’s overall trade with the world), after South Korea, 2.5%, and ahead of Canada, 1.9%). with the value of EU exports to India amounting to €38.1 billion in 2015.

The value of EU exports to India grew from €24.2 billion in 2006 to €37.8 billion in 2016, with engineering goods, gems and jewellery, other manufactured goods and chemicals ranking at the top. The value of EU imports from India also increased from €22.6 billion in 2006 to €39.3 billion in 2016, with at the top textiles and clothing, chemicals and engineering goods.

(Source: https://europeansting.com/2018/04/10/india-and-the-eu-get-close-to-revive-talks-on-proposed-free-trade-agreement/ dated 10th April-2018)

5. GOVT STARTS EXERCISE TO FRAME NATIONAL POLICY ON E-COMMERCE

Senior officers of various ministries and departments, representatives from

industry bodies, e-commerce companies,

telecommunication and IT firms, RBI and

independent experts have been invited to

participate in the meeting, the Commerce Ministry

said in a statement.

The government has started the exercise to frame

a national policy on e-commerce, with a think-tank

constituted on the issue under the chairmanship of

Commerce and Industry Minister Suresh Prabhu

set to hold its first meeting here tomorrow.

Senior officers of various ministries and departments, representatives from industry bodies, e-commerce companies, telecommunication and IT firms, RBI and independent experts have been invited to participate in the meeting, the Commerce Ministry said in a statement.

The think-tank, it said, will provide a platform for an inclusive and fact-based dialogue leading to recommendations for informed policy making so that the country is adequately prepared to take advantage of the opportunities and meet the challenges that would arise from the next wave of advancements in digital economy.

4140April - May, 2018

6. FAIR TRADE AND THE WORLD TRADE ORGANIZATION

May is World Trade Month, a time to recognize and echo the importance of global trade,

particularly fair trade. As we kickoff World Trade Month here at USDA, it’s important to acknowledge that trade is on our minds not only during May but every single day of the year. Our work supporting fair trade is a 24-hour job as few industries depend more upon – and benefit more from – trade than American agriculture.

It’s not an understatement to say that the gains from trade are powerful. When people produce what they are best at, and trade it for things they are less adept at producing, both sides benefit. Historically, economic integration in the post WWII era delivered immense benefits. Trade is not the only reason, but it is a major factor in helping the number of people living in extreme poverty fall to record lows and become dwarfed by the number of people not living in extreme poverty.

For U.S. agriculture, this success story is also a profitable one. Our farmers are the best in the world and we produce way more than we can consume. For many commodities, a significant share of U.S. production is exported. Without customers overseas, we would have huge surpluses, which would drive down prices, and result in hardships for our farmers that would ripple throughout the rural economy.

For me, these data raise two questions. First, since trade is good, what can we do to encourage

The group “will seek to collectively deliberate on the challenges confronting India in the arena of digital economy with a view to developing recommendations for a comprehensive and overarching national policy on e-commerce,” it said.

Issues that will be discussed during the meeting include aspects of e-commerce, digital economy, physical and digital infrastructure, regulatory regime, taxation policy, data flows, server localisation, intellectual property rights protection, FDI, and trade-related aspects.

“Developments on e-commerce at the WTO and evolving appropriate national position on the underlying issues, would be another important dimension of the discussions of the think tank on the framework for national policy on e-commerce,” it added.

The think-tank will explore options for providing a fillip to entrepreneurship in digital economy.

It will identify specific policy interventions for nurturing domestic firms and create jobs in e-commerce, it said.

Representatives of almost fifty organisations are expected to participate in the first meeting of the think-tank.

The setting up of the about 70-member body assumes significance as cross-border digital trade is growing at a faster pace and developed countries want an agreement on e-commerce trade under the aegis of the World Trade Organisation.

(Source: https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/govt-starts-exercise-to-frame-national-policy-on-e-commerce/63889638 dated 24th April-2018)


more of it? Second, while trade is clearly good, how can we ensure it is fair? More specifically, while society as a whole benefits from access to foreign customers and the availability of imported goods, what can we do to protect particular industries from losing out to unfairly traded goods from foreign competitors? After working on trade policy for over 25 years, my view is that the answer to both of these questions is the same – a strong set of rules operated through a multilateral institution.

Importance of the WTO

Fortunately, we have a strong set of rules paired with an effective institution to both lay down rules for trade and enforce them – the World Trade Organization (WTO). WTO rules have been agreed to by 164 countries, including all the important trading nations, and have helped reduce barriers to trade that have powered the impressive growth in trade and expansion of world income. The core rules of the WTO are straight-forward and intuitively fair.

You may wonder how did these rules come about? Following the great depression and WWII, leaders in the United States recognized the importance of guarding against trade restrictions and wanted to expand trade to rebuild the world’s economies and foster closer diplomatic relations. Working initially with a small group of like-minded countries, a set of trade rules were agreed to in 1947, called the

General Agreement on Tariffs and Trade (GATT). These rules were so successful that over time more countries joined the agreement, committing to follow the rules for trade among members of the GATT and also finding ways to negotiate reductions in trade barriers, principally tariffs. Building on this success, in 1994 the GATT was converted to the WTO, with further rules agreed to and, importantly, a binding dispute settlement system established.

The GATT, and now the WTO, have both helped expand trade and have established a set of rules that define ‘fair trade.’ So, what are those rules?

Key Rules Supporting Fair Trade

When I was a guppy government worker my former colleague Kevin Brosch once summarized the core rules for fair trade to me: three-and-a-half rules of the GATT. They are both strong rules to guard against trade restrictions and are also manifestly fair. They promote fair trade by limiting government restrictions and legitimizing the trading system. Here in a nutshell are the key rules:

1. Don’t discriminate across suppliers. The first article of the GATT ensures ‘Most Favored Nation’ treatment for all members. Basically that means that an importing country can’t treat one supplier less favorably than the treatment it provides its most favored supplier. For example, if the United States imposes a 5 percent tariff on mango imports from the Philippines, and that is the lowest tariff it applies on mangoes, India is ensured that it will not be subject to a tariff higher than 5 percent. Or, if the United States requires imported peaches from Argentina to be allowed in without fumigation, we can’t require imported peaches from Chile to be fumigated prior to entry. This ensures fair treatment across supplying countries.

2. Tariffs are the only justifiable tool for protecting domestic markets. The second article of the GATT says non-tariff measures like quotas, bans,

4342April - May, 2018

and variable import restrictions are prohibited. Countries can however use tariffs, but they are set at maximum levels (for example the U.S. tariff on beef cannot exceed 26.4 percent). By establishing tariffs as the basis for regulating trade, the rules ensure more transparency and predictability and also facilitate negotiations between countries to bring down trade restrictions. It is really as simple as a negotiation over numbers!

3. Don’t discriminate against imports. The third article of the GATT protects imported products from facing requirements or taxes that are less favorable than those imposed on domestic products. For example, if the United States imposes a 15 percent excise tax on U.S. whisky, it can’t impose an excise tax higher than 15 percent on imported products. Or, if the United States says U.S. beef can be sold in grocery stores, convenience stores, and wholesale markets, imported Korean beef cannot be restricted to just be sold through convenience stores. This ensures imports are not restricted arbitrarily from the market. A key exception is tariffs (imports can be taxed while domestic products are not), which is covered next.

3.5 Subsidies. The WTO rules on subsidies are weaker, so I call it a half rule. Subsidies are permitted, with some exceptions. For example, export subsidies (which are government payments that help exporters win sales in international markets) are banned. While some subsidies are permitted, if an importing country shows that the subsidies are leading to increased imports from the subsidizing country, and injuring the importing country’s domestic industry, it can ‘remedy’ the situation by imposing restrictions –counter-vailing duties. Similarly, if a country is selling its product at a less than fair value, an importing country can restrict imports through anti-dumping duties. This rule recognizes that subsidies are pervasive instruments of government policy, but aims to control the negative impacts. This is easier said than done. China’s unjustified use of these trade remedies to unjustifiably restrict U.S. sorghum exports this year shows how these rules can be

twisted for protectionist purposes.

Exceptions to the Rules and Enforcement

Is that it? Not quite. The WTO rules run for hundreds of pages and these three-and-half rules account for less than 1 percent of all the rules. The rest of the rules are exceptions to these rules. For example, countries agree to not discriminate across suppliers, however, if there is a threat to health or safety from imports, the trade rules allow the importing country to discriminate against imports from the impacted country. For example, if an exporting country is suffering from a disease outbreak that could spread to an importing country, a country may ban imports of the dangerous product from the exporting country, even as it imports from another supplier and continues to allow domestic commerce of the same product. The rules do lay out provisions to ensure this ‘health and safety’ exception is not abused: before imposing a trade restriction the importing country must complete a scientific risk assessment and it can’t arbitrarily impose overly restrictive measures. This can be pretty complicated!

Similarly, there are exceptions that allow countries to discriminate across supplies by forming Regional Trade Agreements. This allows the United States to eliminate tariffs on Mexican and Canadian imports, while maintaining them on other countries, like the European Union. There are conditions that a Regional Trade Agreement must substantially cover all trade to guard against arbitrary commercial preferences aimed at disadvantaging other countries. This rule has allowed countries to enter Free Trade Agreements which have helped boost global trade and expand incomes.

There are tons of these exceptions: goods made from prison labor can be banned, countries can impose technical standards, in times of a currency crisis countries can restrict imports to protect foreign currency reserves, and many more. My main point is these are good rules. If we were going to start from scratch today and try to


identify a set of trade rules, I believe we could not do better than the ones agreed to through the GATT and WTO process. The proof is in the pudding – despite shortcomings, global trade has boomed under this system, and these rules have protected against abuse of the trading system by protectionist interests.

One last comment regarding fair trade, rules are only as good as their enforcement provisions. The WTO agreement of 1994 set up a dispute settlement system to give the rules real teeth. If a country believes a trading partner is violating the rules, it can request a panel of experts to here the merits of the case and render a judgement. If the policy is found to be inconsistent with trade rules, the offending country needs to resolve the violation. If it does not, the injured country can impose trade sanctions to retaliate.

The WTO dispute process has been very successful for U.S. agriculture. The threat of litigation keeps countries honest for the most part and has helped us negotiate reforms in other countries when they have caved to the temptation to cheat. The United States has initiated numerous WTO cases and in all instances we have either successfully negotiated a settlement or have prevailed in litigation. This has led to policy reforms by our trading partners, and kept markets open for

our products. Even when countries have found it politically impossible to reform, such as the infamous EU hormone ban, we have been able to send a strong signal to other trading partners to not imitate bad behavior, and even in the EU we have negotiated compensatory import access. Other countries have also challenged some of our policies, but much less frequently than we have used the litigation option, and they have not challenged core U.S. farm or trade policies. We currently have two important disputes on China’s grain policies working their way through the WTO now – a positive outcome should give us leverage to encourage market-oriented reforms in China.

The WTO rules have served U.S. agriculture well. There are important areas were improvement is needed: too many high tariffs restrict trade, too many countries use very distorting price supports and input subsidies, and rules need to be strengthened with respect to unjustified non-tariff measures. Additionally, some countries have been circumventing WTO obligations for protectionist purposes, undermining the trading system. What U.S. agriculture, and the world, needs is a stronger and more useful global trading system.

(Source: https://www.fas.usda.gov/newsroom/fair-trade-and-world-trade-organization dated 1st May-2018)

7. INDIA MUST BECOME GLOBALLY COMPETITIVE IN MANUFACTURING TO BOOST MERCHANDISE EXPORTS

As the government never fails to point out, India is the fastest growing major economy, and

expects to grow even faster in the coming years. It has liked talking about record FDI inflows, and how India is one of the most attractive investment destinations. What it doesn’t like talking about is its dismal track record on merchandise exports.

In 2013/14, India’s merchandise exports stood at $314.4 billion. In the next year, it fell to $310.3 billion. And the next year, 2015/16 saw a further fall to $262.3 billion before it improved marginally to $275.9 billion in 2016/17. This financial year, it has

clocked $302 billion, which is still lower than what it was four years ago.

Some bit of the export drop can be blamed on falling crude prices. Petroleum products including high speed diesel forms a biggish chunk of Indian exports, and when crude prices fall, so do exports. But beyond that, India’s merchandise exports are still in gems and jewellery, agriculture & allied, textiles, chemicals and transport equipment and machinery and base metals. Of these, exports of gems & jewellery, transport equipment and textiles actually fell in the current year.

4544April - May, 2018

In the past two years, India has not been able to take advantage of rising world trade. The disruptions caused by demonetisation first, and later the hiccups during the roll out of GST, have been blamed for hitting small exporters in a number of sectors.

The bigger problem though, in my opinion, is India’s failure to get become globally competitive in manufacturing. So far, most countries that have grown rapidly have depended on globally competitive manufacturing to power them to high growth. In Asia, especially, Japan showed the way initially when its manufacturing techniques powered it to become a global manufacturing powerhouse in sectors ranging from autos, to consumer durables to imaging. Later the Asian Tigers, especially Taiwan and South Korea grew rapidly because of their engineering and manufacturing competitiveness. Then came the rise of China, which became the production base for all sorts of products from steel to solar panels, and from mobile phones to computers.

India has never managed to get its manufacturing act right despite many tries. At different times, the reasons proffered have ranged from higher raw material and electricity costs, low productivity of labour, difficulties in setting up greenfield factories because of land acquisition and government clearances, and other sundry reasons.

The problem has always been that India has always been proud of its small and medium industries and the jobs it created. For a long time, a range of products were reserved for the SME sector. Thankfully that reservation has gone now, but the natural inclination to look tilt on the side of SMEs and not large scale manufacturing has remained. Even this government continues that mindset probably because of the assumption that SMEs will continue to create more jobs than bigger manufacturers.

There are multiple problems with that assumption. SMEs are generally not globally competitive when it comes to production of high value products. Economies of scale and productivity problems plague them. But merchandise exports will not go up unless the products are globally competitive and can take a bite out of the global market. And that is where the policy makers need to focus on when they unveil the new industrial policy, which has been in the works for some time.

Focusing on giving benefit packages for exporters in textiles, and other such sectors will not make India a big merchandise exporter. And that is something this government will have to keep in mind when it finalises the policy.

(Source:- https://www.businesstoday.in/opinion/prosaic-view/india-must-become-globally-competitive-in-manufacturing-to-boost-merchandise-exports/story/276100.html dated 2nd May-2018)

8. UTILISING FREE TRADE AGREEMENTS FOR WHAT THEY MEAN TO BUSINESS

Free Trade Agreements (FTAs) are rising in prominence, abeit laden with challenges. A

cursory glance into the origin and evolution of FTAs over the past centuries would explain how and why. A specialised and updated information system designed for storage and processing of all the important information pertaining to FTAs is essential to overcome the various challenges in effectively utilising them.

FTA is an agreement facilitating trade between countries by reducing or even eliminating various

tariff and non-tariff barriers to trade. It opens up new markets for industries to expand their sales outreach to. FTAs can also include in their scope or sphere of influence, areas such as foreign investment, economic growth, employment, infrastructure development, intellectual property rights, protectionism and international competition among others. Hence the different forms and terms, other than FTA, associated with Trade Agreements namely, PTA (Preferential Trade Agreement),


CECA (Comprehensive Economic Cooperation Agreement), CEPA (Comprehensive Economic Partnership Agreement), Trading Bloc, Customs Union, Economic Union, Common Market, and so on.

For India alone, the various trade agreements and treaties, both in force as well as under negotiations, involve countries across regions as far-flung as Asia, Central America and South America. Of late, mutual efforts in advancing FTAs between India and a vast variety of countries and regions have been gathering speed, particularly with Nordic countries, South Korea, Egypt, European Union, Canada, Poland, Switzerland, France, Israel, United States, Great Britain, Mauritius, Singapore and Vietnam.

In the aftermath of World War II, a new global economic order was created by General Agreement on Tariffs and Trade (GATT) in 1947, forcing economic powers out of protectionism and globally institutionalising the idea of multilateralism.

Countries became independent and so did their economic decision-making. There came about an increase in awareness of their trade interests which could be served by FTAs. WTO (World Trade Organization) replaced GATT in 1995. Signed by 123 and currently with 162 member states, it is the largest international economic organisation in the world regulating trade in goods, services and intellectual property by providing a framework for negotiating trade agreements. As a result, FTAs started proliferating on the strong principles of bilateralism and multilateralism. This not only guided trade negotiations, but also made FTAs complex, particularly their conclusion and effective utilisation. For there needed to be a mechanism which could track the changes in tariff headings resulting from value addition on inputs, a system of rules to calculate the extent of value addition in regions concerned and a set of criteria to determine if the goods so converted could be considered as

originating from that particular country to be eligible for an import or export consignment under FTA.

Apart from various economic, political and legal challenges, several surveys clearly bring out lack of information as the biggest obstacle in utilising FTAs. There are other challenges like low margins of preference, complications in interpreting Rules of Origin (ROOs), non-tariff measures (NTMs) inhibiting exports, other exemption schemes easier to use than FTAs, etc. However, at over 35 percent, lack of information tops the list of challenges.

Evidently, therefore, the considerable under-utilisation of FTAs despite their high utility value is attributable to the inability to access, manage and process the immense amount of information that is integral to it. Manual control on any of these activities is simply out of question. Tracking of developments on FTAs being negotiated or signed by governments, analyses of the different articles therein and important information about inclusion and exclusion of tariff lines with their HS (Harmonised System) classification codes, changes in tariff classification, Most Favoured Nation (MFN) duty rates, interpretation of the Rules of Origin (ROOs), actual duty exemptions or concessions, safeguard measures, procedure and authorised agencies for obtaining Certificate of Origin, Mutual Recognition Agreements (MRA) and non-tariff measures (NTMs) namely, customs, licensing and inspection procedures, documentation and comparative analysis of tariff concessions by different FTAs, and so on, is quite crucial to effectively utilising them.

And the furious proliferation of these FTAs only exasperates the pressing need for organisations to have an advanced information management system as the only way to store and process all this information. More specialised this system is in its design and more integrated it is with the other participating systems in the supply chain trading partner ecosystem including the

4746April - May, 2018

government agencies, more effectively would it help organisations utilise the various FTAs applicable to their business geographies. For all the cost advantages and the business benefits that FTAs are intended to bring in, this investment, which comprehensively covers automation, documentation, integration and compliance, is most likely to pay back large dividends.

References:

1. Frequently Asked Question (FAQ) Free Trade Agreements: Indian Trade Portal

2. Free Trade Agreements – A brief history: European Student Think Tank, Sep 2016

3. International Trade Agreements: Ministry of Commerce and Industry, Dept. of Commerce, Govt. of India

4. What is an FTA and what are the benefits: Article by Matthew Grimson, ABC News, Apr 2014

5. Asian FTAs: Trends, Prospects, and Challenges: ADB Economics Working Paper Series, Oct 2010

6. Thomson Reuters-KPMG International Annual Global Trade Report 2017

Margin of preference: It means the percentage difference between the Most-Favoured-Nation (MFN) rate of duty and the preferential rate of duty for the like product, and not the absolute difference between those rates. Margin of preference = (MFN duty– tariff rate conceded under the Agreement) × 100(per cent).

(Source: http://www.forbesindia.com/blog/economy-policy/utilising-free-trade-agreements-for-what-they-mean-to-business/ dated 2nd May-2018)

9. INDIA TOPS LIST OF FASTEST GROWING ECONOMIES FOR COMING DECADE: HARVARD STUDY

NEW YORK: India tops the list of the fastest growing economies in the world for the

coming decade and is projected to grow at 7.9 per cent annually, ahead of China and the US, according to a Harvard University report.

The Centre for International Development (CID) at Harvard University said in new growth projections yesterday that countries that have diversified their economies into more complex sectors, like India and Vietnam, are those that will grow the fastest in the coming decade.

The researchers also find India ranks the best on the criteria termed the Complexity Opportunity Index (COI), which measures how easy it is to redeploy existing knowhow to enter new complex products.

“India’s existing capabilities have not only diversified its exports, but also allow for easy redeployment into related products that depend on those capabilities, making further diversification relatively easy,” it said.

China is projected to grow at 4.9 per cent annually to 2026, the US three per cent and France 3.5 per cent.

The top ranking in COI means India has many “unrealised opportunities” to diversify into related, high-value sectors to continue to drive productivity growth and job creation.

“Up to now, that potential remains unrealized, however, as India’s complexity has not changed over the past decade. The rapid growth that is predicted is effectively capitalizing on previous gains in complexity,” the report added.

It stressed that ensuring the long-run potential of India’s economic growth will rely on realizing diversification into related products. The other major challenge will be to ensure the inclusive nature of this productive transformation, as the gains made in new chemical, vehicle and electronics exports are highly concentrated in specific localities of the subcontinent.


“Whether that knowhow can be disseminated into new areas of India will in part determine whether rapid growth can be sustained in the long-term,” it said.

Director of CID, professor at Harvard Kennedy School (HKS) and the leading researcher of The Atlas of Economic Complexity, Ricardo Hausmann said that Southeast Asia continues to dominate the global growth landscape, driven by the diversification of economies into complex manufacturing, but the leading countries have shifted within the region, with the Philippines, Vietnam, Indonesia, and Thailand poised to lead growth in the coming decade.

The researchers further point out that many low-income countries, including Bangladesh, Venezuela, and Angola have failed to diversify their knowhow and face low growth prospects.

“Others like India, Turkey, and the Philippines have successfully added productive capabilities to enter new sectors and will drive growth over the coming decade,” said Sebastian Bustos, a lead CID researcher in trade and economic complexity methods.

(Source: https://economictimes.indiatimes.com/news/economy/indicators/indias-7-projected-growth-rate-amazingly-fast-adb/articleshow/64049171.cms dated 4th May-2018)

10. VIEW: INDIA MUST TREAD CAREFULLY ON FREE TRADE AGREEMENTS

By VK Saraswat, Prachi Priya & Aniruddha Ghosh

Trade theory has consistently been a strong proponent of free trade of goods, services,

capital and labour. However, a growing wave of protectionism has dominated global trade of late. While it is difficult to assess whether this will lead to a significant shift in the global trade paradigm, a review of India’s existing free trade agreements (FTAs) before negotiating new ones is necessary.

India is a fairly open economy with overall trade (exports plus imports) as a percentage of GDP at around 40%. Its exports have diversified both in terms of markets and products in the past two decades. Indian exports have gradually found their way into new markets and the export sector has moved up the value chain, leading the way with high-value products like industrial machinery, automobiles and car parts, and refined petroleum products.

India’s exports to FTA countries have not outperformed overall export growth, or exports to rest of the world. Both have grown at a commensurate rate of 13% y-o-y. FTAs have led to increased imports and exports, although this has widened the trade deficit. For example, India’s

trade deficit with Asean (Association of Southeast Asian Nations), South Korea and Japan has doubled to $24 billion in FY2017 from $15 billion in FY2011 (with the signing of the respective FTAs) and $5 billion in FY06.

Also, India’s exports are much more responsive to income changes as compared to price changes. So, a tariff reduction or elimination does not boost exports significantly. Utilisation rate of regional trade agreements (RTAs) by exporters in India is very low. Most estimates put it at less than 25%. Lack of information on FTAs, low margins of preference, delays and administrative costs associated with rules of origin, non-tariff measures, are major reasons for under-utilisation.

When it comes to the India-Asean FTA, there is a deterioration of the quality of trade. Apart from the surge in total trade deficit due to tariff cuts, sectorwise trade flows also paint a grim picture. As per the UN’s Harmonised System of Product Classification, products can be grouped into 99 chapters, and further into 21sections like textiles, chemicals, vegetable products, etc. India has experienced a worsening of trade balance (deficit increased or surplus reduced) for 13 out of 21 sectors.

4948April - May, 2018

This also includes value-added sectors like chemicals and allied, plastics and rubber, minerals, leather, textiles, gems and jewellery. Sectors where trade balance has improved include animal products, cement and ceramic, arms and ammunitions. Sectors where trade deficit has worsened account for approximately 75% of India’s exports to Asean.

So, there are genuine concerns of trade asymmetry when India signs up new FTAs because of past FTA experience. However, FTAs are instrumental in creating seamless trade blocs that can aid trade and economic growth. Here are some suggestions while going forward with future FTA negotiations.

Before getting into any multilateral trade deal, India should review its existing FTAs in terms of benefits to various stakeholders like industry and consumers, trade complementarities and

changing trade patterns in the past decade. Negotiating bilateral FTAs with countries where trade complementarities and margin of preference is high may benefit India in the long run.

Also, higher compliance costs nullify the benefits of margin of preference. Thus reducing compliance cost and administrative delays is extremely critical to increase utilisation rate of FTAs. Proper safety and quality standards should be set to avoid dumping of lower quality hazardous goods into the Indian market.

Circumvention of rules of origin should be strictly dealt with by the authorities. Well-balanced FTA deals addressing the concerns of all the stakeholders is the need of the hour.

(Source: https://economictimes.indiatimes.com/news/economy/foreign-trade/view-india-must-tread-carefully-on-free-trade-agreements/articleshow/64055496.cms dated 7th May-2018)

11. SPECIALTY CHEMICAL SECTOR MAY DOUBLE MARKET SIZE BY FY25: REPORT

The specialty chemicals sector registered double-digit growth over FY13-FY17, supported

by subdued oil prices and strong domestic and

export demand.

The domestic specialty chemical sector is expected to grow by about 10 per cent annually to almost double the market size by FY25, driven by growth in end-user industries, a report said.

“The Indian chemicals sector is a market worth about USD 160 billion, with specialty chemicals representing about 20 per cent of the value. We expect the specialty chemical sector to grow by about 10 per cent annually to almost double the market size by FY25,” India Ratings report on ‘FY19 Outlook: Specialty Chemicals’ said here.

The specialty chemicals sector registered double-digit growth over FY13-FY17, supported by subdued oil prices and strong domestic and export demand.

Ind-Ra expects FY19 to be a strong year for the domestic specialty chemicals sector on anticipation of a continued increase in demand from end-user industries and tight global supply due to stringent environmental norms in China.

Specialty chemical end-use industries such as textile, automotive, personal care, construction chemicals and agrochemicals, as w ell as application-driven segments such as surfactants, paints, coatings and colorants, to experience high growth in the medium-term.

The governments focus on affordable housing, agriculture and increased expenditure on infrastructure development will further spur demand for performance-enhancing chemicals. Ind-Ra expects strong growth across the key segments of specialty chemicals.

However, per capita chemical consumption in the country remains low compared with that in developed countries and emerging economies


12. SURESH PRABHU ASKS OFFICIALS FROM DIFFERENT MINISTRIES TO PREPARE ACTION PLAN WITHIN NEXT FORTNIGHT ON BOOSTING EXPORTS

New Delhi, May 9 (KNN) Commerce & Industry Minister Suresh Prabhu has asked secretaries

and senior officers from different Ministries and Departments to prepare an action plan with short term targets on boosting exports and send it to his ministry within the next fortnight.

Prabhu, on Tuesday, addressed secretaries and senior officers in the first inter-ministerial meeting on Sectoral Export Promotion Strategy.

The meeting was attended by Secretaries to Government of India from Department of Commerce, DIPP, Electronics and IT, Animal Husbandry and Dairying and MSME, besides senior officers from about 14 other administrative Ministries/Departments including Agriculture, Textiles, Petroleum, Food Processing Industries, Pharma, Chemical and Petrochemical, Defence production and MEA which are concerned with various product groups which comprise a substantial part of India’s merchandise exports.

Commerce Minister asked all officers to prepare an action plan on boosting exports of products being handled by their respective Ministries and send it to the Department of Commerce within the next fortnight.

He stressed that the action plan should also have short term targets which are achievable in the next two months and the Department of Commerce will take the assistance of Ministry of External Affairs to implement the action plans through its commercial missions abroad.

Minister informed that the Union Cabinet has

such as China, indicating latent demand potential in the Indian market, the report said.

The implementation of strict environmental norms in China has reduced the competitive advantages for Chinese firms, especially inefficient smaller firms that became unviable.

In 2017, an estimated 40 per cent of the chemical manufacturing capacity in China was temporarily shut down for safety inspections, with over 80,000 manufacturing units charged and fined for breaching permissible emission limits.

Ind-Ra expects the supply of major chemicals from China to remain subdued in FY19, favourably impacting volume and pricing for Indian exporters.

Higher-than-expected growth in demand, along

with stable feedstock availability at low prices

and ability to comply with regulatory norms, may

further strengthen operating profile of the sector,

according to Ind-Ra.

However, the agency believes that sharp

changes in oil prices due to an unfavourable

macroeconomic scenario, uncertainty about

feedstock procurement and an uptick in global

capacity expansion may have a negative impact

on the sector.

(Source:- https://auto.economictimes.indiatimes.com/news/industry/specialty-chemical-sector-may-double-market-size-by-fy25-report/64072614 dated 8th May-2018)

5150April - May, 2018

accorded approval of Rs. 5000 crores to promote export of services in champion sectors and the Department of Commerce (DoC) is organizing the next Global Exhibition on export of Services at Mumbai on 15th May 2018.

He told the respective Ministries and Departments that DoC as well as the ITPO can organize road-shows and exhibitions for their sectors and products.

Minister stated that a holistic approach to manufacturing and exports is the need of the hour as protectionist approach may actually have a negative impact on value added items of export. We need to push the idea of looking for new markets as well as exporting new products.

Ministries should work out the strategy, and after receiving the plans, DoC will organize further meetings with export promotion councils, trading houses as well as major exporters. A ‘Best Exporting Ministry/Dept. Award’ will also be announced.

The Minister advised the EXIM bank to prepare an action plan to alleviate the financial difficulties being faced by exporters. Similarly the FPI sector can take the help of NABARD for financing their projects. The Minister announced that the arrangement for having inter-ministerial meetings to boost exports with concerned administrative

ministries will be institutionalized by DoC.

Minister of State, Commerce & Industry, CR Chaudhary invited attention to stagnating exports in gem and jewellery, textiles and leather sectors and exhorted the Departments to come up with new proposals to boost exports in these areas.

Commerce Secretary, Rita Teaotia informed the officers that while there has been a 10% growth in merchandise exports in the current year, our share in global trade is static at 1.7% in merchandise exports and 3.4% is services exports. We need to look at new markets. While we have done well in US and Europe there has not been adequate focus on fast emerging markets in Asia. We need to focus more on exports to China, Latin America and Africa.

DGFT Alok Chaturvedi observed that India’s share of exports is high in goods which are less traded and low in goods that are traded more in the world. This needs to be realigned.

DG highlighted the sectors where the export share of the sector in India’s exports is less compared to the share of the sector in world exports. These were identified as potential sectors.

(Source: http://knnindia.co.in/news/newsdetails/sectors/suresh-prabhu-asks-officials-from-different-ministries-to-prepare-action-plan-within-next-fortnight-on-boosting-exports dated 9th May-2018)

Coming Soon


NOTICE 1

EPC/LIC/GST/E_WAY_BILL 02/04/2018

To ALL THE MEMBERS OF THE COUNCIL

SUBJECT:- e-Way Bill

• CBEC Press release on roll out of e-Way Bill System from 1st April, 2018

• Updated FAQ’s on e-Way Bill System

Dear Members,

As you are aware, e-Way Bill system has become mandatory from 1st April, 2018 for all inter-State movement of goods.

In view of above, CBEC has issued press release regarding smooth roll out of e-Way Bill system from 01st April, 2018 for inter-state movement. The implementation of the nationwide e-Way Bill mechanism under GST regime is being done by GSTN in association with the National Informatics Centre (NIC) and is being run on portal namely https://ewaybillgst.gov.in .

As per the press release, e-Way Bill can be generated through various modes like Web (Online), Android App, SMS, using Bulk Upload Tool and API based site to site integration etc. Consolidated e-way Bill can be generated by transporters for vehicle carrying multiple consignments.

Transporters can create multiple Sub-Users and allocate roles to them. This way large transporters can declare their various offices as sub-users. There is a provision for cancellation of e-way Bill within 24 hours by the person who has generated the e-way Bill. The recipient can also reject the e-way Bill within validity period of e-way bill or 72 hours of generation of the e-way bill by the consignor whichever is earlier.

To answer queries of taxpayers and transporters, the Central helpdesk of GST has made special arrangements with 100 agents exclusively dedicated to answer queries related to e-way bills.

Updated FAQ’s on e-Way Bill System

Further, CBEC has also issued FAQ’s on e-way bill system which are available on CBEC Portal.

Members are requested to take note of above. The CBEC press release and FAQ’s on e-Way Bill System are available for download using below links:

http://www.cbec.gov.in/resources//htdocs-cbec/press-release/Press_Note_E-way_Bill-01042018.pdf

http://www.cbec.gov.in/resources//htdocs-cbec/gst/FAQs-on-E-way%20Bill-System.pdf

Persistent issues, if any, may be brought to the notice of the concerned authorities under cc to us on e-mail id’s: [email protected] & [email protected] .

Thanking you

Chemexcil Notice

5352April - May, 2018

NOTICE 2

EPC/LIC/JNCH/EPU 03/04/2018

To

ALL THE MEMBERS OF THE COUNCIL

SUBJECT:- JNCH-Constitution of “Environment Protection Unit” at

JNCH and Compliance of E-Waste (Management) Rules, 2016

Dear Members,

Kindly note that JNCH, Nhava Sheva has issued Public Notices regarding constitution of “Environment Protection Unit” & Compliance of E-Waste (Management) Rules, 2016, respectively.

The gist of these PN’s are provided as follows for your convenience:

• Constitution of “Environment Protection Unit” at JNCH

You will appreciate that worldwide Customs play a very important role in entire “compliance and enforcement chain”. Therefore, it has been decided to constitute an “Environment Protection Unit (EPU)” at JNCH to further enhance and harmonize the efforts for effective action and better results in aforesaid direction as well as to develop expertise and specialisation in this area.

Environment Protection Unit (EPU) will function in Nhava Sheva-III Commissionerate as part of SIIB-Imports and will co-ordinate with other Commissionerates of JNCH. This has been notified vide Public Notice No. 42/2018 dated 16.03.2018.

EPU aims to augment the efforts towards prohibiting export or import of prohibited goods and to supplement the effort of other authorities or department dealing with implementation of Environment Protection Act.

As per the PN, objective of EPU will be to develop expertise and specialization in environmental laws and their effective enforcement in JNCH focus on “Green Customs” Charter of Functions.

The charter of function of Environment Protection Unit (EPU) will be as under:

To collate a comprehensive data base on all environmental laws to be enforced by Customs and International conventions on the subject.

To clearly identify the role of Customs officers in their implementation.

To develop expertise in enforcement through techniques ranging from riskprofiling, scanning and examination of goods to detect violations of these laws.

To engage in inter agency coordination for enhanced interdiction.

To compile a data base on the nature of offences detected and the modus operandi used.

To develop Standard Operating Procedures for dealing with violations, including the right to return the goods to the exporting country.

To compile comprehensive offence database for better risk management and enforcement and sharing the same with other related agencies.


Any relevant issues or representations or suggestions may be brought to the notice of Additional Commissioner in charge of NS-III [SIIB (Import)] or Deputy / Assistant Commissioner in charge of NS-III [SIIB (Import)] by email (email address: [email protected] ) and phone no. 022-27244986, 022-27244881. Difficulties, if any, in functioning of EPU shall be brought to notice of Deputy / Assistant Commissioner in charge of Appraising Main (Import) through email / phones (email address: [email protected], Phone No : 022-27244959, 022-27244979).

• Compliance of E-Waste (Management) Rules, 2016

JNCH has also issued PN 41/2018 dated 15/03/2018 pertaining to provisions of E-Waste (Management) Rules, 2016 for compliance for smooth and expeditious clearances.

Members are requested to take note of the same. For further details, members may refer to the above-said Public Notices pertaining to Constitution of “Environment Protection Unit” and Compliance of E-Waste (Management) Rules, 2016 using below links-

http://164.100.155.199/pdf/PN-2018/PN_042.pdf

http://164.100.155.199/pdf/PN-2018/PN_041.pdf

Members feed-back/comments, if any, can also be on e-mail id’s: [email protected] & [email protected] .

Thanking you.

NOTICE 3

EPC/LIC/EODC 05/04/2018

To, ALL THE MEMBERS OF THE COUNCIL

SUBJECT:-DGFT, EODC Monitoring System for Advance/EPCG Authorisations

Dear Members,

As you are aware, delays in EODC for duty exemption schemes has been a long-standing issue amongst the exporters which has also been conveyed to the O/o DGFT during the interactions/ by representations.

In this regard, O/o DGFT has issued Trade Notice No.01/2018-19 dated 04/04/2018 regarding EODC monitoring system (web site) developed by DGFT, which can be accessed at http://eodc.online.

For the convenience of the member-exporters, the important points are highlighted/ reproduced as follows:

• The EODC monitoring system is designed for monitoring the progress of EODC applications of Advance and EPCG authorisations. All RAs are expected to input data related to applications submitted by exporters for EODC and update the status when either Deficiency letter or EODC is issued. Pending cases for the purpose of this Trade Notice shall be all requests/replies which were submitted for grant of EODC and are yet be disposed off irrespective of time limits

5554April - May, 2018

specified in HBP for disposal of such cases, i.e. once a request/reply to D/L for EODC is submitted by the exporter, it would become pending till such time EODC is issued.

• Facility has also been provided for exporters to view status of their pending EODC applications. In case, if their EODC applications are pending with RA and system is not showing it as pending, exporters can raise a query in the system and RAs would take consequential action in this matter so that such applications are entered into the system.

• Once a query is raised by any exporter, RA shall verify whether any such application is submitted for EODC of AA/EPCG which is yet to be disposed off, RA can accept or reject the query. While rejecting query RA shall give reasons for rejection in the remarks column.

a) RA can reject query, when it is found that no such application has been submitted or RA has already entered the details of pending case.

b) RA should accept a query:.

I. If such application is already submitted by the applicant but the same is not yet entered by RA in the EODC monitoring system.

II. On acceptance, RA should update the status with either EODC issued/DL issued.

III. If no such EODC/DL issued and case is still pending, RA can accept the query and can update status subsequently.

As this monitoring system is developed as a new standalone system, in the beginning, status related to all pending authorisations may not be visible. It is therefore requested that all exporters whose EODC cases are pending with various RAs, may feed their pending data using ‘Raise Query’ option. This will enable RAs to monitor and dispose their cases faster. It is advised to all authorisation holders that before raising any query, they should check the status of their applications online.

Exporters may also draw the attention of RAs in respect of their pending applications using contact@dgft service (addressed to RA concerned) through DGFT website http://dgft.gov.in. Any queries related to the functioning of this EODC monitoring system can be addressed by email to [email protected] .

Members (specially AA/ EPCG holders) are requested to use this opportunity of resolving the issue. In case of issues, you may take up with O/o DGFT as per contact details provided above. A copy can also be marked to the council on e-mail id’s- [email protected] & [email protected] for records/ future references.

The original Trade Notice is available for download using below link-

TRADE NOTICES NO. DATE SUBJECT

Trade Notice No.01/2018-19 04.04.2018 EODC Monitoring System for Advance/EPCG Authorisations.

Thanking You, Yours faithfully,


NOTICE 4

EPC/LIC/LUT 09/04/2018


SUBJECT:-LUT, CBEC clarification regarding renewal of online Letter of Undertaking (LUT ) for 2018-19

Dear Members,

This is in continuation of our recent circulars regarding renewal of Letter of Undertaking (LUT ) for 2018-

19 and also facility of online furnishing of Letter of Undertaking (LUT ) on GST Portal for export of

goods or services for FY 2018-19.

To address the issues/ doubts of the exporters about online LUT, CBEC (GST Policy Wing) has issued

circular number Circular No. 40/14/2018-GST dated 06/04/2018 giving clarifications regarding online LUT

and further procedure.

The important points are reproduced/ highlighted below for your reference:

• Form for LUT:

The registered person (exporters) shall fill and submit FORM GST RFD-11 on the common portal.

An LUT shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the

Application Reference Number (ARN), is generated online.

• Documents for LUT:

No document needs to be physically submitted to the jurisdictional office for acceptance of LUT.

• Acceptance of LUT/bond:

An LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing

the Application Reference Number (ARN), is generated online.

However, If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish

an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter’s LUT will be

liable for rejection. In case of rejection, the LUT shall be deemed to have been rejected ab initio.”

Members are requested to take note of the same and do the needful accordingly. The original circular

is available for reference/ download using below link-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-40-cgst.pdf

Persistent difficulties, if any, can also be highlighted to us on e-mail id’s- deepak.gupta@chemexcil.

gov.in & [email protected].

Thanking You,

5756April - May, 2018

NOTICE 5

EPC/LIC/CBEC 09/04/2018


SUBJECT:-CBEC renamed as the Central Board of Indirect Taxes and Customs (CBIC)

Dear Members,

We would like to inform you that as per updates on www.cbec.gov.in , the Central Board of Excise and Customs (CBEC) has been renamed as the Central Board of Indirect Taxes and Customs (CBIC) w.e.f 1st April 2018.

CBIC has also updated its twitter handle, logo etc accordingly.

This change was necessitated due to roll-out of Goods and Services Tax (GST) which has consolidated multiple indirect taxes into one tax.

Members are requested to take note of this change in name of CBEC to CBIC.

Thanking You,

NOTICE 6

EPC/LIC/GST/E_WAY_BILL 11/04/2018


SUBJECT:- e-Way Bill Roll out of e-way bill system for intra-State movement of goods in the States of Andhra Pradesh, Gujarat, Telangana, Kerala & Uttar Pradesh from 15.04.2018

Dear Members,

The Central Board of Indirect Taxes and Customs (CBIC) has issued press release dated 10/04/2018 regarding roll out of e-Way Bill system for intra-State movement of goods in the States of Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh from 15th April, 2018.

As you are aware, e-Way Bill system has become mandatory from 1st April, 2018 for all inter-State movement of goods. Further, the e-Way Bill system for intra-State movement of goods in the State of Karnataka is already operational.

Now as per press release, e-Way Bill system for intra-State movement of goods would be implemented from 15th April, 2018 in the following States:-

• Andhra Pradesh

• Gujarat


• Kerala

• Telangana

• Uttar Pradesh

With the roll-out of e-Way Bill system in these States, it is expected that trade and industry will be further facilitated in so far as the transport of goods is concerned, thereby eventually paving the way for a nation-wide single e-Way Bill system. Trade and industry and transporters located in these States are advised to obtain registration/ enrolment on e-Way Bill portal namely https://www.ewaybillgst.gov.in at the earliest.

Members are requested to take note of above. The CBIC press release is available for reference/ download using below links:

S. No.

Date of Uploading

Description

148 10-04-2018 Roll out of e-way bill system for intra-State movement of goods in the States of Andhra Pradesh, Gujarat, Telangana, Kerala & Uttar Pradesh from 15.04.2018.

http://www.cbec.gov.in/resources//htdocs-cbec/press-release/CBEC_Press_Release_15.04.2018.pdf

Thanking you

NOTICE 7

EPC/LIC/IEC 12/04/2018


SUBJECT:-DGFT Launch of facility to check status of Importer Exporter Code (IEC) application made to DGFT

Dear Members,

We would like to inform you that the O/o DGFT has issued Trade Notice No. 02/2018-19 dated 11/04/2018 regarding launch of facility to check status of Importer Exporter Code (IEC) application made to DGFT.

As you are aware, Importer Exporter Code (IEC) is applied/ modified through online portal for IEC application. However, it has come to notice of DGFT that in some cases even after issuance of IEC by DGFT, the IEC data though transmitted by DGFT to ICEGATE (Customs) is not accepted by ICEGATE (Customs) due to some transmission errors. As a result, the IEC holder is unable to export/import using this IEC.

Therefore, for early detection/timely resolution of such cases, a facility has been created to check the current status of IEC application and status of IEC transmission to ICEGATE. The status query is based on PAN used in IEC application made to DGFT.

The facility to check status of Import Export Code (lEC) application can be accessed from DGFT website using Online Application -> IEC -> Know your IEC Status or directly from http://164.100.128.145:8100/lecStatusReport/ link.

5958April - May, 2018

PAN Number and first three letters of Firm Name can be entered to check the status. Based on the status displayed, action to be taken as mentioned below

Sr. No

Status Action to be taken

1 Application has been received in the DGFT

Wait for 4 days for processing by RA

2 IEC application rejected Please re-submit the application after complying with the deficiencies raised by the RA. There will be no need to pay the fee again.

3 IEC transmitted to ICEGATE, yet to be accepted by ICEGATE

Wait for 3 days for IEC to be successfully accepted by ICEGATE

4 IEC successfully registered at DGFT and accepted by ICEGATE

IEC ready for use

If status at Sl no 4 is not indicated, the applicant is requested to check the status of IEC at ICEGATE 3 days

after the transmission to ICEGATE at the following link https://www.icegate.gov.inlEnqMod/ and report

the problem to contact@DGFT, if required.

IEC holders may please note that IEC is ready for Import/ Export of goods only after IEC details get

successfully registered at DGFT and accepted by ICEGATE(Customs).

Members are requested to take note of this facility. The original Trade Notice is available for download

using below link-

http://dgft.gov.in/Exim/2000/TN/TN18/Trade%20notice%2002.pdf

Thanking You,

NOTICE 8

EPC/LIC/JNCH/DPD 12/04/2018

To,

ALL THE MEMBERS OF THE COUNCIL

SUBJECT:-JNCH, Procedure in relation to delivery of DPD containers from port terminals of JNCH, Nhava Sheva to CFSs, if not cleared beyond prescribed 48 Hours period and under certain other

circumstances, Designation of CFSs

Dear Members,

We would like to inform you that the O/o Office Commissioner of Customs (NS-III), Mumbai Zone-II, Jawaharlal Nehru Custom House, Nhava Sheva has issued Public Notice No. 57/2018 dated 10/04/2018 regarding Procedure in relation to delivery of DPD containers from port terminals of JNCH, Nhava Sheva to CFSs, if not cleared beyond prescribed 48 Hours period and under certain other circumstances, Designation of CFSs.


For the sake of convenience of members, the important points are highlighted/ reproduced as follows:

• Importers availing of Direct Port Delivery (DPD) have been permitted a time limit of 48 hours (from the time of unloading) for clearing the containers from the port terminal of JNPT.

• In case an importer is unable to do so within the prescribed time limit of 48 hours the procedure prescribed in PN No. 161/2016 is required to be observed and the container is shifted to the designated CFS. The designated CFS for subsequent clearance of DPD Containers has already been notified by the Commissioner of Customs (Import) JNCH vide Public Notice No 66/2008, dated 11.09.2008 and M/s. Speedy Multimode Ltd was designated as CFS for the said purpose.

• As per PN, we understand that there has been demand from trade & industry to review the current practice of shifting DPD containers that remain uncleared for 48 hours to a single designated CFS and to allow all CFSs to handle / DPD containers in the circumstances as mentioned in the Public Notice No. 161/2016, dated 28.11.2016.

• Considering the fact that there is increased compliance and steady growth in the volume and percentage of containers being cleared under DPD, it has been decided that Port Terminals in the following situations should henceforth transfer the container to any CFS as nominated by the shipping line instead of the designated CFS:

I. Consignment is not cleared within 48 hours from port terminal in respect of DPD Clients (RMS Facilitated);

II. Damaged containers or those with tampered seals; In case of any confusion, Deputy / Assistant Commissioner in charge of DPD Cell, NSIII may be contacted for clarity.

• However, in case the importer requests for change of CFS, this may be considered by Additional / Joint Commissioner in-charge of ‘RMS Facilitation Centre’ on case to case basis. In this regard request (along with reason for not clearing the goods within the prescribed 48 hours) should be sent through email and approval / rejection, as the case may be, also communicated through reply email to ensure that there is no delay [in the similar manner as prescribed vide Public Notice No 110/2017, dated 29.08.2017].

• It shall be duty of shipping lines and the CFS concerned to inform the importer / Customs Broker about shifting of such DPD containers, through e-mail address (as available in the intimation submitted to shipping lines) and also through SMS (in case the importer’s mobile no. is available with them).

• Additional time limit as provided vide Public Notice No. 110/2017, dated 29.08.2017 (available in certain unavoidable situations such as: system issues, IGM not finalized within normal period etc.) will continue to be available. Similarly, facility of moving containers to preferred CFS (in case of Non RMS consignment or CSD hold consignment) as provided vide Public Notice No 43/2017 dated 31.03.2017 will also continue to be available.

• The revised procedure would be applicable from 20th April 2018.

In case of any difficulty, the specific issue may be brought to the notice of Additional Commissioner in charge of ‘DPD Cell’, NS-III (email address: [email protected]). The council may also be informed on e-mail id: [email protected] & [email protected] .

Members are requested to take note of this facility. The above said PN is available for reference /download using below link-

6160April - May, 2018

SN SUBJECT DATED

PN-057-18 Procedure in relation to delivery of DPD containers from port terminals of JNCH, Nhava Sheva to CFSs, if not cleared beyond prescribed 48 Hours period and under certain other circumstances, Designation of CFSs; reg.

10-Apr-2018

Thanking You

NOTICE 9

EPC/LIC/JNCH/HAZ 12/04/2018


SUBJECT:-JNCH Compliance of Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016

Dear Members,

The O/o Commissioner of Customs (NS-III), Mumbai Zone-II, Jawaharlal Nehru Custom House, Nhava Sheva has issued Public Notice No. 56/2018 dated 29.03.2018 regarding Compliance of Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.

The above-said Public Notice provides information on important provisions of said “Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016” related to following areas:

i. Strategy for Import and export of hazardous and other wastes

ii. Procedure for import of hazardous and other wastes

iii. Procedure for Export of hazardous and other wastes from India

iv. List of authorities and corresponding duties

i. List of documents for verification by Customs for import of other wastes specified in Part D of Schedule III

i. Movement Document in Form-6

For easy reference/ further details on above points, members may refer to the PN no. 56/2018 available for download using below link-

PN-056-18 Subject: Compliance of Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 – reg.

29-Mar-2018

http://164.100.155.199/pdf/PN-2018/PN_056.pdf

Concerned members are therefore advised to take note of the above provisions of Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 for compliance for smooth and expeditious clearances.

In case of any difficulty, the specific issue may be brought to the notice of Deputy/Assistant Commissioner in charge of Appraising Main (Import), NS-III (email address: [email protected] )

Thanking you.


NOTICE 10

EPC/STAT 13/04/2018

To ALL MEMBERS OF THE COUNCIL

SUBJECT:-Online facility for submission of Quarterly Export Return

Dear Sir/Madam,

Council has introduced online facility for submission of Quarterly Export Return. Members may access the following link for the aforesaid service: http://chemexcil.co.in/member_login.php

We, therefore, appeal to you that as a member of the Council you are requested to upload export returns regularly via the above link and assure you that information provided by you would be kept secured as classified data.

Submission of export returns quarterly has been made mandatory as per Foreign Trade Policy 2015-20, Handbook of Procedures (Rule 2.96 (b)). Hence, members are requested to submit the Export Return from April, 2017 onwards by online.

Also the members who have submitted the hard copy to the Council are requested to kindly upload the same on the link mentioned.

Thanking you,

Yours faithfully

NOTICE 11

EPC/LIC/IGST_REFUND/EGM¬_ERRORS 18/04/2018


SUBJECT:-Imp. Contact details of EGM Co-ordination Cell, JNCH for enquiries in respect of EGM errors (SB006)

Dear Members,

IGST refunds on exports from ICD’s are getting delayed due to non-filing of EGM at the gateway port or information mismatch between local and gateway EGM’s which is classified as SB006 error.

In this regard, CBEC had issued circular no 06/2018 dated 16/03/2018 regarding Refund of IGST on Export-EGM Error related cases. In that circular, CBEC had explained the steps being taken for error free filing and integration of EGM’s. This circular was also mass mailed by us 20/03/2018.

EGM Co-ordination Cell, JNCH

Since JNCH is a major gateway port of shipment, to facilitate the exporters for enquiries in respect of EGM errors(SB006) for the shipments made from JNPT, Contact Details of Officers posted in EGM Co-ordination cell, JNCH are made available on JNCH website. The same is available for download using

6362April - May, 2018

below link-

http://164.100.155.199/pdf/EGM_Co-ordination_CELL.pdf

Members who have exported through JNPT and IGST refunds are stuck due to EGM related issues are requested to take note of the above contact details and may inquire with the concerned officer. Persistent issues if any may be highlighted to the council on [email protected] & [email protected] .

Thanking You,

NOTICE 12

EPC/LIC/CBIC/GST 19/04/2018


SUBJECT:-GST, Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit

Dear Members,

We would like to inform you that GST Policy Wing, CBIC has issued Circular No. 42/16/2018-GST dated 13/04/2018 providing Clarifications regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit.

We understand that representations had been received by CBIC seeking clarification on the procedure relating to the recovery of arrears of central excise duty /service tax and CENVAT credit thereof, CENVAT credit carried forward erroneously and related interest, penalty or late fee payable arising as a result of the proceedings of assessment, adjudication, appeal etc. initiated before, on or after the appointed date under the provisions of the existing law (GST regime).

In this regard, the said circular hereby specifies the procedure to be followed for recovery of arrears arising out of proceedings under the existing law.

Relevant members are requested to take note the of this circular and go through the provisions which are self-explanatory.

The Circular No. 42/16/2018-GST dated 13/04/2018 is available for download/ reference using below link-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/Circular_No.42.pdf

Thanking You,


NOTICE 13

EPC/LIC/JNCH/FSSAI 20/04/2018


SUBJECT:-FSSAI/ JNCH, Selection of a food-items for FSSAI NOC, efforts to reduce unintended election and also to reduce time taken to obtain NOC / Test Reports

Dear Members,

This is in continuation of our recent circulars regarding issues being faced by members during import of chemicals on account of FSSAI Mapping and also HS code classification. The council has already taken up this issue with CBEC HQ/ JNCH/ FSSAI etc.

Considering the large number and percentage of Bills of Entry pertaining to food items which are being selected by system for NOC from FSSAI, Customs authorities have been requested to take up the issue with the Single Window Authority.

Taking cognizance of the issues faced, the O/o Commissioner Of Customs, NS-III Mumbai Zone-II, Jawaharlal Nehru Custom House have issued Public Notice No. 41/2018 dated 17/0/2018 regarding Selection of a food-items for FSSAI NOC, efforts to reduce unintended selection and also to reduce time taken to obtain NOC / Test Reports.

For the convenience of the concerned members, the important points of the above PN are reproduced/ highlighted as follows:

• The Single Window Authority have been consulted in this regard and it has been informed by them that the facility for availing PGA exception is presently not available for FSSAI as “no PEC has been created by FSSAI”.

• However, there are other options available to reduce the unintended routing of Bills of Entry to FSSAI in case of import of non-food items. In this regard, the stakeholders are requested to refer to the SWIFT Reference (available at https://www.icegate.gov.in/Download/SWIFT Quick Referencer V1.5.pdf) before filing PGA documents and fill the appropriate Grade (PHG, NPH or NFG) as applicable and FS related end uses viz. FSH100, FSH200, FSH700, FSH710, FSH750, FSH800, FSH900, FSH910, FSH920, FSH930 as applicable. The code descriptions are provided below for ready reference.

Code Code description

PHG Item is pharma grade and or contains Active Pharmaceutical Ingredients (APIs)

NPH-Item is not Pharma grade and does not contain Active Pharmaceutical Ingredients ( Non APIs )

NFG Item not meant for human or animal consumption

FSH100 Food - For Consumer use under commercial distribution (Trading)- Retail or wholesale

FSH200 Food - For manufacture/ commercial Processing (Manufacture/Actual Use)

FSH700 Food -For Internal use in Hotels-Restaurant

6564April - May, 2018

Code Code description

FSH710 Food -For Public Display or Exhibition

FSH750 Food -For use in International Sports Events

FSH800 Food -For Research Use

FSH900 Food - For personal consumption

FSH910 Food - For distribution in a natural disaster (if received gratis)

FSH920 Food -For Charitable Use

FSH930 Food -For use in a Diplomatic Establishment

• The trade is, however, cautioned against improper and incorrect use of the above codes to evade mandatory FSSAI NOC for food items, as it would render the such goods prohibited and liable for confiscation under section 111 (d) of the Customs Act, 1962 being non-compliant to the FSSAI Act. Therefore, the trade should use the above codes correctly with utmost care.

Concerned members are requested to take note of this Public Notice and avail the above mentioned facility at the time of filing Bills of Entry to avoid unintended routing of document to FSSAI for NOC. Public Notice No. 61/2018 dated 17/04/2018 is available for download using below link-

http://164.100.155.199/pdf/PN-2018/PN_061.pdf

In case of any difficulty, the specific issue may first be brought to the notice of Deputy/Assistant Commissioner in charge of Appraising Main (Import), NS-III (email address: [email protected] ).

Persistent difficulties, if any, can also be highlighted to us on e-mail id’s- [email protected] & [email protected].

Thanking You,

NOTICE 14

EPC/LIC/JNCH/DCS 20/04/2018


SUBJECT:- JNCH, Duty payment through various duty credit scrips issued under Chapter 3 of FTP

Dear Members,

The O/o Commissioner Of Customs, NS-III Mumbai Zone-II, Jawaharlal Nehru Custom House have issued Public Notice No. 60/2018 dated 17/04/2018 regarding Duty payment through various duty credit scrips issued under Chapter 3 of FTP.



• The Appraising Group 7H deals with such bills of entry, wherein the duty is proposed to be paid through “duty credit scrips issued under Chapter 3 of Foreign Trade Policy.

• It has been noticed that such duty credit scrips are being used in piece meal manner despite the higher duty liability in the Bill of Entry and duty credit available in the said scrips.

• Moreover, it has also been noticed that some importers declare their intention to use such scrips while filing bill of entry but subsequently, they insist for removal/ partial removal of the said scrips at Assessment stage.

• In this regard, in order to reduce such aberrations / manipulations, which affects the normal working and delays the verification of assessment, it has been decided by the Competent Authority that:

i) Once importer declares the intention to use Duty Credit Scrip, during filing of Bill of Entry, he will not be allowed to change that option at assessment stage.

ii) If the duty payable as per the Bills of Entry is more than whole amount available in the scrip/s, then whole amount available in the scrip/s needs to be used for payment of duty.

iii) If the duty payable as per Bill of Entry is less than the credit amount available in scrip/s, then total duty amount needs to be paid by using scrip/s.

• The aforesaid provisions are subject to policy conditions regarding importability provisions under the duty credit scrips.

Concerned members are requested to take note of this Public Notice and use Duty credit scrips accordingly. Public Notice No. 60/2018 dated 17/04/2018 is available for download using below link-

http://164.100.155.199/pdf/PN-2018/PN_060.pdf

In case of any difficulty, the specific issue may first be brought to the notice of Deputy/Assistant Commissioner in charge of Appraising Main (Import), NS-III (email address: [email protected] ).

Persistent difficulties, if any, can also be highlighted to us on e-mail id’s- [email protected] & [email protected].

Thanking You,

NOTICE 15

EPC/LIC/JNCH 20/04/2018


SUBJECT: - JNCH, Mechanism for drawal of representative samples in respect of DPD FCL containers from Terminals involving sampling by Customs or PGAs , Operationalising “on-wheel sampling area

for DPD FCL containers

Dear Members,

The O/o Commissioner Of Customs, NS-III Mumbai Zone-II, Jawaharlal Nehru Custom House have issued Public Notice No. 63/2018 dated 18/04/2018 regarding Mechanism for drawal of representative

6766April - May, 2018

samples in respect of DPD FCL containers from Terminals involving sampling by Customs or Participating Government Agencies (PGAs), operationalising “on-wheel sampling area for DPD FCL containers.

As you are aware, currently clearance of many consignments is subjected to requirement of NOC from different participating government agencies like FSSAI, Animal Quarantine, Plant Quarantine, Regional Fertiliser Control Laboratory (RFCL) etc. For the purpose of NOC, samples are required to be drawn.

Industry has been representing to Customs for devising some mechanism for DPD clients so that samples can be drawn from DPD FCL from Terminals only, so that time and cost involved in moving the containers from Terminal to CFS/warehouse only for the purpose of drawal of samples can be saved.

This matter has been taken up by Customs Authorities with all the Terminal Operators and they were requested to notify separate area within Terminals, wherein sampling can be done by the Customs/PGAs, as the case may be, in respect of DPD FCL consignments.


• One of the Terminal operators, NSICT (M/s DP World) has demarcated “on-wheel sampling area for DPD FCL containers”, wherein samples can be drawn by the Customs / PGAs and subsequently the containers can be allowed to move from Port to desired destination as per convenience of the Importer. In due course, GTI, JNPT and BMCT are expected to create similar facilities in their respective Terminals.

• Till then, NSICT Terminal (M/s DP World) have expressed their willingness to allow use of this facility created by them in NSICT Terminal for use by DPD FCL containers (requiring sampling) imported and cleared from GTI & JNPCT.

• This facility will be available during normal working hours on all working days. However, the same is likely to be extended on 24X7 basis depending upon the response of the trade.

• “Test bond” can be furnished either as continuity bond or separate bond for each consignment. In both situations bond would be furnished to Out of Charge officer for acceptance.

• For further procedure/ details members may refer Public Notice No. 63/2018 dated 18/04/2018 which is self-explanatory.

(http://164.100.155.199/pdf/PN-2018/PN_063.pdf)

• Presently, this facility of “on wheel sampling” is being made available to (i) Representative sealed samples required to be sent to Textile Committee and (ii) Representative sealed samples required to be tested by DYCC during working hours only. Also containers containing commodity of heterogeneous nature are not covered under this facility.

Concerned members are requested to take note of this Public Notice and do the needful accordingly. Public Notice No. 63/2018 dated 18/04/2018 is available for download using below link-

http://164.100.155.199/pdf/PN-2018/PN_063.pdf

In case of any difficulty, the specific issue may first be brought to the notice of Deputy/Assistant Commissioner in charge of DPD Cell, NS-III (email address: [email protected]) or NSICT Personal at 9819964632, email id – [email protected], [email protected] (issues relating to Terminal ) or Boarding Officer 022- 27241270, email address - [email protected](issues relating sampling).Persistent difficulties, if any, can also be highlighted to us on e-mail id’s- [email protected] & [email protected].

Thanking You,


NOTICE 16

EPC/LIC/CBIC/EOU 25/04/2018


SUBJECT: - EOU, Clarification on Import by EOUs without payment of duty following Rule 5 of Customs (Import of Goods at concessional rate of Duty) 2018

Dear Members,

The Directorate General of Export Promotion, CBIC, has issued Customs Circular No. 10/ 2018-Customs dated 24/04/2018 regarding Clarification on Import by EOUs without payment of duty following Rule 5 of Customs (Import of Goods at concessional rate of Duty) 2018.

We understand that representations have been received by CBIC from EOUs regarding difficulties faced on imports due to requirement of submitting information to the DC /AC of Customs at the Custom Station of importation by way of forwarding a copy of such information by the Jurisdictional DC/AC of Customs under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. It is further represented that due to recent reorganisation of Customs formations and associated administrative constraints, EOUs are not able to get approved/signed copy of said information from the Jurisdictional DC/AC of Customs in time, for submitting the said copy to the DC/AC of Customs at the Custom Station of importation for scheduled imports.

In view of above, CBIC has issued clarification vide above said circular. The important points are highlighted/ reproduced as follows:

• It is clarified that the importer EOU need not get prior approval of the information submitted under sub-rule(1)(a) of Rule 5 of Customs (import of Goods at Concessional Rate of Duty) Rules, 2017 from Jurisdictional DC/AC of Customs for duty free import at the Custom Station of importation. Information submitted to the DC/AC of Customs at the Custom Station of importation by EOU is sufficient for importing goods without payment of duty under exemption notification No. 52/2003-Customs dated 31-3-2003.

• The Board further prescribes that Jurisdictional DC/AC of Customs of EOU/EHTP/STP/BTP shall ensure that the intimation received under sub-rule (1)(a) of Rule 5 of the said rules are properly scrutinized so that only eligible goods as prescribed under notification No. 52/2003-Customs dated 31-3-2003 as well as those eligible as per Letter of Permission (LOP) granted by Jurisdictional Development Commissioner are imported duty free by the EOUs. After prompt scrutiny, one copy of such information shall be forwarded to DC/AC of Customs at the Custom Station of importation as prescribed under sub-rule (3) of the Rule 5 of said rules. The DC/AC of Customs at Custom Station of importation would reconcile the Bill of Entry against which goods were imported duty free by EOU on receipt of such information from Jurisdictional DC/AC of Customs. In case of any discrepancies noticed, the DC/AC of Customs at Custom Station of importation would inform the Jurisdictional DC/AC of Customs for taking necessary steps to protect revenue.

Relevant Members are requested to take note of this clarification. The said circular is available for download using below links:

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2018/circ10-2018cs.pdf

Persistent issues can also be put forth to the council on e-mail id’s [email protected] and [email protected]

Thanking You

6968April - May, 2018

NOTICE 17

EPC/LIC/US-GSP 07/05/2018

To ALL MEMBERS OF THE COUNCIL

SUBJECT:-US GSP Review of US GSP benefit on exports from India

URGENT AND IMPORTANT

Dear Member-exporters,

Kindly refer our earlier email dated 2nd May 2018 on the above subject. As stated therein, a stakeholders meeting was held under the chairmanship of Shri Shyamal Misra, IAS, Joint Secretary, Ministry of Commerce and Industry on 4th May, 2018 at New Delhi, on “Review of US GSP benefit on exports from India” and future course of action to be taken in this matter.

As you are aware, the United States (U.S.) Congress authorised extension of GSP benefit and currently India is one of the largest beneficiary under this programme. However, the extension of Generalised System of Preferences (US-GSP) program is a general extension.

As you may be aware, the United States Trade Representative (USTR) would be reviewing the eligibility of India and some other countries in the GSP. USTR notified that the review process for India is going to start as per details given below:

The Federal Register (FR) provides for interested parties to submit comments and hearing as per following timelines:

• 5th June 2018 - Deadline for interested parties to submit comments, pre-hearing briefs and request to appear in the public hearing.

• 19th June 2018:- The Trade Policy Staff Committee (TPSC) will hold a public hearing for interested parties.

• A transcript of the public hearing will be available on www.regulations.gov within approximately two weeks after the date of the hearing.

• 17th July 2018 - Deadline for interested parties to submit post-hearing briefs.

For India, GSP country eligibility review is based on concerns related to its compliance with GSP market access criteria which includes schedule for submission of public comments and a public hearing. It is understood that the US formally notified in Federal Register (FR) on 27.4.2018 initiating Country Practice Review of India regarding compliance with the GSP eligibility criteria.

We are enclosing herewith a list of the items which are coming under the purview of CHEMEXCIL with the MFN duties applicable against each product/HS code. If the US Office withdraws the GSP benefit of India, our exports will be adversely affected by the MFN duties mentioned against such products. We have also attached herewith FR notice announcing initiation of country practice reviews of India etc. which provides detailed information of submission.

Since you are one of the manufacturer-exporters to USA, you are requested to kindly go through the circular and attachment published on below web link

https://chemexcil.in/circulars/us-gsp---review--of-us-gsp-benefit-on-exports-from-india/3433/af1abfb81221197ae547dc0f1a63b5e5.html

and send a representation directly through online submission to the USTR Federal eRulemaking Portal


: https://www.regulations.gov with the docket Number, (The docket No. for India review is USTR-2018-0006) latest by 15/05/2018 with a copy to CHEMEXCIL ([email protected];[email protected];[email protected] ) as well as the Ministry of Commerce & Industry (email : [email protected]) highlighting justifications on a) items being exported by your company, b) why GSP benefit should continue and c) how the GSP importers into USA are benefiting US industry as most the items are intermediates and raw materials. If you have any other justification which can strengthen the case for continuation of US GSP benefits you can highlight the same in your representation.

In your representation being submitted to the USTR, you may also mention about not involvement of child labour in your industry, well defined labour law, India still a developing country, how it is helping employment generation and how it is helping the US importers as your products are raw materials and intermediates for the US industry who are doing value addition and manufacturing the value added / end products for the benefit to US consumers.

Further, you can also impress upon your US importers to take up the same at their end also with USTR and send us a copy of such communication for our perusal.

Your immediate response / reply on or before 15th May, 2018 will enable us to update the Ministry of Commerce & Industry for taking up the matter with concerned authorities appropriately.

Thanking you,

NOTICE 18

EPC/LIC/E_WAY_BILL 14/05/2018

To, ALL MEMBERS OF THE COUNCIL

SUBJECT:- e-Way Bill, Grievance Redressal Officers (CBIC and State / UT Governments) for e-way bill system under rule 138D of Central/ State GST Rules, 2017

Dear Members,

This is in continuation of our recent circulars regarding roll-out of e-way bill system for inter-state movement since 01/04/2018 and also phased roll-out of e-way bill system for intra-state movement in various states.

Kindly note that to address the issues/ grievances of tax payers, CBIC has issued the list of Grievance Redressal Officers (CBIC and State / UT Governments) for e-way bill system under rule 138D of Central/ State GST Rules, 2017.

Members are requested to take note of the same. The details of Grievance Redressal Officers (CBIC and State / UT Governments) for e-way bill system under rule 138D of Central/ State GST Rules, 2017 are available for reference/ download using below link:

http://www.cbec.gov.in/resources//htdocs-cbec/gst/Centre&State-GRO-rule_138-D.pdf

Thanking you

7170April - May, 2018

NOTICE 20

EPC/LIC/DGFT 15/05/2018


SUBJECT:-DGFT, Important Public Notices/ Trade Notice

• Non-submission of complete Appendix 4E, for advance authorisation applications on self-declaration basis under Para 4.04 and 4.07 of HBP for cases relating to NC-4

• Increase in MEIS rate for HS code 33019031

• MEIS increase validity extension from 30/06/2018 onwards

Dear Members,

Kindly note that the O/o Directorate General of Foreign Trade (DGFT) has issued several Public Notices/ Trade Notice, respectively, regarding Increase in MEIS rate for HS code 33019031, MEIS increase validity extension, Technical info for Norms Application etc

The relevant Public Notices/ Trade Notices issued are listed as follows for information:

PUBLIC NOTICES

PUBLIC NOTICE NO. DATE SUBJECT

09/2015-2020 14.05.2018 Amendments in Handbook of Procedures 2015-20 and Appendices issued under FTP, 2015-20.

07/2015-2020 11.05.2018 Amendments in Appendix 3B of the Foreign Trade Policy 2015-20

03/2015-2020 09.05.2018 Enlistment as designated port in para 2.54 (d) (iv) Hand-book of Procedures, (2015-20)

02/2015-2020 01.05.2018 Amendments in Table 2 of Appendix 3B Foreign Trade Policy 2015-2020

TRADE NOTICE

TRADE NOTICES NO. DATE SUBJECT

Trade Notice No.07/2018-19

14.05.2018 Non-submission of complete Appendix 4E, containing technical details, chemical reactions and data sheet for advance authorisation applications on self declaration basis under Para 4.04 and 4.07 of HBP for cases relating to NC-4

Members are requested to take note of above-said PNs/ Trade Notice. For further details, members may use hyperlinks provided therein for download.

Thanking You,


Export Award Function 2016-2017.

LIFETIME ACHIEVEMENT AWARDSHRI ASHWIN CHAMPRAJ SHROFF

EXCEL INDUSTRIES LTD. MUMBAI

TRISHUL AWARDMR. BHARAT BHATIA

VAP CHEM SURAT

LIFETIME ACHIEVEMENT AWARDMR. JAYANTI MEGHJIBHAI PATELMEGHMANI ORGANICS LIMITED

AHMEDABAD

TRISHUL AWARDMR. RASHESH GOGRI

AARTI INDUSTRIES LIMITED MUMBAI

TRISHUL AWARDMR. M. B. TURAKHIA

NEELIKON FOOD DYES AND CHEMICALS LTD., MUMBAI

TRISHUL AWARDMR. MUNJAL M. JAYKRISHNA

AKSHARCHEM (INDIA) LIMITEDMEHSANA

7372April - May, 2018


TRISHUL AWARDDR. PRASHANT POTNIS

PI INDUSTRIES LTD UDAIPUR

TRISHUL AWARDMR. NITIN NABAR

GODREJ INDUSTRIES LTD.MUMBAI

TRISHUL AWARDMR. PRAKASH GORAY

UPL LTD.MUMBAI

TRISHUL AWARDMR. AMAN AGARWAL

K.V. AROMATICS PVT LTD.GREATER NOIDA

TRISHUL AWARDMR. RAHUL PALKAR

INDO AMINES LIMITEDDOMBIVALI

TRISHUL AWARDMR. S. S. MURTY GARIKIPARTHY

GALAXY SURFACTANTS LTD.MUMBAI


AWARD OF EXCELLENCYMR. HARI B SHETTY

MALLAK SPECIALTIES PVT LTD MUMBAI

AWARD OF EXCELLENCYMR. SURESH PATEL

BODAL CHEMICALS LTDAHMEDABAD

AWARD OF EXCELLENCYMRS. PARU M. JAYKRISHNA

ASAHI SONGWON COLORS LIMITED AHMEDABAD

AWARD OF EXCELLENCYMR. RAJESH PRASAD

RELIANCE INDUSTRIES LIMITEDMUMBAI


TRISHUL AWARD MR. M.P. SURYA PRAKAS

PON PURE CHEMICAL INDIA PRIVATE LIMITED, CHENNAI

AWARD OF EXCELLENCYMR. SANJAY PATEL

SUBHASRI PIGMENTS PVT. LTDMUMBAI

7574April - May, 2018

AWARD OF EXCELLENCYMRS.VIBHA H MEHTA

PALVI POWER TECH SALES PVT LTDVADODARA

AWARD OF EXCELLENCYMR. ABHAY V. UDESHI

JAYANT AGRO-ORGANICS LIMITEDMUMBAI

AWARD OF EXCELLENCYMR.PRAGNESH BUCH

VVF (INDIA) LTD. MUMBAI

AWARD OF EXCELLENCYMR. VIKRAM V. UDESHI

IHSEDU AGROCHEM PVT LTDMUMBAI

AWARD OF EXCELLENCYMR. ASHISH GUPTA

HERBOCHEM INDUSTRIESBARAABANKI (U.P.)

AWARD OF EXCELLENCYMR. MANISH SHAH

PRAKASH CHEMICALS INTERNATIONAL PVT LTDVADODARA



GOLD AWARDMR. K.I. PATEL

ARIES COLORCHEM PVT LTD.AHMEDABAD

GOLD AWARDDR. PERCY KAVASMANECK

GHARDA CHEMICALS LIMITEDMUMBAI

GOLD AWARDMR. ANAND PATEL

MEGHMANI ORGANICS LIMITED AHMEDABAD


GOLD AWARDMR. PUNEET SRIVASTAVA

JAYSYNTH DYESTUFF (INDIA) LTDMUMBAI

GOLD AWARDMR. ASHISH GANDHI

MAHICKRA CHEMICALS LIMITEDAHMEDABAD

GOLD AWARDMR. MEHUL U NANAVATI

RAJ PETRO SPECIALITES PVT LTD.MUMBAI

7776April - May, 2018

GOLD AWARDMR. PRASAD VASANT JOGLEKAR

JUBILANT LIFE SCIENCES LIMITEDNOIDA, (U.P.)

GOLD AWARDMR. JITESH PATEL

SFP SONS (INDIA) PVT LTD.CHENNAI

GOLD AWARDMR. ALKESH M. PATEL

GSP CROP SCIENCE PVT LTDAHMEDABAD

GOLD AWARDMR. VIKAS C CHHATRALA

GIRNAR INDUSTRIESJUNAGADH

GOLD AWARDMR. RAJIVE AGARWAL

KANCOR INGREDIENTS LTDKOCHI

GOLD AWARDMR. BHARAT CHHEDA

AMAR IMPEXMUMBAI



FIRST AWARDDR. KISHOR PATOLIA

PARAGON INDUSTRIESAHMEDABAD

FIRST AWARDMR. P.P. AGARWAL

CHEMSPEC CHEMICALS PVT LTDMUMBAI

FIRST AWARDMR. MANISH KIRI

LONSEN KIRI CHEMICALS INDUSTRIES LTD, DUDHWADA

FIRST AWARDMR. PRAKASH KUMAR

HERANBA INDUSTRIES LIMITEDMUMBAI


FIRST AWARDMR. ABHJEET B. BIREWAR

MULTI ORGANICS PVT LTD.MUMBAI

FIRST AWARDMR.SANJEEV GURWARA

INDIA GLYCOLS LTDUTTER PRADESH

7978April - May, 2018

FIRST AWARDMR. M.P. GUPTA

BHARAT INSECTICIDES LIMITEDNEW DELHI

FIRST AWARDMR. BHUVNESH KUMAR VARSHNEY

HINDUSTAN MINT AND AGRO PRODUTS PVT LTD., CHANDAUSI

FIRST AWARDMR. MANJIT SINGH BAWA ORIFLAME INDIA PVT LTD.

UTTAR PRADESH

SECOND AWARDMR. PRABHAS SANGHAI

PARAMOUNT MINERALS & CHEMICALS LTD.MUMBAI


FIRST AWARDMR. HARDIK UKANI

VASU HEALTHCARE PVT LTD.VADODARA

FIRST AWARDMR. KEVIN VINOD MEHTA

KEVIN (INDIA) COMUMBAI


SECOND AWARDMR. RAMESH VAZE

KEVA FRAGRANCES PVT LTD.MUMBAI

SECOND AWARDMR. SUBHRA JYOTI ROY RALLIS INDIA LIMITED

MUMBAI

SECOND AWARDMR. GOUTAM GANGULY

CHEMISOL INDIA PVT LTD.KOLKATA

SECOND AWARDMR. NARESH R PATEL

AMI ORGANICS PVT LTD.SURAT

SECOND AWARDMR. BHAVIN J. AGRAWAL

BHAVIN INDUSTRIESAHMEDABAD

SECOND AWARDMR. BHAVESH V SHAH

INDUSTRIAL SOLVENTS & CHEMICALS PVT LTD., MUMBAI


8180April - May, 2018

SECOND AWARDMR. ARVIND KUMAR ARORA ARORA AROMATICS PVT LTD.

SAMBHAI

CERTIFICATE OF MERIT ON HIS BEHALF

AMI PHTHALO PIGMENTS, AHMEDABADMR. BHUPENDRABHAI PATEL OF JEMBY CHEM

RECEIVED THE AWARD

SECOND AWARDMR. V. V. IYER

APAN IMEX PVT LIMITEDAHMEDABAD

CERTIFICATE OF MERITMR. HEMANT BANDODKAR

GANESH POLYCHEM LIMITED, MUMBAI

CERTIFICATE OF MERITMR. GHANSHYAM R. SHELADIYA

SUDEEP INDUSTRIESAHMEDABAD

CERTIFICATE OF MERITMR. SANJAY BABAR

RATHI DYE CHEM (P) LTD., PUNE



CERTIFICATE OF MERITMR. DARSHAN CHOKSI

ALCHEMIE LABORATORIESMUMBAI

CERTIFICATE OF MERITMR. HARCHARAN SINGHHPL ADDITIVE LIMITED

HARYANA

CERTIFICATE OF MERITMR. YOGESH D PARIKH

AVANI DYE CHEM INDUSTRIES AHMEDABAD

CERTIFICATE OF MERITDR. D.V.SAHARAN

INTECH ORGANICS LTDHARYANA

CERTIFICATE OF MERITDR. RAJBIR SINGH

SRF LIMITEDHARYANA

CERTIFICATE OF MERITMR. SHIV GUPTA

LAXMI AGRO INDUSTRIAL CONSULTANTS & EXPORTERS LTD. , NEW DELHI


8382April - May, 2018

CERTIFICATE OF MERITMR. M.P. GUPTA

BHARAT RASAYAN LIMITEDNEW DELHI

CERTIFICATE OF MERITMR. V. NAIR

SAMI LABS LIMITEDBANGALORE

CERTIFICATE OF MERITMR. SANDEEP SHINDE

ULTRAMARINE & PIGMENTS LTD.MUMBAI

CERTIFICATE OF MERITMR.SUMIT KUMAR BISWAS

SALTS AND CHEMICALS PVT LTD.HOOGHLY


CERTIFICATE OF MERITMR. C. M. SUVARNA KUMAR

KARNATAKA SOAPS & DETERGENTS LIMITED BENGALURU

CERTIFICATE OF MERITMR. SOMAKUMAR.K.I.

PYARY PRODUCTSKOCHI


CHEMEXCIL SMS Alert service Form

1. Name of the Company:

2. Name of the applicant:

3. IEC Number

4. Chemexcil Membership Number

5. RCMC Number

6. Correspondence address.

7. Mobile Number

I undertake to abide by all terms and conditions for SMS alert facility as may be prescribed from time to time by Chemexcil.

Date Place Signature

-------------------------------------------------------------------------------------------------------------------------------------------------

FOR OFFICE USE RCMC No.

The aforementioned standing instruction/ details have been logged and maintained in the system after verification of company and mobile number in use

Date Name of Concern officer Signature of Authorized person.

Please mail above filled form at [email protected]


CERTIFICATE OF MERITMR. BHARAT B. VAGHASIA

NOVA INTERNATIONAL, AHMEDABAD

CERTIFICATE OF MERITMR. AJAY JAGNANI

R.A.DYESTUFFS (INDIA) PVT LTD.AHMEDABAD

CERTIFICATE OF MERITMR.SUKUMAR RAMAN

SONAROME PRIVATE LTD, BANGALORE

PB84April - May, 2018

CHEMEXCIL BULLETIN ADVERTISEMENT TARIFF

In `

SR.

NO.

POSITION OF

ADVERTISEMENT

SIZE OF

ADVERTISEMENT

RATE OF COLOR

ADVERTISEMENT RATE

RATE OF BLACK AND WHITE

ADVERTISEMENT

AMOUNT GST

@18%

TOTAL

AMOUNT AMOUNT

GST

@18%

TOTAL

AMOUNT

1 FULL PAGE 18 CM WD X 23.5 CM HT 10500 1890 12390 8625 1552.5 10177.5

2 HALF PAGE

(HORIZONTAL)

18 CM WD X 11.5 CM HT 7000 1260 8260 4600 828 5428

3 HALF PAGE

(VERTICAL)

8.5 CM X 23.5 CM 7000 1260 8260 4600 828 5428

4 QUARTER PAGE 8.5 CM WD. X 11.5 CM HT. 5000 900 5900 2300 414 2714

5 STRIPS ADVTS 4 CM HT X 18 CM WD NA NA NA 2300 414 2714

6 INSIDE COVER

PAGES (FULL

PAGE)

18 CM WD X 23.5 CM HT 15000 2700 17700 NA

7 BACK COVER

INSIDE (FULL

PAGE)

18 CM WD X 23.5 CM HT 12000 2160 14160 NA

8 BACK COVER

(FULL PAGE)

18 CM WD X 23.5 CM HT 20000 3600 23600 NA

NOTE• Rates quoted above are per insertion basis (For single insertion) and not for whole year.

• 10% discount will be extended after 2nd insertion onwards if member would like to continue for all 6-issues of

year and for next 2-3 years.

• If member want to publicize the advertisement for whole year we shall issue full amount invoice as per the

discounted rate and member shall pay the full amount in advance.

• All payments by Cheque/ Demand Draft/RTGS in advance only to be made in favor of “CHEMEXCIL SBI account

No. 10996680725”, Payable at Mumbai

• SPECIAL DISCOUNTS can be consider on Series of Advertisements at least 4 insertions

• For Colour advertisements, high resolution images to be sent to us.

• Advertisement material must reach us 7 days before the date of publication

• Positioning of the Advt other than Cover Positions will be at Chemexcil discretion

• Only ColourAdvts will be entertained on Cover Positions.

• No Classified Advertisements will be entertained

• For further details such as series discounts, etc

please contact on : [email protected];[email protected]

GLIMPSES OF CHINA INTERDYE 2018 EXHIBITION

Shri Shankerbhai Patel, President, The Green Environment Services Cooperative Society Ltd welcoming Mr Yang Jianrong, Chairman CCPIT with a bouquet of flowers

Shri Bhupendrabhai Patel, Chairman- Western Region, CHEMEXCIL welcoming Mr Shi Xianping, President of China Dyestuff Industry Association

Shri S G Bharadi, Executive Director, CHEMEXCIL welcoming Ms Lily Wang, Executive Vice President, Shanghai International Exhibition Co., ltd.

Shri Anil Kumar Rai, Hon’ble Consul General of India, Shanghai along with the Dignitaries of India and China at CHEMEXCIL stall

Shri Satish Wagh, Chairman, Chemexcil, welcoming Shri Anil Kumar Rai, Hon’ble Consul General India Shanghai

View of the India Pavilion at the China Interdye Exhibition 2018

Prin

ted

at:

On

loo

ker

Pres

s Tel

. :22

18 3

544

/ 221

8 29

39