AIE Chamber Important Announcements

6 Sep 2010

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OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT)``JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA,``TAL. URAN, DIST. RAIGADH, MAHARASHTRA – 400 707. ```` F.No.S/12-Gen- 42 /08 AM(X) JNCH Date : 28 .07.2010``````PUBLIC NOTICE NO. 75/2010````Sub: Procedure regarding Carting of Export goods - marking of `` packages ````1. Attention of all the exporters, trade and industry, Custom House Agents and all concerned is invited in respect of the procedure for Carting of Export goods at various Container Freight Stations of Jawaharlal Nehru Port. It has been brought to our notice that some of the exporters are not affixing any marks and numbers on the packages. This has resulted into difficulties in selection of packages for examination. ``2. The goods brought for the purpose of examination and subsequent “Let Export” will be allowed entry to the Export Shed only on the strength of the carting permission given by the CFS and production of the checklist and declaration duly signed by the exporter / authorized representative. The Custodian will endorse the quantity actually carted on the reverse of checklist. ``3. It is also reiterated that in order to have proper checks and reducing the possibilities of manipulation, fraud, misrepresentation and substitution of goods etc. the following requirements for the marking of the packages should be fulfilled. ``a) All the packages brought for export should be stencil marked. Hand written markings and paper stickers etc. on packages shall not be accepted. In case of packing in bales where stencil marking is not possible, markings can be made on the cloth which is then properly stitched on to the bales. However, goods like tyres, tubes, etc. which cannot be stencil marked or with cloth stitched marked shall be exempt from the marking requirements mentioned above. Numbers should be given in a way to show total number of packages covered by the shipping bill i.e. if there are 50 packages, than ``package no.1 should be marked as 1/50, No. 2 should be marked as 2/50 and so on.``b) Total Consignment relating to one shipping bill should be stacked distinctly.``c) The stencil or printing marking on all the packages should be distinct, bold and clear so that the packages can be easily identified and co-related with the respective shipping bills.``4. The custodian shall necessarily check and verify the package numbers and number of packages along with the existing work of verifying the weight and confirming arrival of cargo. ``5. The Customs will register the shipping bill only after the full export goods are received in the Export Shed with proper marking and numbering on the packages. ``6. No examination of cargo shall be undertaken unless goods are properly marked in the manner as specified above. ``7. If any packages are found to be attempted to be exported without affixing marks and numbers as detailed above, appropriate action will be taken against the exporters under the law. The CHA / CFS found to be not adhering to the requirements of law will be proceeded against appropriately. ``8. The contents of this Public Notice may be communicated to all the members of trade through the respective associations. ``9. Any difficulty faced in implementation of this Public Notice may be brought to the notice of the undersigned immediately. `` ``````Sd/- (Date:28.07.2010) ``( SUSHIL SOLANKI )``COMMISSIONER OF CUSTOMS(EXPORT)``JNCH, NHEVA SHEVA````F. No. S/6-ERR-1380/10 ECU D’Node Date: 02.08.2010`` ``FACILITY NOTICE NO. 77/2010``Subject: Export General Manifest (EGM) ‘C’ and ‘L’ Error Correction ``Attention of all the Shipping lines, members of the trade, CHAs and officers concerned is invited to Facility Notice No.47/2008 dated 17.06.2008 regarding procedure to be followed for rectification of EGM ‘C’ errors.``2. The said procedure was examined in consultation with the representatives of the BCHAA, shipping lines and the officers incharge of EGM Co-ordination Unit (ECU). It was observed that there is further scope to streamline the procedure with a view to expedite rectification of C-errors. It was also observed that the procedure to rectify EGM ‘L’ errors which occur due to pre-shipment amendment (i.e. the LEO granted is cancelled for certain amendment and a fresh LEO is granted which may be greater than the sailing date) and which are rectified by the AC / ECU, can also be streamlined.``3. Accordingly, the following procedure is prescribed in supersession of the Facility Notice No.47/2008 dated 17.06.2008.``4. As per the procedure of filing EGM electronically, once the floppy is submitted by Shipping Line at service centre, a checklist is generated after loading of the EGM on the system. The checklist is handed over to the shipping agent for confirmation. After making the corrections another checklist is generated. This checklist is returned duly signed by the authorized representative of the Shipping Line / Shipping Agent, to the CMC for submission of the EGM in the EDI.``5. At this stage, if there are C-errors against certain shipping bills, the shipping lines should prepare a statement of container numbers against each such shipping bill and furnish the same along with the copies of the relevant mate receipts, certifying that the container numbers given in the EGM / the said statement are correct. The same can be submitted in the following format:``EGM of M.V. ______, Voyage ______, Rotation No.______ dated, Sailed on ______``Sr. No. Sr. No. in Checklist Shipping Bill No. Correct Container No. Mate Receipt No.`` `` A draft Format of Letter is enclosed for uniformity and convenience. The said statement and the mate receipts along with the certificate shall be furnished to AC/DC incharge of EGM coordination unit. The AC/DC authorized in this regard shall, after necessary verification, carryout the correction of the C-errors without waiting for any application in this regard.``6. If there are ‘L’ errors against any shipping bill on account of pre-shipment amendment, the details of such shipping bills shall be submitted alongwith a copy of the shipping bill generated prior to the amendment, showing the actual LEO date. The AC/DC authorized in this regard shall, after necessary verification, carryout the correction of the ‘L’ errors without waiting for any application in this regard.````7. It is also directed that letter for correction of ‘C’ and ‘L’ errors must be submitted within 3 days of filing of EGM in the Service Centre.````8. If there are no errors against any shipping bill pertaining to an EGM, the shipping line shall submit a ‘Nil’ report giving details of EGM No., Vessel Name, Voyage, Rotation No. and date, date of sailing.``9. With the above procedure, the rectification of ‘C’ error and ‘L’ error (of the type discussed above) shall not require the interface between the trade / CHA and the officers concerned. ``10. All the Shipping Lines and other members of the trade concerned are required to comply with this Facility Notice scrupulously. Any default in compliance with the above instructions may result in penal action under the Customs Act, 1962. ``11. Difficulties, if any, in this regard may be brought to the notice of the Commissioner of Customs (Export), JNCH.``12. This Facility Notice shall come into force with effect from its date of issue.`` `````` (SUSHIL SOLANKI)`` Commissioner of Customs (Export)`` Jawaharlal Nehru Custom House````````Highlights of the Annual Supplement 2010-11 to the Foreign Trade Policy 2009-14````Higher Support for Market and Product Diversification````1. Additional benefit of 2% bonus, over and above the existing benefits of 5% / 2% under Focus Product Scheme, allowed for about 135 existing products, which have suffered due to recession in exports. Major sectors include all Handicrafts items, Silk Carpets, Toys and Sports Goods (all of which were earlier eligible for 5% benefits); Leather Products and Leather Footwear, Handloom Products and Engineering Items including Bicycle parts and Grinding Media Balls (all of which were earlier eligible for 2% benefit). ````2. 256 new products added under FPS (at 8 digit level), which shall be entitled for benefits @ 2% of FOB value of exports to all markets. Major Sectors / Product Groups are Engineering, Electronics, Rubber & Rubber Products, Other Oil Meals, Finished Leather, Packaged Coconut Water and Coconut Shell worked items.````3. Instant Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB value of exports. ````4. Nearly 300 products (at 8 digit level) from the readymade garment sector incentivised under MLFPS for further 6 months from October, 2010 to march, 2011 for exports to 27 EU countries.````Support for Technological up-gradation````5. Zero duty EPCG scheme, introduced in August 2009 and valid for only two years upto 31.3.2011, has been extended by one more year till 31.3.2012. In addition, to give a boost to technological up-gradation for additional sectors as well, the benefit of the scheme has been expanded to cover paper & paperboard and articles thereof, ceramic products, refractories, glass & glassware, rubber & articles thereof, Plywood and allied products, marine products, sports goods and toys and additional engineering products. ````6. Additional Towns of Export Excellence (TEEs) announced viz. Barmer (Rajasthan) for Handicrafts; Bhiwandi (Maharashtra) for Textiles; and Agra (Uttar Pradesh) for Leather Products.````Benefit and flexibility to Status Holders:``7. Status Holders contribute to a substantial part of our exports. To support them to upgrade their technology, 1% Status Holder Incentive Scheme (SHIS) introduced in August 2009 and valid for only two years upto 31.3.2011, has been extended by one more year for 2011-12 exports. In addition, to give a boost to technological up-gradation for additional sectors as well, the benefit of the scheme has been expanded to cover chemical & Allied products, paper, paperboard and articles thereof, ceramic products, refractories, glass & glassware, rubber & articles thereof, plywood and allied products, electronics products, sports goods and toys and additional engineering products. ````8. Additional flexibility provided for transferability of Duty Credit Scrips being issued to Status Holders under paragraph 3.13.4 of FTP under VKGUY scheme by allowing transfer of scrip for import of cold chain equipments to unit(s) in the Food Park. ````Stability / Continuity of the Foreign Trade Policy:``9. The popular and exporter friendly Duty Entitlement Passbook (DEPB) scheme has been extended beyond 31.12.2010 till 30.06.2011.````10. Availability of concessional Export Credit: Interest subvention of 2% for pre-shipment credit for export``sectors namely, Handloom, Handicraft, Carpet and SMEs for all export sectors, have been allowed till 31.3.2011 in the budget 2010-11. This facility has now been extended to a number of additional products pertaining to sectors like Engineering, leather, textiles, Jute.````11. Advance Authorization for Annual Requirement shall also be exempted from payment of anti-dumping & Safeguard duty in line with the underlying principle that goods and services should be exported and not the taxes and levies.````Procedural Simplification and Reduction of Transaction Cost:````12. Exporters shall now have the flexibility to get a high value EPCG authorisation by filing their EPCG application on Annual basis, without the need to file the application for individual capital goods from time to time. It will reduce transaction time and cost.````13. Exporters shall now have the flexibility to Club Advance authorisation with Advance Authorisation for Annual Requirement for the purpose of account closure.````14. To impart flexibility to exporters and to facilitate smooth clearance of consignments, a Single customs notification for thetwo variants of Advance Authorization scheme namely advance authorisation for physical exports & deemed exports shall be issued. It will also eliminate the ambiguity in clubbing of such exports.````15. Adhoc Norms ratified under Advance Authorisation scheme shall henceforth apply to all cases for the same export product upto one year not only prospectively but also retrospectively.````16. Clarification on the availability of 4% SAD refund benefit, as given by DOR in terms of customs Notification No. 102/2007, only to trader importers, to be also extended to manufacturers, who sell the imported items like traders. ````17. Chartered Engineer Certificate for Advance Authorisation on self declared basis, has been dispenced with. This will reduce documentation and the transaction cost.````EDI Initiatives:``18. To reduce the transaction cost and time, the scope and domain of EDI is endeavoured to be continuously broadened. To remove redundancy of repeated submissions of RCMC, an ‘e-RCMC’ initiative has been commenced. Under this, the Export Promotion Councils would upload the RCMC data of their members on DGFT’s website only once, thus reducing the procedural burden of repeated submissions and associated cost and time.````19. Facility of a data preparation module for Advance Authorization and Export Promotion Capital Good (EPCG) has been provided on an offline mode, which would reduce the need of continuous online interaction for long and address the connectivity and server response issues significantly.````20. In order to provide wider choice to the users and enlarge access for online filing, additional licenced certifying authorities for digital signatures and banks for electronic fund transfer (EFT) operations have been included in the gamut of EDI operations.````21. The online message exchange for Annual Advance Authorization and Duty Free Import Authorization (DFIA) shall also be made operational with Customs w.e.f. 1.12.2010.````Leather Sector:````22. Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi-finished leather from Public bonded warehouses, without payment of any export duty. This will facilitate the logistics for establishment of such warehouses and easy access to raw material for the leather sector.``````23. Finished Leather export shall be entitled for Duty Credit Scrip @ 2% under FPS.````24. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme would significantly benefit the Leather Sector.````Handloom sector:````25. Duty free import of specified trimmings, embellishments etc. shall be available on Handloom made-ups exports @ 5% of FOB value of exports.````26. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme would significantly benefit the Handloom Sector.````Textiles sector:````27. Duty free import of specified trimmings, embellishment etc shall be available @ 3% on exports of polyester made-ups in line with the facility available to sectors like Textiles & Leather. It will promote export of products such as micro cloth, which has become popular in home textiles.````28. Readymade Garment sector granted enhanced support under MLFPS for a period of further 6 months from October, 2010 to March, 2011 for exports to 27 EU countries.````Gems & Jewellery sector:````29. The list of items allowed for duty free import by Gems & Jewellery sector has been expanded by Inclusion of additional items such as Tags and labels, Security censor on card, Staple wire, Poly bag. This will reduce the cost of the product to some extent.````Handicraft Sector:````30. The facility of duty free import of tools under Duty Free Import scrips for Handicraft sector shall be made operational.````31. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit the Handicrafts and Silk Carpets sectors.````Service sector:````32. Scrips issued under Served From India Scheme (SFIS) can now be used for payment of duty on import of Vehicles, which are in the nature of professional equipment.````Agriculture and Plantation:````33. Instant Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB value of exports. ````34. Oil Meals (Cotton, rape seed, groundnut), Castor Oil derivatives, Packed Coconut Water and Coconut Shell worked items shall be entitled for benefits @ 2% of FOB value of exports to all markets under FPS.````Engineering and Electronics:````35. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit Bicycle parts and Grinding Media Balls exporters.````36. Additional items of Engineering, namely, Pipes & Tubes, Electric Generating Sets, Cast Articles of Iron & Steel, Ferro Manganese and Ferro Silicon shall now be entitled for benefit @ 2% under FPS.````37. A number of Engineering items namely, Machine Tools, Compressors, Iron & Steel Structures including Transmission Towers and Scaffolding, LPG Cylinders, Ductile Tubes & Pipes shall now be entitled for benefits @ 2% of FOB value of exports to all markets under FPS instead of their exports to specific markets under MLFPS earlier.````38. Telecom Equipments, Colour TVs, Audio Systems, Optical Media, Semi-conductors, Capacitors, Resistors, PCBs, LEDs, Conductors, Desktops and Notebooks shall now be entitled for benefits @ 2% of FOB value of exports to all markets under FPS instead of their exports to limited market under MLFPS``earlier.``````Toys and Sports goods:````39. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit the Toys and Sports Goods Sector.````40. Benefits under Zero duty EPCG and SHIS schemes will significantly promote technological upgradation of Toys and Sports Goods sectors. .

24Oct2009

President Speech
Friends, On behalf of the Managing Committee and on my own, I extend to you all a very warm welcome to the Forty-Eighth Annual General Meeting of our Chamber. The Annual Report together with Audited Statements of Account for the year 2007-08 and 2008-09 are already with you and with your kind permission, I take them as read.````Global Perspective``We are meeting at a very challenging time in the context of global developments. The annual GDP growth at the global level in 2006 was 5 per cent, which declined to 3.8 per cent in 2007 and further declined to slightly above 1 per cent in 2008. The decline in GDP growth came about on account of global financial meltdown and consequent economic recession in developed countries. In the current year, the global economy appears to be marginally expanding on account of wide-ranging public intervention, through stimulus measures, enabling economic recovery. However, the pace of recovery is slow and it is likely to remain below pre-crises level during the next two years. Although the global recession is ending, the recovery is subdued.``Indian Scenario``India cannot remain insulated from the adverse developments in international financial markets and consequently our GDP also has been affected. This is because almost two-thirds of our exports are dependent on advanced countries of USA, EU and Japan. The GDP growth, which was 8.3 per cent in 2004-05 reached 9.7 per cent in 2006-07 and marginally declined to 9.1 per cent in 2007-08. For the year 2008-09, the GDP growth has slided to 6.7 per cent.````On account of deceleration in exports and depressed domestic market, the manufacturing sector grew by 2.4 per cent in 2008-09 and as against 8.2 per cent recorded in the previous year.````India’s exports reached the level of US $168.70 billion in 2008-09, registering a growth of 3.4 per cent over 2007-08. On the other hand, total imports of all commodities increased by over 20 per cent at US $ 290 billion in 2008-09 as compared to US $ 240 billion in 2007-08.````In the new Foreign Trade Policy, Government of India has set an ambitious target of achieving an annual growth of 15 per cent with a export target of US $200 billion to be reached by March, 2011. Attainment of targets will depend on various policy measures to be initiated by Government in the following areas.``````````1) Stability in raw materials prices``2) Flexibility in labour laws for improvement of productivity.``3) Uninterrupted availability of quality power.``4) Reduction in volatility in Rupee / Dollar exchange rate``5) Improvement in infrastructure to bring down the transaction cost.``6) Proper evaluation of Free Trade Agreements with a view to protect India’s interests.``7) Introduction of support measures by Government of India to match Incentive Schemes of our competing countries. .

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