The expenditure finance committee, which comes under the finance ministry, has approved the proposal for extension of the scheme and the commerce and industry ministry is expected to seek the Cabinet nod for the same soon, the official added. The government may extend the scheme for investment promotion 2017-20, with an aim to attract investors and promote economic growth of the country, an official said. The expenditure finance committee, which comes under the finance ministry, has approved the proposal for extension of the scheme and the commerce and industry ministry is expected to seek the Cabinet nod for the same soon, the official added. Investment promotion is a multi-dimensional and complex process which requires continuous efforts to be channelised around certain activities such as FDI-related reforms, ease of doing business, investment facilitation and targeted outreach. The main components of the scheme for investment promotion for 2017-20 include investor facilitation, CEO forums and joint commission meetings, international and domestic investment outreach and its amplification, project management, capacity building, monitoring and evaluation. It also provides for expenditure incurred on international outreach activities, including road shows and exhibitions. Foreign DirectInvestment (FDI) into the country grew 19 per cent to USD 59.64 billion during 2020-21. Total FDI, including equity, re-invested earnings and capital, rose 10 per cent to USD 81.72 billion during 2020-21 as against USD 74.39 billion in 2019-20.
Source: Economic Times
The service was formally launched by the Finance Minister at a virtual ceremony in the presence of Minister of State for Finance Bhagwat K Karad, Financial Services Secretary Debasish Panda and Joint Secretary Madnesh Kumar Mishra. Finance Minister Nirmala Sitharaman on Tuesday said the launch of BHIM-UPI QRbased payments in Bhutan will further strengthen the cooperation between the two neighbouring nations. The service was formally launched by the Finance Minister at a virtual ceremony in the presence of Minister of State for Finance Bhagwat K Karad, Financial Services Secretary Debasish Panda and Joint Secretary Madnesh Kumar Mishra. Finance Minister of Bhutan, Lyonpo Namgay Tshering, Governor of Royal Monetary Authority (RMA) of Bhutan, Dasho Penjore, Ambassador of Bhutan to India General V Namgyel, Ambassador of India to Bhutan, Ruchira Kamboj were also present Appreciating the efforts of RMA, and National Payments Corporation of India (NPCI) in linking BHIM-UPI app and RuPay Card with the Bhutanese payments system, Sitharaman said, "I think this stands out as a very good example and it is only going to strengthen further and further cooperation between the two countries." The launch is expected to benefit more than 2,00,000 tourists from India who travel to Bhutan each year. With this launch, Bhutan will become the first country to adopt Unified PaymentInterface (UPI) standards for its QR deployment. Bhutan will also become the only country to issue and accept RuPay cards as well as accept BHIM-UPI. It is to be noted that India launched indigenously-developed RuPay Card in Bhutan in 2019 and the phase two was launched in November 2020. This launch fulfils the commitment made by the two countries during Prime Minister Narendra Modi's visit to Bhutan in 2019. Following that visit, India and Bhutan have already enabled inter-operability in acceptance of RuPay cards in each other's countries in two phases - acceptance of RuPay cards issued in India at Bhutan-based terminals in the first phase, and vice versa in the second phase, the Finance Ministry said in a statement. Asserting that the inherent strength of BHIM-UPI is something which India feels proud of, Sitharaman said, it processed 22 billion financial transactions worth Rs 41 lakh crore in 2020-21 when the world was under the grip of pandemic. During the pandemic, UPI stood out as an effective instrument of payment as people were able to buy essentials by making digital payments, she added. Terming BHIM-UPI as one of the achievements of India in terms of fintech, she said, it is a very successful experiment that India has undertaken. The launch of BHIM UPI in Bhutan will add a new milestone in financial integration between the two economies and the collaboration will enable acceptance of UPI-BHIM app in Bhutan. RMA will ensure that the participating NPCI mobile application through UPI QR transactions is accepted at all RMA acquired merchants in Bhutan. UPI is an instant real-time payments system, allowing users to transfer money on a realtime basis, across multiple bank accounts without revealing details of one's bank account to the other party. This strategic partnership with Bhutan in the area of digital payments will not only enhance the ease of transacting for Indian travellers to Bhutan but will also add value to lives of customers in Bhutan. As a part of the launch, Sitharaman also made a live transaction using BHIM-UPI to purchase an organic product from a Bhutanese OGOP (One Gewog One Product) outlet, which sells fresh farm produce made organically by local communities in Bhutan.
Source: Economic Times
Notification No. 66/2017 exempts all suppliers of goods who have not opted for composition scheme, from payment of GST on advances received We have received advance payment during the period July 1-November 15, 2017, for the export of certain goods. The goods were exported one year after receiving advance payment. Are we liable to pay GST on that? Notification No. 66/2017, dated November 15, 2017, exempts all suppliers of goods who have not opted for composition scheme, from payment of GST on advances received. For such categories of taxpayers, time of supply would arise only at the time of issue of invoice, and they need to discharge GST liability accordingly. Exports of goods are, however, zerorated. We have placed a purchase order for the import of goods but the foreign supplier wants payment to be made to a third party. Is it permissible under FEMA? Para B.7 of RBI Master Direction no.17/2016-17 dated January 1, 2016 (as amended) says that AD category I banks are allowed to make payments to a third party for import of goods, subject to the condition that firm irrevocable purchase order/tripartite agreement should be in place. However, this requirement may not be insisted upon in a case where documentary evidence for circumstances leading to third party payments/name of the third party being mentioned in the irrevocable order/invoice has been produced. Secondly, the AD bank should be satisfied with the bonafide of the transactions and should consider the Financial Action Task Force Statement before handling the transactions. Third, the invoice should contain a narration that the related payment has to be made to the (named) third party. Fourth, the bill of entry should mention the name of the shipper and the narration that the related payment has to be made to the (named) third party. Finally, the importer should comply with the related extant instructions relating to imports, including those on advance payment being made for the import of goods. We imported some goods from Malaysia and found them defective. The supplier has agreed to take them back and give replacements. But Customs are not allowing the return, saying that the defective goods were deliberately imported and want to issue a show-cause notice. What process must be followed for the smooth return of goods and to obtain a replacement? CBEC Circular no.100/2003-Cus dated November 28, 2003, refers to the instructions Board’s letter F. No. 18/1/59-Cus. (CRC), dated June 8, 1959, stating that where the importer wants to re-export the goods shipped contrary to his instructions of the importer, the Commissioner may use his discretion and release the goods on payment of a nominal penalty, or without any penalty, as he deems fit, provided that he is satisfied that the goods have been imported as a result of a bona fide mistake and contrary to the importer’s instructions. So, you may plead before the Customs that you did not intend to import defective goods and that the supplier has made a mistake for which he is willing to atone by taking back the goods and giving replacements. Much depends on your credibility.
Source: Business Standard
According to data released by China's Customs, India's exports to China reached USD 14.724 billion, up 69.6 per cent year on year in the first six months and India's imports from China amounted to USD 42.755 billion, up 60.4 per cent. The China-India bilateraltrade in the first half of the year totalled USD 57.48 billion, up 62.7 per cent year on year, perhaps the highest in recent years amid the Ladakh impasse and the COVID-19 pandemic, according to data released by China's Customs. Though Indian exports to China picked up with 69.6 per cent year on year increase, the trade deficit, a structural problem for India for long, climbed to 55.6 per cent. According to data released by China's Customs, India's exports to China reached USD 14.724 billion, up 69.6 per cent year on year in the first six months and India's imports from China amounted to USD 42.755 billion, up 60.4 per cent. China's overall trade in the first half of the year rose by 27.1 per cent year on year to 18.07 trillion yuan (about USD 2.79 trillion) in the first six months, according to the customs data. The growth marks an increase of 22.8 per cent from the pre-epidemic level in 2019. Exports jumped 28.1 per cent from a year earlier, while imports climbed 25.9 per cent in yuan terms. The trade deficit for the first six months of the year stood at USD 28.03 billion, up 55.6 per cent year on year, according to official sources. But the trade figures were regarded as significant as India-China relations were bogged down with the standoff between the two militaries at eastern Ladakh since May last year. While the COVID-19 second wave has resulted in a major increase in China's exports, especially the oxygen concentrators, ventilators, monitors, and medical materials and drugs, India's exports to China were boosted by the increase in iron ore, steel, aluminium and copper. From January to April this year, China imported a total of 20.28 million tonnes of iron ore from India, an increase of nearly 66 per cent from the same period of last year, accounting for nearly 90 per cent of India's total iron ore export, the state-run Global Times reported. It quoted the data released by the Chinese Foreign Ministry stating that China had exported more than 26,000 ventilators and oxygen generators, more than 15,000 monitors, and nearly 3,800 tonnes of medical materials and drugs to India in April. Last year the India-China trade totalled to USD 77.67 billion, which was lower than the USD 85.47 billion in 2019.
Source: Economic Times
The Ministry of Shipping (MoS) has suggested introduction of ‘direct interchange’ of containers to ease the existing backlog in the Chattogram Port. ‘Direct interchange’ means that a container belonging to one particular line can be used by others. The MoS also suggested signing of a ‘common carrier agreement’ between the mainline operators and the feeder lines to tackle the crisis. ‘Common carrier agreement’ is a deal where the available feeder vessel can transport the available stuffed goods under its authority. This means available vessels can carry the goods up to Singapore Port and Colombo Port to link with mother vessels. The decisions came up from a meeting, held with key stakeholders last week. Omar Faruk, secretary of the Chattogram Port Authority (CPA), told the FE: “The ministry’s decisions have already been informed to all stakeholders. They will act accordingly to ease the backlog.” He also said: “We do hope that the situation will improve, if the stakeholders duly abide by the decisions.” However, many shipping executives told the FE that the only way to improve the situation is to raise the number of container vessels connecting the port. “If there are many container vessels connecting the port, they can carry the export containers,” said Captain A S Chowdhury, country head of Seacon, a leading feeder service operator. Shippers said they were paying extra charge for the backlog. Covered vans are asking for at least Tk 3,000 for a day’s delay. “In some cases, the covered vans have to wait even for three days. Besides, we’re losing our export competitiveness,” said Abdus Salam Murshedy, managing director of Envoy Textiles. In the meantime, backlog at the depots deteriorated further on Sunday. As of Sunday, a total of 14,732 TEUs (20-foot equivalent units) of export cargoes remained stockpiled at different off-docks, which were 966 TEUs more from Saturday. The depots usually have stock of around 6,000 TEUs of containers during normal period. The backlog took place due to lack of pre-assigned feeder vessels in the port. The feeder vessels take cargoes to the mother vessels to reach USA and Europe. On the other hand, the depots had a total of 32,707 TEUs on Sunday, down by 1,548 TEUs than Saturday. They had 10,657 TEUs 40-ft empty containers on the day, needed for stuffing export goods, according to the statistics of the Bangladesh Inland Container Depots Association (BICDA). There are a total of 19 off-docks in Chattogram, of which 17 are in operation. They have an aggregate storing capacity of 77,700 TEUs.
Source: Hellenic Shipping News
Bangladesh has made a name for itself as one of the most important garment manufacturing and exporting nations in the world. It has innovative entrepreneurs and a hardworking workforce, yet the country lacks significant amounts of natural resources for the textile industry, according to a press statement issued by CSI. Pineapple fibre is about to change that. Pineapple fibre has huge potential for sustainable fashion “made in Bangladesh”. As a renewable and natural resource, pineapple leaves are a sustainable fibre source for the global fashion industry. Within efforts for a circular economy, utilisation of by-products is of core importance, and pineapple fibre does just that.
Benefits of pineapple fibre
Pineapple fibre is made from pineapple leaves, a by-product of pineapple farming that would be disposed otherwise. This makes it a highly sustainable and renewable resource. Being natural and biodegradable, it does not produce microplastic and alleviates pressure on landfills. Production of the fibre is clean, sustainable and compliant when done responsibly. Pineapple fibre has excellent qualities beyond sustainability that make it competitive in the global fashion and textile industry. It is versatile and can be used as material for home textiles, denim and other apparel, either in combination with other sustainable materials or purely. Industrially produced pineapple fibre is a new, sustainable material for the global fashion industry.
Industrial pineapple fibre production
Right now, more than 200,000 tonnes of pineapple are harvested in Bangladesh every year, from which an estimated amount of 4,500 tonnes of fibre could be produced. Moreover, India and South East Asian countries produce significant amounts of pineapple as well. If the full potential pineapple fibre can be exploited to a maximum, and by-products from agriculture be utilised in textiles for export, a win-win situation for Bangladesh will be created. To test this concept, CSI has conducted a case study as part of its “Partnership for Compliance”. In cooperation with research centres and local partners, the Partnership for Compliance has been researching and developing methods to upscale pineapple fibre into an industrial yarn production for the fashion and textile industry. They have now successfully completed a first test run of industrial pineapple fibre production that, if upscaled, will pioneer in this area.
Source: The Financial Express
Japanese manufacturers’ business confidence rose in July to hit a more than two-and-ahalf-year high, as the country’s export-driven recovery remained intact thanks to solid global demand, the Reuters Tankan poll showed. But in a worrying sign, service-sector sentiment turned pessimistic, as firms struggled with the fallout from the coronavirus crisis, according to the poll, which tracks the Bank of Japan’s (BOJ) closely watched tankan quarterly survey. “The global economy is showing signs of recovery from the impact of the coronavirus pandemic,” a manager at a machinery maker wrote in the poll. “But the outlook remains uncertain, as our customers are putting off business spending decisions because their budgets are on a declining trend.” The Reuters Tankan sentiment index for manufacturers rose to 25 from 22 in June, its highest since November 2018, the poll conducted June 30-July 9 showed. The service index fell to minus 3 from a flat reading the prior month. (For a detailed table of the results, click) The Reuters Tankan index readings are calculated by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists. Manufacturers’ sentiment got a boost from strong confidence at car, chemical and metal products makers, which offset negative conditions in the textiles and paper sector. The poll, which surveyed 503 large- and mid-sized companies of which 257 firms responded on condition of anonymity, comes ahead of the BOJ’s July 15-16 policy meeting. The BOJ’s own “tankan” business survey out this month also showed business confidence improved to a two-and-half-year high, while service-sector sentiment turned positive for the first time in five quarters. The BOJ is expected to slash this fiscal year’s economic growth forecasts in fresh quarterly projections as a fresh state of emergency for Tokyo, which will run through to Aug. 22, threatens to hurt consumer and business sentiment. The Reuters Tankan poll underscored the pain firms, especially those in the service sector, were feeling from the health crisis. “Overall consumer behaviour is slow, as sentiment isn’t improving due to anticoronavirus measures,” a manager at a food producer wrote in the survey. But even as they are taking a hit from prolonged curbs, the Japanese government estimated this month that it expected the economy to return to pre-pandemic levels by the end of this year, largely thanks to solid exports and a boost to consumer spending from progress in vaccinations. Manufacturers’ business confidence was seen improving further to 28 in October, while that of service-sector firms was expected to rise to 8, a slightly lower forecast for three months out than that of the previous month, the survey showed.
Source: Reuters
