The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 7 FEB, 2017

NATIONAL

INTERNATIONAL

 

Textile Raw Material Price 2017-02-06

 

Item

Price

Unit

Fluctuation

PSF

1222.03

USD/Ton

1.82%

VSF

2429.52

USD/Ton

0.30%

ASF

2007.62

USD/Ton

0%

Polyester POY

1265.68

USD/Ton

2.35%

Nylon FDY

3389.68

USD/Ton

0.43%

40D Spandex

4582.62

USD/Ton

0%

Polyester DTY

5522.42

USD/Ton

0%

Nylon POY

1512.99

USD/Ton

1.96%

Acrylic Top 3D

3171.46

USD/Ton

0.93%

Polyester FDY

2182.20

USD/Ton

1.35%

Nylon DTY

1600.28

USD/Ton

1.85%

Viscose Long Filament

3564.26

USD/Ton

0.41%

30S Spun Rayon Yarn

3069.63

USD/Ton

0%

32S Polyester Yarn

1818.50

USD/Ton

0%

45S T/C Yarn

2676.83

USD/Ton

0%

40S Rayon Yarn

3200.56

USD/Ton

0%

T/R Yarn 65/35 32S

2298.58

USD/Ton

0%

45S Polyester Yarn

1963.98

USD/Ton

0%

T/C Yarn 65/35 32S

2240.39

USD/Ton

0%

10S Denim Fabric

1.34

USD/Meter

0%

32S Twill Fabric

0.83

USD/Meter

0%

40S Combed Poplin

1.16

USD/Meter

0%

30S Rayon Fabric

0.66

USD/Meter

0%

45S T/C Fabric

0.66

USD/Meter

0%

Source: Global Textiles

 

Note: The above prices are Chinese Price (1 CNY = 0.14548 USD dtd.

06/02/2017)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Surge in cotton rates puts smiles back on Malwa farmers

 

BATHINDA: When the whole of Punjab was gripped in poll fever, cotton prices were increasing steadily adding to the profits of Malwa's farmers. Raw cotton, which fetched Rs 5,100-5,300 per quintal in the last week of December 2016, rose to Rs 6,000 per quintal in first week of February when polls were held. Punjab's cotton belt, which faced the worst-ever crisis due to the widespread whitefly attack in 2015, is back to normal in crop output and rates. Till February 3, cotton arrivals in the state were recorded at 5.72 lakh bales (one bale = 170 kg). Cotton Corporation of India The Union government had announced the minimum support price (MSP) for the medium staple (27.5mm) cotton, which is grown widely in Punjab, at Rs 4,060 per quintal. (CCI), a central regulatory body, expects the arrivals at 8.90 lakh bales in Punjab despite the fact that fibre crop was sown over only 2.56 lakh hectares in 2016, down by 40% in 2015 — the lowest acreage in 61 years. In 2015, cotton was sown in over 4.5 lakh hectares and nearly 4 lakh bales had arrived till January 31, 2016. Total arrivals for the season were recorded at 6.65 lakh bales till June 30, 2016. Last year, cotton rates were in the range of Rs 4,200-4,300 per quintal. Nearly 4,000 bales are arriving in the mandis daily on an average these days. Trade analysts said the arrivals would continue till April-end or early May. The CCI is expected not to enter the market this season as the crop is fetching nearly Rs 2,000 per quintal higher than the MSP. In late October 2016, when the cotton had just started arriving in the mandis, it fetched Rs 4,700-4,900 per quintal. By mid-November 2016, raw cotton rates had increased to Rs 4,800-5,000 per quintal. In the beginning of December, cotton was trading in the range of Rs 5,000-5,100 per quintal. From the last week of December, prices started increasing sharply. Apart from the price, the cotton yield too has gone up to 20-22.5 quintals per hectare in the current season from the nearly 12.5 quintals per hectare in the 2015-16 season marred by the pest attack. CCI's Bathinda branch manager Brajesh Kasana said, "Nearly 9 lakh bales of cotton are expected in Punjab in the current season, which is much more than the previous year when nearly 60% cotton was damaged due to the pest attack. Apart from the yield, the crop is fetching a handsome price of Rs 6,000 per quintal. In such a scenario, CCI has to remain idle with no purchases." Trade body Indian Cotton Association Limited (ICAL) also expects the total raw cotton arrivals at nearly 9 lakh bales in Punjab. "Higher rates and more yield could encourage more farmers to sow cotton in the coming kharif season. Many farmers had gone shifted to other crops after suffering huge losses in the 2015-16 season due to the pest attack," said ICAL president Rakesh Rathi. "Cotton crop has put back some smiles on the otherwise dry faces of farmers. Rate of Rs 6000 per quintal has ensured that we may reap profits after suffering losses in the previous season. Farmers who opted out of cotton are repenting their decision," said farmer Gurdial Singh of Sangat village in Bathinda. Textile manufacture Vardhman Textiles' director (raw materials) I J Dhuria said, "We see a better future for the cotton farmers in Punjab as crop scenario is very encouraging this year. Despite cotton sown in 11% less area, the production is expected to register a 7% growth as compared to previous year in north India." In north India, the farmers had sown crop over 11.4 lakh hectares in the current season down from 13.9 lakh hectares in 2015-16. The acreage in Haryana and Rajasthan was 4.98 lakh hectares and 3.85 lakh hectares respectively.

 

Source: The Times of India

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Trading not allowed under export-oriented unit scheme

 

We have an EOU manufacturing industrial chemicals and we import our raw materials duty-free. We carry out chemical production and export finished goods duty-free. We have another set of chemicals which we do not make in India but would like to import into our same EOU duty-free and re-export them (as it is, or by repacking). This is trading of chemicals. My questions are: (1) Is this allowed by law? (2) If it is not allowed, what is the penalty if we have done this many times in the past? (3) Can I get a trading licence for doing this activity in this EOU? As per Para 6.00 (a) of the FTP, trading units are not covered under the EOU scheme. The facility for trading units under the EOU scheme was withdrawn in 2002. So, you cannot get a Letter of Permission (LOP) for carrying out trading in an EOU. I believe you have a LOP for manufacturing. If so, carrying out trading activity in the EOU is a violation of the terms and conditions of your LOP. However, as per Para 6.15 (c) of FTP, if an EOU is unable to utilise any material imported or procured from DTA, the same can be exported. This provision would apply to raw materials that you normally need for your production and not for trading on a regular basis. I believe you have imported the raw materials under the notification no. 52/2003-Cus dated March 31, 2003. That notification allows duty-free import for trading only for trading EOUs in existence before March 31, 2002, and having a valid LOP to continue under the EOU scheme. If you have LOP only for manufacturing, there would be violation under the Customs law also. For violations under the Customs Act, 1962 and Foreign Trade (Development and Regulation) Act, 1992, penalties and prosecution are prescribed for different situations. The penalty can go up to five times the value of goods under both laws.  What is the “place of removal” under excise law when we export through a merchant exporter? Para 7 of CBEC Circular 999/6/2015-CX dated February 28, 2015 clarifies this point as follows: In the case of export through merchant exporters, however, two transactions are involved. The first is the transaction between the manufacturer and the merchant exporter. The second transaction is that between the merchant exporter and the foreign buyer. As far as Central Excise provisions are concerned, the place of removal shall be the place where the property in the goods passes from the manufacturer to the merchant exporter. As explained in paragraph 4 <i>supra<p>, in most cases, this place would be the factory gate, since it is here that the goods are unconditionally appropriated to the contract in cases where the goods are sealed in the factory, either by the Central Excise officer or by way of self-sealing with the manufacturer of export goods taking the responsibility of sealing and certification, in terms of Notification No. 19/2004- Central Excise (N.T.), dated September 6, 2004, etc.

                                                                                                             

Source Business Standard

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Modi-government likely to reduce the trait value for Bt cotton seeds year after year

 

Regardless of technology companies like Monsanto crying foul, the Modi government is likely to follow a plan to reduce the trait value (royalty) for Bt cotton seeds year after year, and in a few years, to zero. According to official sources, an agriculture ministry-anchored committee meeting here on Tuesday looks certain to recommend another 10% reduction in trait value, which was slashed a steep 70% a year ago. Regardless of technology companies like Monsanto crying foul, the Modi government is likely to follow a plan to reduce the trait value (royalty) for Bt cotton seeds year after year, and in a few years, to zero. According to official sources, an agriculture ministry-anchored committee meeting here on Tuesday looks certain to recommend another 10% reduction in trait value, which was slashed a steep 70% a year ago. After last year’s cut in the fees to Mahyco Monsanto Biotech (MMBL), a joint venture between the US-based biotech major Monsanto and Maharashtra-based Mahyco, the trait value has been just 6% of the pan-India ceiling price of R800 per packet for the seed. MMBL had moved the Delhi High Court. About 83% of the country’s cotton area of 10.2 million hectares (in the 2016-17 season) was under Bt variety. The country’s cotton production has risen manifold since the against the reduction in trait value and the capping of the seed price, arguing that the December 2015 price control order was “illegal and unconstitutional”. The court is yet to decide on the matter. MMBL has sub-licensed Bt cotton seed technology since 2002 to various domestic seed companies. Some of these companies have allegedly been asked by MMBL to pay it a total of R450 crore after collecting the amount as trait value from cotton farmers in kharif 2015.Introduction of Bt seeds — from 13.6 million bales in 2002-03 to a projected 32.12 million bales in 2016-17. After Bt cotton was introduced in India in 2003, it took no time for it to take the lion’s share of the country’s cotton area, but 2016-17 saw the first steep decline in its attraction to the domestic growers of the fibre. Primarily because cotton farmers in Punjab and Haryana took to native varieties in last year’s kharif season. Farmers thought these might be less vulnerable to the deadly pest white fly than the genetically modified one, the share of Bt variety in total cotton area sown declined to 83% in 2016-17 from 91% in the previous season.

 

Source: The Times of India

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Cesses set to go with GST, see increase in Budget

 

The National Democratic Alliance government plans to shift to the goods and service tax (GST) regime on July 1. In the new indirect tax architecture, some existing cesses, that are currently levied, will be done away with. Yet the government has budgeted for increases in even those cesses that will cease to exist after July 1. The Budget does not separately show collections in the GST regime but continues to project collections for excise duties and services taxes through the year. This has led experts to question whether the government has factored in the impact of the shift to GST in the Budget, including that on the schemes that are funded from cess collections. The Budget pegs the cess and surcharge collections for FY18 at Rs 2.96 lakh crore — a jump of Rs 46,298 crore over the Revised Estimates (RE) of FY17. These cesses and surcharges include the ones imposed along with both direct and indirect taxes. A senior tax consultant, speaking to Business Standard, said: “The government does not appear to have budgeted any GST receipts anywhere else in the Budget, which has been prepared on the basis of existing taxes such as excise and service tax." He added, “If the BE (budgetary estimate) for 2017-18 had been apportioned as three months for the existing taxes and nine months for GST, such an interpretation would have made sense. Since the entire Budget has been made considering the existing indirect taxes, it is likely that changes on account of GST would only form part of the RE calculations at a later part of the year." The tax consultant did not wish to be named.  Satya Poddar, advisor, EY, concurs: “I suspect the Budget estimate of cesses is a projection of the current cess levies only. The current cesses are expected to be subsumed in GST."  In the new indirect tax regime, the excise and service tax will be subsumed in GST. The Union government will continue to impose cesses on those items that remain outside the GST net, such as oil and oil products and the clean environment cess. Additionally, the Centre will levy a special cess on four categories of products that are to be taxed at the highest rate of 28%. But this is meant for compensating the states for the loss of revenue arising out of the transition to GST.  There is also lack of clarity on whether this new cess to be distributed to the states has been accounted for. “There is speculation on whether the government has considered the proceeds emanating from the cess proposed to be levied on specific products to be taxed at 28% under GST," said the tax expert quoted above, anonymously. Collections from cesses are meant to fund specific government programmes. To give an example, the government has budgeted to collect Rs 13,300 crore from the Swachh Bharat Cess. This is to be utilised for the Swachh Bharat Scheme, for which the government has budgeted a spending of Rs 16,248 crore in FY18. If the cess is done away with after the imposition of GST, the government will have to find alternative routes to fund this scheme. Similarly, the rural development programmes funded through Rs 8,800 crore collected under the Krishi Kalyan Cess will have to find other sources of funding. Poddar notes, “The special programmes funded by the cess will in future be funded by GST revenues." The Union government will be able to retain a chunk of the cess that it currently imposes on oil products, along with the ones imposed with direct taxes and customs duty.  It will continue to impose the clean environment cess imposed on the sale of coal. The government has currently budgeted for Rs 29,700 crore against this. M S Mani, senior director at Deloitte India, said ideally there should have been no cesses or surcharges in the GST framework and the cess on 28% products was already a departure from the agreed GST architecture. The continuation of any other cess would further vitiate the effectiveness of the GST framework and the abolition of the research & development cess is a welcome step in this regard.

 

Source: Business Standard

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India and Austria Sign a Protocol amending the India-Austria Double Taxation Avoidance Convention

 

India and Austria signed a Protocol amending the existing Convention between the two countries for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income here today. The Protocol was  signed by Shri  Sushil Chandra, Chairman CBDT on behalf of India and Mr. Georg Zehetner, Charge d’ Affaires, Embassy of Austria on behalf of Austria. The Protocol will broaden the scope of the existing framework of exchange of tax related information which will help curb tax evasion and tax avoidance between the two countries and will also enable mutual assistance in collection of taxes.

 

Source: The Financial Express

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Bilateral Trade through North-East Corridor

 

The objectives of Act East Policy include deepening of economic cooperation and expanding trade with countries in the Asia-Pacific Region. The process facilitates bilateral trade from North-East also. Total estimated trade (as provided by Department of Revenue) between India and Myanmar through the North-East has grown from Rs. 7752.72 lakhs to Rs. 14452.26 lakhs between 2013-14 and 2015-16. Some of the steps taken for promoting trade from the North-East region, particularly to Myanmar are as follows:

 

  1. Shifting from barter trade to normal trade  expansion to all tradeable commodities
  2. Increasing trade through sea route by harnessing the proposed Kaladan Multi Modal Transit Transport Facility
  3. Better land connectivity through India-Myanmar-Thailand Trilateral Highway
  4. Improving the land connectivity on Indian side through widening of the Imphal – Moreh road.
  5. Comprehensive Telecom Development Plan for North-East
  6. Initiation of better banking facility.
  7. Expansion of rail network in the region
  8. Land Customs Stations (LCS) at Moreh, Zokhawthar andChamphai
  9. Establishment of borderhaats
  10. Integrated Check Post at Moreh

 

Source: PIB

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Centre, states gearing up for GST, says Central Board of Excise and Customs member

 

With the goods and services tax (GST) on the anvil, all state governments are working closely with the central government to put the elaborate information technology (IT) infrastructure in place for smooth handling of massive amount of data. With the goods and services tax (GST) on the anvil, all state governments are working closely with the central government to put the elaborate information technology (IT) infrastructure in place for smooth handling of massive amount of data, a top Central Board of Excise and Customs (CBEC) official said at an Assocham event in New Delhi. “It is going to be a monumental change and a massive task for all the stakeholders — whether it is government, state governments, taxpayers or others,” said S Ramesh, Member (Central Excise, Service Tax and IT), CBEC at a post-Budget seminar. In his address at the seminar, Abrar Ahmed, Principal Chief Commissioner of Income Tax, Delhi, said, “We should diagnose what are the reasons for India being largely a non-tax compliant country, this is not the responsibility of government alone.” He said the government had limited resources and thus greater cooperation of industry, trade bodies and public at large was required. “Government is doing whatever is possible, so psychology has to be changed because we are non-compliant.” On the issue of honouring honest taxpayers, he said though there were already many schemes, social security system like in other countries could be intrioduced. “We can discuss (this) with higher authorities as there is no dispute about honouring honest taxpayers.” He also said that as far as accountability of officers was concerned, there was much more transparency in the present era of RTI (Right to Information) and centralised public grievance redressal and monitoring system.

 

Source: The Financial Express

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Indian Rupee zooms to nearly 3-month high of 67.22

 

The rupee continued to outshine against the beleaguered US dollar and ended at a nearly 3-month high of 67.22, appreciating by 9 paise on sustained unwinding of American currency by exporters and corporates ahead of the RBI policy. Heavy unwinding of long dollar positions built by speculative traders last week ahead of FOMC meet predominantly gave the rupee a boost amid extreme weak overseas sentiment. Expectations of robust capital inflows against the backdrop of improving macro-economic environment alongside aggressive policy reforms in the Union Budget further supported by upmove. India remains the best emerging market growth stories, largely outperforming its Asian peers. In the Union Budget presentation, the government pegged fiscal deficit at 3.2 per cent of the GDP for fiscal 2017-18, lower than market expectations. Moreover, the RBI is seen cutting rates by 25 bps, in the face of easing inflationary pressure aided by fiscally prudent budget, in its February monetary policy meeting on Wednesday. Domestic equities, too, reacted positively to the budget announcements last week. The greenback has been under immense pressure amid growing concern about the potential impact of the Trump Administration’s protectionist stance. Pushing its strong rallying momentum on track for a ninth-straight day – its longest in recent past, the home unit has appreciated by a whopping 98 paise against the dollar. Foreign funds and overseas investors continued their portfolio buying spree and infused USD 292.38 million during the past week, triggering a stunning rally in local equities. The rupee resumed on a strong footing at 67.20 from last Friday’s close of 67.31 at the Interbank Foreign Exchange (forex) market and maintained its highly bullish wave to hit an intra-day high of 67.1475 in late afternoon deals. It gave back some initial gains towards the tail-end trade before ending at 67.22, showing a good gain of 9 paise, or 0.13 per cent. The rupee had seen this level on November 11 last year. The US dollar index was trading firmly higher at 99.97 in late afternoon session. The RBI fixed the reference rate for the dollar at 67.1958 and for the euro at 72.4035. In cross-currency trade, the rupee maintained its upbeat trend against the British pound to end at 83.77 from 83.94 per pound and strengthened further against the euro to settle at 72.15 from 72.25 previously. But, it fell back against the Japanese Yen to close at 59.80 per 100 yens from 59.50 earlier. Meanwhile, country’s foreign exchange assets, which are a major component of the overall reserves rose by USD 782.7 million to USD 361.557 billion in the week to January 27. In the previous week, the reserves had surged by USD 932.4 million to USD 360.775 billion. On the domestic equity front, bourses staged a spectacular rally as across the board frantic buying led key indices to fresh multi-month high amid hopes of interest rate cut from the RBI at the upcoming monetary policy meet. The benchmark Sensex jumped 198.76 points to finish at 28,439.28, while broader Nifty rose 60.10 points to 8,801.05. In the forward market, premium for dollar continued to slide owing to sustained receivings from exporters.  The benchmark six-month premium for July moved down to 147.75-149.75 paise from 149-151 paise and the far-forward January 2018 contract also slipped to 290-292 paise from 291-293 paise last Friday. Crude prices continued to surge after US announced new sanctions against Iran last Friday following After Iran’s missile test, raising geopolitical tensions between the two nations.

 

Source: The Financial Express

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RBI may cut rate by 0.25 per cent in policy review: ICRA

 

Reserve Bank is expected to slash repo rate by 0.25 per cent at its policy review on Wednesday, followed by an extended pause, ICRA said today. The rate cut would be supported by the modest CPI inflation, which is expected to undershoot the March 2017 target set by Reserve Bank of India (RBI) and the continued fiscal consolidation attempted in the Union Budget for FY2018, the rating agency said. “There is a high likelihood of a 25 bps cut in the repo rate in the upcoming policy review in February 2017. The CPI inflation in the ongoing quarter is expected to remain below the forecast of 5 per cent. “Moreover, the Union Budget for FY2018 has balanced fiscal consolidation with increased capital spending, which would revive growth in a non-inflationary manner,” Naresh Takkar, Managing Director and Group CEO, ICRA, said. Besides, with limited evidence so far that the rebound in Q4 FY2017 would be strong, ICRA expects the monetary policy committee to pare its baseline gross value added (GVA) growth forecast for FY2017 downward from 7.1 per cent, and indicate a modest improvement in FY2018. ICRA’s own baseline estimates forecast a pickup in GVA growth from 6.6 per cent in FY2017 to 7 per cent in FY2018. ICRA expects the CPI inflation to undershoot the RBI’s projection of 5 per cent for Q4 FY2017. The limited space for further monetary easing by the RBI, the mild rise in the net long-term borrowings of the Government of India, and an anticipated uptick in state governments’ market borrowings in FY2018, suggest that Indian bond yields are unlikely to ease significantly below current levels, the rating agency said. With greater emphasis being laid on bringing inflation in a durable manner to 4 per cent, i.e. the mid-point of the CPI inflation band of 2-6 per cent, the anticipated rate cut in February 2017 is likely to be followed by an extended pause. The CPI inflation target set by the RBI’s Monetary Policy Committee (MPC) for March 2018 is awaited. Following the surge in deposits and liquidity after the note ban, banks had cut both deposit and lending rates. With the easing of limits on withdrawals, bank deposit growth on a YoY basis has eased from 15.9 per cent on November 25, 2016 to 13.9 per cent on January 20, 2017; ICRA expects deposit growth to ease further to 12 per cent by end-March 2017.

 

Source: Business Line

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Indian company launches environmentally friendly non-woven oil sorbent

 

South India based maritime services company has launched environmentally friendly and biodegradable nonwoven oil sorbents. There has been a recent incident of oil spill on the shores of Bay of Bengal in India at Ennore port affecting the marine life and the pristine beaches of Marina in Chennai India. In the early morning hours of January 28th an LNG tanker ship and a petroleum tanker collided at Ennore port resulting in spill. Reports indicate that this may have affected the marine life resulting in dead turtles and oil-laden hatchlings washed ashore. To aid the clean-up activities government agencies and NGOs are working diligently. A Chennai based maritime company NAVTEK has comeup with a timely solution and has used its environmentally friendly absorbent nonwoven mats at the spill site. NAVTEK has been in the works for some months now to refine their technology and has launched its product which is much environmentally friendlier than synthetic polypropylene mats. They have 100% biodegradable nonwoven mats and oil sorbents in their product basket. Recently NAVTEK tested its product at Ennore port.

 

Source: Tecoya Trends

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Trading not allowed under export-oriented unit scheme

 

We have an EOU manufacturing industrial chemicals and we import our raw materials duty-free. We carry out chemical production and export finished goods duty-free. We have another set of chemicals which we do not make in India but would like to import into our same EOU duty-free and re-export them (as it is, or by repacking). This is trading of chemicals. My questions are: (1) Is this allowed by law? (2) If it is not allowed, what is the penalty if we have done this many times in the past? (3) Can I get a trading licence for doing this activity in this EOU? As per Para 6.00 (a) of the FTP, trading units are not covered under the EOU scheme. The facility for trading units under the EOU scheme was withdrawn in 2002. So, you cannot get a Letter of Permission (LOP) for carrying out trading in an EOU. I believe you have a LOP for manufacturing. If so, carrying out trading activity in the EOU is a violation of the terms and conditions of your LOP. However, as per Para 6.15 (c) of FTP, if an EOU is unable to utilise any material imported or procured from DTA, the same can be exported. This provision would apply to raw materials that you normally need for your production and not for trading on a regular basis. I believe you have imported the raw materials under the notification no. 52/2003-Cus dated March 31, 2003. That notification allows duty-free import for trading only for trading EOUs in existence before March 31, 2002, and having a valid LOP to continue under the EOU scheme. If you have LOP only for manufacturing, there would be violation under the Customs law also. For violations under the Customs Act, 1962 and Foreign Trade (Development and Regulation) Act, 1992, penalties and prosecution are prescribed for different situations. The penalty can go up to five times the value of goods under both laws.  What is the “place of removal” under excise law when we export through a merchant exporter? Para 7 of CBEC Circular 999/6/2015-CX dated February 28, 2015 clarifies this point as follows: In the case of export through merchant exporters, however, two transactions are involved. The first is the transaction between the manufacturer and the merchant exporter. The second transaction is that between the merchant exporter and the foreign buyer. As far as Central Excise provisions are concerned, the place of removal shall be the place where the property in the goods passes from the manufacturer to the merchant exporter. As explained in paragraph 4 <i>supra<p>, in most cases, this place would be the factory gate, since it is here that the goods are unconditionally appropriated to the contract in cases where the goods are sealed in the factory, either by the Central Excise officer or by way of self-sealing with the manufacturer of export goods taking the responsibility of sealing and certification, in terms of Notification No. 19/2004- Central Excise (N.T.), dated September 6, 2004, etc.

                                                                                                             

Source Business Standard

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Indian company launches   environmentally friendly   non-woven oil sorbent 

 

Texas Tech University    South India based maritime services company has launched   environmentally friendly and biodegradable nonwoven oil sorbents.   There has been a recent incident of oil spill on the shores of   Bay of Bengal in India at Ennore port affecting the marine life and   the pristine beaches of Marina   in Chennai   India.   In the early morning hours of January 28th   an LNG tanker   ship and a petroleum tanker collided at Ennore port resulting in   spill. Reports indicate that this may have affected the marine life   resulting in dead turtles and oil-laden hatchlings washed ashore.   To aid the clean-up activities   government agencies and NGOs   are working diligently.   A Chennai based maritime company   NAVTEK has comeup   with a timely solution and has used its environmentally friendly   absorbent nonwoven mats at the spill site. NAVTEK has been in   the works for some months now   to refine their technology and has   launched its product   which is   much environmentally friendlier   than synthetic polypropylene   mats. They have 100%   biodegradable nonwoven mats   and oil sorbents in their product   basket. Recently   NAVTEK tested   its product at Ennore port.

 

Source: Tecoya Trend

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Global Crude oil price of Indian Basket was US$ 55.44 per bbl on 06.02.2017

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 55.44 per barrel (bbl) on 06.02.2017. This was lower than the price of US$ 55.82 per bbl on previous publishing day of 03.02.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3725.51 per bbl on 06.02.2017 as compared to Rs. 3761.56 per bbl on 03.02.2017. Rupee closed stronger at Rs. 67.20 per US$ on 06.02.2017 as compared to Rs. 67.38 per US$ on 03.02.2017. The table below gives details in this regard:

 Particulars    

Unit

Price on February 06, 2017 (Previous trading day i.e. 03.02.2017)                                                                  

Pricing Fortnight for 01.02.2017

(Jan 12, 2017 to Jan 27, 2017)

Crude Oil (Indian Basket)

($/bbl)

                  55.44             (55.82)       

54.03

(Rs/bbl

                 3725.51       (3761.56)       

3680.52

Exchange Rate

  (Rs/$)

                  67.20             (67.38)

   68.12

 

Source: PIB

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Orsha Linen Mill in Belarus bags first order from India

 

Orsha Linen Mill in Belarus is shipping a trial order worth $59,000 to an Indian buyer, who sells fabrics in wholesale and retail. Orsha has signed a contract for supplying $1 million worth of fabrics with the Indian buyer, whose representatives had visited the mill earlier. Orsha will be supplying its fabrics to the Indian market for the first time. Speaking to Belarus news agency, Dmitry Muravyev, deputy director general for commercial affairs at Orsha Linen also added that they were trying hard to make their presence felt in new markets, while strengthening their hold in markets, where they are already present. Orsha began exports to countries like Tunisia, Morocco, New Zealand, and South Africa in 2016, while also supplying finished textile products to China. The mill derives 80 per cent of its revenues from exports to 36 countries.

 

Source: Fibre2fashion

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Noida garment exports hit by global economic slowdown

 

NOIDA: Signs of a global economic slowdown, in a ripple-effect, are being felt in Noida's garment export industry. The city's Apparel Export Promotion Council reports, of its 800 exporters, over 50% do not have any order to ship post March. Those who are shipping now, are only delivering orders received some time ago, in 2016. "Only about 40% of its usual volume of orders from the USA have reached Noida's garment exporters Noida, known industrial circles, as 'apparel city', accounts for 15-20% offor shipping for the 'back to school' season of shopping in August, when children rejoin school after a long summer gap," Vice Chairman Apparel Export Promotion Council, India, HKL Maggu told TOI. India's garment exports. Its garment export industry, on an average generates an annual turnover of Rs 10,000 Cr. Noida and Greater Noida together have over 800 garment exporters operating over 4000 units. These units employ over 6 lakh people. Of these, the city's Apparel Export Promotion Council reports, over 60-70% do not have orders from anywhere in the world after March 2017. Major importers of Noida's garments are labels like Zara, Mango, Tescos among several others. The products are largely sent to Brazil, USA, Canada, Europe, England. "Business is down. It is difficult to cost-effective for importers as our transaction costs have increased and we are not being able to increase the price as the importers in the West can't increase even 1% in purchase amount. Many exporters are only catering to existing orders, as they simply cannot send goods at current price level. Post-Brexit, purchasers in London, England have refused to increase prices, American importers too have become conservative," Lalit Thukral, president, Noida Apparel Export Cluster and Convenor, UP Apparel Export Promotion Council, said. The garment exporters were already hit by a slowdown since 2016, the demonetization having brought systemic changes in business operations has added to costs. While existing orders have slowed down, the members of the industry worry that with transaction costs hiked post demonetization, the garment export business may lose out to Bangladesh, Vietnam, Cambodia. However recruitment has started once again post a temporary period retrenchment post demonetization. "Most garment manufacturing units are now 90-100% compliant and fresh recruitments are only being made on the basis of bank accounts, so the process will be clear in times to come," Thukral added. "Worldwide, importers are taking a wait and watch approach towards India because they are wondering if Indian exporters will be able to deliver at all," Thukral added.

 

Source: The Times of India

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Japan, Czech Republic to participate in Jharkhand Global Investor Summit

 

Claiming that the image of Jharkhand is changing in the country and abroad, the chief minister said development of the state depended on both agriculture of industrial development. (Image source: Official website) Claiming that the image of Jharkhand is changing in the country and abroad, the chief minister said development of the state depended on both agriculture of industrial development. Japan, Czech Republic, Tunisia and Mongolia would be partner countries for the Global Investor Summit, Jharkhand which is expected to attract 2,500 delegates from across the globe, state Chief Minister Raghubar Das said today. The two-day summit is scheduled to begin on February 16. Delegations from America, Russia, Australia, Singapore, China, Afghanistan and United Arab Emirates would be present at the programme, Das said adding 12 to 15 central ministers and 40 industrialists would grace the occasion. Claiming that the image of Jharkhand is changing in the country and abroad, the chief minister said development of the state depended on both agriculture of industrial development. The policies prepared by the government would remove poverty and unemployment, Das was quoted in an official release. This would not only stop migration but also economic resources could be made available for the people for all round development. Jharkhand has 40 per cent of the country’s mineral resources, besides efficient human resources. What was necessary was to give fillip to ‘Make in Jharkhand’, the chief minister said. He said due to ‘team Jharkhand’ the state had reached thus far and appreciated officials and employees for this and added that it was the responsibility of everyone to improve the state for the better. The summit is being held in partnership with CII to promote industrial activity in the state and establish Jharkhand as one of the prime investment destinations of eastern India has taken numerous steps towards improvement of overall investment climate.

 

Source: The Financial Express

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Mexico mulls to slap mirror textile tariffs to counter Trump

 

U.S. President Trump likely to imposes a 20 percent or other duty on Mexican imports if so, Mexico mulls to slap “mirror” tariffs against U.S. fabric and apparel imports which would severely harm cross-border manufacturers and retailers alike, said some textile executives. Sixto Mercado, vice president of top trade lobby Canaive’s branch in Jalisco State, home to Guadajara said that it would be a good idea if the government did something to compensate against this [the Trump tariff]. As they have many apparel exporters here who would be affected. However, Mexico is set to begin negotiating the North American Free Trade Agreement by May to meet Trump’s calls for a rewrite. The economy minister Ildefonso Guajardo said that in mid-January if Trump imposes a tariff or a border adjustment tax, Mexico would pursue “mirror actions.” The statement is an indication of the growing tensions between the two neighboring countries, longtime allies, as Trump pursues his plan to build a wall along the border and claims that Mexico will pay for it. The 20 percent tariff or other duty proposal forms part of the plan to fund the wall. The U.S. ships roughly $6.5 billion worth of apparel and textiles to Mexico — $4 billion is fabric and $1.2 billion apparel parts, according to Canaive. Conversely, Mexico sends back $4.5 billion worth of clothing and textiles — $3.5 billion of apparel and $1 billion of textiles. A possible trade war has strained diplomatic relations and unleashed a nationalist uproar in Mexico with populist groups calling for consumers to boycott American companies including Wal-Mart, Starbucks and McDonalds. Social media is abuzz with tweets-for-tats urging citizens buy Mexican goods with hashtags such as #AdiosWalmart, allegedly hitting sales at the U.S. discounter’s largest international division. A Wal-Mart spokesman said that the firm is “monitoring the situation” but had no further comment. If the proposed 20 percent tariff is levied (among other options) to pay for Trump’s border wall and Mexico hits back, they could grow below zero, Mercado said, adding that exports could plunge 10 percent, despite a record-low peso. In 2016, the textiles and apparel sector grew 5 percent as strong local apparel sales offset a 4.3 percent drop in U.S. sales. As Mexico flirts with a possible recession, Mixto said that local sales could this year grow 7 percent compared to 10 percent in 2016. Amid strong anti-American sentiment, local-brand turnover could eclipse U.S. brands for the first time in recent memory. Everyone is being urged to buy Mexican products. This will hit American brand sales. Many consumers could shun Wal-Mart in lieu of Mexican archrival Coppel or choose to buy at department-store chain Liverpool’s lower-end unit Fabricas de Francia. Mexican fashion designers, long in the shadows, could win consumer hearts. This is bad news for the likes of the Axo or El Palacio de Hierro network, which have grown by bringing aspirational U.S. brands such as ck Calvin Klein, Tommy Hilfiger and Abercrombie & Fitch south of the border. An executive at Axo said that the 20-brand franchisor has not seen “any sales declines” from the patriotic upsurge and is operating “business-as-usual.” Its clear Axo and rival Sordo Madaleno, a top architecture firm making a leap into foreign fashion licensing (it just opened Mexico’s first AllSaints outlet) will suffer as consumers tighten their belts and seek “Made in Mexico.” In Europe, Mexican fashion jean labels Oggi and Siete Leguas could make successful forays because they have high-quality products using innovative fabrics and new washing technologies, according to Mercado. These companies sell premium jeans to Levi’s, Wrangler and True Religion so they could also start selling in Europe. That will require even more innovation, training and other investment the industry has been slow to pursue. They need to make more fashion and design and to diversify their exports because they are too dependent on the U.S., said Alfonso Zepeda, the man behind Expo Denim, a denim trade fair set to open in Guadjalajara in late May, adding that European expansion should be a priority.

Here in Jalisco they make great coats, cotton knits, denim pants and suits. They could sell these to smaller, H&M-like stores. Europe represents a huge opportunity with their low peso and there are niches they could exploit.  Mexican apparel producers to meet the challenges are seeking new markets in Central America and Europe with which Mexico has a largely vague free-trade agreement. Costa Rica, Panama and Central America could be good markets to compete on price and quality.

 

Source: Yarns and fibres

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Uzbekistan to process all cotton domestically by 2020

 

Today, Uzbekistan exports textile products to more than 50 countries. In recent years, the export  has been expanded to Brazil, Chile, Croatia, and Nigeria. The President’s decree of 21 December 2016 “On measures for further development of the textile, garment and knitwear industry in 2017-2019” set new ambitious tasks for the sector. According to the document, by 2020 all cotton fiber should be processed inside Uzbekistan. Today, cotton yarn accounts for nearly 50 percent of the cotton export. The task is to increase the export of products with high added value by a gradual reduction of yarn exports. Currently, the share of finished products in the total volume of production amounts to 47 percent. In the future it is planned to increase this figure to 65.5 percent, as well as to increase the share of finished products in the export from 41 to 70 percent. Some US $2.2 billion of investments (nearly half of them foreign investments) are to be attracted to the industry in 2017-2020. Special textile complexes will be launched on the basis of a four-phase system that includes all processes, starting from processing and ending with the production of finished products. More than 27 thousand new jobs will be created. It is also planned to organize 120 new and upgrade more than 10 enterprises.

 

Source: The Times of Central Asia

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Brazil cotton prices record new highs in January

 

Brazilian cotton prices climbed in the first fortnight of January 2017, primarily driven by low availability, coming from the failure of the 2015/16 crop and since most production from that crop, was traded in advance. On January 9, Brazilian cotton quotes touched BRL 2.7977 per pound, the highest level, in nominal terms, since May 2, 2011. However, cotton prices dropped 0.3 per cent in the second fortnight of the month, mainly due to more flexibility on part of sellers and also good liquidity. The CEPEA/ESALQ Index, 8-day payment terms, for cotton type 41-4, delivered in São Paulo, rose 0.3 per cent in January, closing at BRL 2.7573 or $0.8761 per pound on January 31. Quoting data of the Brazilian Commodity Exchange (BBM), CEPEA said 74.8 per cent of the 2015/16 Brazilian cotton crop, estimated at 1.288 million tons, had been traded until January 31. Of this total, 52.9 per cent was sold in the local market, while the rest was exported. The 2016/17 crop has been estimated at 1.4 million tons, 30.1 per cent of which has been traded. Of the traded portion, 34.6 per cent was sold in the domestic market and 65.4 per cent was exported.

 

Source: Fibre2fashion

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Child Labour & Low Wages: The Real Cost of Producing Fashion in Myanmar

 

London - As Myanmar continues to invest in becoming one of the leading garment-producing and exporting countries, a new report shines a light on the growing number of issues emerging in its fashion sector - which includes children as young as 14 working for as little as 13 pence an hour to produce apparel for high street retailers. Fast-fashion retailers such as H&M, New Look, and Sports Direct’s Lonsdale label were all found to have worked with factories which employed 14 year old children in Myanmar, according to the new report “The Myanmar Dilemma” from the Amsterdam-based organisation the Centre for Research on Multinational Corporations (also known as Somo). Together with the Observer and local NGOs Action Labor Rights and Labour Rights Defenders and Promoters, Some interviewed over 400 workers in 12 factories which supplied garments for international fashion brands and found workers were being paid half of the full legal minimum wage, in addition to a number of children workers as young as 14 working over-time. Garment factories in Myanmar which supply H&M and New Look found to employ workers as young as 14 Over the recent years Myanmar has become a popular destination for the fashion industry, for Western brands in particular, as its offers low wages and favourable import and export tariffs. Myanmar is currently seen as a cheaper production hub to neighbour countries such as Thailand, Cambodia, China and Indonesia, which has led to a number Asian apparel suppliers moving their production hubs to the country. At the moment nearly half of the garment factories in Myanmar are owned by foreigners, or joint ventured between Myanmar and overseas companies. There are currently over 400 garment factories in Myanmar, which employ approximately 350,000 workers - 90 percent of which are women. The legal minimum wage in Myanmar is 3,600 kyat per an eight hour working day (2.12 pounds), which is equal to 26 pence per hour. However, researchers also found garment workers were paid as little as 13 pence an hour at factories in Myanmar supplying clothing to Sports Direct, H&M, New Look and Muji, earning a total of 1.06 pounds a day. According to the report, these factories paid newer workers a reduced rate, which is permitted by Myanmar’s labour laws, but sees workers struggling to live a normal life on such low wages and working up to 11 hours a day, 6 days a week. In addition, workers in factories suppling New Look, Sports Direct, Karrimor, Henri Lloyd and New Look were also found to work more than 60 hours a week, which breached Myanmar’s factories act that workers should not be work more than 60 hours a week including overtime.

The report also found workers under the age of 18 were employed in all 12 investigated factories. At half of the factories, researchers found strong indications that current workers were younger than 15 years old when they first started working. Although it is legal for children as young as 14 to work for up to 4 hours a day in Myanmar, many workers lie about their age in order to work and earn more. However, they are still expected to do the same work as their adult counter-parts which is in violation of both Myanmar legislation and international labour standards, added the report. Close to half of the workers interviewed also did not have a signed contract at their factory of employment, which meant they lacked rights to bonuses and benefits. This ‘race to the bottom’ led by fashion retailers forever in search for the lowest production hub causes unhealthy competition between garment producing countries in the region, argues Some in the report. “The rule of law in Myanmar is not adequately upheld. The army still has a lot of influence. Civil society organisations and trade unions have only been allowed to operate since 2012,” said Martje Theuws, researched at Somo. “The garment industry’s operations go largely unchecked. The question is justified if the time is ripe for foreign companies to invest in Myanmar. Garment brands should think twice before they start production in Myanmar. The risk of labour rights violations is very high. Companies should make a thorough analysis of all potential problems. They must ensure that they, together with their suppliers, identify and tackle these risks before placing any orders. Our research shows that companies are not doing this adequately.” In response to the report, H&M issued a statement its Group website, noting the report raised “industry-wide challenges” which they have been addressing for many years. “It is of utmost importance to us that all our products are made under good working conditions and with consideration to environment, health and safety. We want people to be treated with respect and that our suppliers offer all their workers good, fair and safe working conditions,” added the Swedish fashion company. “A collaborative approach is key to achieve long-lasting improvements and that is why we work close to other brands, organizations, trade unions and workers representatives.” It in not the first time H&M has been accused of working with factories that employ workers as young as 14 in Myanmar. Last August saw the publication of the book 'Modeslavar' by Moa Kärnstrand and Tobias Andersson Akerblom, who stress factories in the region regularly hire young workers. FashionUnited reached out to New Look for their response to the Somo report and a spokeperson said: “We recognise the issues highlighted in this report. We are working with our suppliers and local partners in Myanmar to address the findings and to support the development of an ethical garment industry in the area.”

 

Source: Fashion United

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Dollar General expects to create 10,000 new jobs in 2017

 

US retailer Dollar General has planned 1,000 new store openings in 2017, in addition to which it will also set up two distribution centres, all of which are expected to create 10,000 new jobs in the current year. The addition of these jobs will increase the strength of its workforce by around 9 per cent, and will be the highest intake in its 78 year history. Dollar General plans to use its robust training programs to support the company's commitment to one of its operating priorities of investing in employees as a competitive advantage. The company will invest more than 1.5 million training hours in employees in 2017, to promote education and development throughout the year.  "Dollar General looks forward to welcoming new employees who want to grow with us, as we expand throughout the states we serve," Todd Vasos, Dollar General's chief executive officer said. “Since joining Dollar General in 2008, I have had the privilege to see the company grow from around 72,000 employees, to more than 130,000 anticipated employees by end of the fiscal 2017.

 

Source: Fibre2fashion

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University Prof wins $490k for eco textile solution

 

This year, the grant is focusing on highlighting ways to make Yuyu Sun, chemistry professor at the University of Massachusetts Lowell has won $490,000 grant to develop cleaner technology for dyeing fabrics. The professor has won the grant for three years from the Walmart Foundation. This grant is one of the six awarded by the foundation this year through the Walmart US Manufacturing Innovation Fund. textile production more efficient and environmentally sustainable. Welcoming the assistance from the foundation, Sun said that the grant will give him opportunities to further explore the application of nanotechnology to develop more environmentally friendly dyes. He further said that the grant will allow involvement of graduate students in his research.  “This is a good opportunity to help students apply what they have learned in their courses and to solve real-world problems,” said Sun. “As professors, we not only need to do research and teach, but serve the society at large... This product will provide a really good opportunity to train students. Also, if we are successful, this technology will make a contribution to reducing pollution and improving the economy, so it’s something I’m happy to do and really motivated to do,” added Sun. He is using nanotechnology to modify common types of dyes so their motion can be controlled with magnetic fields. The idea is that manufacturers can use magnets to pull the modified dyes into the fabrics more efficiently — and then remove most of the remaining dye from the wastewater. Sun has already had preliminary success with two of the most commonly used classes of dyes—dispersed dyes, used on polyester fabrics, and reactive dyes, used for cotton. He has a patent pending on the technology.

 

Source: Fibre2Fashion

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Pakistani textiles make a mark in Texworld 2017 in Paris

 

Pakistan’s high quality and value added textile products were showcased at the 3- day 40th edition of Texworld show held from 6th to 9thof this month in Paris.  In all twenty six renowned Pakistani companies participated in the exhibition and displayed variety of high end fabrics, sundries, accessories and sophisticated cotton wears including knit Embroidery Lace and trims suited to the taste and preferences of European children, men and women. The Ambassador of Pakistan to France Moin un Haque who visited Pakistani pavilion met with the Pakistan exhibitors and appreciated their participation in this premier European Textile exhibition. He said the Pakistani Textile products are known internationally for their high quality and innovative designs. Participation in the texworld textile would not only help in introducing Pakistan prowess in the textile fashion industry but will provide much need boost to the Pakistan’s textile exports to the lucrative European market. The Texworld held every year at the advent of spring in Europe is a popular trade fair exclusively for professionals from the textile and fashion industry. It is a valuable and efficient gateway to the European market for international textile manufacturers.

 

Source: Duniya News

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Turkish duty on US cotton to hit competiveness of its own textile exports

 

Turkey’s plan to impose 3 percent anti-dumping duties on U.S. cotton imports saying that imports were hurting domestic cotton production. But this will drive up costs for its own textile producers, hurting the competitiveness of their exports, said the head of an industry group. The spat is likely to put strain on trade relations between one of the world’s top fiber growers and one of its biggest customers at a time of weak global prices and demand. This is a decision that will increase raw material costs of textile producers by 2-3 percent and will somewhat affect price competitiveness of Turkish exports, İsmail Gülle, head of the Istanbul Textile and Raw Materials Exporters Union, whose members account for 70 percent of Turkish textile exports. U.S. cotton has specialty uses, it is not something they could give up using, the industry will shoulder the costs. Turkey is the second-biggest buyer of U.S. cotton, with shipments ranging from 1.5 million to 2 million bales per year. According to industry data, Turkey exported $17 billion worth of garments and ready-to-wear clothing last year, and $8 billion of textiles and raw materials. The government in its official gazette announcing the move said that it was determined that the material damage to local production branch has been the result of dumping in imports. The move had been widely expected since February, when Turkey’s economy ministry said U.S. cotton was hurting the domestic cotton industry. However, U.S. cotton farmers have said that they will fight the decision through the World Trade Organization and Turkish courts.

 

Source: Yarns and fibres

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