NATIONAL

• Govt eases input tax refunds for exporters
• Govt explores national brand for textiles for global market
• India files appeal against WTO panel report on export subsidies
• 12 hours to 12 minutes: Customs clearance to take the swift route
• Pulling out of RCEP not just an economic decision
• India quit RCEP in national interest: Goyal
• Training in international trade in Coimbatore from next year
• 'Bihar has untapped export potential of $900 million,' says Export-Import Bank of India
• Progressive Punjab Investors Summit to promote MSME

INTERNATIONAL

• Global Textile Raw Material Price 19-11-2019
• Private consumption: Textiles EU's fourth largest cause of environmental pressures after food, housing, transport
• Falling orders for Italian textile machinery
• Philippines: MOA expo puts garment, leather textile industries in the spotlight

Govt eases input tax refunds for exporters

In a major relief for the export sector, the customs authority has directed tax officials not to insist on proof of realisation of exports proceeds for processing of input tax refunds. Delay in issuance of refunds has been a sore point for exporters since the switchover to goods and services tax (GST) regime in July 2017. The new directive from the Central Board of Indirect Taxes and Customs (CBIC) follows assurance from finance minister Nirmala Sitharaman to the industry on easing of compliances. The circular makes it clear that tax authorities will not insist on proof of realisation of export proceeds for processing of refund claims related to export of goods as it has not been envisaged in the law. CBIC emphasised that exports have been zero rated under the Integrated Goods and Services Act. Hence, as long as goods have actually been exported, even after a period of three months, tax officials should not insist on payment of Integrated tax first and claiming refund at a subsequent date. There have been reports that exporters were being asked to pay integrated tax in cases where the goods were exported more than three months after the date of the issue of the invoice for export. Tax experts said the circular has come at an opportune time. “The circular has provided some key relaxations,” said Harpreet Singh, partner at KPMG. Tax authorities will no longer insist on proof of realisation of proceeds, or on payment of tax before refunds are initiated when the export is delayed, he said. Also, there won’t be any adverse action in case the order of debit on claiming refund is not followed, Singh said.

Source: Economic Times

Back to top

Govt explores national brand for textiles for global market

The ministry will also seek feedback to improve functioning in several key aspects of the sector, which is a high employment creating industry.The textile Ministry has convened a stakeholders meeting for inputs for a new textile policy, which will include in it the need for creating an umbrella brand for the country's textiles sector for the global market, an official said on Tuesday. The meeting is slated to be held on Wednesday in Delhi by the trade advisor of the ministry and will also discuss on the quality mark for the sector, he said. The notice for the meeting called for discussion on the need for brand positioning of Indian textile and apparel in the global market by creating an umbrella brand for textile and introducing quality marks, the official said. The ministry will also seek feedback to improve functioning in several key aspects of the sector, which is a high employment creating industry. The meeting intends to discuss the areas of manufacturing, exports, policy framework and best practices in China, Vietnam, Bangaldesh and Turkey, he said. The meeting will also discuss threats from free trade agreements. Building quality and ecosystem are among the agendas of the meeting, he added.

Source: Money Control

Back to top

India files appeal against WTO panel report on export subsidies

As per the panel recommendations, India needed to withdraw the "prohibited subsidies" under the EOU/EHTP/BTP Schemes, EPCG Scheme, and MEIS, within 120 days. India has filed an appeal against the World Trade Organisation (WTO) panel report, which ruled that many of its popular export promotion incentives were not in sync with multilateral trade rules and needed to be withdrawn. The case was initiated by the United States (US). "India filed an appeal on November 19 concerning the WTO panel report in the case brought by the United States in “India — Export Related Measures”. The panel report was circulated to WTO members on October 31 2019," according to an official release. In its ruling, the WTO panel had backed several claims filed by the US against export promotion measures adopted by India including the Merchandise Export from India Scheme (MEIS) and the Export Promotion Capital Goods (EPCG) scheme. The US had claimed that since India's per capita Gross National Income (GNI) has increased beyond $1000 per annum, which is the threshold beyond which export subsidies are not allowed, many of its export promotion schemes flouted rules. As per the panel recommendations, India needed to withdraw the "prohibited subsidies" under the EOU/EHTP/BTP Schemes, EPCG Scheme, and MEIS, within 120 days from adoption of the report. New Delhi’s contention that it was exempted from the prohibition on export subsidies under the special and differential treatment provisions of the WTO Agreement on Subsidies and Countervailing Measures (SCM) was rejected by the panel. "While India has plans to replace some schemes such as the MEIS with ones that are allowed under the WTO, it does not want to do so under duress. There are some other schemes which should be allowed to continue. India is going to fight its case on strong legal grounds," an official said. The Appellate Body of the WTO, however, is likely to become dysfunctional from December 11 if the US continues to block the appointment of new judges, and a judgement on the case may get delayed. It usually takes around three months for a judgement to be delivered.

Source:  The Hindu Business Line

Back to top

12 hours to 12 minutes: Customs clearance to take the swift route

The move will result in significant savings in cost and time and help further improve India's ranking in the World Bank's Ease of Doing Business index Indian Customs could see consignment clearance time fall from 12 hours to 12 minutes. The government is set to introduce a seamless automated facility with zero human intervention next month, using blockchain, machine learning, and artificial intelligence. Machine clearance will initially be introduced for select importers; 3,800 of them accredited by the Customs department under the authorised economic operator (AEO) scheme meet the set risk criteria. They make up for about 40 per cent import volume. “We are set to unveil a futuristic reform, which will allow machine release of ...

Source: Business Standard

Back to top

Pulling out of RCEP not just an economic decision

Prime Minister Narendra Modi exercised sound political judgement in deciding to keep India out of the Regional Comprehensive Economic Partnership or RCEP, right in the middle of the Bangkok meet called to seal the seven-year old negotiations. This was a big decision. The RCEP is no ordinary free trade agreement. This could be the largest regional trade agreement in the world involving 16 countries from Southeast Asia and East Asia, as well as China, Australia and New Zealand. If India had joined the pact, the RCEP would have encompassed half of the world’s population and 35 per ...

Source: Business Standard

Back to top

India quit RCEP in national interest: Goyal

India did not succumb to international pressure for joining the Regional Comprehensive Economic Partnership (RCEP) to save the interests of domestic industry, Commerce and Industry Minister Piyush Goyal told BJP MPs on Tuesday. In the first meeting of the BJP’s parliamentary party during the Winter Session that started on Monday, the ruling party legislators were briefed by the Commerce Minister on the rationale for India quitting the RCEP, while Foreign Minister S Jaishankar made a presentation about Prime Minister Narendra Modi’s recent visits to several countries as well as his participation in events such as the UNGA and BRICS meetings.

Domestic industry

The PM himself was not present in the meeting which was chaired by BJP President Amit Shah and working President JP Nadda. Party sources said Goyal explained to the MPs that while India has opened up 74 per cent of its market, several smaller countries have allowed just over 50 per cent of their market to be opened for foreign players. “India has maintained that we will not be a signatory to the RCEP unless our domestic concerns have been addressed. We are just one among the 16 countries who have not signed. We were able to take this firm stand because of our strong and stable leadership,” Goyal reportedly said in his presentation before the BJP parliamentary party. The Commerce Minister is believed to have said that the other member countries of RCEP have conceded that India’s domestic concerns need to be addressed. He apparently said that the Congress-led UPA government had favoured joining the RCEP but the Modi government has reversed the decision in the country’s interest.

Foreign events

The External Affairs Minister, in his presentation, spoke at length about Modi’s participation in the United National General Assembly meeting in the US this September and the ‘Howdy Modi’ rally where he was joined by the the US President Donald Trump. The Prime Minister’s participation in the BRICS and ASEAN meetings, besides his trips to Russia, Saudi Arabia, Bahrain and Bhutan were also spotlighted, with Jaishankar telling the ruling party’s lawmakers that Modi brought the issue of terrorism to the fore and found support from most countries. The minister mentioned the decision of Saudi Arabia and Bahrain to accord their highest civilian honour on Modi.

Source: Business Line

Back to top

Training in international trade in Coimbatore from next year

Ahmedabad-based Global Network Institute will start operations in Coimbatore, launching training programmes in international trade, in January next year. Participants will get hands-on training in international market strategy, selecting trading partners, online exports, shipping procedures, etc. Sectors with export potential in the Coimbatore region are: aerospace, defence, agro products and food processing, gem and jewellery, automobile components, textiles, etc. Jagat Shah, founder of Global Network Institute, said the aim is to empower primarily women entrepreneurs and SMEs and help them explore global markets. Manufacturers, traders, family-owned businesses and students can undergo the training. The courses will be short-term programmes that will help any aspiring exporter take his business to the global market, he said. The institute offers follow up and refresher courses too.

Source: The Hindu

Back to top

'Bihar has untapped export potential of $900 million,' says Export-Import Bank of India

The study examined Bihar's economic profile and outlined strategies for creating an enabling environment for exports at the state-level. A study by the Export-Import Bank of India has said that there is an untapped export potential of nearly USD 900 million from Bihar and if it is realised, the shipment from the state could exceed USD 2 billion in the short term. The report also said that the merchandise exports from the eastern state in 2017-18 were valued at USD 1.35 billion which was a "remarkable improvement" over the USD 0.4 billion of exports recorded during 2012-13. The bank organised an interaction with exporters here on Monday and released a working paper, 'Promoting Exports from Bihar: Insights and Policy Perspectives'. The study was released by the state Industries department's secretary Narmadeshwar Lal in the presence of Exim Bank General Manager Lokesh Kumar and its Regional Head- Kolkata, Sanjay Lamba and others. The study examined Bihar's economic profile and outlined strategies for creating an enabling environment for exports at the state-level. The report recommended setting up of Inland Container Depots (ICDs) in Muzaffarpur and Bhagalpur, besides establishing a custom clearance office in the existing ICD in Patna, increasing warehousing and cold chain infrastructure in the state. It also suggested setting up of Special Economic Zones (SEZs) in the districts of Patna, Muzaffarpur or Bhagalpur and providing freight equalisation support to exporters for reducing the cost to exports arising out of infrastructural deficiencies. The study also proposed for better branding and marketing of Geographical Indications products in the state. Lal highlighted the efforts taken by the government to support exporters in the state and also outlined its future endeavours. Speaking on the occasion, Lamba apprised the exporters of 'Exim Mitra'- a trade finance portal that offers a diverse range of information, advisory and support services to enable them to evaluate international risks, exploit export opportunities and improve competitiveness.

Source: Business Today

Back to top

Progressive Punjab Investors Summit to promote MSME

The upcoming Progressive Punjab Investors' Summit-2019 at ISB Mohali on December 5 & 6 would focus on promotion of Micro, Small and Medium Enterprises (MSMEs) in line with its theme 'building partnership for inclusive growth-MSMEs in the Global Value Chain'. The Punjab Government under the leadership of Captain Amarinder Singh has already taking a slew of path breaking initiatives with an aim to giving thrust for exponential growth of MSMEs across the State and this mega event would prove to be a milestone in achieving the desired goals. In order to further boost MSMEs in the state, the Punjab Government has already launched the Punjab State MSME Awards. The awards awards will be given to Punjab– based MSMEs operating in Agro & Food Processing, Automobiles & Auto Parts, textiles, Engineering, Pharmaceuticals, IT &Electronics, Sports, Hand Tools and Leather industry. Disclosing this here today, the Additional Chief Secretary Investment Promotion Vini Mahajan said that as many as 18 awards would be distributed in the aforesaid nine categories with a cash prize of Rs. one lac each besides an appreciation certificate during Investors Summit on December 5 and 6. Two awards will be given in each of the nine sectors one in micro/small enterprises and another in medium enterprises, said the ACS adding that this move would surely galvanize the state's endeavour to inculcate the spirit of entrepreneurship amongst the youth. Vini Mahajan said the Summit would highlight robust MSMEs units in innumerous sectors, which could be vendors/partners of the international clients looking for ancillary units to support their global value chains. She said that the state undertake several structured reforms and create supportive infrastructure to support their holistic growth and development in the past two years. The State has created an extremely conducive ecosystem for MSMEs to thrive through the pro-industry policies and initiatives. The MSMEs are availing of these incentives on the pattern of large units as per the Industrial and Business Development Policy-2017 besides having competitive rate of power Rs. 5 per unit, 100 percent reimbursement of GST Incentive for 7 years up to 100% FCI on inter and intra state sales, 100 percent exemption in Electricity Duty for 7 years, 100 percent exemption/reimbursement from Stamp Duty and additional incentives to MSMEs with a focus on modernization/ diversification. The State Government on September 3, 2019 notified the Public Procurement (Preference to Make in Punjab) Order 2019 wherein purchase preference during public procurement will be given to local manufacturing.

Source: Economic Times

Back to top

Global Textile Raw Material Price 19-11-2019

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14243USD dtd. 19/11/2019). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Private consumption: Textiles EU's fourth largest cause of environmental pressures after food, housing, transport

Consumption of clothing, footwear and household textiles in the European Union (EU) uses annually about 1.3 tonnes of raw materials and more than 100 cubic metres of water per person, according to a European Environment Agency briefing, published today. A wide-scale change towards circular economy in textiles production and consumption is needed to reduce its greenhouse gas emissions, resource use and pressures on nature. The EEA briefing ‘Textiles in Europe’s circular economy’ presents the latest evidence on environmental and climate impacts from the consumption of textile products ranging from clothing and footwear to carpets and furniture in the EU. The briefing is based on a technical report by the EEA’s European Topic Centre on Waste and Materials in a Green Economy (ETC/WMGE). According to the EEA study, the production and handling of clothing, footwear and household textiles that were sold in the EU in 2017 used an estimated 1.3 tonnes of primary raw materials and 104 cubic metres of water per EU person. About 85 % of these materials and 92 % of the water were used in other regions of the world. For water consumption and the use of primary raw materials, clothing, footwear and household textiles represent the fourth highest consumption category in the EU, after food, housing and transport. The same product group causes the second highest pressure on land use (after food), and also a considerable amount of chemical and water pollution, including plastic microfibres released through washing, as well as various negative social impacts. The EEA briefing also shows that the production of clothing, footwear and household textiles for Europeans caused an estimated 654 kg of CO2 equivalent emissions per EU capita, making textiles the fifth largest source of CO2 emissions linked to private consumption. About three quarters of these emissions took place outside of the EU.

Circular economy for textiles

Circular economy policies and principles, such as eco-design and reusing, hold potential to mitigate the environmental and climate impacts of textile production and consumption, the EEA briefing states. Current EU policies require Member States to collect textiles separately by 2025 and ensure that waste collected separately is not incinerated or landfilled. According to the EEA, circular business models in textiles — such as leasing, sharing, and take-back and resale — need to be scaled up with the support of policies addressing materials and design, production and distribution, use and reuse, collection and recycling. This can include policies such as sustainable production and product policies, eco design and durability standards, green public procurement, safe and sustainable materials, waste prevention and extended producer responsibility, and labelling and standards.

Source: European Environment Agency

Back to top

Falling orders for Italian textile machinery

The orders index for textile machinery compiled by ACIMIT, the Association of Italian Textile Machinery Manufacturers, from July to September 2019 was down by 10%, compared to the same period in 2018. The value of the index came in at 97.4 points (basis: 2015=100). New orders for Italian machinery manufacturers were negative both in foreign markets and in Italy. Abroad, an 8% decrease was recorded, with an absolute index value of 98.9 points. The drop in domestic orders was even more pronounced, at 22%, compared to the third quarter 2018. The absolute value of the index was 94.9 points. “The orders index for the textile sector provides a true picture of the global market’s downsizing. Current geopolitical tensions are undermining the climate of trust for businesses that need to invest,” commented Alessandro Zucchi, President of ACIMIT. “In Italy, uncertainties linked to future processes relating to the Industry 4.0 plan have effectively slowed demand for machinery. I hope that the current government will continue on the path set out by the previous administrations.” “We don’t expect any changes of course for the current trend this year,” concluded Zucchi, adding that “exports data, updated to the first six months of the year, confirm an overall negative progression compared to the same period for 2018, with the exception of the Chinese market, which is experiencing growth. However, we expect a boost in investments in 2020.” ACIMIT represents an industrial sector that comprises around 300 manufacturers employing around 12,000 people, which produce machinery for an overall worth of around EUR 2.5 billion, of which 84% are exported.

Source: Innovation in Textiles

Back to top

Philippines: MOA expo puts garment, leather textile industries in the spotlight

The Philippines’s garment, leather, and textile industries will take center stage at the “Philippine Garment, Leather Goods and Fabric Expo” set from December 5 to 8, 2019, at the SMX Convention Center, Mall of Asia Complex, Pasay City. Now in its second year, the expo will gather manufacturers, retailers, wholesalers, and stakeholders to help boost the country’s potential in producing garments, leather goods and textiles for export. With exports amounting to $1.02 billion in 2017, the textile, garments, and other wearable industries have predicted a combined 20- percent growth this year to $1.22 billion, proving that the Philippine economy is set to grow in these areas with continued investment. Endorsed by the Philippine Board of Investment and the Confederation of Wearable Exporters of the Philippines, a variety of garment machinery and parts, textile machinery, nonwoven machinery, dye machinery and chemicals, industry 4.0/factory automation, quality control, design and computer-aided tools and software, and many more will be showcased at the event. Last year, Philippine Garment, Leather Goods and Fabric Expo, brought over 81 exhibitors from nine countries, namely China, Hong Kong, India, Korea, Pakistan, Singapore, Taiwan, Vietnam, and Philippines, and 4,800 trade visitors. Among the local companies participating in this year’s event are Armena Embroideries, D & A Edge Polymer Philippines Inc., Golden Island Fashion Accessories, Kelin Graphics System Corp., Printway Marketing and Services, Shanghai Global Corp. and Testex Philippines Representative Office. The expo is organized by CP Exhibition Ltd., a company that was established in Hong Kong in 1976 and has representative offices in Canada, France, Germany, India, Italy, Japan, Korea, Pakistan, Russia, Singapore, Taiwan, UK, US and Vietnam. CP Exhibition has organized trade exhibitions in different areas, such as textile/garment/fabric, aviation, transport, railway/subway, oil/gas, coal, electricity and others. Coorganized by Philippine Exhibition and Trade Corp., the Philippine Garment, Leather Goods and Fabric Expo is supported by Textile Producers Association of the Philippines, LGU Marikina/Marikina Shoe Industry Development Office, Garment Manufacturers Association of the Philippines, Department of Science and Technology-Philippine Textile Research Institute, and DOST-National Capital Region.

Source: Business Mirror

Back to top