Exporters and importers have always demanded regular updates to stay informed about the current state of the industry, including new notifications and their potential impact on their businesses. They want to know the benefits and drawbacks of certain decisions and what compliance steps they should take. Having this information regularly will enable them to make well-informed decisions.
In response to this demand from the Exim industry, a new series is being launched. This series will include regular conceptual and informative videos, with an additional short video uploaded every Tuesday, summarizing all the important updates from the previous week in a simple and concise manner. This series aims to be helpful for new Exim startups, import-export business owners, and professionals in the Exim field.
The blog then proceeds to share some important updates:
Overall Trade Scenario:
India’s exports for June have declined by 22%, reaching an 8-month low figure. The main reason for this is the slower demand for Indian goods in the US and Europe markets. Out of the top 30 major export sectors in India, only 9 sectors achieved positive growth in June, while the rest experienced negative growth.
India and Bangladesh have initiated trade transactions in Indian Rupees, which is expected to be beneficial for India. Bangladesh’s exports to India are valued at around 2 billion dollars, whereas India’s exports to Bangladesh stand at nearly 14 billion dollars.
There are discussions about India’s government considering a ban on the export of almost all varieties of rice due to a 20% increase in rice prices in the last 10 days. The main reason behind this price surge is uneven distribution of rainfall. India is a major exporter of rice, contributing about 40% to the global market. This decision may reduce rice prices domestically but can lead to higher prices internationally.
The Directorate of Revenue Intelligence (DRI) has issued notices to 7 exporters who were exporting SCOMET items without obtaining the required SCOMET authorization.
Watch this video on Export Import [EXIM] Business Weekly Updates – General News | New Notifications | 10 to 16 July 2023
DGFT & CBIC Important Notifications:
Some key notifications for the week are as follows:
– DGFT has reclassified the import of Plain Gold jewelry & articles of Gold from “Free” to “Restricted” category. However, import from Dubai under the India-Dubai CEPA agreement and by SEZ units is still allowed. This step was taken to close a loophole exploited through duty-free Gold imports from Indonesia under the ASEAN agreement.
– DGFT has issued guidelines for Two-star and above export houses, imposing skilling and mandatory mentorship obligations to train new entrepreneurs.
– DGFT has relaxed the condition for the submission of Installation Certificates under the EPCG Scheme. License holders who obtained the certificate on time but failed to submit it on time can now do so by December 31, 2023, by paying a late fee of Rs. 10,000 per authorization.
– India has changed the HS Code for Cotton products under the India-Australia TRQ scheme, allowing it to be imported with a 0% duty.
International Logistics & Freight Rates:
Container Freight rates are still slightly higher than the pre-pandemic levels.
Starting from January 2027, exporting and importing goods may become more expensive due to the International Maritime Organization’s (IMO) decarbonization goals. The Global shipping sector aims to achieve net-zero carbon emissions.
Who are we Why Choose Us?
Afleo Group, a specialized company that caters to all export and import needs. They offer services in DGFT & Customs Consultancy, Freight forwarding, and buying/selling of licenses like RoDTEP, RoSCTL, and DFIA. They have helped numerous new exporters and importers by guiding them through the process of executing shipments and providing assistance in areas such as DGFT, Customs, Banking, Logistics, and Export Incentives.