DEPB scheme likely to be extended further

The Duty Entitlement Pass Book (DEPB) scheme for exporters is likely to be extended for a few months beyond its current termination date of September 30, it is learnt.

The apparent reason for the move is the Commerce Ministry asking for adequate time to formulate an alternative to this popular scheme, which covers more than half of India's export basket. According to the Ministry, the September 30 deadline is unrealistic, given that there are as many as 2,750 items under the DEPB scheme. Determining the appropriate drawback rates for all of them would require a lot of paperwork and adherence to procedures, it reasons.

Exporters estimate that the transition from DEPB to an alternative duty drawback would require 9-12 months. They want the scheme to continue till the introduction of Goods and Services Tax (GST).

DEPB, which costs some Rs 8,500 crore to the exchequer annually, was earlier scheduled to end on June 30. The replacement duty drawback scheme is expected to reduce the fiscal burden by Rs 4,500 crore.

Since its benefits are determined by the principle of averaging rather than actual tax content in the export product, DEPB runs afoul of the relevant WTO agreement.

DGFT Drafting Paperwork for extra cotton exports quota

Following the Union government's approval on June 8, the registration formalities for the extra quantity of one million bales of cotton exports for the current season got underway recently.

Due to the declining prices of the natural fibre in the domestic market, the government decided to bail out the industry by permitting additional exports.

With the cotton season being from October to September, the Directorate-General of Foreign Trade (DGFT) will accept applications for new registrations till June 25.

It may be recalled that the government had imposed a quantitative restriction of 5.5 million bales on cotton exports in October 2010 when prices of the natural fibre had soared.

According to the DGFT, the applications for registrations would be processed till July 5 and the quota allocated on July 6 on a proportionate basis. Besides, exporters will get nine days to fill their documents, beginning July 7, while shipments will be completed by September 15, the DGFT said.

Key Features and Facilities at ICD Khodiyar AHMEDABAD

• Land area: 31.8 hectares
• Rail lines and network: Three full length rail lines with provision to handle 3 trains simultaneously. The ICD is connected by electrified railway lines from the adjacent Khodiyar railway station at a distance of 500 m. It will provide rail linkage to gateway ports like JNPCT, NSICT, GTIL, MICT and PPSP.
• Approach road: Two-lane concrete roads connect the S.G.Highway.
• A facility outside the municipal limits with easy access to the National Highway: Khodiyar is located outside the municipal limits and is directly connected to National Highway 8A C with a broad and easy approach road which is ideal for heavy vehicular traffic.
• Container yard: ICD-Khodiyar is paved with CC Blocks covering an area of 1,10,000 sq. m. The CY is also night-illuminated with high mast tower lights and equipped with reefer plug-in points. The CY has capacity to store 6,500 TEUs and can handle up to 3,00,000 TEUs per annum. It has been developed to stack containers in a planned way so that line-wise inventory can be maintained in a congestion-free environment. Cargo and container movement in the CY will be unidirectional.
• Real time track and trace of containers: Containers handled in the CY can be traced as a result of location recording via hand-held Radio Data Terminals (RDTs).
• Warehouses: Five state-of-art warehouses with area of 13,000 sq. m will be utilised for ex-im warehousing. All the warehouses are high-roofed and designed to enable cargo handling operations from both sides of the warehouse. The standard flow of cargo will reduce cargo turnaround time and increase space utility, facilitating better cargo handling.
• Truck/trailer parking: Truck/trailer parking with 8,500 sq. m area is available within the ICD premises at the entry and exit points, but outside the Customs bonded area. Approximately 80 trucks can be parked in the area, which has been provided with basic amenities like office space for transporters, surveyors, drinking water facility, two-wheeler parking, canteen, Sulabh public complex for bath/toilet units, etc.
• Container repair yard: An area of 1,000 sq. m has been earmarked as container repair yard within the ICD, where ISO containers can be repaired by certified surveyors.
• Gate complex: Two gate complexes have been constructed for easy entry/exit, where Customs and CONCOR staff will be available for documentation (at the gate only).
• Weighbridge and weighing scales: A 60-mt electronic weighbridge is available for weighing containers and cargo.
• Security and monitoring of operation: Round-the-clock security as per DGR norms, including ex-servicemen and gunmen, is available at ICD-Khodiyar.
• Bank on premises: Bank of Baroda will operate a branch at ICD-Khodiyar.
• Administrative building: It measures 3,000 sq. m over three floors and houses Customs and CONCOR administrative offices on the second floor, trade offices on the first floor and CONCOR and Customs ex-im cell with users' documentation area on the ground floor. There is also other offices/area for transporters, surveyors, bank, labour rest facility, storage for record and seals/samples. Provision also made for P&Q and ADC offices.
• Equipment deployed: State-of-art reach stackers to handle loaded and empty containers, mechanised cranes and forklifts with attachments for handling cargo and containers, trailers for internal shifting and train examination centre provided inside the ICD.
• Other VAS facilities: Container repair facilities, cargo fumigation, palletisation, lashing and chocking for securing cargo in containers and allied ex-im facilities.
• ETMS: CONCOR's Exim Terminal Management System (ETMS), e-filing on ETMS and information kiosks for fully IT-enabled services available.

Great News : CONCOR’s ICD-Khodiyar to be commissioned today

With area more than double that of ICD-Sabarmati, it is the biggest such facility in the WI region

The Container Corporation of India's (CONCOR) inland container depot (ICD) at Khodiyar, Gandhinagar, is all set to commence operations from Tuesday (June 21). One of the biggest ICDs in the Indian Subcontinent and the biggest in western India, it will be inaugurated by Ms Lipika Majumdar Roy Choudhury, Chief Commissioner of Customs, Gujarat Zone.

ICD-Khodiyar, strategically located on the S.G. Highway, is a state-of-art ex-im facility spread over an area of 31.8 hectares, which will supersede the existing 12.8 hectares of ICD-Sabarmati.

ICD-Khodiyar has been planned to cater to the growing ex-im needs of the region and offers smooth operations under one roof. It includes 13,000 sq. m of state-of-art transit ex-im warehousing space. The facility has three full length rail lines for providing connections to major gateway ports like JNPCT, NSICT, GTIL, Pipavav and Mundra for exports and imports.

The ICD has been designed to handle more than 3 lakh TEUs per annum and will meet the ever-increasing 15-20 per cent annual demand for containerised traffic in the western hinterland.

Government spells out plan to penetrate drug export markets

The Commerce Ministry's strategy paper on doubling export revenues spells out a two-pronged approach to penetrate the drug export markets.

As per the paper, the government seeks to either maintain the existing position or, wherever possible, enhance market share in regions where India's presence is already robust, such as North America, Africa and the European Union (EU).

While considering Mexico and Brazil as countries in Latin America having huge export potential, the government also intends to renew focus on countries within the EU and Africa where the rate of growth and market share have been substantially low.

The paper also spells out specific strategies to boost the volume of medicine exports to China and Japan.

It also proposes giving financial incentives to exporters on the lines of some other countries. According to a senior official of the Pharmaceutical Export Promotion Council (Pharmexcil), China provides $75 million as support to promote the bulk drug industry in the country, due to which even MNCs are setting up huge production facilities there. "We need to think on similar lines if our export advantage is to be retained," he says.

Government to impose 15 % duty on sugar imports

Considering that the country's sugar output is higher than demand and mills wanting to export, the Food Ministry has proposed imposition of 15 per cent import duty on sugar from July 1.

It may be recalled that the government, in February 2009, had abolished import duty to improve domestic supply. With the zero-duty notification expiring on June 30, a senior Food Ministry official confirmed that the ministry had proposed a 15 per cent import duty on sugar.

DEPB Scheme Extended till 30.09.2011 Public Notice issued

Finally the Government have extended DEPB for 3 months  and official Public notice issued for the same.Please refer to below Public Notice issued on dated 17.06.2011.

PUBLIC NOTICE  NO.    54 (RE-2010) /2009-2014

NEW DELHI DATED THE    17^th   June, 2011

                     

1.   In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy 2004-2009, the Director General of Foreign Trade hereby makes an amendment in Paragraph of 1.1 of the Handbook of Procedures, v1 (RE 2010).

 2.   The concluding phrase of Para 1.1 of HBP v1 reads "……except DEPB Scheme, which shall continue to be operative till 30^th June, 2011".  Government has now decided that the DEPB Scheme would continue to remain operative for another 3 months, i.e. till 30.9.2011.  Accordingly, the words "till 30^th June, 2011" would get replaced with the worlds "till 30^th September, 2011".

 3.   The amended para 1.1 of the Handbook of Procedures, v1 would now read as under:

 1.1  "In pursuance of the provisions of paragraph 2.4 of FTP, the Director General of Foreign Trade (DGFT) hereby notifies the compilation known as HBP v.1, HBP v.2 and Schedule of DEPB rates.  These compilations, as amended from time to time, shall remain in force until 31^st March, 2014, except DEPB Scheme which shall continue to be operative till 30^th September, 2011."

 4.   Effect of the Public Notice:

      DEPB Scheme gets an extension of 3 months from 30.6.2011 to 30.9.2011.

 Sd/-

( Anup K. Pujari)

Director General of Foreign Trade