It is the festive season, when we exchange greetings and sweets. So, let me look at some positive vibes in recent weeks.
Exports during September, at $22.9 billion, have shown signs of revival, growing 4.6 per cent in dollar terms over the $21.9 bn during September 2015. The cumulative value of exports for April-September, first half of this financial year, was $131.4 bn as against $133.7 bn in the corresponding period a year before, the fall being 1.7 per cent. This is better than the decline of 16.8 per cent for April-September 2015. Besides a gradual rise in commodity prices, export volumes seem to hold up and the recovery looks broad-based.
In the World Bank report on ‘Ease of doing business’, India is static at 130 out of 190 countries but this is what they have to say on our Customs. “In the area of trade, as of April 2016, the Customs Electronic Commerce Interchange Gateway portal allowed for the electronic filing (e-filing) of integrated Customs declarations, bills of entry and shipping bills, reducing the time and cost for export and import documentary compliance. The portal also facilitates data and communication exchanges between applicants and Customs, reducing the time for export and import border compliance. Additionally, an Integrated Risk Management System has become fully operational and ensured that all the consignments are selected based on the principles of risk management.”
Also: “The Indian government has committed to improving its Doing Business ranking by steadily implementing reforms across all indicators.” The Prime Minister has called for the comments of various ministries on the report.
The Constitutional amendment to usher in a national goods and services tax (GST) has gone through. The government has put up a model GST law and some draft rules and forms for comments by stakeholders. The GST Council has had some fruitful meetings and near-consensus is emerging on critical issues. The government seems determined to implement the new GST regime by the beginning of the next financial year.
The commerce ministry has put in place a new Special Advance Authorisation Scheme for export of articles of apparel and clothing accessories. In September, it added 2,901 items for benefits under the Merchandise Exports from India Scheme (MEIS) and raised the MEIS rates for 571 tariff lines. In May, for many items, MEIS was extended for export to all countries and the requirement of a landing certificate was abolished. A meaningful option was extended to exporters, to enable them to surrender one of the two benefits availed incorrectly in the same year under the Status Holder Incentive Scheme and the zero duty Export Promotion Capital Goods scheme. Export-oriented units have been taken out of the bonded warehouse provisions. An illegal cap put on entitlements under the Incremental Exports Incentivisation Scheme was removed.
The finance ministry has issued many instructions to see that litigation is reduced and powers to summon and arrest are not used arbitrarily. Recently, the monetary limits for adjudicating were revised upwards, to help clear cases pending at departmental levels at the earliest. The cumulative effects of all such measures will help reduce litigation and pending cases over a period of time.
On that note, I wish all readers a Happy Diwali.
Exports during September, at $22.9 billion, have shown signs of revival, growing 4.6 per cent in dollar terms over the $21.9 bn during September 2015. The cumulative value of exports for April-September, first half of this financial year, was $131.4 bn as against $133.7 bn in the corresponding period a year before, the fall being 1.7 per cent. This is better than the decline of 16.8 per cent for April-September 2015. Besides a gradual rise in commodity prices, export volumes seem to hold up and the recovery looks broad-based.
In the World Bank report on ‘Ease of doing business’, India is static at 130 out of 190 countries but this is what they have to say on our Customs. “In the area of trade, as of April 2016, the Customs Electronic Commerce Interchange Gateway portal allowed for the electronic filing (e-filing) of integrated Customs declarations, bills of entry and shipping bills, reducing the time and cost for export and import documentary compliance. The portal also facilitates data and communication exchanges between applicants and Customs, reducing the time for export and import border compliance. Additionally, an Integrated Risk Management System has become fully operational and ensured that all the consignments are selected based on the principles of risk management.”
Also: “The Indian government has committed to improving its Doing Business ranking by steadily implementing reforms across all indicators.” The Prime Minister has called for the comments of various ministries on the report.
The Constitutional amendment to usher in a national goods and services tax (GST) has gone through. The government has put up a model GST law and some draft rules and forms for comments by stakeholders. The GST Council has had some fruitful meetings and near-consensus is emerging on critical issues. The government seems determined to implement the new GST regime by the beginning of the next financial year.
The commerce ministry has put in place a new Special Advance Authorisation Scheme for export of articles of apparel and clothing accessories. In September, it added 2,901 items for benefits under the Merchandise Exports from India Scheme (MEIS) and raised the MEIS rates for 571 tariff lines. In May, for many items, MEIS was extended for export to all countries and the requirement of a landing certificate was abolished. A meaningful option was extended to exporters, to enable them to surrender one of the two benefits availed incorrectly in the same year under the Status Holder Incentive Scheme and the zero duty Export Promotion Capital Goods scheme. Export-oriented units have been taken out of the bonded warehouse provisions. An illegal cap put on entitlements under the Incremental Exports Incentivisation Scheme was removed.
The finance ministry has issued many instructions to see that litigation is reduced and powers to summon and arrest are not used arbitrarily. Recently, the monetary limits for adjudicating were revised upwards, to help clear cases pending at departmental levels at the earliest. The cumulative effects of all such measures will help reduce litigation and pending cases over a period of time.
On that note, I wish all readers a Happy Diwali.
E-mail: tncrajagopalan@gmail.com