Tyre industry demands duty-free import

Kochi: With a serious crunch operating in the availability of natural rubber (NR), the tyre industry has reiterated its demand for duty-free import of 1 lakh tonnes of NR without any further delay.

The tyre industry, that consumes 57 per cent of the natural rubber produced in the country, is facing the worst ever raw material availability crisis. Over the last few days, the availability of sheet rubber has been woefully inadequate to meet the requirement of the industry that is already bearing the brunt of high rubber prices, Rajiv Budhraja, Director General, and Automotive Tyre Manufacturers’ Association, said. Currently, domestic NR prices are ruling at a higher level than even international prices. Natural rubber accounts for 41 per cent of the raw material cost in the tyre industry, he said.

“It has never happened that the very availability of sheet rubber becomes an issue despite the fact that the natural rubber prices have touched a historic high. The average landed price of NR was Rs 134 during July, which is 51 per cent higher than the average price in September last year,” he said.

Anticipating price

Despite the fact that the production of natural rubber has gone up by almost 30 per cent during April-July this year, the industry is facing the crunch. On the contrary, consumption has gone up by only 21 per cent in the said period. It is believed that rubber growers and traders are holding on to the stock in anticipation of further rise in the prices of rubber, he alleged.

“The supply crunch, if continued, is likely to seriously disrupt production schedules of tyre companies. We therefore urge the government for immediate intervention by way of allowing the duty-free import of 1 lakh tonnes of natural rubber to tide over the current crisis,” Budhraja said.

A demand-supply imbalance is unfortunate for a commodity where a fine balance can be achieved if producing and consuming interests work in tandem. The production-consumption gap, which was 49 per cent during April-July 2007, has narrowed down to 22 per cent in April-July 2008.

The industry will, unfortunately, need to look for increased imports if the existing availability crisis does not subside, he added.

Source-sify.com

Gems & jewellery exports likely to grow by 15-20 pc

MUMBAI: India's gems and jewellery exports is likely to grow by 15-20 per cent this fiscal, a top industry official said today.

"We are expecting the whole gems and jewellery basket to grow by 15-20 per cent this year with gold export forming the major chunk of total exports," Gems and Jewellery Export Promotion Council (GJEPC) Vice-Chairman Vasant Mehta told reporters here.

Gold jewellery could contribute as much as 25-30 per cent in the total export growth, he said.

India accounts for almost 55-60 per cent of the world's total diamond production and its diamond export has reached an almost saturation point, Mehta said.

"The growth in diamond export is likely to remain in single digit, he said.

Gems and jewellery include cut and polished diamonds, gold jewellery, coloured gem stones among others.

The overall export growth of gems and jewellery has seen a 22.67 per cent jump to USD 5.3 billion in the first quarter of the current fiscal as against USD 4.3 billion in the same quarter, last fiscal.
Source-indiatimes.com

Export ban on steel bars, cement?

KUALA LUMPUR: Is a temporary ban on export of steel bars and cement on the cards?

It looks like the Government may impose some kind of restrictions to help the construction industry overcome the rising prices of these and other raw materials.

Housing and Local Government Minister Datuk Seri Ong Ka Chuan said he had received lots of requests from developers and contractors that there should be restrictions to control the outflow of essential items.

Ong said his ministry was talking with the Finance Ministry on the matter and was mindful of the fact that priority should be given to meet local demand.

However, for the moment, he felt it would be better to allow the free market system to determine the supply and demand of steel bars and cement, while the Government closely monitors escalating prices and their supplies.

“But if the situation persists, I think the Government has to intervene. We have to make it our priority to the local industries rather than overseas market even if it (the raw material) fetches a better price,” he said.

Ong said this at a press conference after witnessing the signing of a mutual co-operation agreement between I-Bhd and Kompakar Group for the development of a Tier 4 Ready Data Centre in the RM2bil i-City integrated commercial-cum-residential development in Shah Alam.

Meanwhile, the Master Builders Association Malaysia (MBAM) has warned that many medium and small contractors from Class D, E and F may be forced to stop, delay or even abandon projects as a result of the steep price hike of essential building materials.

“The Government should act quickly. If the situation continues to worsen, it should step in and ban export of steel bars and clinkers to ensure building materials manufacturers would supply the needs of the local construction industry first,” said MBAM president Ng Kee Leen.

He said the 10% import tax for cement should be waived as well because contractors and developers were facing great pricing pressure and any form of import tax relief would be appreciated.

Although cement liberalisation was announced on June 5, Ng said the import of cement was still not in place due to logistics.

With liberalisation, cement price had continued to rise from RM10.90 during the government price control period to RM13.20 (22% up) immediately after liberalisation and now another increase by RM1, or 30%, per 50kg bag to RM14.25.

In the case of steel bars, he said, although it was liberalised on May 12, the liberalisation process was not well implemented.

“It was difficult to import steel bars and there are still cases of Customs Department officers demanding for approved permits and/or impose import duty on certain steel bars.

“MBAM hopes the Government would simplify (matters) by making clear the process to import steel bars for local construction use,” he added.

MBAM also requested cement and steel bar manufacturers to provide at least six months' lead time for any announcement on price increase to enable contractors to allocate provisions to mitigate their cost.

Ng said the Lafarge Malayan Cement Bhd's announcement on price increase for cement effective Aug 1 would hurt the construction industry.

Meanwhile, ready-mixed concrete operators in Selangor and Kuala Lumpur yesterday announced revised prices for ready-mixed concrete of various grades by 5.2% to 6.2% effective Aug 1.

Source-thestar.com.my

NDRC considering hike in export tax on coke

It is reported that China’s National Development and Reform Commission held a foreign trade policy conference on July 22 to discuss import and export policies for some products. NDRC officials solicited opinions from related industry analysts and did not comment on coke export tariff rise.

A senior official from CCIA believes that export tariff on coke would rise in the second half of this year.

Mr Huang Jingan chairman of China Coking Industry Association also attended the conference. Mr Huang said earlier that China may raise export tariff on coke, in view of tight domestic supply and increasing exports.

Mr Gao Hucheng vice minister of Ministry of Commerce also iterated on July 22nd that the country should restricts exports of heavy polluting, energy intensive and resource intensive products.

Banning sugar export, allowing imports can hurt industry, farmers: PSMA

The government’s decision of banning sugar export and allowing import will destroy the local industry and this will make the farmers prone to become the victims of the sugar-mafia, industry stakeholders told Daily Times Monday.

They lamented that it seems the decision is aimed to provide relief to Indian farmers at the expense of local industry and farmers.

Industry sources observed that the local stocks are already in surplus and there was no need of importing the commodity. They said that the decision would ultimately help the Indian farmers and the local farmers would be at losing end, as the sugar mills have already not paid the farmers for sugarcane.

“When imported sugar will land in the country, the stocks of sugar mills would not be sold and the millers would cut the payments of sugarcane growers,” the sources said. In the past India sent sugar to Afghanistan through transit trade but majority of stocks were dumped illegally in Pakistan. They said that around 200,000 tonnes of sugar landed in Peshawar market and it pushed the sugar industry towards crisis while the payments to sugarcane growers were delayed and in many cases no payment was made to the growers.

Pakistan Sugar Mills Association (PSMA) Vice Chairman, Iskandar M Khan said that the government should have allowed import of raw sugar only, as it would have been more beneficial. “The raw sugar is cheaper in the international market while the refined sugar is expensive,” Khan said. Currently refined sugar costs $400 (freightage cost inclusive) while raw sugar is available for $200 only. He said calculating all the taxes one would find that imported sugar will be prices at Rs 30to Rs 31 per Kg. “There would be no price parity of local and imported sugar but it would create problems for the millers, who already have surplus sugar stocks,” he said.

“The refining of raw sugar also creates employment opportunities while having a downward impact on prices thereby providing much-needed relief for the consumers,” Khan said.

He decried that the decision would have negative impacts on the economy. He accused that India will send its “injurious to health” sugar to Pakistan.

He said that the PSMA has assured the government for selling the sugar at Rs 30 per Kg but no one paid any attention.

Farmers Association Pakistan Coordinator, Muhammad Idrees Khokhar, said that the sugarcane payments of farmers were already delayed and the decision would be a major set back for them. “The government, before taking any decision, should take all the stakeholders into confidence,” he demanded.

Source-dailytimes.com.pk

Market Access Initiative Scheme to promote exports

The Cabinet Committee on Economic Affairs (CCEA) cleared proposed amendments to the Market Access Initiative (MAI) Scheme to enhance its scope and effectiveness. The MAI Scheme is implemented by the Commerce & Industry Ministry (Department of Commerce) to act as a catalyst to promote India’s exports on a sustained basis.

The existing scheme was formulated on focussed product -- focussed country approach to evolve specific strategy for specific market and specific product.

Financial assistance under the existing Scheme is provided to export or trade promotion organisations / exporters etc. for enhancing India’s exports through accessing new markets or through increasing the share in the existing markets. Financial assistance is also provided under the scheme for various activities such as participation in trade fairs abroad, opening of showrooms and warehouses etc.

Based on the feedback and suggestions received from all the stakeholders, the MAI scheme is now amended to include the following:

i) The scope of the scheme is being widened by allowing, inter-alia, the following additional activities to be eligible for financial assistance under the scheme: (a) Organising “Trade Festival of India” in select centres abroad to promote “Brand India” by showcasing India’s strength in services like health (Ayurveda and Yoga), Indian cuisine, tourism, culture etc., besides merchandise; (b) Capacity building and imparting training, upgradation / improvement of laboratories, universities, research institutions etc. for fulfilling sanitary & phyto-sanitary (SPS) measures; (c) Providing assistance for all trade related studies including Free Trade Agreement (FTA) / Regional Trade Agreement (RTA) etc.; and (d) Developing foreign trade facilitation web portal as well as to support cottage and handicraft units.


Source : fibre2fashion.com

Increase in rupee value may decrease exports

The recent appreciation of rupee by 9 percent between August 2006 and April 2007 is affecting Indian exporters severely. With cheaper US dollar, it is feared that the imports are going to increase. Currently imports are on the higher side with 35 percent while exports have registered a growth of 22 percent. This trade deficit will put pressure on foreign exchange earnings. In this situation, exporters are withdrawing from entering new contracts as the booming retail sector seems an easy option. Federation of Indian Exporters Organization President Ganesh K Gupta was concerned with this situation and expressed hope that Commerce and Industry Minister Kamal Nath would address exporters' cry in Foreign Trade policy while the Reserve Bank of India would look into the issue in the forthcoming credit policy. Source : fibre2fashion.com

Steps to eliminate child labour from export-oriented industries

Government has taken a series of steps for elimination of child labour from export oriented industries.

This includes various measures taken by the export promotion councils to eliminate use of child labour and also the awareness and monitoring programmes conducted by the Export Promotion Councils for the purpose.

Government of India has taken up this issue of use of child labour in the export-orinted industries with all the Indian Embassies/High Commissions abroad to sensitize them on the issue of child labour and their possible impact.

Government has also taken up this matter with various trade councils to ensure that no child labour is employed by the member exporters.

Further, the steps taken by the Government in the carpet sector also include regular surveillance on child labour undertaken by a professional agency, setting up of National Level Steering Committee, formulation of a code of conduct for the various Carpet Export Promotion Councils to ensure that no child labour prohibited by law is employed.

For the rehabilitation of children withdrawn from hazardous work including the export-oriented industries, Government is also implementing the National Child Labour Project (NCLP) Scheme in 250 districts of the country which include the areas form where exports are being made from the country.

Action under the Child Labour (Prohibition & Regulation) Act, 1986 is initiated against the employers who are found to beviolating the provisions of the Act.

This information was given by the Minister of State (Independent Charge) of the Ministry of Labour and Employment, Shri Oscar Fernandes in a written reply in the Rajya Sabha.

Source : fibre2fashion.com

EU to Scrap Many Farm Import, Export Licences

As part of its drive to simplify the Common Agricultural Policy (CAP), many of the licences required for commodity import and export will be abolished, or at least brought into line with a single set of rules, the European Commission said on Thursday. EU licences are now needed to import around 500 commodity products, a number that will be cut to 65 as of July 1. For cereals, for example, the number of products for which an import licence is required will be reduced from 133 to 21, it said.

From August, wine traders will be allowed to import any wine product permitted under EU regulations without a licence. At the moment, around 100 wine products must have import licences.

For exports, only 43 products will have to be accompanied by a licence. Export certificates for cereals will apply for just nine products, compared with 133 products now.

The EU licensing obligation would also be abolished for imports paid at full duty in the beef, veal and dairy sectors. But licences would continue to apply to some products imported under preferential trade terms, the Commission said.

"Operators will no longer have to apply for licences and deposit costly securities, and national authorities will no longer need to process them, thereby saving time and reducing costs," the Commission said in a statement.

"Many traders, importers and exporters will no longer need to apply for and subsequently manage licences at all -- those that do so will have fewer licences to deal with," it said.

Using licences allowed the Commission to carry out detailed monitoring of trade in often sensitive product areas and made it easier to anticipate trade developments.

Licences also allowed EU regulators to manage farm trade measures such as tariff quotas and export refunds, the statement said.

Last year, EU ministers agreed to strip dozens of layers of red tape from the CAP to simplify the lives of farmers producing everything from poultry, eggs and cereals to potatoes.

Much of EU bureaucracy was sliced through, with around 40 different regulations covering 21 commodity policy areas being replaced with just one framework law.

Source : flex-news-food.com

B2B Portals Transform International Trade to Simple Trade

Every entrepreneur’s dream is to graduate from one’s domestic trade level to international trade and thereby increase one’s profit margins manifold. Until few years ago this remained as a distant dream, but today it has been made a reality by the opportunities created by ingenious services provided by Business to Business (B2B) web portals. B2Bs have a database of exporters and importers around the globe and any legal business entity regardless of size can register in these portals. These portals provide two types of memberships, free membership and premium membership. Free membership is a trial version made available to the trader to understand the functions of the portal. But the premium membership gives maximum visibility and interactive facility to the trader to divine the desired result in a short span of time.History shows us that international traders used to just leave their places with their products or services, in search of new markets without any prior knowledge of the risks involved. Any such exploration in those days found success through sheer luck and these expeditions were not without any shortcomings either. They included risks related to expenditure, time and most importantly, lives of the people involved in the whole exercise. Those days, even after making a successful landing in a foreign territory, the traders had to encounter various issues like, language, socio-cultural differences and trading practices.

As the civilization evolved to the modernity of the present world, trading too got organized. With the deployment of modern trading practices in businesses around the globe enabled each and every trader to speak the universal language of business. Thus the trader was further able to de-risk the ill-effects of issues related to language, socio-cultural differences and trading practices. Moreover, the traders were emancipated from the fears of losing everything while foraying into new markets. Even though, the barriers for international trade vanished one by one, a seller to find a suitable buyer or vice versa beyond one’s market became a gargantuan task. During this period businesses survived solely on the basis of self network and through market to market publicity programs which involved enormous expenditure.

But B2B portals revolutionized the way the world is doing business right now. They are emerging as the next growth engine of Information Technology. B2Bs are the only interactive advertising tool and low cost trading tool available in the world of business today. The leading B2B portals are with a vast database of exporters and importers across the globe. B2Bs help especially small and medium enterprises to showcase their products or/and services in the world stage economically.

Skeptics of B2B’s still use their self networks to do business, by completely overlooking the expenditure, time and emotions incurred as a social obligation for the favors rendered to their self networks in the course of time. But when you become a premium member of a B2B, parties involved in the process only have to honor the business relationship. Those who suspect the authenticity of leading B2B portals either have used the services in the formative years of B2Bs’ existence or have never used them at all. The rental of a city hoarding for a month will cost more than the subscription amount currently charged by any leading B2Bs per annum. The kind of response one receives from such hoardings is subjected mainly to the place where it is displayed and various other factors. As a matter of fact, hoardings and similar advertisement strategies make one to be in one’s office in anticipation of business. On the contrary, the B2B portals’ premium memberships play dual role, one is that of the interest generated for one’s products or/and services through the above strategies and the other is that one can approach the traders in the related field without incurring any extra cost. Due to globalization, even domestic markets across the world, is becoming virtually an international market. To conclude, if a trader does not use the premium services of the B2Bs, it would be very difficult for one to survive in the prevailing competitive globalized market.

Source : www.importerbase.com