Exporters and importers have always demanded regular updates to stay informed about what’s happening in their industry. They want to know about new notifications and how they will impact their businesses. They seek to understand the benefits and risks and the compliance steps they should take to make informed decisions.
Keeping this demand in mind, we are starting a new series, the first of its kind, where we will upload short videos every Tuesday, providing all the important updates from the previous week in a simple and concise manner, taking less than 5 minutes of your time. This series will be extremely 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:
As you all know, the export of goods is currently experiencing a slowdown. To address this situation, the Government has set a target for FY 23-24 that is not a fixed figure, but rather a range. Government officials believe that exports may pick up in October.
Additionally, for Quarter 1 of FY 23-24, the growth of service exports is also expected to be lower. The global demand slowdown is affecting the momentum of service exports, particularly in the software and banking sectors, where there is less demand globally.
India has entered into a tie-up with the UAE for trade settlement in Indian Rupees. This move aims to eliminate the use of dollars, saving Indian companies from bearing dollar conversion charges. India, being the largest importer of oil from the UAE, used to make oil payments in dollars, but now these transactions will be carried out in Indian Rupees. This will be a significant benefit for India.
Sri Lanka has also announced the Indian Rupee as a designated currency for bilateral trade settlement. This means that trade between India and Sri Lanka will now be conducted in INR, and Indian tourists can spend in INR while visiting Sri Lanka.
To speed up rupee trade, RBI is soon issuing a Standard Operating Procedure (SOP) for banks, providing guidelines to solve the current problems faced by exporters.
Furthermore, India and UAE have signed an agreement on mutual recognition of the authorized economic operator (AEO). This means that both countries will recognize each other’s AEO holders, granting Indian AEO holders recognition in UAE Customs. This will lead to simplified verification of documents, faster import clearance, and facilities like designated liaison officers.
According to the Export Preparedness Index 2022 released by Niti Aayog, Tamil Nadu secured the 1st position, followed by Maharashtra, Karnataka, and Gujarat. This index ranks states based on their export readiness and performance.
Watch this video on Export Import [EXIM] Business Weekly Updates – General News | New Notifications | 17 to 23 July 2023
DGFT & CBIC Important Notifications:
Some of the important notifications for the week are as follows:
- DGFT has imposed a ban on the export of non-basmati white rice.
- DGFT has introduced a user-friendly database on the portal to check all the previously fixed ad-hoc norms. Exporters can now search for norms based on export/import product description or HS code and use them to apply for Advance Authorization on a repeat basis.
- In an important judgment, the Bombay High Court ruled that if a higher rate of Duty Drawback has been claimed, the refund of IGST cannot be disallowed. This ruling came in the case of Sunlight Cable Industries vs. Commissioner of Customs.
International Logistics & Freight Rates:
In the image, you can see that we have displayed around 20-25 major trade routes’ export freight rates. Please note that these rates are only indicative. Upon observation, you may notice that some of the rates have increased, particularly because Hapag Line has given indications of increasing the freight rates for shipments between India, Bangladesh, Pakistan, and North & South Europe. These new rates will be effective from August 2023.
Similarly, CMA Line has also given indications of applying a Peak Season Surcharge (PSS) on shipments between India and South Africa. This surcharge will come into effect from August 16th, 2023, and it may fall within the range of USD 300 per TEU).
Therefore, we strongly advise you to reconfirm the rates before making any bookings to ensure accurate pricing.
Who are we & Why Choose Us?
We at Afleo Group, are a team of DGFT & Customs Experts having a rich experience of 10+ Years in Exim Consultancy & International Logistics [Freight Forwarding] and also deal in Buy/Sell RODTEP/ROSCTL/DFIA License With our vast knowledge and experience in this field we can represent your case for all the activities pertaining to the Tariff Rate Quota and get it in a hassle-free manner. We are well-equipped to handle the logistics of global trade with efficiency and expertise. Let us handle the logistics while you focus on growing your business. Contact us today to learn more about how we can help you streamline your supply chain and increase your bottom line. We are dedicated to providing efficient and cost-effective logistics services to help our clients.
So do get in touch with us for any of your requirements and our team will be happy to help you.
We request you to share this information with your other Industry friends, Trade associations, as this information might help them as well.