Exports: Reaction from CHEMEXCIL, PLEXCONCIL, CAPEXIL & SHEFEXIL Council to FM’s export policy measures announced on September 14, 2019

 

Comments of the four apex Export Promotion Councils – Mr. Ajay K. Kadakia, Chairman, CHEMEXCIL, Mr. Ravish Kamath, Chairman, PLEXCONCIL (Plastics Export Promotion Council), Mr. R. Veeramani, President, CAPEXIL and Mr. Ashvin K. Nayak, Chairman, SHEFEXIL (Shellac & Forest Products Export Promotion Council) to Union Finance Minister’s export incentives announced on September 14, 2019.

Mr. Ajay K. Kadakia, Chairman, CHEMEXCIL (BASIC CHEMICALS, COSMETICS & DYES EXPORT PROMOTION COUNCIL)

“We  thank the  government for coming out with  sops for export sector specially the  proposed Scheme for Remission of Duties or Taxes on Export Product (RoDTEP),  export financing, turn-around time for export shipments, FTA utilization etc. The RoDTEP scheme we understand will be on the lines of RoSCTL scheme  which is  currently available   only to value-added textile items.   However, From 01/01/2020 it is proposed to  come into effect for all the sectors and shall replace MEIS.

Extension of this scheme to all the sectors will be the  right step as neutralization of taxes and levies is compatible with WTO rules.   Further,  it will also improve competitiveness of chemical exporters as embedded taxes (state and central)  which were not refunded  earlier, will now be hopefully  neutralized once the scheme comes into existence.  In this regard, Chemexcil  has already submitted a detailed report to DoC  for consideration  regarding  items under  its purview.

Other steps like improved availability of export financing, turn-around time for export shipments, FTA utilization etc will  also improve competitiveness in the long run as  transaction costs as well as cost of export finance  will reduce and the customs processes will be seamless.”

Mr. Ravish Kamath, Chairman, PLEXCONCIL (Plastics Export Promotion Council)

“Among the new measures to boost exports, the announcement of Scheme for Remission of Duties or Taxes on Export Product (RoDTEP) as a replacement to Merchandise Exports from India Scheme (MEIS) seems a good move as we believe that RoDTEP is WTO-compliant and will allow Indian exporters to claim reimbursement of embedded taxes which were resulting in higher cost of production. We also hail the announcement regarding fully automated electronic refund route for Input Tax Credits (ITC) in GST as it was leading to unnecessary blockage of funds for the exporters.

The need of the hour to bring in all the stakeholders to one page; i.e., ease of doing business and if the Government can think of one single window to address all the  problems of the exporters and for exporters redressal. Customs, DGFT, GST Council and department of Revenue, RBI, should on one page. Unnecessary paperwork should be avoided. All the stakeholders should feel that there is a necessity to increase exports in order to achieve USD 5 trillion economy.

Mr. R. Veeramani, President, CAPEXIL (Chemicals and Allied Products Export Promotion Council)

“A slew of new measures announced for the exports sector in the form of incentives & refund of taxes, export finance, export facilitation and free trade agreements will certainly enhance the growth of export sector and also reinvigorate the sagging economic growth.  The new scheme of Remission of Duties or Taxes on Export Products (RoDTEP) look attractive as it will neutralise all duties and levies suffered by the export products. Fully automated electronic refund route for input tax credits (ITC) in the GST will be a great help to exporting community to get speedy and timely refund of their GST and also does not block their working capital requirements.

Mr. Ashvin K. Nayak, Chairman, SHEFEXIL (Shellac & Forest Products Export Promotion Council)

“The recent measures announced by Union Finance Minister Smt. Nirmala Sitharaman to take Indian exports towards a new horizon have come as a much needed booster dose, especially for our basket of products, namely value-added agri products including non-timber forest produce, which are now facing sluggish international demand. We welcome wholeheartedly the introduction of the new scheme of Remission of Duties for Export Products (RoTEP), which will fully replace the MEIS Scheme for all goods and services from January 1, 2020. It is also heartening to note that under the Export Credit Guarantee Corporation (ECGC) will expand scope of export credit insurance service (ECIS) and will offer higher insurance cover, expected to cost the exchequer Rs 1,700 Crs annually. And, what is truly music for the ears of exporters is the announcement of an action plan by December 2019 to reduce the turn-around time at airports and ports, bench-marked to international standards. This is the need of the hour, as it is absolutely necessary to cut transaction time for Indian exports so that we can match international standards with regard to delivery schedules and earn the confidence of the global buyers in a big way. Overall, we in the exporting community feel highly energised by the slew of measures announced and we thank the FM and the Government of India for such timely action to prop up the sagging Indian exports.

Since our membership is dominated by the MSME sector, we are overjoyed by the   measure to boost exports, with the help of release of an additional Rs 36,000-68,000 Crs for Ministry of Micro, Small & Medium Enterprises (MSME), particularly to ensure higher credit availability for exports. We also welcome the plan for removal of human interference in tax assessment and introduction of a fully automated refund route for GST credit, to be put in place by September-end. We look forward to the setting up of the inter-ministerial working group to monitor export finance.”