Skip to main content

Exporters Too can Give Made-in-India Tag

By
From 2017, traders can self-certify goods exported under EU's special Generalised System of Preferences scheme
A section of Indian exporters will be able to certify goods headed for Europe from 2017 to the effect that they were made in India, a measure that will help reduce processing time as well as costs.
This facility will be available to traders exporting goods under the European Union's special scheme called the Generalised System of Preferences (GSP), a quota of sorts for each country at low or no duty.
To ensure that the quota is utilised by the country it is allotted to, the shipments under this facility need to carry a certification that the goods were manufactured in that country. At present, exporters need to get this certification from accredited agencies. This takes time and involves a cost.
“We plan to go ahead with the scheme because it benefits exporters. Now, exporters have to pay for getting the certificates issued from notified agencies. This adds to the exporters' costs,“ said a commerce department official. “This move is a part of a global effort to reduce transaction costs,“ he said, requesting not to be identified.
Exporting countries are required to notify to the European Union the date on which they can begin complying with the new system, the official said.
The `certificate of origin' states the origin of the exported item and makes it eligible for benefits under GSP. It also prevents ineligible countries from availing themselves of the benefits under the scheme. Ajay Sahai, president of the Federation of Indian Export Organisations, said that about 20% of India's total exports to the EU get GSP benefits, with texti les, chemicals and handicrafts being the largest beneficiaries.
India's exports to the EU declined to $44.5 billion in 2015-16 from $49.3 billion in 2014-15. Imports fell to $43.8 billion from $49.2 billion du ring this period.
Once the new system kicks in, exporters will be able to directly provide their customers statements on origin by submitting information such as name and contact details through the internet.
“There are many agencies which give these certificates. The self-certification system will reduce transaction costs but there could be a problem with new exporters. We have to train exporters,“ said another official.
Apart from helping meet India's commitments to the World Trade Organisation's trade facilitation agreement, the move is in line with the government's efforts to reduce transaction costs.
The Economic Times New Delhi, 12th July 2016

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more