Updates of the export-import industry | New notifications and commercial trends

Exporters and importers have always demanded periodic updates to stay informed about what is happening in our industry. They want to know about new notifications and how they could affect us. We need to understand the advantages and disadvantages, as well as the compliance steps that we must take. It is crucial that we receive all this information regularly so that we can make well -informed decisions.

Taking into account this demand for the Exim industry (export and import), we are starting a new series that is the first of its kind. In this series, we will not only provide regular conceptual and informative blogs, but also every Tuesday, we will upload a short video that lasts less than 5 minutes. In this blog, you will find all the important updates of the previous week presented in a simple and concise way. This series will greatly benefit the new Exim companies, import-export business owners and professionals working in the Exim field. Then, let’s start.

General commercial scenario

In July, there has been a 16% decrease in exports of goods, and there is also a slowdown in service exports due to the decrease in demand.

If we observe the period from April to July 2023, the combined figure for exports of goods and services has decreased by 6% compared to the same duration last year.

There is a general slowdown in global trade. Export activities have also been significantly reduced in China and Germany.

All these factors will have an impact on the general economic growth of India for this financial year.

General news in the Exim industry

In a significant development, benefiting all the owners of the authorized economic operator [AEO] Certificate, India has established a mutual recognition agreement with Australia, in addition to its agreements with the United States and the EAU. This Agreement allows the recognition of the AEO holders of both countries, providing the AEO holders of India for softest settlement procedures within Australian customs.

It is worth noting that the India-Australia Free Trade Agreement (TLC) is currently operational. Recently an important update has emerged in its use. The update indicates that 90% of the main textile and engineering goods exported from India are now taking advantage of the benefits of the NAFTA of India-Australia. This is a substantial impulse for India, which indicates its competence in the negotiation of beneficial TLC and the growing consciousness within the industries with respect to the advantages of the FTA.

Last year, in September, India imposed a prohibition of the export of white rice. However, based on several news reports, it is anticipated that the Government could soon lift the prohibition of the export of white rice non -basmati due to favorable production conditions.

Watch this video on export import [EXIM] Weekly Business Updates – General News | New notifications | August 07 to 20, 2023

https://www.youtube.com/watch?v=zqh3qj-mhba

DGFT and CBIC important notifications

Now, let’s discuss some important notifications of DGFT (General Directorate of Foreign Trade) and CBIC (Central Board of Indirect Taxes and Customs):

• After imposing import restrictions on laptops, tablets and PCs, the government has taken another significant step by imposing an export tariff of 40% in the export of onions until December 31, 2023. This export tariff of 40 % will be applicable to onions that fall under subitating 070310 for exports until December 31, 2023. Once again, this movement aims to control national onion prices.
• DGFT has previously issued notifications that indicate that the issuance of certificates of non -preferential origin (COO) in manual mode will only be valid until December 31, 2023. After this date, all exporters must request Coo through the CO online mandatory portal. In the last notification, DGFT has established a deadline for all agencies to incorporate the Common COE digital platform before August 31, 2023.

International logistics and freight rates

You can see in the image the export freight rates in terms of selected trade routes, which are indicative.

MSC, which had previously announced a high season surcharge and an increase in the general rate for the United Indian commercial route, has now reversed its decision. The main reason to withdraw this decision is the weak demand, which has not increased even during the high season.

Speaking of international logistics, ships face significant delays in the Panama Canal due to reduced water levels. This problem is expected to get worse in the first half of 2024. Prime Minister Modi has had conversations with his Iranian counterpart to perform the entire potential of the Port of Chabahar. This aims to ensure that Indian shipments reach Europe faster.

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