In the world of export-import, each shipment counts. And you cannot afford to make any “uninformed investment”. So, if you have any doubt or a question, ask us. Our team of experts at The Dollar Business Intelligence Unit will be happy to answer your queries. Your question(s), if approved, will also be published on www.thedollarbusiness.com, and/or in forthcoming issue of The Dollar Business

I am a Jodhpur-based manufacturer of groundnut oil and I am currently selling the product in the domestic market. I now intend to export groundnut oil. Which are the major importing countries? What export benefits can I get from exporting this product? (Shreyans Salecha, Manager, Stallion Biofuel Industries, +91-9784422XXX, [email protected])

Dear Shreyans: We assume you want to export groundnut oil (of edible grade) falling under HS Code: 15089091. Interestingly, India is among the three top exporters of groundnut oil and its fractions (refined but not chemically modified) in the world. However, almost all of it is exported to China – the country accounts for about 99% of India’s total exports of the product. The rest is being exported to countries like Germany, Sri Lanka, Singapore, Malaysia and Oman. To talk about potential markets based on popular demand, we can recommend China, Netherlands, France, Germany, Belgium, UK, Italy, Canada, Singapore and Australia.
Currently the government allows Drawback of 1% on the product (when CENVAT facility has not been availed). No MEIS is available on groundnut oil exports.

Response by: Manish K. Pandey, Editor, The Dollar Business

What is the HS Code of split roasted fried gram, and are we allowed to export it? (Srikaanth, Sales, Appu Food Products, +91-8056080XXX, [email protected])

Dear Srikaanth: The HS Code for split roasted fried gram is 20081940 and currently there is no restriction on export of the said product from India in consumer packs of up to 1 kg. DGFT Notification No. 40/2015-20, dated 15th February 2016 has allowed exports of the said product, with limits imposed on volume of packing. The said notification has amended para 2 of Notification No.31/2015-20 (dated 20.01.2016). The para now reads, “The prohibition on export of pulses till further orders as notified vide Notification No.78(RE-2013)/2009-14 dated 31.03.2014 read with Sl.No.54 in Chapter 7 of Schedule 2 of ITC(HS) Classification of Export and Import Items, as amended from time to time, will not apply to export of Roasted Gram (whole/split) in consumer packs up to 1 (one) kg”.

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business

Is it safe to get an order for coconut with 100% irrevocable LC at sight from Mauritius? What are the things that I should take into consideration for secure/safe payment and transaction? ((Jay, Marketing Manager, Shree Exports, +91-9500077XXX, [email protected])

Dear Jay: It’s usually safe as an irrevocable Letter of Credit, which once accepted by the seller, cannot be altered or cancelled without the consent of the seller. However, it should be noted that an irrevocable letter of credit is in effect only for a stipulated time period and expires at a pre-determined date. Further, you need to ensure that the documentation of each consignment needs to be as per the conditions of LC at sight otherwise the buyer’s bank has the right to reject payment on any violation of such documentation.

Response by: Dr. A. K. Sengupta, Chief Consulting Editor, The Dollar Business

Dear TDB Team, I have been applying for FMS / FPS benefits for my company from past two years. This year with new policy regarding MEIS, there is some confusion while applying for the license. As per PN. 40 the following line is mandatory on Shipping Bills “We intend to claim rewards under MEIS” along with Y tick on reward scheme section. This is to be followed from June 2016 onward, which we are following. My question is - what about Shipping Bills from April 2016 to June 2016, in which we have unknowingly not included the line as well as there is N marked in reward scheme column? Online we are not able to find the Shipping bills with N mark, please guide what can be done to get benefits on those shipping bills. According to PN. 47 we need to submit hard copies of those shipping bills at the time of license. But we are not able to find the shipping bills on the Ecom. This is an urgent matter in my company, requesting you to guide us accordingly. Thanks in advance. (Samapika Sanyal, Officer - International Operations, Kokuyo Camllin Ltd., +91-9967893XXX, [email protected])

Dear Sanyal: When you write “...what about Shipping Bills from April 2016 to June 2016...” in your question, we assume you are referring to the “April 1, 2015 to May 31, 2015” period.
As per para 3.14 (a) of the Handbook of Procedures, in case of shipping bills other than free shipping bills, such declaration of intent is mandatory only from June 1, 2015. The condition imposed is similar even for export shipments under any of the schemes of Chapter 4, 5 or 6 of FTP 2015-20. Therefore, in case you have filed shipping bills under Advance Authorisation or to claim Drawback, or under any scheme in chapters 4, 5 & 6, declaration of intent is not mandatory until June 1, 2015. In case of free shipping bills, the said declaration is mandatory. Assuming that you must have filed your shipping bills under Chapters 4, 5 or 6, where you are eligible to ignore the declaration of intent, for all exports made between April 1 and May 31, 2015, where you have unknowingly marked “N” in the
“reward item box” and the line “We intend to claim rewards under MEIS” is not mentioned, DGFT PN 40 allows you to approach your CHAs to request the Customs authorities to retransmit shipping bills online to DGFT. We have checked in the industry and there are many exporters who faced a problem similar to yours. After their shipping bills were retransmitted from the Customs authority to DGFT, they were able to find their shipping bills online.
[A very similar problem related to the one faced by Kokuyo Camllin Ltd. was covered in a story in The Dollar Business magazine’s September 2015 issue. The feature received an overwhelming feedback from the industry. You can read the story by typing following URL in your browser https://in.thedollarbusiness.com/reward-under-meis-houston-we-have-a-problem/]

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business

Is duty drawback available on exports of sugar? (Suresh Patel, Partner, D. B. Trading, +91-9898611XXX, [email protected])

Dear Suresh: We assume you want to export sugar falling under HS Code: 17019990. The All Industry Rate (AIR) of duty drawback on sugar falling under the said HS Code is 1% when the CENVAT facility has not been availed.

Response by: Manish K. Pandey, Editor, The Dollar Business