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

Q: We have SHIS scrip. Can this scrip be used in the settlement/redemption of value-wise shortfall for an advance authorization issued to us by the DGFT? (Sanjay Kumar, Proprietor, Lakecity Agri Overseas, +919001516XXX, [email protected])

Dear Sanjay: Though the Merchandise Exports from India Scheme (MEIS) in the new FTP replaces erstwhile Chapter 3 incentive schemes, Para 3.05 (c) of the Handbook of Procedures [April 1, 2015 – March 31, 2015] states that applicants can continue to file application in respect of Status Holder Incentive Scheme (SHIS) scrip in the application form and manner prescribed in the previous policy(ies). However, incentive scrips granted under SHIS can not be used towards payment of customs duties in case of bonafide default/ shortfall in export obligation (EO) under advance authorisation issued by the DGFT. [refer to para 7.50 (b) of the Handbook of Procedures on https://in.thedollarbusiness.com/handbook-of-procedures-2015-2020]. But when it comes to bonafide default/ shortfall in export obligation (EO) under Export Promotion Capital Goods (EPCG) scheme, the exporter can utilse incentive scrips granted under SHIS towards payment of customs duties. This differentiation is there because only capital goods are allowed to be imported under SHIS and not raw materials.

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

 

Q: Can we sell in foreign countries through our online portal? If yes, what are the legal considerations? (Vaibhav Jain, Owner, Gold Mount Exports, +918860306XXX, [email protected])

Dear Vaibhav: Yes, you can sell in foreign countries through your online portal. All you would require is an IEC code [an IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activity. Application for obtaining IEC can be filed manually and submitting the form in the office of Regional Authority (RA) of DGFT. Now the facility for IEC in electronic form or e-IEC has also been operationalised.] and an Exchange Earners’ Foreign Currency Account (EEFC) with an Authorised Dealer i.e. a bank dealing in foreign exchange. However, in case, you plan to export goods through courier or foreign post offices and claim rewards under Merchandise Exports from India Scheme (MEIS) you need to submit the proof of landing in the manner prescribed under para 3.03 of HBP (the detailed para can be accessed on https://in.thedollarbusiness.com/handbook-of-procedures-2015-2020). Please ensure you file separate application for each port of export.

Response by: Shakti Shankar Patra, Executive Editor, The Dollar Business

 

Q: I just got IE license. Do I need to register at customs or airport as well? I plan to export perishable goods to Dubai. What are the rules and regulations with respect to export of perishable goods from India? And what about payment security? (Nazim, Proprietor, Tasmiya Enterprises, +919867512XXX, [email protected])

Dear Nazim: You don’t have to register yourself at customs or airport. Once you have obtained the IEC and received an export order for your product from an overseas market all you need to do is file the following mandatory documents required for export of goods from India: (1) Bill of Lading/Airway Bill; (2) Commercial Invoice cum Packing List; and (3) Shipping Bill/Bill of Export. Once you have submitted these documents you can ship your product to the buyer. Coming to the second part of your question, i.e. the rules and regulations with respect to export of perishable goods from India, we would request greater details of the perishable product for us to advice you better. To ward off payment threats there is what we call export credit insurance. It’s an insurance policy and risk management product designed to protect exporters from the consequences of such payment risks, both commercial and political, and to enable them to expand their overseas business without fear of loss. Export credit insurance usually covers a portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains unpaid as a result of protracted default, insolvency or bankruptcy. Credit insurance policies, which are currently offered in India, can be broadly grouped into three types – Whole Turnover Policy (covers all customers of the policyholder), Key Account Policy (covers the policyholder’s largest customers) and Single-buyer Policy (covers a single buyer of the policyholder). Further, export credit insurance generally covers short-term risks for periods not exceeding 365 days, and normally for periods of between 90 and 180 days. There are several insurance players offering credit insurance in India. You can choose the one that meets your requirements.

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

 

Q: I want to import phenol from Thailand and Netherlands but I am not sure of anti-dumping duty on it if imported into India from these countries. I have read articles that confirm anti-dumping duty on phenol when imported from China (Taipei) and United States. I also read in one article that the anti-dumping duty on phenol from Japan and Thailand expired in April this year and there is a review pending for the continuation of this duty. Kindly help me out. (Ayush Garg, Director, N. B. International, [email protected])

Dear Ayush: We assume you are interested in knowing anti-dumping duty on Phenol (hydroxybenzene) and its salts, which fall under ITC HS Code 290711, originating from Thailand and Netherlands. While Phenol, originating in, or imported into India from Thailand continue to attract anti-dumping duty (sunset review for imports of phenol from Thailand was initiated on June 2, 2015; read it on https://in.thedollarbusiness.com/sunset-review-of-the-anti-dumping-duty-on-imports-phenol-from-japan-and-thailand/, there is no anti-dumping duty on it if imported into India from Netherlands. [In case our assumption about the intended import product isn’t exact, please write back to us.

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

 

Q: What is the import duty on CKD electric rice cooker spares from China? (Subhash Babu Samala, Partner, Tripathy & Co., +917732044XXX, [email protected])

Dear Subash: CKD electric rice cookers spares as imported under ITC HS Code 85166000 from China attract a total import duty of 29.441%.

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

 

Q: Are there any export restrictions on export of marble and travertine slabs to Bangladesh? (Debashis Dutta, Superintendent – Hili District, Central Excise & Service Tax Zone, Kolkata, [email protected])

Dear Debasish: The items you referred to (Marble and Travertine) fall under sub-chapter 2515 of ITC HS Code. Currently, there are NO RESTRICTIONS on EXPORTS of these items to Bangladesh or any other country. (Refer to Schedule 2 – Export Policy.) IMPORTS of these items in all forms are however “Restricted” [refer to DGFT Notification No. 37 (RE-2013)/2009-2014; dated 26th August, 2013].

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