India says export growth will continue to slow

08.27.09, 09:44 AM EDT

MUMBAI, India — India said export growth would continue to slow and announced tax and other incentives Thursday to help companies battle slumping demand in the nation’s most important overseas markets, the United States and Europe.

Export growth is expected to slow from 25 percent to 15 percent a year, reaching $200 billion for the year through March 2011, said Commerce Minister Anand Sharma. For the fiscal year through March 2009, exports totaled $168 billion.

“This year we are witnessing one of the most severe global recessions in the postwar period,” Sharma said in a prepared statement announcing the new government’s five-year foreign trade policy.

“Fortunately India has not been affected to the same extent as other economies of the world,” he said.

Still, ten months of falling exports have been tough for export-oriented sectors like information technology, textiles and diamonds, prompting the ministry to extend some export tax refunds through 2011 and waive some import duties on capital goods for technology upgrades.

Sharma also said the government would encourage Indian companies to export more to Latin America, Africa, Oceania and Eastern Europe, by helping to offset the elevated credit risk and high trade costs associated with those emerging markets.

This article can be read in full at Forbes.com

Japanese exports decline in July - But foreign direct investments both from and into Japan leap last year: Jetro

By ANTHONY ROWLEY
IN TOKYO

JAPANESE exports slipped between June and July on a seasonally-adjusted basis, marking their first drop in two months and possibly signalling an end to recent export recovery. News of the setback came as the Japan External Trade Organisation (Jetro) said yesterday that the outlook for global trade in general is also uncertain.

However, Jetro said one bright spot for Japan was that foreign direct investments (FDIs) - both from abroad into Japan and from Japan into overseas markets - jumped last year, bucking an internationally declining trend.

Japan’s economy began to strengthen in the second quarter of this year after a lengthy period of negative growth, thanks largely to a recovery in exports and to domestic stimulus measures. But July figures indicate that the world’s second largest economy may not be able to look to external demand for further recovery, analysts say.

Exports to its two principal markets - China and the US - showed weaker trends in July. Although exports to other parts of Asia are still relatively strong, analysts say that this may not last.

‘The recovery in exports may be starting to run out of steam,’ chief economist Junko Nishioka at RBS Securities in Tokyo was reported as saying. ‘Exports to Asia are slowing down, and the yen’s strength is not helping either.’

Before adjustment, exports rose by 5.3 per cent between June and July, but on a seasonally-adjusted basis - which economists say gives a more reliable picture of underlying trends - exports declined by 1.3 per cent. Unadjusted exports had surged by 14.4 per cent in June over the May figure.

Compared with their level a year ago, exports fell by a sharp 37 per cent in July - a slightly faster annual drop than in June. This was because of slower shipments of cars to the Middle East, Russia and the US, official data showed. Exports of steel and semiconductors to Asia also recorded accelerating annual declines.

Read this article in it’s entirety at http://www.businesstimes.com.sg/sub/news/story/0,4574,347627,00.html

India: The Cotton Textiles Export Promotion Council (Texprocil) welcomes New Foreign Trade Policy

Reacting to the announcement of new Foreign Trade Policy Shri V.S. Velayutham, Chairman, Texprocil said that “We welcome the Foreign Trade Policy which incorporates various measures aimed at helping the sagging textile exports from India.

PRLog (Press Release) – Aug 27, 2009 – Reacting to the announcement of new Foreign Trade Policy Shri V.S. Velayutham, Chairman, Texprocil said that “We welcome the Foreign Trade Policy which incorporates various measures aimed at helping the sagging textile exports from India. However, a lot more could have been done considering the steep decline in T&C exports from India during recent times.

Indian textile industry was expecting a lot for value added textile sector such as Cotton fabrics and Cotton Madeups. “The ambitious targets set up by the government in the New Policy such as achieving an annual export growth of 15% with an export target of US$ 200 billion by March 2011 and the long term goal of doubling India’s share in global trade by 2020 are possible to achieve only when due importance is given to the Textile export sector” he said.

While expanding the Market Linked Focus Product Scheme (MLFPS), products such as Madeups, Knitted and Crocheted fabrics, Synthetic Textile fabrics have been included in the scheme. Other textile products of great export value such as Woven fabrics and Denim should also have been included in the scheme.

The government should not have linked the additional duty credit scrip of 1% given to the “status holders” with the Technological Upgradation Fund Schemes (TUFS), as this will impact much needed modernization of manufacturing facilities.

He urged the government to upwardly revise the DEPB rates for fabrics taking into account realistic value addition norms and exhaustive data submitted to the DGFT in this regard.
Cautioning on the extensive support to the T&C sector in Pakistan in its First-ever Textile Policy announced recently, Shri Velayutham said “Our government will have to do a lot more for the textile sector without which it would be difficult to maintain our competitiveness considering the huge incentives provided to our exporters in competing countries”.

It may be recalled that Pakistan’s Textile Policy envisages increasing textile exports to the tune of US$25 billion by the year 2015 from the existing US $10 billion and has made provision for huge subsidies and incentives worth Rs 42 billion during the fiscal year 2009-10 alongwith subsidised export refinance at a reduced rate of 5 percent.

Exchange of Diplomatic Notes concerning the Entry into Force of the Agreement between Japan and the Socialist Republic of Viet Nam for an Economic Partnership

Japanese

1. Following the cabinet decision made on August 25 (Tue), the Exchange of Diplomatic Notes concerning the Entry into Force of the Agreement between Japan and the Socialist Republic of Viet Nam for an Economic Partnership will take place in Hanoi on August 26 (Wed) between the Embassy of Japan in Viet Nam and the Ministry of Foreign Affairs of Viet Nam.
2. With this Exchange of Notes, the Agreement will enter into force on October 1 (Thu).
3. This Agreement promotes liberalization of trade in goods and services and facilitation of investment between Japan and the Socialist Republic of Viet Nam, and enhances economic partnership of the two countries, as well as strengthens cooperation in various areas including the movement of natural persons and intellectual property.  It is expected that the entry into force of the Agreement will further vitalize the economies of the two countries and further strengthening the strategic partnership between Japan and Viet Nam.

Source: http://www.mofa.go.jp/announce/announce/2009/8/1195112_1140.html

Enhancement of Nepal-India bilateral Trade & Commerce Ties

The bilateral framework for trade and transit is provided by the India-Nepal treaties of Trade, of Transit, and Agreement for cooperation to control unauthorized trade 1991. The trade treaty valid for five years was renewed through an exchange of letters on December 3, 1996 and March 5, 2002 and automatically renewed for another five years in March 2007.

Under the Treaty of Trade, India provides, on a non-reciprocal basis, duty free access, to the India market for all Nepalese-manufactured articles barring a short negative list (cigarettes, alcohol and cosmetics), subject to the conditions, since march 2002, that the exports meet the domestic value addition requirement of 30% and change in its classification at four-digit level in the course of manufacture or processing in Nepal.

After the March 2002 revision, annual quotas have been prescribed for duty free exports to India for four sensitive items-vegetable fats (100,000 tons), acrylic yarn (10,000 tons), copper products (10,000 tons) and zinc oxide (2,500tons).

Bilateral trade takes place generally in Indian rupees, but Nepal’s Central Bank maintains a list of items that can be imported from India in us dollars.

The India–Nepal Treaty of Transit, renewed every seven years, provides for port facilities to Nepal at Kolkata and specifies 15 transit routes between Kolkata and the India-Nepal border for bilateral trade, 22 entry/exit points are provided along the Indo-Nepal border. The transit treaty was last renewed in March 2006. The agreement for cooperation between India and Nepal to control unauthorized trade was automatically renewed for five years in March 2007.

The two governments are negotiating a bilateral investment protection and promotion agreement.

India and Nepal signed a rail service agreement in May 2004, to extend cargo train service to the inland container depot (icd) at Birgunj in Nepal. icd has been constructed with world bank assistance of US$ 17 million, while India has constructed the rail tracks which link the icd with the Raxaul railway station in India. The icd became operational on 16^th July 2004. A container corporation of India-led joint venture Himalayan Terminals Private LTD. is operating the icd.

A motor vehicle agreement for passenger vehicles, initialed on 23^rd February 2004 awaits formal signature. The agreement envisages bus services between India and Nepal on 14 routes through 5 borders on reciprocal basis.53 buses will operate under this agreement everyday. Individuals traveling to either country in their personal vehicles would also be able to cross over into the other country without payment of any charge for the first five days.

Read More at  http://telegraphnepal.com/news_det.php?news_id=6067

India To Unveil Foreign Trade Policy On Aug 27

(RTTNews) - Commerce and Industry Minister Anand Sharma on Monday discussed with Finance Minister Pranab Mukherjee on the finer details of a new five-year Foreign Trade Policy or FTP, to be unveiled on August 27. The new FTP is expected to be adopted from fiscal 2010.

To boost exports, currently being hit by global recession, the government is now gearing up to come out with a new comprehensive five-year FTP with an aggressive focus on identifying new markets.

The new FTP is expected to address the problems of exporters engendered by the severe recession in traditional markets of the U.S. and the European Union, particularly the labour-intensive sector, but the minister did not elaborate

It is noted that the new FTP would extend certain incentives to exporters to increase their global markets beyond the U.S., the EU and Japan and venture into new markets including those of Africa.

Read the rest of this article at it’s source www.rttnews.com

Brazil Posts $680 Million Weekly Foreign Trade Surplus

SAO PAULO -(Dow Jones)- Brazil posted a foreign trade surplus of $680 million in the second week of August, the Trade and Development Ministry said Monday.

In the Aug. 10-16 period, exports totaled $3.192 billion while imports were $ 2.512 billion. Year-earlier figures weren’t provided.

With the new August figures, Brazil’s year-to-date trade surplus totaled $ 18.53 billion, up from $15.1 billion in the same period of 2008.

Nevertheless, analysts are expecting a decline in Brazil’s trade surplus in 2009 because of the international economic crisis.

Brazil posted a trade surplus of $24.74 billion in 2008. A weekly survey of experts conducted by the Brazilian Central Bank and released earlier Monday produced an average forecast for the 2009 surplus of $23 billion.

-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4521; rogerio.jelmayer@ dowjones.com

  (END) Dow Jones Newswires
  08-17-091031ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

US: Customs Reauthorization Bill Emphasizes Customs Facilitation, Trade Enforcement

Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Charles Grassley, R-Iowa, introduced Aug. 6 a customs reauthorization bill designed to strengthen U.S. Customs and Border Protection’s customs facilitation and trade enforcement efforts. The two lawmakers emphasized that one of the measure’s primary aims is to “reprioritize the trade functions” of CBP.

According to a joint press release, the Customs Facilitation and Trade Enforcement Reauthorization Act of 2009 includes the following provisions.

New Offices and Positions. The bill creates (1) a new principal deputy CBP commissioner whose responsibilities include overseeing CBP’s commercial operations and coordinating customs facilitation and trade enforcement training programs for agency personnel, (2) an Office of Trade within CBP that will assume the functions and personnel of the existing offices of International Trade, International Affairs and Trade Relations, (3) a Customs Facilitation and Trade Enforcement Division within CBP’s Office of Field Operations, (4) a new trade advocate to act as a liaison between CBP and the private sector, including on customs facilitation and trade enforcement efforts, and (5) a director of trade policy within the Department of Homeland Security’s Office of Policy and Planning who must coordinate with CBP to ensure that international trade interests are considered when DHS develops and implements policies.

Enforcement Measures. CBP will be explicitly allowed to use the mandatory advance information it collects for commercial enforcement purposes.

CBP and U.S. Immigration and Customs Enforcement will prepare, in consultation with the Commercial Operations Advisory Committee and the Trade Support Network, a biennial joint strategic plan outlining their plans to improve the enforcement of customs and trade laws as well as trade facilitation.

A new Commercial Targeting Division within CBP’s Office of Trade will target imports that may violate U.S. customs and trade laws, with particular focus on laws and regulations related to intellectual property rights, health and safety, agriculture, textiles and apparel, general revenue and non-general revenue, such as antidumping and countervailing duties. The CTD is required to establish methodologies for evaluating the risk that imports may violate U.S. customs and trade laws and for issuing trade alerts when it determines that cargo may violate such laws. Trade alerts may direct further inspection or physical examination or testing of merchandise by port personnel.

CBP will be required to assign at least 40 commercial enforcement officers to supervise all trade enforcement activities at the 40 busiest ports of entry.

Trade Facilitation. CBP must work with COAC, the Trade Support Network and Congress to develop and implement additional trade benefits for Tier 1, Tier 2 and Tier 3 participants in the Customs-Trade Partnership Against Terrorism. In addition, a new, voluntary Customs Facilitation Partnership Program would be created to provide trade facilitation benefits to entities that have a history of complying with U.S. customs and trade laws.

Customs Modernization. The bill directs the authorization of $300 million a year for the Automated Commercial Environment and $25 million a year for the International Trade Data System and requires CBP to develop a timeline for completing the implementation of these systems.

Read this article in its entirety at www.strtrade.com

US Senate: A BILL To reauthorize customs facilitation and trade enforcement functions and programs, and for other purposes.

111TH CONGRESS
1ST SESSION S. ll
To reauthorize customs facilitation and trade enforcement functions and
programs, and for other purposes.
IN THE SENATE OF THE UNITED STATES

Mr. BAUCUS (for himself and Mr. GRASSLEY) introduced the following bill;
which was read twice and referred to the Committee on

A BILL
To reauthorize customs facilitation and trade enforcement
functions and programs, and for other purposes.
1 Be it enacted by the Senate and House of Representa2
tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
4 (a) SHORT TITLE.—This Act may be cited as the
5 ‘‘Customs Facilitation and Trade Enforcement Reauthor6
ization Act of 2009’’.
7 (b) TABLE OF CONTENTS.—The table of contents for
8 this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—CUSTOMS FACILITATION

Subtitle A—Functions Other Than Investigative Functions
Sec. 101. Establishment of Agency; Commissioner.
Sec. 102. Officers and employees.
Sec. 103. Separate budget for U.S. Customs and Border Protection Agency.
Sec. 104. Revolving fund.
Sec. 105. Advances in foreign countries.
Sec. 106. Advances for enforcement of customs provisions.
Sec. 107. Certification of reason for advance.
Sec. 108. Payments in foreign countries; claims for reimbursement.
Sec. 109. Customs administration.
Sec. 110. Personnel.
Sec. 111. Authorization of appropriations.
Subtitle B—Investigative Functions
Sec. 121. Establishment of Agency.
Sec. 122. Separate budget for U.S. Immigration and Customs Enforcement
Agency.
Sec. 123. Undercover investigative operations.
Sec. 124. Authorization of appropriations.
Subtitle C—Joint Strategic Plan
Sec. 131. Joint Strategic Plan.
TITLE II—CUSTOMS FACILITATION, TRADE ENFORCEMENT, AND
TRANSPARENCY
Subtitle A—Customs Facilitation and Transparency
Sec. 201. Trade benefits under the Customs–Trade Partnership Against Terrorism.
Sec. 202. Customs Facilitation Partnership Program.
Sec. 203. Consultations with respect to mutual recognition agreements.
Sec. 204. Commercial Customs Operations Advisory Committee.
Sec. 205. Automated Commercial Environment computer system.
Sec. 206. International Trade Data System.
Sec. 207. Electronic submission of public comments.
Subtitle B—Trade Enforcement
CHAPTER 1—COMMERCIAL RISK ASSESSMENT TARGETING
Sec. 211. Commercial Targeting Division and National Targeting and Analysis
Groups.
Sec. 212. Annual illegal drug control law enforcement strategy.
Sec. 213. Report on oversight of revenue protection and enforcement measures
by the inspector general.
Sec. 214. Report on security and revenue measures with respect to merchandise
transported in bond.
Sec. 215. Importer of record program.
CHAPTER 2—IMPORT HEALTH AND SAFETY
Sec. 221. Interagency Import Safety Working Group.
Sec. 222. Joint Import Safety Rapid Response Plan.
Sec. 223. Training.

CHAPTER 3—IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY
RIGHTS
Sec. 231. Intellectual property rights.
Sec. 232. National Intellectual Property Rights Coordination Center.
Sec. 233. Joint strategic plan for the enforcement of intellectual property
rights.
Sec. 234. Repeated import-related infringement of intellectual property rights.
Sec. 235. Personnel dedicated to the enforcement of intellectual property rights.
Sec. 236. Training with respect to the enforcement of intellectual property
rights.
Sec. 237. Recordation of works for which a copyright is pending.
Sec. 238. Availability of samples to owners of copyrights and trademarks or
persons injured by the importation of circumvention devices.
Sec. 239. Seizure of circumvention devices.
Sec. 240. Information for travelers regarding violations of intellectual property
rights.
Sec. 241. International cooperation and information sharing.
Sec. 242. Sense of Congress regarding recordation process.
TITLE III—MISCELLANEOUS PROVISIONS
Sec. 301. Consultation on trade and customs revenue functions.
Sec. 302. Drawback for exported merchandise.
Sec. 303. Penalties for customs brokers.
Sec. 304. Articles repaired or altered.
Sec. 305. Charter flights.
Sec. 306. Symposium fees.
Sec. 307. Pilot program for establishing 24-hour commercial land border ports
of entry.
Sec. 308. Prohibition on importation of goods made with forced or indentured
labor or by benefit of human trafficking.
Sec. 309. Honey transshipment.
Sec. 310. Contraband archaeological or ethnological materials.
Sec. 311. De minimis and informal entries.

Source Document:  http://www.strtrade.com/wti/2009/august/10/customs_bill.pdf

Amend Harmonised System – WCO

The World Customs Organisation (WCO) has released a 57-page document titled ‘Recommendation of the Customs Cooperation Council Concerning the Amendment of the Harmonised Commodity Description and Coding System’.

According to this document, the Harmonised System committee has been working for almost five years on proposed changes to the system.

The WCO council adopted the recommendation at its annual sessions, in June, and the recommendation is now being promulgated. This implies that Harmonised System contracting parties have six months during which they can object to a recommended amendment.

Tariff Amendments – Aluminium Articles

The reduction in the rate of customs duty on aluminium bars, rods and profiles. The general and European Union (EU) – 5% – and the European Free-Trade Area (EFTA) – 3,8% – rates of customs duty have been reduced to free of customs duty.

The reduction in the rate of customs duty on aluminium wire. The general (5%), EU (1,9%) and EFTA (3,8%) rates of customs duty have been reduced to free of customs duty.

The reduction in the rate of customs duty on aluminium plates, sheets and strip, of a thickness exceeding 0,2 mm. The general (10%), EU (3,8%) and EFTA (7,5%) rates of customs duty are reduced to free of customs duty.

The reduction in the rate of customs duty on aluminium foil (whether nor not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (exclu- ding any backing) not exceeding 0,2 mm. The general (10%), EU (3,8%) and EFTA (10%) rates of customs duty have been reduced to free of customs duty.

The withdrawal of rebate provisions (manufacturing rebate) in respect of aluminium products used in the manufacture of tubes and pipes, machinery and mecha- nical appliances and implements, and slide fasteners.

Tariff Amendments – Passenger Imports
Rebate item 407.00 – the insertion of note 3(c) to the rebate item: Goods Imported by Immigrants, Tourists, Returning Residents and Other Passengers, for their Personal Use.

This entire article can be found at it’s source:www.engineeringnews.co.za