Single Authority Mechanism for Processing GST refunds to Exporters soon

NEW DELHI: It is welcome news that the Goods and Services Tax (GST) Council — the all-powerful federal indirect tax body — at its meeting on September 20 is expected to approve the procedure to permit a single authority for sanctioning and processing GST refunds for exporters in a quick and an efficient manner.

 

It is worth noting that as per the proposed single authority mechanism, once a refund claim is filed, whether Centre or State, the Tax Officer will check, review and sanction full tax refund (both Central GST and State GST portion), thus eliminating complications faced by the taxpayers.

 

The move may give a much-needed boost to the stressed exports sector, which contracted 0.37 per cent to USD 107.41 billion in April-July 2019-20 as the sector is facing challenges because of sluggish global demand and liquidity crunch. The GST Council, headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all States, is slated to meet in Goa and discuss the single-authority mechanism.

 

At present, the system entails a twin refund sanctioning authority, central and state tax officers. This could well change when the proposed new mechanism involving a single authority comes in place. Currently, if a taxpayer files for a refund with a Central Tax Officer, then he would clear 50 per cent of the claims, while the remaining is approved by the State Tax Officers after further scrutiny.

 

Many industry watchers say the current mechanism of two authorities settling the same refund claims makes the process complex and cause too much inconvenience for the taxpayers.

 

Mr. Bipin Sapra, Partner, EY, said, “A single authority for clearing the refunds would ease the burden of exporters to a large extent … It would also streamline and reduce litigation and bring more uniformity in the position taken.”

CMA CGM makes presence at Asia Fruit Logistica (4-6 Sept.) to showcase the Group’s expertise in transporting fresh fruits

MARSEILLES : From September 4th to 6th, 2019, the CMA CGM Group, a world leader in shipping and logistics, will attend in Hong Kong ASIA FRUIT LOGISTICA, the region’s top trade show dedicated to the fruit industry and its logistics. 

CMA CGM will present its expertise in handling and shipping fresh products at this must-attend regional event, which attracts every year more than 800 exhibitors and 13,500 visitors from around the World. 

 

CMA CGM - Reefer experts

One of the World’s largest carrier of refrigerated containers (“Reefers”), CMA CGM has a young and dedicated fleet of 385,000 TEUs (Twenty-foot Equivalent Units), in which it continually invests. A global Reefer carrier, CMA CGM has an extensive network coverage, which is complemented by strong local expertise, thereby allowing the Group to offer efficient global, as well as intra regional services.

The Group’s experts offer clients the latest technologies in Reefer transportation, such as CLIMACTIVE, the most advanced controlled atmosphere solution. By quickly reducing the level of oxygen inside the container it is particularly well suited to organic produce and fruits with long transit times.

 

CLIMACTIVE allows the Group’s customers to increase the attractiveness of their products by maintaining freshness to destination, by regulating the maturation process, by extending their products’ shelf life and by preserving their quality. It also makes it possible to export to more distant locations and thereby to target new markets. Finally, CLIMACTIVE does not need any chemical treatment and thus allows customers to keep their organic label.

 

CMA CGM has also developed REEFLEX to optimize the transport of liquids via refrigerated containers thanks to an innovative design and technology which guarantee optimal hygiene and food safety conditions. REEFLEX thus allows for the transport of liquid commodities (fruit juice, milk, syrup, or any type of food oil) in a single tank with a capacity of 12,000 to 26,000 liters.

 

CMA CGM, a transport and logistics leader in Asia Pacific 

CMA CGM is a transport and logistics market leader in Asia-Pacific, with a strong presence of 118 agencies in 19 countries, employing more than 4,000 people and operating 4 brands in the region: CMA CGM, APL and ANL for the long-haul, and CNC for Intra-Asia.

Since 2016, the Group has set its Regional hub in Singapore, where it offers more than 100 services per week thanks to its best-in-class network of Ocean Alliance, North-South and Short-Sea lines, and from where it operates its Fleet Navigation Centre for the APAC region.

Bhushan Kumar appointed as Joint Secretary in Shipping Ministry September 04 , 2019

NEW DELHI: Bhushan Kumar has been appointed as Joint Secretary in Ministry of Shipping through lateral entry for the first time in India. Bhushan was CEO and MD at Diamond Shipping, which is a part of Dubai-based Sharaf Group from January 2008 to July 2009.

He was the Vice President/GM-legal at Maersk India Pvt Ltd in Mumbai from 2004 till 2007. Prior to this, Bhushan Kumar worked as General Manager at Caleb Brett India Pvt Ltd, Jamnagar and as Nautical Officer at TS Chanakya.

Bhushan Kumar has 20 Years of experience in shipping and related projects. Recently he was working as General Manager in GSPC LNG, a Gujarat State Petroleum Corporation. He was Head of Shipping, Business Development and Contract departments. He has vast experience in shipping and related projects. He has played key role in several projects at different ports in India.

Ocean Network Express further expands Refrigerated Container Fleet

SINGAPORE: Ocean Network Express (ONE) is expanding its current refrigerated container (reefer) fleet of 240,000 TEU by adding another 6000 (40” HC) units, including 500 units equipped with advanced Controlled Atmosphere (CA) technology which slows down the respiration and ripening process to maximize the shelf life of fruits and vegetables. These reefer containers will be made available for accepting new bookings towards end of the year to meet reefer peak season global demand around the world.

 

ONE has one of the largest, state of the art reefer fleet in the world, equipped with the most advanced technologies designed to handle perishable cargo demand. With this new investment of 6000 reefer units, coming on the heels of last year’s industry leading procurement of 14,000 units, ONE demonstrates its strong commitment to meet growing demand for containerized reefer trade, which remains strongly augmented by expansion of middle class in Asia constantly demanding healthy food choices. In 2019 so far, the growth in global refrigerated container trade has outperformed the growth in global container trade and ONE expects the growth momentum to be maintained for remaining months of the year.

 

ONE is currently working towards the application of latest IoT technology into its fleet of reefer containers which allows real time visibility of critical information such as temperature, humidity inside the container, thereby enhancing value chain proposition of perishable trade.

 

Jun Shibata, Senior Vice President of Strategic Yield Management, commented “ONE is committed to provide our customers with the best in class capabilities to ship your perishables to meet growing demands and opportunities to broaden to new markets. We continuously explore new technologies in refrigerated container segment to improve the service value proposition for our customers dealing with perishable cargos.”

 

ONE’s Global reefer strategy

The Global Reefer Business Planning team (GRBP), based at ONE’s HQ in Singapore, develops ONE’s global reefer marketing and business strategy through close monitoring of market demand and closely collaborating with the regional reefer steering desks located in different parts of the world.

ONE’s Reefer technical team is available on board and on shore to provide round the clock assistance when required. We continue to provide higher quality and more competitive services for our valued customers.

First Quarter performance boost for SCI

MUMBAI: Over the first quarter of the 2019-20 financial year, ending June 30th, the Shipping Corporation of India (SCI) achieved significantly improved financial results compared with the equivalent period in the previous year. 

The company’s consolidated income was up to RS 968.23 crores (US$ 134.96 million), from RS 913.09 crores (US$127.27 million) in the first quarter of 2018-19. Consolidated losses narrowed from RS 190.39 crores (US$ 26.5 million) to RS 28.90 crores (US$ 4.02 million) in this period. 

Chairman and Managing Director, Capt. Anoop Kumar Sharma, says, “This quarter was considerably better than the first three months of the last financial year because we were able to secure improved charter hires for our ships, and to have more operating days. Greater operational efficiencies have led to a much improved EBITDA margin as well.”

He continues, “Overall our performance over these three months was highly encouraging and was led by good results in the tanker sector, while dry bulk and offshore also did well. The one disappointment was the liner shipping business where the outcome was not so good.”

Looking forward to the rest of the 2019-20 financial year and beyond, Sharma is upbeat. “We expect these positive trends will continue, especially with regard to the tanker and dry bulk sectors which account for around 60% of our revenues,” he says. “I believe that 2020-2021 will be a turnaround year for shipping generally, as reduced newbuilding levels and more scrapping reduces overcapacity and improves the supply side. SCI stands to benefit from this.”

Current challenges for SCI include the impending IMO 2020 sulphur cap. 

In this context SCI has recently taken an important strategic decision, opting not after all to install exhaust gas scrubbers on its ships, but instead to utilise lower sulphur fuels. The general slowing of global GDP, the effects of the US-China trade war and US sanctions against Iran are all also impacting on SCI activities, Sharma points out.

SCI has a diversified business and is active in most shipping sectors. For the next few years the focus in terms of business development is likely to be on the Indian coastal and inland waterway markets. Over the past 18 months SCI has introduced two new coastal liner services: The Port Blair Service connecting Chennai-Kolkata-Port Blair and the East Coast of India Express Service which operates between Kattupalli, Krishnapatnam, Haldia, Paradip and Visakhapatnam. SCI also now has a dedicated subsidiary, Inland & Coastal Shipping Limited, to capitalise on emerging opportunities in the inland
waterway business. “The plan is to offer multipurpose inland waterway services, including ro-ro, in line with Government strategy,” adds Sharma.

Sharma reflects on a number of achievements during his time in charge at SCI. He says, “We now have a distinct strategy for expansion with processes in place to acquire second hand tonnage, and not to rely only on newbuilding orders. We can also now take part in auctions, bidding for the assets we require as they become available.”

“I hope to continue to be involved in shipping, as with my experience of leading both state owned and private companies, I have something unique to offer this industry.”

Mansukh Mandaviya launches 1st Phase of Rail Connectivity from VOC Port Marshalling Yard to Hare Island

TUTICORIN : V.O.Chidambaranar Port has its own railway system with yard facilities for loading, unloading, reception and despatch activities. It is also connected to the main line at Milavittan on Tuticorin – Madurai section of Southern Railway. The existing siding from Milavittan to wharf including Marshalling yard is being maintained by Southern Railway. 

 

There are a number of proposals for construction of new Thermal Power Plants and other industries in the vicinity of VOC Port Trust.

Based on various studies, it is forecast that the traffic of the Port will increase, especially in dry bulk cargo, in a big way. It is expected that by the year 2025, an additional traffic to a tune of  20 MTPA will be adding to the present level of traffic.

 

NEED OF THE PROJECT

The existing infrastructure facilities for handing Dry Bulk Cargo and space availability is not sufficient to handle the anticipated additional traffic. Hence it has become necessary to develop the Hare Island for transport of dry bulk cargo by providing necessary Rail connectivity facilities and mechanized loading arrangements for quick evacuation of cargo and meeting the future requirements of port.

Mansukh Mandaviya, Union Minister of State for Shipping (Independent Charge) flagged off the inaugural train on 23 August 2019 in the presence of VOC Port officials.

 

The work was executed through Indian Port Rail & Ropeway Corporation Limited,  a Government of India Enterprise under Ministry of Shipping.  The phase –I of Project has been completed. The facility created will accommodate loading of two BOXN Rakes simultaneously and has a capacity to load 10 to 12 BOXN Rakes of coal per day.

 

Commerce Minister meets Bankers, urges to ease export credit flow

NEW DELHI : As export credit continues to contract, Commerce and Industry Minister Piyush Goyal held a meeting with senior public-sector bankers to push for easier and greater flow of loans at cheaper rates. 

 

This comes amid expectations that the Government would soon announce a slew of steps to boost faltering export growth.

Both the Government and the Reserve Bank of India (RBI) are already in discussion to ease priority-sector lending norms for exports. Though the Central Bank is learnt to be reluctant to allocate a part of its foreign exchange reserves for export credit — as is being demanded by some — to boost flow of loans, it is amenable to changes in credit norms.

 

Currently, exporters with a turnover of up to Rs 100 crore each are eligible for credit under the priority-sector norms. Sources had earlier said that RBI was considering a proposal to either scrap or substantially double the limit to benefit more exporters. Similarly, the maximum sanctioned limit of loans is also likely to be raised to Rs 40 crore per borrower from the current Rs 25 crore. Even the cap on export credit at 2% of banks’ total loans could be relaxed soon.

According to the latest RBI data, banks’ export credit shrank as much as 36.1% year-on-year as of June 21, even on a low base (it had contracted 42.7% a year earlier). This is despite the fact that non-food bank credit grew 11.1%  y-o-y as of June 21 and overall priority-sector loans rose 10.2%.

 

Contraction in such credit flows has forced many MSME-exporters to shut shop at a time when a global trade war has already threatened to drag down both economic and export growth, industry has told the Government. 

 

Once tweaked, the revised priority sector lending norms and certain enabling guidelines are expected to release additional credit of anywhere between Rs 35,000 crore and Rs 68,000 crore for exporters, according to an RBI assessment.

Earlier this month, Finance Minister Nirmala Sitharaman, too, held a crucial meeting with both private and public-sector banks on easing the flow of credit to various critical sectors of the economy. To bolster State-run banks’ ability to boost lending, the Government has already said it will provide the budgeted Rs 70,000-crore capital to them “upfront” in FY20. This infusion is expected shortly.

Also, the Commerce Ministry has already circulated a cabinet note to phase out the flagship Merchandise Exports from India Scheme (MEIS) with a more WTO-compatible regime under which various State and Central levies on inputs consumed in exports will be reimbursed. Goyal has already held a series of meetings with exporters to address their concerns.