New Delhi: The Federation of Indian Export Organizations (FIEO) on Wednesday held a press conference on “Issues and Challenges in International Trade” with a focus on India’s exports and its future prospects, in New Delhi.
The apex body of exporters discussed a number of issues and challenges in international trade related to India’s exports. Some of the key issues discussed in the press include global trade scenario and Indian exports, depreciation of rupee, liquidity and interest rates, Indian rupee trade mechanism, GSP loss especially in EU, services, e-commerce and foreign trade policy .
Issues and Challenges in International Trade Related to India’s Exports
Talking about the global trade scenario and Indian exports, FIEO said, “Global trade is facing further constraints after the Russia-Ukraine war having a huge impact on global trade and food prices. It is our exports. will affect the U.S. in two ways: (i) the value of exports of raw materials will decrease and (ii) the value of the final product manufactured from such raw materials will also decrease because of the fall in input prices.”
In a statement, FIEO said liquidity demand has increased as buyers are delaying payments and asking exporters to stop further shipments or release smaller quantities of such shipments. “There is a need to provide more credit to the export sector by automatically increasing the limit given under the Gold Card scheme to 20% to at least established exporters,” the export body said.
Talking about issues related to exports to Iran and Russia, the apex body said, “A related issue is logistics for exports to Russia. We are very happy that the government is considering using the INSTC route to reach Russia.” The route reduces travel time and cost. Unfortunately, Indian banks are reluctant to negotiate any documents once the goods touch Iran, being a sanctioned country, with few clear instructions to banks Required to be given that they finalize the documents for the consignment sent through Iran. The destination being Russia or CIS as clearly available in the combined transport bill of lading.”
Paying special attention to the issue related to e-commerce retail, the apex body said that “e-commerce retail exports, which have a potential of 10x multiplier in 3 years, will be encouraged by addressing various regulatory issues and providing them with a minimum The same benefits are available to the business sector.”
The apex export body listed several issues related to e-commerce and cross-border trade:
- Non-availability of pre-shipment and post-shipment export credit for e-comm exports as such exporters do not have export orders sought by banks for providing pre-shipment and post-shipment credit.
- Non-availability of interest equalization scheme due to the reason mentioned above is a major concern for such exporters as many of them come under manufacturer MSMEs or come under 410 tariff lines for which such scheme exists.
- Challenges in exports to service providers’ warehouses abroad where the value declared on the shipping bill differs from the final realization.
- Higher EBRC charges especially for small value shipments of Rs.25,000 – 50,000/-.
- Pending EDPMS resulting in short recovery of Rs 200-300 due to bank charges
- Alignment of limits under Courier Shipping Bill and Bill of Exports to the limits permitted by Reserve Bank of India.
- Expansion of e-comm exports to major international airports/FPOs
- Flow of Export Shipment Details from FPO/Courier Terminals to ICEGATE
- Challenges in re-import of identified exported goods remain a major concern
foreign post office
- Lack of “proof of delivery” facility in many countries debars exporters from contesting customer claims about non-receipt of goods
- Integration of Postal Bill of Exports with ICEGATE
Directorate General of Foreign Trade
- A separate chapter for e-commerce cross border trade
- Development of integrated e-commerce parks. Comprehensive facilities like banks/fintech companies, foreign post offices/courier terminals, logistics companies, warehouses, customs, tax refund should be provided under one umbrella in such parks. Some space can also be earmarked for packaging and small works.
- Settlement of pending claims of MEIS to eligible e-com exporters