STATE TRADING AND EXPORT HOUSES - Copy

PRESENTATION ON EXPORT HOUSES : 

PRESENTATION ON EXPORT HOUSES STATE TRADING AND EXPORT HOUSES PRESENTED BY- HARSHIT MALHOTRA DEEPSHIKHA AGARWAL

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HISTORICAL BACKGROUND 1947 Indian achieves independence; highly protected economy because of colonial rule 1956 Founding of State Trading Corporation of India Ltd. under the Indian Companies Act 1960 Setting up of Export Houses 1981 Setting up of Trade Houses 1992 Establishment of Super Trading Houses 1994 Start of Super Star Trading Houses

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They are large international trading companies that specialize in the long-term development of exporting, importing, countertrading and third-country trading in goods and services which are generally supplied by, or sourced from, other parties. Export trading houses export large volumes of products from many sources of lower unit costs through established networks of overseas offices. OVERVIEW OF EXPORT AND TRADING HOUSES

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OBJECTIVES OF TRADING HOUSE To make available supplies of essential commodities to consumers at reasonable prices on a regular basis. 2. To ensure a fair price of the produce to the farmers so that there may be an adequate incentive to increase production. 3. To minimize violent price fluctuations occurring as a result of seasonal variations in supply and demand. 4. To arrange for supply of fertilizers and insecticides. 5. To undertake the procurement and maintenance of buffer stock and their distribution whenever and wherever necessary. 6. To arrange for storage, transportation, packaging and processing.

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WHAT IS STATE TRADING? There are several ways to define state trading. Early definitions focused on state conduct (or operation) of foreign trade, on governments monopolizing foreign trade and on government ownership of an enterprise. A functional definition gradually replaced these approaches with Kostecki (1982) arguing that state trading occurs when a government or a government-backed agency determines the essential conditions (including prices or quantities) on which exports and imports have to take place. One of the responsibilities of government is to ensure the supply of essential commodities to the people. This may require direct intervention on its part in trading of agricultural commodities.

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TYPES OF TRADING Partial State Trading Here private traders and government coexist. Traders are free to buy and sell in the market . The government may place some restrictions on them such as declaration of stocks, limits on stocks, which can be held at a point of time and submission of regular accounts. The government enters the market for purchase of commodities directly from producers at notified procurement price. It undertakes the distribution of commodities to consumers through a network of shops.

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Complete shops The purchase and sale of commodities is undertaken entirely by the government or its agencies. Private traders are not allowed to enter the market for purchase or sale. In India complete wholesale trade in wheat was taken over by the government in 1973; but it had to be given very soon. In Jan 1965, the FCI was set up to undertake the purchase, storage movement, transport, distribution and sale of food grains.

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INDIAN STATE TRADING ORGANISATIONS MMTC Limited India Trade Promotion Organisation Limited 3. Export credit and Guarantee Corporation Limited 4. The MICA Trading Corporation of India Limited (MITCO) 5. The Projects and Equipments corporation of India Limited 6. Spices Trading corporation of India Limited 7. Tea Trading Corporation Limited

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Adani Group Diversified group with interests in commodities trading, edible oil manufacturing, port operations (Mundra) & natural gas distribution; headquartered in Ahmedabad; companies: Adani Enterprises Ltd, Gujarat Adani Port, Adani Wilmar, Mundra SEZ etc Vishal Exports Overseas Limited Trading company based in Ahmedabad, Gujarat; has the status of a star trading house; exports rice, wheat, sugar & imports edible oil, pulses, plywood etc Frontline Corporation Ltd Flagship company of the Agarwal Group; engaged in the business of bulk transportation, trading of auto components & coke, manufacturing of refractory items and wind energy generation; located in Ahmedabad Gujarat

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Jaguar International Limited Institutional Sector 44, Gurgaon 122002, Haryana, India Map ISO certified star export house set up by D.P. Jindal Group engaged in the export and import of steel products; products include pipe fittings, auto spares, scaffolding, granite & marbles, steel products and cotton; based in Gurgaon, Haryana Haryana

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Sakuma Exports Ltd Company in Mumbai, engaged in the trading and export of agro-based commodities to South East Asia, Middle East, Europe, Africa, and USA; items: lentils, sugar, onions, peanuts, brass, wheat flour, soya bean meal, rape seed meal, chilly, jaggery etc Maharashtra Tamil Nadu Eltex Group of Companies Group with diverse business interests in wheat flour milling, cotton yarn, ferrous castings, sheet metal fabrication, machine building & trading; based in Coimbatore; companies: Eltex Super Castings, McKinnon India, Prokop Eltex etc

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Amit International Manufacturers of acrylic mink blankets, blended yarn & knitted fabrics based in Ludhiana, Punjab; also imports & exports BOPP film, pulses & spices, baby clinical dipper, chemicals, shoes, sandals, ball bearings, aerated water, yarn etc Heena International Exporter of automotive components, fasteners, forgings & castings, machinery supplies, bicycles & parts, wrought iron components, 2 & 3 wheeler components, tractor & JVC components, moped parts, etc; based in Ludhiana with a division in China Punjab

OBJECTIVE : 

The objective is to recognise established exporters as Export House, Trading House, Star Trading House and Super Star Trading House with a view to build marketing infrastructure and expertise required for export promotion. Such Houses should operate as highly professional and dynamic institutions and act as important instruments of export growth. OBJECTIVE

ELIGIBILITY : 

Merchant as well as Manufacturer exporters, Export Oriented Units (EOUs)/units located in Export Processing Zones (EPZs)/ Electronic Hardware Technology Parks (EHTPs)/ Software Technology Parks (STPs) shall be eligible for such recognition. ELIGIBILITY

CRITERION OF RECOGNISITION : 

Export Performance Level For being a status holder exporter, an applicant is required to achieve the following prescribed export Performance (including deemed exports) exceeding the level given below, level during the current licensing year plus the preceding three years (taken together). CRITERION OF RECOGNISITION

Weight age given to exports : 

Following exports are eligible for double weightage for the Export House/Trading House status, i.e. exports by specified category units or exporters are entitled for double weightage. (i) SSI/tiny/cottage sector units   (ii) Units registered with the KVIC (Khadi & Village Industries Commission) or KVIBs (Khadi & Village Industries Board)   (iii) Units located in: (a) North-Eastern States (b) Sikkim (c) Jammu & Kashmir   (iv) Units exporting handloom, handicrafts, hand knotted carpets, or silk carpets   (v) Exporters exporting to countries in: (a) Latin America (b) CIS (Commonwealth of Independent States) (c) Sub-Saharan Africa Weight age given to exports

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(vi)Units having ISO 9000 (Series), ISO 14000 (Series)/WHOGMP/HACCP/SEI CMM level-II and above status granted by agencies listed in Appendix-6 of the HB '09-14 edn.   (vii) Shvices(specified) exporters   (viii) Exports of agro products   The Double Weightage shall be admissible to Merchants as well as Manufacturer Exporters. However, a shipment can get double weightage only once in anyone of the above categories.

Validity period : 

Export House/ Trading House/ Star Trading House/ Super Star Trading House Certificate shall be valid for a period of 3 years starting from 1st April of the licensing year ,unless otherwise specified. On the expiry of such certificate, application for renewal of status certificate shall be required to be made within a period of six months. During the said period, the status holders shall be eligible to claim the usual facilities and benefits.. Validity period

BENEFITS TO EXPORTERS : 

Exemption from furnishing of bank gurantee in schemes 100% retention of foreign exchange in EEFC account 2 star export houses and above shall be permitted to establish export warehouses Authorization/Licence/certification and custom clearances for both exports and imports on self declaration basis. BENEFITS TO EXPORTERS

Golden Status Certificate : 

Exporters who have attained Export House, Trading House, Star Trading Houses and Super Star Trading Houses status for three terms or more and continue to export shall be eligible for golden status certificate which would enable them to enjoy the benefits of status certificate. Golden Status Certificate

EXPORT HOUSES IN CHANDIGARH : 

EXPORT HOUSES IN CHANDIGARH Kumar Cloth House Export House Punjab Small Inds & Export Corporation Golden Laminates Limited Shiv Export House Akarshan Cloth House And Readymade

TRADING HOUSES HELP MANUFACTURERS AND FOREIGN CUSTOMERS : 

TRADING HOUSES HELP MANUFACTURERS AND FOREIGN CUSTOMERS

Scheme for status holder : 

Scheme for status holder Additional Duty Credit Scrips shall be given to Status Holders @ 1% of the FOB value of past exports accelerate exports and encourage technological up gradation. This facility shall be available for sectors of leather (excluding finished leather), textiles and jute, handicrafts, engineering (excluding Iron & steel & non-ferrous metals in primary and intermediate form, automobiles & two wheelers, nuclear reactors & parts, and ships, boats and floating structures), plastics and basic chemicals (excluding pharma products).‡ This facility shall be available up to 31 March, 2011. Transferability for the Duty Credit scrips being issued to status holders under VKGUY Scheme permitted only for the procurement of cold chain equipments.

Announcement for marine product : 

Announcement for marine product ‡Fisheries exempted from maintenance of average EO under EPCG Scheme (along with 7 sectors) however Fishing Trawlers, boats, ships and other similar items shall not be allowed for this exemption. Additional flexibility under Target Plus Scheme (TPS) / Duty Free Certificate of Entitlement (DFCE) Scheme for the marine sector.

Announcement for Gems and Jewellery sector : 

Announcement for Gems and Jewellery sector ‡Duty Drawback is allowed on Gold Jewellery exports to neutralize duty incidence. Plan to establish "Diamond Bourse (s) with an aim to make India and International Trading Hub announced. Introduction of a new facility to allow import on consignment basis of cut & polished diamonds for the purpose of grading/ certification.‡‡ EPCG Scheme: Obligation under EPCG scheme relaxed. To aid technological up gradation of export sector, EPCG Scheme at Zero Duty has been introduced. Export obligation on import of spares, moulds etc. under EPCG Scheme has been reduced by 50%.

Scheme for Agro exports : 

Scheme for Agro exports ‡Introduction of a single window system to facilitate export of perishable agricultural produce with an aim to reduce transaction and handling cost. This system will involve creation of multi-functional nodal agencies. These agencies will be accredited by APEDA. Scheme for leather ‡On the payment of 50 % applicable export duty, Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware houses.

Scheme for tea product : 

Scheme for tea product The existing Minimum value addition under advance authorisation scheme for export of tea is 100 %. It has been reduced from the existing 100% to 50%. DTA (Domestic Tarriff Area) sale limit of instant tea by EOU units increased from 30% to 50%. Export of tea has been included under VKGUY Scheme benefits.‡ ‡

Scheme for pharma exports : 

Scheme for pharma exports ‡Export Obligation Period for advance authorizations issued increased from existing 6 months to 36 months. Pharma sector included under MLFPS for countries in Africa and Latin America & some countries in Oceania and Far East. Scheme for handloom exports The claims under Focus Product Scheme, the requirement of " Handloom mark" was required earlier. This has been removed.

Scheme for Exports Oriented Units : 

Scheme for Exports Oriented Units EOUs have been allowed to sell products manufactured by them in DTA (Domestic Tariff Area) upto a limit of 90% instead of existing 75%, without changing the criteria of similar goods , within the overall entitlement of 50% for DTA sale. (This means that instead of 75% these units can sell up to 90 % of their products in the domestic markets) EOU allowed to procure finished goods for consolidation along with their manufactured goods, subject to certain safeguards. Extension of block period by one year for calculation of Net Foreign Exchange earning of EOUs kept under consideration. EOU allowed CENVAT Credit Facility.

Support for Market and Product Diversification : 

Support for Market and Product Diversification 26 new markets have been added under Focus Market Scheme. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to 3%. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to 2%. Extra products have been included in the scope of benefits under FMS.

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Announcements for MDA & MAI: Higher allocation for Market Development Assistance (MDA) and Market Access Initiative (MAI) has been announced. Towns of Export Excellence (TEE) The following cities have been recognized as towns of export excellence (TEE) Handicrafts : Jaipur, Srinagar and Anantnag Leather Products : Kanpur, Dewas and Ambur Horticultural Products: Malihabad