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  Minutes of the Export Facilitation Committee meeting held on 27-4-2012 at Addl.DGFT office
 

DMAI/CIR/6/2012-2013                                                          23rd May 2012

  TO ALL MEMBERS OF THE ASSOCIATION

  Dear Sir,

                           Re : Minutes of the Export Facilitation Committee meeting held

                                  on 27-4-2012 at Addl.DGFT office

We would like to inform you that the Export Facilitation Committee meeting was held on at DGFT office, Mumbai on 27-4-2012, wherein the Consulate General of Brazil and the Chief Protocol Officer, Govt. of Maharahstra were also present.  We send herewith the minutes of the said meeting, which we trust will be very much useful to you for promotion of your exports, particularly to Brazil.

With Kind Regards,

(S. BALASUNDARAM)

EXECUTIVE SECRETARY

Government of India

Ministry of Commerce & Industry

Department of Commerce

Office of Additional Director General of Foreign Trade

Nishtha Bhavan, 48, Vithaldas Thakersey Marg, Churchgate,

Mumbai Ė 400 020.

MINUTES OF THE EXPORT FACILITATION COMMITTEE MEETING HELD WITH THE CONSULATE GENERAL OF BRAZIL & THE CHIEF PROTOCOL OFFICER, GOVERNMENT OF MAHARASHTRA, ON   27TH  APRIL, 2012 UNDER THE CHAIRPERSONSHIP OF ADDL.DGFT, MUMBAI, TO DISCUSS INDIAN-BRAZIL TRADE.

          The EFC meeting was held on 27th April, 2012 under the Chairpersonship of Dr. Kavita Gupta, Addl. DGFT, Mumbai. 

Shri Atul Saxena,  Addl. Commr. of Customs (Exp), Mumbai,  , Shri Binny Sharma, Asstt. Commr. of Customs, Mumbai, Shri N. Madhusudhana Reddy, Asstt. Commr. of Customs-Imports, Nhava Sheva, and Shri P.N. Balachandran, Asstt. Commr. of Customs-Imports, Nhava Sheva attended the meeting on behalf of the Customs Authorities.

After the initial introductions, the Additional Director General of Foreign Trade, Dr. Kavita Gupta, welcomed all the members and stated that this is a historic day as for the first time we have initiated this kind of meeting for having interactions with the Consulate Generals of other countries stationed at Mumbai.  She welcomed and thanked the Consulate General of Brazil and Shri Sumit Mallick, Chief Protocol Officer, Government of Maharashtra who have taken time out of their extremely busy schedule to attend this meeting. She also thanked Shri Sumit Mallick, to make this meeting possible and in encouraging the endeavour.     Shri Sumit Mallick, Chief Protocol Officer, of State Government of Maharashtra welcoming the step taken by Addl. DGFT, said that these meetings will be extremely useful for promotion of trade as well as investments in Mumbai which is one of the activities entrusted to the Division under him. 

The Consulate General of Brazil, in his opening remarks, supported the above initiatives and stated that promotion of trade related activities is in the interest of all of us and that in the present era of trade liberalization we must promote mutual interactions in the area of trade and commerce.  He stated that he is happy to be here and that he will try to address all the issues that the exporters have raised.  He will also take up the matter with authorities in their country if any issue requires such follow up. 

2.       Thereafter, Dr. Kavita Gupta, Addl. DGFT, discussed the present level and trends of the Indo Brazilian trade.   Thereafter various issues and suggestions of the Export Promotion Councils/Export  Associations/Trade Bodies relating to trade with Brazil were taken up for discussions as follows:

 

SR. NO.

NAME OF EPCs/ EXPORT ASSOCIA-TIONS/ TRADE BODIES

ISSUES RAISED AND SUGGESTIONS

RELATED OBSERVATIONS OF CONSULATE GENERAL OF BRAZIL

1.

EEPC INDIA

Exporters who visit Brazil for trade promotion should be issued multiple entry visas for at least 3 to 5 years. This would enhance trade between the two countries.

The Consulate General assured that he will take up this matter with relevant authorities in his country as promotion of trade between the two countries would be mutually beneficial.

2.

 

The INMETRO quality certification of various imports into Brazil has virtually become a non-tariff  barrier for trade to Brazil.

 

The Consulate General appreciated the difficulty and felt that things could be worked out to have authorized laboratories (Indian and/or Foreign) here in India itself who could be assigned the work of inspection and issuing of INMETRO certificate as per Brazilian parameters/ standards.  He assured that he would take up the issue with relevant authorities.

3.

 

INMETRO quality certification of imports a non-tariff barrier.

Mutual recognition arrangements

 

In this regard, he suggested that mutual recognition of each otherís inspection agencies should be  explored.

4.

 

The exporters desire to know the redressal mechanism which exist in Brazil for redressing the grievances regarding non-payments/inordinate delayed payments. For instance, In India, there is a redressal mechanism in the form of RSCQC (Regional Sub-Committee for Quality Control) which addresses concerns of non-payment and quality issues. Also, other trade disputes between the parties are taken up in this forum. If similar such arrangements exist in Brazil, the exporters would like to know about them, otherwise the same may be developed.

The Consulate  General explained the procedure as follows:

He stated that in case of any complaints from an importer (importing goods to Brazil), the importer can complain to the Consulate who then refers the matter to the Embassy and the Ministry of Foreign Affairs. The Ministry of Foreign Affairs then calls the two parties to take a dialogue.  The parties can come directly or through their attorneys.  The matter is taken up by the Ministry of Foreign Affairs to resolve the issue and redress the grievance of the parties.

 

5

 

Goods clearance at Brazil Customs port is often delayed and it is requested that the same should be faster for enhanced trade between the two countries.

The matter was discussed and it was felt that every country has its lawful processes at the borders and the clearance is given.

6.

AEPC

Brazil is currently imposing around 35% ad valorem tariff on apparel import which is one of the highest in world. Indian apparels which are one of the best in the world, both in terms of quality and cost as well as innovative/traditional designs are therefore getting restricted in the access in the Brazilian market. It is requested that this issue may kindly be taken up so that Indian apparels can get access in Brazilian market  in a  level playing field.

This matter was discussed at length and it was requested that the Consulate General may like to take up this matter with his Government appropriately

7.

Gem & Jewellery Export Promotion Council

The Customs duty on import of Gems & jewellery items in Brazil ranges from 2 to 18% which is a major trade barrier especially in view of the 12% additional duty/tax which is imposed on these products add to an additional cost up to nearly 25 to 30% and thereby make the Indian items expensive for the Brazilian market. The Gem & Jewellery Export Promotion Council would like to request to reduce the duty to less than 5% in order to enhance the trade between the two countries.

This matter was discussed at length and it was requested that the Consulate General may like to take up this matter with his Government appropriately

8.

 

2. The Council also wants to take up the issue that the facilitating agency which are designated to facilitate such delegation level visits charge nearly USD 30-35 thousand for each visit which hinders trade promotion further. This may also be considered in light of the fact that these large exporters are also importers of Brazilian rough diamonds, stones, gems and jewellery into the Indian market.  Therefore, it is pointed out that facilitation in such trade promotional endeavours would enhance mutual trade between the two countries.

 

The Consulate General said that facilitating agencies are mostly private sector agencies.  As such it would be difficult for the Government to intervene in such matters.

 

9.

 

3.  In its endeavour to promote the exports in Brazil, the Gem & Jewellery Export Promotion Council is planning to organize a delegation level visit to study the markets and strengthen the bilateral trade between India and Brazil and during the visit meet prominent jewelers/importers/exporters/miners in Brazil.

It is requested that the visit of such delegation be facilitated. To promote the above trade promotional plans, complete support and guidance from the Brazilian Consulate is requested

 

The Additional Director General of Foreign Trade also pointed out that such facilitation would not only help the exports from India but also the imports from Brazil to India since most of the exporters are also importers.  The Consulate General of Brazil stated that this is an important point and he therefore assured that this matter would be taken up by him. He stated that a request be sent to the Consulate regarding the visit of the delegation and he would interface with the relevant persons in the country regarding the same. 

 

10.

 

The Council requests Brazilian Consulate to recommend the Associations or Chamber of Commerce with whom the Council and the exporters interface for their trade promotion activities

The representative of the Economic Cell of the State Protocol Department stated that there is a trade net of Brazilian agencies/associations like brazilinvest.com and investinbrazil.com from which necessary details can be obtained.  The GJEPC may visit these websites for support and guidance.

11.

SRTEPC

This council also feels that the anti-dumping duty which is imposed on Indian goods after investigation is in violation of WTO provisions.

The Council further points out that to plead in anti-dumping case, the Brazilian law insists that the exporter should engage a local lawyer as well as translation should be done only from the list of translators who are approved by Brazilian authorities. The Council suggests that engaging local lawyers is extremely expensive to the Indian exporters. Further, India allows importers to engage their own country lawyers to take up anti-dumping duty cases in India. The Consulate General is requested to kindly intervene with the Brazilian authorities and change the provisions to allow engaging Indian lawyers for pleading anti-dumping duty cases in Brazil. Similarly a list of Indian translators who are approved by Brazilian authorities may also be made and translations be allowed by such approved translators.

The Consulate General of Brazil stated that Brazil has the least number of anti-dumping cases and in most of the cases where decisions have been taken, the WTO pannel and appellate body has upheld the decisions taken by the Brazilian Authorities  in the said regard.

 

12.

TEXPROCIL

This council also feels that the anti-dumping duty which is imposed on Indian goods after investigation is in violation of WTO provisions.

The Council further points out that to plead in anti-dumping case, the Brazilian law insists that the exporter should engage a local lawyer as well as translation should be done only from the list of translators who are approved by Brazilian authorities. The Council suggests that engaging local lawyers is extremely expensive to the Indian exporters. Further, India allows importers to engage their own country lawyers to take up anti-dumping duty cases in India. The Consulate General is requested to kindly intervene with the Brazilian authorities and change the provisions to allow engaging Indian lawyers for pleading anti-dumping duty cases in Brazil. Similarly a list of Indian translators who are approved by Brazilian authorities may also be made and translations be allowed by such approved translators.

The Consulate General assured to take up this matter with the Brazilian authorities so that Indian lawyers can be allowed to represent Anti-dumping duty cases before the Anti-dumping authorities since in India, foreign lawyers are allowed to plead the anti-dumping cases in front of Indian Anti-dumping Authorities. 

He also assured that he will take up the matter of allowing Indian translators  who are approved by Brazilian authorities to make translations in such cases.

13.

INDIAN SPICE AND FOOD-STUFF EXPORTERS ASSOCIA-TION

The Council would like to point out  some obstacles faced by the exporters in exports to Brazil. The free trade sample sent to Brazilian buyers for approval of the same as well as samples for display at trade fairs in Brazil is detained/confiscated by the Brazil customs authorities without any substantial reason even after the exporter has submitted the requisite documents of the samples. The Council has further pointed out that such an obstacle to trade is faced by them only in Brazil and not in any other countries like US, other South American countries as well as in other destinations. The Consulate General is requested to kindly intervene in the said matter.

The Consulate General stated that specific case and details may be forwarded to them for necessary action in the matter. 

 

14.

PLEXCONCIL

The Council has requested that arrangements may be made to exchange information on exporters and importers in both the countries to enhance trade and identify areas of trade in both the countries which will mutually  benefit of both by leveraging on each othersí  comparative advantages.

The Consulate General stated that such exchange of information would be in mutual interest to both the countries.  He invited the PLEXCONCIL and its members to come and exchange detailed information in the said regard with the Consulate.  He also assured that he would personally intervene in the said matter to facilitate such interactions and give information on international plastic producers and recycling agencies.

 

15.

ADMA

What are the products which are not allowed /prohibited/banned for imports in Brazil other than the products which are covered under the international certification bodies e.g CITES? Information is sought on this.

The Consulate General felt that this is a very important area for co-operation.  Details can be worked out.  The Consulate General assured that they would get the names of chambers/local associations working in this field in their country for which their office could be approached. 

The Consulate General invited ADMA and its members to come and discuss with him and his office on likely collaboration in the said regard as this field is very promising for mutual trade and exchange.

 

16.

 

Names and associations of herbal ingredients, manufacturers/suppliers/exporters from Brazil, traditional Brazilian herbs/oils/extracts can find the market in Indian Ayurvedic/Herbal/  Nutraceutical manufacturers Information is sought on this.

17

 

Names and associations of Brazilian companies which manufactures Herbal/Nutraceutical products. Information is sought.

18.

MPEDA

M/s. Karunya Marine Exports Pvt. Ltd., a registered exporter of seafood from India has informed the Council that is facing difficulty in getting their name in the Government of Brazilís online lists which lists establishments eligible for exports to Brazil. If any issue concerned in the said regard are there in the Agriculture department of Brazil , the same should be communicated to M/s. Karunya Marine Exports Pvt. Ltd. so that they can address the same.

The Consulate General said that firm may be asked to forward the details directly to him and he would try to get it resolved.

 

19.

CAPEXIL

M/s. Deccan Industrial Explosives Pvt. Ltd., a member of the Council has raised a query that Brazil (along with MERCOSUR) has made a pact with a few countries which also includes India. The exporter would like to know whether this pact is being implemented and how the Indian exporters can take benefit of this agreement. Also which products and services come under the list of this agreement. It is requested that a detailed information in the matter may kindly be provided.

This matter was discussed at length and it was pointed out that various agreements under the recent pact are available on the website and the same may be accessed to know the details laid down. 

The Consulate General evinced keen interest in the issue and suggested that the CAPEXCIL and its members approach him directly with their representation.  He assured full co-operation in the matter which would be beneficial to both Indian as well as Brazilian entrepreneurs. 

 

20.

 

The exporter has also enquired  about the recommendation  of the Commercial department in the Consulate office about the project oriented businesses in Brazil. This refers to cases wherein an Indian company is the supplier and has to set up a manufacturing plant in which it is to provide technology to produce the finished products for Brazilian market. If the Indian company sets up a subsidiary company in Brazil, will it help the Indian company by allowing them to incur lesser tax on the import of their own machinery. The Consulate General is requested to kindly provide detailed information on this matter.

The Consulate General said that policies in the said regard in Brazil are partly an incentive and partly restrictive. The Consulate General invited M/s. Deccan Industrial Explosives to come to his office and discuss details of his project. 

He further suggested that projects can be prepared and sent to Brazil for getting specific suggestions which would be forwarded to the prospective Indian exporter.

 

3.       Concluding the meeting, the Chief Protocol Officer,  Government of Maharashtra, Shri Sumit Mallick presented his views and observed that most of the issues can be resolved by the exporters interfacing with the Consulate General of Brazil.  He said that the meeting would be extremely useful for promotion of trade to the mutual benefit of both the countries and the next meeting could be held after a period six months.

          Consulate General of Brazil also reiterated that the meeting is very important for our trade activities.  He suggested that a 6 monthís period could be reasonable within which they shall try to solve  all problems/difficulties raised above so that bilateral trade can increase by 20% from US$10 billion to US$ 12 billion in the coming year or two.  He also said that he is open to any discussions and he invited trade to interact with him directly for getting information or getting any issue resolved. 

Thereafter, Chairperson, Dr. Kavita Gupta, stated that  such an interface is first of its kind the history of Addl. DGFT office  and therefore this is a historic day for the office.   Ice has been broken in the interface of the exporters/importers with the office of the Consulate General of Brazil and now the trade should take various follow up measures directly with the Consulate General and his office.  She further said that the trade should take full advantage of this and come back after 6 months so that the discussions can be furthered at a more advanced level.   She also stated that Brazil is part of BRICS countries and hence a very important trading partner for India.  She also stated that the State has an objective of doubling its trade with Brazil in next one or two years and we require to make a stronger commitment towards this end.  The Chairperson said that the inputs as well as assurances given by Consulate General have been very promising and she thanked the Consulate General for the same.  She further thanked on behalf of the  members present in the meeting the Consulate General of Brazil and the Chief Protocol Officer of Government of Maharashtra for enabling this meeting and for giving their support in the said regard on various issues raised and also for future co-operation with export promotion councils/export associations/trade bodies.

The meeting ended with Vote of Thanks to Chair. 

    (Ashutosh Mishra)                                               (Dr. Kavita Gupta)

Member Secretary & Jt.DGFT                           Chairperson & Addl.DGFT


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