We refer to DGFT PN 14/2024 dated August 22, 2024 amending Para 4.49(g)(i) and (g)(ii) of the HBP. The first sentence of the amended Para 4.49(g)(ii) says that exports made under any shipping bills/under same authorisation after expiry of export obligation period using unutilised quantity of drugs shall also be accepted in lieu of submission of destruction certificate. Later, this Para says that the authorisation holder shall pay Customs duty with applicable interest to the Customs authority on unutilised quantity imported under advance authorisation and that such exports shall be considered for waiver of destruction certificate and not for waiver of liability of applicable duties and interest. Our doubt is whether we can claim drawback on such exports and what is the gain in exporting under same authorisation after export obligation (EO) period expiry? In my opinion, after payment of duties and interest, you can use the inputs in the manufacture of finished goods and export the same under claim of duty drawback. I see no particular gain in export of such goods under same authorisation after EO expiry period, when you can claim drawback. Our foreign buyer cancelled an export order and so is ready to pay our claim for damages. How can we treat this transaction under GST?
Quite obviously, the foreign party is ready to honour your claim in consideration for your not dragging him to court. So, you can treat it as a service of ‘agreeing to refrain from doing an act’ falling under service code 999793. The service will attract IGST of 18 per cent as per S.No.35 of notification no.8/2017-IT (Rate) dated June 28, 2017. However, the service will be zero rated as the place of supply of service is outside India, according to Section 13(2) of IGST Act, 2017 and all the conditions for treating the transaction as ‘export of services’ in accordance with Section 2(6) of the IGST Act, 2017 are fulfilled.
India’s ethanol blending program has saved Rs 99,014 crore in foreign exchange since 2014, Union petroleum minister Hardeep Singh Puri said on Monday.
Puri also said that the government has achieved a 15 per cent Ethanol blending target so far, a combination which he wants to take to 20 per cent by Ethanol Supply Year (ESY) 2025-26. Speaking at the International Conference on Bioenergy, Puri said increasing use of ethanol in automotive fuels has allowed the country to substitute 17.3 million metric tonnes of crude since 2014 that would otherwise have been imported. Similarly, carbon emissions have also been lowered by 51.9million metric tonnes in the past decade, he said. The figures are till July 14, 2024.
The cumulative amount paid to the distillers by oil marketing companies since 2014 stood at Rs 1.45 trillion, while payments to farmers amounted to Rs 87,558 crore.
The minister said E20 petrol (petrol blended with 20 per cent ethanol) is now available at over 15,600 outlets in the country. Meanwhile, the government had also launched E100 fuel back in March. It includes 93-93.5 per cent ethanol blended with 5 per cent petrol and 1.5 per cent co-solvent, which is a binder. With its high-octane rating, typically between 100-105, E100 is being pegged by the government as ideal for high-performance engines, ensuring improved efficiency and power output.
Ethanol production up
Puri said the government has resumed the supply of rice from the Food Corporation of India to ethanol distilleries, allowing them to purchase up to 23 lakh tonnes through e-auctions from August 2024 to October 2024.
“Additionally, in an attempt to raise ethanol production, sugarcane juice and syrup supply to distilleries will commence from Ethanol Supply Year (ESY) 2024-25 (November 2024),” he said.
The government had provided an additional incentive of ~9.72 per litre for ethanol supplies from maize, ~8.46 per litre from damaged rice during August 2023 and ~6.87 per litre from C-heavy molasses during December 2023.
Source: Business Standard
To promote competition among states in attracting foreign investments, the Centre plans to urge states to enhance access, reduce compliance burdens, reform land and building regulations, and improve infrastructure such as power supply and law enforcement, according to a report by The Financial Express (FE).
These elements are expected to be part of an ‘investment-friendly charter’ currently being developed by Niti Aayog. The states’ performance in meeting these criteria will likely be monitored and ranked.
An official told FE that states should leverage their unique strengths to target specific companies for investment and ensure that current investors expand their operations locally rather than relocating to other states. For instance, if Tesla decides to enter the Indian manufacturing sector, it might consider states where the electric vehicle ecosystem is already developing.
Last month, Prime Minister Narendra Modi also urged that states should adapt their policies to meet global standards if necessary. He noted that states that are proactive in governance and focus on a single-point strategy are more likely to retain investors for the long term. Additionally, he suggested that states should establish land banks and implement necessary reforms to meet land requirements.
FDI inflows dropped in FY24
The Centre is currently engaging with various countries to boost foreign direct investment (FDI), which has recently seen a decline. Net FDI inflows to India dropped to $26.5 billion in FY24 from $42 billion in FY23. Land and building regulations in India have significantly restricted the use of factory land, limiting enterprises’ ability to allocate capital effectively. Reforming these regulations could reduce business costs and increase job opportunities. Modernising land records and introducing land parcel-based property cards could also help reduce litigation. It is estimated that a standalone factory loses around 50 per cent of its land to standards like setbacks, ground coverage, and parking requirements. In most states, factory buildings can only occupy 40 to 60 per cent of a plot. Liberalising building standards could help states unlock productive land and create more jobs.
Additionally, states are encouraged to update building regulations to increase the base floor area ratio (FAR) for commercial buildings in municipal and development areas to at least 5, and for buildings in central business districts and transit-oriented development corridors to 5+2.
Source: Business Standard
The 51st India International Knit Fair (IIKF), scheduled to take place from September 4th to 6th, 2024, at the IKF Complex in Tirupur, is poised to continue its legacy as a premier event in the knitwear industry. Over the past two decades, this fair has cemented its reputation as a key platform for bringing together apparel and textile manufacturers with buyers and sourcing agents from around the world. As one of India’s most significant trade fairs, the IIKF will once again highlight the knitwear capital of India—Tirupur—showcasing its role in global apparel and textile markets.
The main theme of the 51st IIKF will focus on “Preserving Our Planet by Innovation and Circularity.” This theme underscores the fair’s dedication to promoting sustainable practices within the textile industry. By emphasizing innovation and circularity, the event aims to inspire participants to adopt environmentally friendly methods in their manufacturing processes.
Collaboration and Participation:
In an effort to broaden its impact and reach, the India Knit Fair Association (IKFA) will collaborate with prominent organizations such as BAA, ABAT, BSL, and NIFT-A. These partnerships will ensure that the fair attracts a diverse group of attendees, including sourcing consultants and industry experts. Additionally, invitations have been extended to leading buyers and their representatives from Europe, the USA, the UK, and other global markets. The fair will also see participation from top exhibitors across India, including Tirupur, Erode, Salem, Karur, Bangalore, and Kolkata, with more inquiries for booths continuing to pour in. To ensure widespread awareness, IKFA will undertake extensive media promotions and direct mail campaigns, reaching over 8,000 exporters, nearly 10,000 buyers worldwide, and approximately 1,500 buying agents within India. Moreover, fair details will be disseminated to various apparel associations across the country, enhancing visibility and encouraging participation from a broader audience.
This event will attract a large number of sourcing consultants, liaison offices of buyers, and representatives from major brands. The response from overseas buyers, buying agents, and sourcing managers has been exceptionally encouraging, with confirmed attendance from major buying houses across India and international buyers from the USA, Mexico, Spain, Jamaica, UAE, South Africa, Mauritius, Dhaka, and other regions.
Support and Services for Participants:
IKFA will extend several services to ensure the success of the 51st IIKF. Domestic air travel and accommodation will be provided to visiting buyers and buying agents, along with free transportation from Coimbatore Airport to the IKFA Complex. A dedicated help desk will be set up at the airport to facilitate the smooth arrival of outstation participants and delegates. Participants will benefit from a host of infrastructure facilities for displaying their collections, including the German Octanorm System for stalls, chairs, tables, hanger stands, spotlights, and mannequins. This attention to detail and commitment to providing top-notch facilities will help ensure that exhibitors have everything they need to present their products effectively.
Event Inauguration:
The 51st India International Knit Fair will be officially inaugurated on September 4th, 2024, at the IKFA Complex. The event will be graced by Chief Guest Shri Dharmendra Pratap Yadav, IAS, Principal Secretary to the Government of Tamil Nadu (Handlooms, Handicrafts, Textiles, and Khadi Department), along with Guest of Honour Shri T. Christuraj, IAS, Tirupur District Collector, and other prominent industry personalities. Their presence will underscore the significance of the event and its role in driving sustainable innovation within the textile sector.
The 51st India International Knit Fair in Tirupur will not only be a showcase of the latest trends and innovations in knitwear but will also serve as a platform for promoting sustainable practices in the textile industry. With its focus on innovation, circularity, and environmental responsibility, the fair is expected to attract a significant number of participants from around the globe, further solidifying Tirupur’s position as a leading hub in the world of knitwear.
Source: Textile Magazine
Growth in the Indian manufacturing sector slowed to a three-month low in August, as firms saw softer growth in new orders and output. The headline Purchasing Managers Index (PMI) figure released by HSBC on Monday stood at 57.5, down from 58.1 in July.
A figure above 50 in the index denotes expansion and that below signifies contraction.
However, cost pressures moderated and supported the rise in purchasing activity as the rate of input price inflation softened to the slowest in five months.
“Indian manufacturers registered softer increases in new business and output during August, albeit with rates of expansion remaining elevated by historical standards. Business confidence retreated, but firms scaled up buying levels in a bid to safeguard against input shortages,” the survey by the private agency noted.
Pranjul Bhandari, chief India economist, HSBC, said the Indian manufacturing sector continued to expand in August, although the pace of expansion moderated slightly.
“New orders and output also mirrored the headline trend, with some panellists citing fierce competition as a reason for slowdown. Nevertheless, all three indicators remain well above their historical averages,” she added.
On the output front, though it rose at a historically sharp pace, the rate of expansion moderated to the slowest since January. On the one hand, some panellists indicated that greater sales volumes and investment in technology supported production.
Source: Business Standard
Operating conditions in China’s manufacturing sector improved midway across the third quarter (Q3) this year, Caixin China purchasing managers’ index (PMI) data show.
Incoming new orders returned to growth, driving faster production expansion. This supported a stabilisation of employment, while inventory levels also increased.
Moreover, confidence about the outlook climbed during the latest survey period, a S&P Global release said. Higher demand led to a worsening of supply conditions. Price pressures eased amid some reports of lower raw material costs. The headline seasonally-adjusted PMI—a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy—rose to 50.4 in August, up from 49.8 in July.
Rising past the 50 neutral mark, the latest data signalled that conditions in the manufacturing sector improved following the brief deterioration in July. The rate of improvement was only marginal, however.
Manufacturing production expanded for a tenth successive month in August, led by firms in the consumer and intermediate goods sectors. Although modest, the rate of growth accelerated from July’s low as incoming new orders returned to expansion.
Better underlying demand conditions and promotional efforts underpinned the latest rise in new orders.
Export orders were subdued, however, falling marginally for the first time in the year-to-date amid reports of deteriorating external conditions, the release said.
The improvement in overall demand led to a stabilisation of staffing levels following an 11-month period of decline with some firms taking on additional staff to cope with ongoing workloads.
Stocks of finished goods also increased with anecdotal evidence suggesting that delays in outbound shipments contributed to the rise in post-production inventory holdings.
Indeed, vendor performance in China deteriorated in August. Lead times lengthened at a slightly faster pace in August amidst supply and transportation constraints.
Some relief on price pressures was observed with average input costs falling fractionally for the first time in five months.
Survey respondents often linked the decline to the lowering of raw material prices. In turn, Chinese manufacturers reduced their selling prices, with some firms indicating offering discounts to remain competitive.
Overall confidence levels rose to a three-month high. Firms grew more optimistic that improvements in economic conditions and business development efforts will bear fruit in the year ahead.
Source: Fibre2fashion
Total demand in the global air cargo market, measured in cargo tonne-kilometres (CTKs), surged by 13.6 per cent compared to July 2023 levels, with international operations experiencing an even higher increase of 14.3 per cent, as per the data released by the International Air Transport Association (IATA) for July 2024. This marks the eighth consecutive month of double-digit year-on-year growth, pushing overall levels to heights not seen since the record peaks of 2021.
Capacity, measured in available cargo tonne-kilometres (ACTKs), also saw a notable rise, increasing by 8.3 per cent year-on-year, with international operations up by 10.1 per cent. This growth was primarily driven by a 12.8 per cent increase in international belly capacity, which benefitted from strong passenger markets, and a 6.9 per cent growth in international freighter capacity. Notably, the rise in belly capacity is the lowest in 40 months, while freighter capacity growth reached its highest since a significant jump in January 2024.
Willie Walsh, IATA’s director general, commented on the results, stating, "Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce, and capacity constraints on maritime shipping. With the peak season still to come, it is shaping up to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends.”
July's operating environment presented a mixed picture. The Purchasing Managers Index (PMI) for global manufacturing output indicated expansion at 50.2, while the global new export orders PMI remained below the contraction threshold at 49.4. Industrial production remained flat month-on-month, and global cross-border trade increased by 0.7 per cent. Inflation rates in major economies, including the US, Japan, and the EU, remained stable around 2.8 to 2.9 per cent, while China saw a slight rise to 0.6 per cent, the highest level in five months, IATA said in a press release.
Airlines in the Asia-Pacific region led the charge with a 17.6 per cent year-on-year demand growth, the strongest across all regions. Demand on the Within-Asia trade lane grew by 19.8 per cent, while Europe-Asia, Middle East-Asia, and Asia-Africa trade lanes recorded growths of 17.9 per cent, 15.9 per cent, and 15.4 per cent, respectively. Capacity in the region increased by 11.3 per cent. North American carriers experienced an 8.7 per cent year-on-year growth in demand, despite disruptions caused by Hurricane Beryl. The Asia-North America trade lane, the largest by volume, grew by 10.8 per cent, while North America-Europe saw a modest increase of 5.3 per cent. Capacity rose by 7.0 per cent.
European carriers saw a 13.7 per cent increase in demand. The Middle East-Europe trade lane was the standout performer, with a 32.2 per cent rise, continuing a streak of double-digit growth since September 2023. The Europe-Asia route grew by 17.9 per cent, and Within Europe saw a 15.5 per cent increase. Capacity grew by 7.6 per cent. Middle Eastern carriers reported a 14.7 per cent increase in demand, with the Middle East-Europe trade lane surging 32.2 per cent, outperforming the 15.9 per cent growth on the Middle East-Asia route. Capacity increased by 4.4 per cent.
Latin American carriers recorded an 11.1 per cent increase in demand. However, growth was partly hindered by flight cancellations and airport closures due to Hurricane Beryl. Capacity rose by 9.4 per cent. African airlines saw the lowest growth, with a 6.2 per cent increase in demand, their lowest figure for 2024. The Africa-Asia market did better, with a 15.4 per cent rise. Capacity increased by 10.5 per cent.
Source: Fibre2fashion
“Separating fact from fiction” regarding the reuse and recycling of textiles will be the subject of an event organized by the Bureau of International Recycling (BIR) that has been scheduled for Sept. 17, 2024, at the Steinberger Hotel in Brussels.
The Textiles Division of the Brussels-based BIR says it has prepared the event “along with leading industry experts [who] will present first-hand insights about the realities and solutions for end-of-life textiles.”
The BIR says the one-day conference will look beyond Europe “to the international landscape of textile recycling and trade.” Attendees also will have an opportunity to interact with what BIR calls “key stakeholders including designers, producers and retailers, as well as policymakers, lobbyists, circular economy experts, academics, researchers and of re-use/recycling experts.”
According to the global recycling federation, “The narrative around end-of-life/end-of-use textiles is getting increasingly blurred, with headlines often painting a one-sided picture, leaving the public unclear as to the ‘real’ story of used clothing, its place in the circular economy—and the important role of the recycling industry in bringing this sector back to life.”
The group’s Textiles Division says sessions on Tuesday, Sept. 17, will focus on: 1) trade restrictions, in a session that “will examine the realities of the second-hand trade” to Africa and other regions; 2) policy priorities, including potential impacts on the discarded textiles sector from regulations such as the Waste Shipment Directive and Waste Framework Directive in the EU, as well as initiatives in parts of the United States; and 3) recycling technologies, with presenters and panelists examining what needs to be done to make the mechanical or chemical recycling of discarded textiles commercially viable.
In the world of nonferrous wire and cable processing, SWEED continues to carve a niche by seamlessly blending standard and unique applications with high-performance and superior recovery as well as continuing to push boundaries and introducing cutting-edge products and innovations to the industry.
“There is a lot of incomplete information in the market about the second-hand textiles trade,” says BIR Textiles Division President Martin Böschen. “So, this event will be an opportunity to set the record straight and present a full picture of this market and its vital role in contributing to the circular economy.”
The event takes place about five weeks before the BIR fully convenes in Singapore this October for its World Recycling Convention Autumn Round-Table Sessions.
Source: Recycling Today
Pakistani Exporters showcased diverse Textile Offerings at Intertextile Shanghai Autumn Edition, Gwadar Pro reported on Monday.
Kohinoor Mills Ltd, put on display its diverse range of fabrics at the expo that held from August 27 to 29. This was its fifth consecutive appearance at the exhibition, demonstrating its ongoing commitment to the global market.
The Pakistani exhibitor specialises in a wide range of textiles including cotton, polyester, spandex blends, special fibers, linen, modal and more.At the fair, the company highlighted its innovative cotton and cotton-spandex blends, which are mixed with polyester for enhanced performance and recycled cotton for eco-friendliness. These products have garnered attention from buyers worldwide, with China being a key market for the company’s fabrics. Amidst a sea of international exhibitors, the Pakistani company stood out as one of the many Pakistani participants who have made Intertextile Shanghai their go-to platform for showcasing their offerings. Now in its 30th year, the exhibition has become the largest of its kind, drawing nearly 4,000 participants from 26 countries and regions to its 240,000-square-meter venue for this edition. “We are proud to be back at Intertextile Shanghai, joining fellow Pakistani exhibitors in showcasing the best of Pakistani textiles,” said assistant manager marketing from Kohinoor Mills. “This fair is an excellent opportunity for us to connect with buyers from around the world and introduce our latest fabrics.” The company’s Spring Edition experience, which saw sales reach $1 million, set high expectations for the Autumn Edition. Meanwhile, the company remained optimistic about the potential for growth and networking opportunities presented by the fair. Another seasoned participant of the bi-annual exhibition, Waseem arrived this time with an exquisite collection of hand-woven wool rugs and intricately designed cushions capturing the essence of Pakistan’s rich textile heritage. Expressing his satisfaction with the overwhelming response his products received, Waseem remarked, “I am absolutely thrilled with the sales figures this time around.” As the Intertextile Shanghai Apparel Fabrics exhibition drew to a close, Waseem had not only showcased the craftsmanship of Pakistani handicrafts to a global audience but also forged new connections and partnerships that would help take his business to new heights. For Waseem, the journey of preserving and promoting traditional Pakistani textile crafts is far from over and Intertextile Shanghai remains a vital platform for his ongoing endeavors.
Source: Daily Times
