The commerce ministry has floated a concept paper inviting self-registration of companies seeking to ship manufactured goods to the EU.
Earlier, the Export Inspection Council used to issue certificates for exporters under the generalised system of preferences (GSP), a process plagued by delays.
“The self-certification will not only save time but also costs involved in obtaining such registration,” said Ajay Sahai, director- general and chief executive officer of the Federation of Indian Export Organisations.
Applicable for three years between January 2017 and December 2019, the GSP grants preferential treatment to exporters by a lower duty compared to the same goods imported by the EU from non-GSP origins. Started in 1971, developed countries, including the US, EU and Australia, import commodities from developing countries by offering duty benefits.
The products eligible for tariff preference under the EU’s GSP are categorised as sensitive and nonsensitive. For non-sensitive products, the tariff is eliminated under the GSP and for sensitive products, the ad valorem duty is reduced by 3.5 per cent while the specific duty is reduced by 30 per cent. “The benefits continue to remain the same. The only change is the procedure. The self-registration adds to the responsibility of exporters to adhere to the rules of origin,” said Sahai. India’s farm exports to Germany have declined from $157.63 million in 2013-14 to $136.08 million in 2015-16, according to the Agricultural and Processed Food Products Export Development Authority.
Sahai said the decline in farm exports to Germany and other EU countries could be due to the sharp fall in prices over the last two years.
Source: Business StandardPrevious Next