India Gold Jewellery Export to Middle East Booms

The Gem & Jewellery Export Promotion Council (GJEPC) organized the India Pavilion at Manama, Bahrain. The Indian Pavilion will be represented by India's top 59 exhibitors from the gems and jewellery industry along with jewelers from around the globe in the industry's premier event held every year.

The jewellery trade has over the past year strengthened the Indian relationship with the Middle East. Today, India exports 44.26% of its total gems and jewellery supply worth US$ 13 billion making Middle East the largest exporting destination.It is estimated that this time there will be an increase in the export figures, as Indian manufacturers and retailers are today considered amongst leaders of G&J trade across the globe.

At the Indian pavilion this year, one will witness Indian craftsmanship at its best with a display of exquisite jewellery collection comprising of high-end diamond jewellery, gold and platinum jewellery, and fine jewellery. Some will also showcase designer handmade jewellery, high-end diamond and bridal jewellery and few exclusive pieces. For the Middle East market, Indian participants will also focus on jewellery with colour stones, sapphires, emeralds and rubies along with huge solitaire diamonds.

Leading names such as AKM Jewellers, CKC & Sons, Hazoorilal & Sons, Mamraj Musaddilal Jewellers & Pearls Dealer and Noorsons International will be present in Palm Room and Hall 1 indicating India's growing stature in catering hi-end and premium jewellery. Indian pavilion will also be represented by Bapalal Keshavlal, Golkunda Diamonds & Jewellery, Jaipur Jewellers, Neelam Jewels, The Rose International, Livingstones, amongst others. National pavilions from leading jewellery export countries including Brazil, Greece, Hong Kong, India, Thailand and Turkey will participate in this edition.
Source: http://bit.ly/95T0Oc

Exporters breathe easy as CBEC eases shipping bill norms

The Central Board of Excise and Customs (CBEC) has made life easier for exporters by relaxing the norms for conversion of shipping bills from free to export promotion scheme and from one export promotion scheme to another. The latest CBEC Circular (no.36/2010-Cus dated 23/09/2010) permits the Commissioners of Customs to allow conversion of shipping bills from schemes involving more rigorous examination to schemes involving less rigorous examination (for example, from Advance Authorisation/DFIA scheme to Drawback/DEPB scheme) or within the schemes involving same level of examination (for example, from Drawback scheme to DEPB scheme or vice versa).

In January 2004, CBEC instructed that conversion of free shipping bills into Advance Licence/DEPB/DFRC shipping bills should not be allowed and that conversion of shipping bills from one export promotion scheme to another should only be allowed where the benefit of any export promotion scheme claimed by the exporter has been denied by DGFT/MOC or customs due to any dispute. The courts, however, ruled that this Circular could not override Section 149 of the Customs Act of 1962 which permits amendments to the shipping bill on the basis of documents that existed at the time the goods were exported.

CBEC, however, says that conversion of free shipping bills into export promotion scheme shipping bills (advance authorization, DFIA, DEPB, reward schemes etc.) should not be allowed on the grounds that goods under free shipping bills are not examined. CBEC could have been graceful by following the rationale behind its own circular number 25/2005-Cus dated June 6, 2005 for accepting in-house test results of manufacturer exporters having the ISO 9000 series certification for the purpose of conversion of free shipping bills into export promotion scheme shipping bills.
Source: http://bit.ly/c7egyh

The Biggest Ports of India

India, one of the biggest peninsulas in the world, has a long coastline spanning 7,600 kilometres. The Government of India planning to invest about $20.8 billion in 276 projects which are part of the government's endeavour to expand 13 major ports in the country, Shipping Minister G K Vasan said recently.

According to him 22 projects are ready for bids as the country is increasing the port capacity, mostly through public and private sector participation.

Indian port handling tonnage has crossed 10 million GT mark recently, the minister said.

He also disclosed that mega container terminals have been planned at Vallarpadam, Chennai, JNPT and Ennore, implementation of which would provide opportunities in the logistics business.
Source: http://bit.ly/cbDTp9

GCC Urged to End Customs Rifts Ahead of Summit

Gulf oil producers should step up efforts to end rifts blocking the full implementation of their landmark customs union ahead of their annual summit in Abu Dhabi late this year, a semi-official study has said.

A surge in trade within the six Gulf Cooperation Council (GCC) nations by more than five times to a record high of $91 billion in 2009 should motivate them to iron out their differences and push ahead with the project on time, said the study by the government-controlled Emirates Industrial BankEmirates Industrial BankLoading... (EIBEIBLoading...).

Its figures showed inter-GCC trade recorded a staggering annual growth of around 72 per cent to leap from nearly $15 billion in 2002 to $91 billion in 2009.

Their only agreement was to extend a deadline for a few more years for a final agreement on that issue before fully implementing the customs union.

The talks are the latest in a series of meetings by the six members seeking to put the customs union on track after launching a common market in early 2008 and to support plans by four GCC nations to launch a monetary union in 2010.

GCC states--the UAE, Kuwait, Saudi Arabia, Qatar, Bahrain and Oman--launched the long-awaited customs union at the start of 2003 and set a transitional period of three years for the full enforcement of the project.

But rifts over tax revenue, border delays and other issues have blocked the implementation of the customs union, forcing the six members to extend the transitional period until the start of 2008 to coincide with the common market.

In 2009, the GCC finance ministries said they had charged a consultancy firm with preparing a study on the best way for customs revenue distribution.

The accusations traded between the Shura, the GAB and other government institutions coincided with moves by Saudi Arabia to promote itself as one of the world's best and safest investment destinations within a long term diversification programme intended to reduce its reliance on unpredictable oil sales.

Other GCC members--Kuwait, Qatar, Bahrain and Oman--have also announced the creation of relevant bodies and legislation to eliminate corruption.
Until recently, publicised official enquiries about misappropriation of funds and corruption cases have been a taboo in most Arab countries.

The policy turnaround followed intensifying moves, mainly by Gulf nations, to open up their economies, attract foreign investment and remove red tape, corruption and other malpractices for a better standing in the mushrooming global indices that measure nations' progress.

Such measures have allied with other procedures to tear down capital barriers to turn Saudi Arabia into the top destination of foreign direct investment in the Arab world, followed by the UAE.
Source: http://bit.ly/aftV2k

Government Wants to Raise Excise Duty on Gasoline by nearly 40%

The Cabinet of Ministers has proposed to the Verkhovna Rada to increase the excise duty on motor gasoline by 37.9%, from EUR 132 to EUR 182 per ton, starting 2011. This is stipulated in the draft Tax Code registered in the parliament.

In general, the government proposed increasing excise rates on oil products, in particular, on aviation gasoline and jet fuel from EUR 20 to EUR 28 per ton, on diesel fuel with a sulfur content exceeding 0.2% from EUR 65 to EUR 90 per ton, with a sulfur content of 0.035-0.2% from EUR 50 to EUR 69 per ton, with a sulfur content of 0.005-0.035% from EUR 45 to EUR 62 per ton, and with a sulfur content of less than 0.005% from EUR 30 to EUR 42 per ton.

The Cabinet of Ministers also proposed increasing the excise duty on fuel oil by 40%, from EUR 30 to EUR 42 per ton. In May 2010, the Verkhovna Rada increased the excise duty on motor gasoline for cars by 20%, from EUR 110 to EUR 132 per ton.
Resource: http://bit.ly/b4tKRJ

HS Code - Guide to Foreign Trading

Infodriveindia.com, the market leader in providing Competitive Business Intelligence on Exports, Imports and Foreign Trades, provides HS codes which have become an indispensable tool for any trader or company interested in increasing its share in other nations. This launch of the list in a detailed chapter wise fashion includes several products and simplifies the challenges faced by its clients while practicing foreign trade.

The numerical code, used to describe a product when it is to be shipped or transported from one country to another is referred to as HS code. In today's world, all exporters and importers need to declare it to customs about the items that are being traded; It is these codes which determine the duty rates, adequacy of imports and exports, and other important information concerning the product. Hence it has also increased the importance of these codes considerably. This is when Infodrive India comes to rescue. It provides Indian customs Harmonized system codes policy with policy conditions, codes ranging from year 2004 to the latest ones launched in 2010 and also provides amended ITC-HS codes from DGFT.

Harmonized code list is basically a collection of these codes listed under various sections including vegetable products, vehicles, aircrafts, animal products, mineral products, ammunition etc. Each company has a code number assigned to all its products, which appears with every other standard information about the product. Thus infodriveindia.com simplifies the task of importers and exporters by providing them with all the data on a number of categories at one place.

HS code lists on Infodrive India can thus act as reference to those traders and companies which are interested in making investments in new markets. Thus, with its help, the newly entering enterprises can know the requirements and preferences of their future customers without conducting lot of surveys and campaigns. The company has evolved itself as a knowledge hub with import and export trade intelligence of 12 countries. In present day's scenario, when the market is flooded with a wide range of products, the role of such a code list has become even more important in carrying out the foreign trade.

Resource: http://bit.ly/cOlytO

Textile Industry Says: Cotton Output in India May Miss Forecast on Rains

The cotton harvest in India, the second-biggest producer and shipper, may be less than forecast if monsoon rains last longer than normal, according to the Confederation of Indian Textile Industry. Futures advanced. Production in the year from Oct. 1 may be less than the 32.55 million bales estimated by the Cotton Advisory Board last month, Confederation Vice Chairman Prem Malik said by phone from Mumbai. Output this year is estimated at 29.5 million bales, according to the board. An Indian bale weighs 170 kilograms.

Cotton is the best performer over the past year on the UBS Bloomberg CMCI Index, surging 47 percent. The most-active contract, for delivery in December, advanced as much 1.5 percent to 97.18 cents a pound on ICE Futures U.S. in New York today, the highest price since June 1995.

“If the rains persist, then definitely it’s going to affect the crop,” Malik said yesterday, without giving an estimate for the harvest. “The plants will not get the sunlight,” said Malik, 67, who also restated a call from the group for India’s cotton exports to be delayed from next month to January. India’s government plans to allow the export of as much as 5.5 million, 170 kilogram bales in the year from Oct. 1. Exports this year may be 8.3 million bales, according to an estimate from the Cotton Advisory Board.

India’s monsoon rains, the main source of irrigation for the nation’s 235 million farmers, normally draw to an end from September, the last month of a four-month season. Still, so far this September, rains are 122 percent of the 50-year average and clouds will begin to withdraw only by the end the month, the Indian Meteorological Department said on Sept. 14.

In the western state of Gujarat, the nation’s biggest cotton producer, rains were 54 percent above normal between June 1 and Sept. 15, according to the weather office. In Maharashtra, the second-largest grower, rains have been 25 percent more than average, it said. Global cotton inventories will fall to 45.4 million, 218 kilogram bales in the 12 months to July 31, the lowest level in 14 years, according to U.S. Department of Agriculture data.

Cotton futures may surge to $1.25 a pound by January as supplies dwindle, O.A. Cleveland, a professor emeritus in agricultural economics at Mississippi State University, said on Sept. 14. Prices may reach as much as $1.05 within six weeks because supplies are tight and demand is increasing, John Flanagan, president of Flanagan Trading Corp., said Sept. 15.

India will limit cotton exports to 5.5 million bales in the season from Oct. 1, with a “prohibitive” duty to be imposed on shipments above that level, Commerce Secretary Rahul Khullar said on Sept. 4. Textile Secretary Rita Menon said on Sept. 14 that India plans to delay registration of export contracts by two weeks until Oct. 1.
Source: http://bit.ly/aO7YwD

China to import 8500 t/y of uranium by 2020, eyeing acquisitions

China will need to source over 8 500 t/y of uranium from other countries by 2020, and is looking to buy shares in uranium producers, China National Nuclear Corp vice-president Lu Huaxiang said on Tuesday. China's current uranium demand was 1 700 t/y, and this would increase tenfold over the next decade, he told Mining Weekly Online through an interpreter.

"There is 9 GW of installed nuclear generating capacity. That will grow to 70 GW in the next ten years, so there will be a ten times increase in uranium to about 17 000 t/y in China," Huaxiang said.

The country was able to meet the uranium requirements of its current nuclear fleet from domestic supplies, but would need to look abroad to meet future demand. "If you look to the future, we will surely need to purchase uranium from sources outside China. We will likely source over 50% of our requirements from outside China," Huaxiang said on the sidelines of the World Energy Congress being held in Montreal.

China had increased the number of reactors it would build over the next ten years, Huaxiang said earlier in a speech. Previous estimates had pegged nuclear generation at 60 000 GW by 2020. The country was cooperating with a number of exploration companies, as well as producers, and was eyeing the acquisition of stakes in such firms. "We are considering acquiring shares of companies outside China. It is an option we are looking at," noted Huaxiang. Asked where China was most likely to pursue uranium acquisitions, he said: "The number-one choice is countries that have large uranium resources, such as Kazakhstan, Australia, Canada and African countries such as Niger.

"We have some very good relationships with companies in those countries." China had already acquired stakes in Australian uranium companies, as well as those operating in Kazakhstan. Earlier this year, Canada's Cameco signed an agreement with China Nuclear Energy Industry Corporation, a subsidiary of China National Nuclear Corp, to supply it with 23-million pounds of uranium concentrate up to 2020.

China National Nuclear Corp is the country's biggest nuclear power generator.

Uranium spot prices have climbed to $48/lb.

Over 20 nuclear plants were under construction in China, and more than 20 were in the planning phase, Westinghouse Electric Company Americas president Jim Ferland said on Tuesday. In North America, 22 new nuclear power plants had been announced, he said. "To a large extent, the nuclear renaissance is starting."
Source: http://bit.ly/a3Cq9d

New Customs Deal to Lighten Burden on South Africa

A new revenue-sharing arrangement within the Southern African Customs Union (Sacu) that is more sustainable than the present one should be ready for implementation in the 2011-12 fiscal year, Parliament was told yesterday.

The present redistributive formula, which places a heavy burden on SA, has been under review since 2006. It is seen as being too vulnerable to the volatile economic cycles that affect revenue-sharing forecasts and the budgets of member states.

The formula is also seen as encouraging too much dependency on customs revenue by smaller countries, namely Botswana, Lesotho, Namibia and Swaziland.

A large chunk of the total of their budget revenue comes from the revenue-sharing arrangements of the union, the oldest customs union in the world, which has been in existence since 1910.

SA is by far the biggest single contributor to the union payments, which have become an increasingly heavier burden for the fiscus.

In 2008-09, SA contributed R45bn to the common revenue pool, which represented 98% of the Sacu transfers, and received R22bn (46,5%).

The present formula distributes customs and excise revenue on the basis of forecasts reconciled against actual collections and intra-trade data.

The Treasury’s chief director of African economic integration, Neil Cole, told the standing committee on finance that negotiations on a new revenue-sharing formula should be finalised in December when the revenue shares of member countries were determined.

Mr Cole said care would have to be taken with its implementation, however, to prevent disruption to the budgets of Botswana, Lesotho, Namibia and Swaziland .

In terms of the proposals under discussion, each member state would receive what its economy produced, determined on the basis of its own collections, re-exports and duty drawbacks.

One proposal was that the revenue would be distributed as a forecast, which would be adjusted two years later on the basis of actual customs collections. Member states would contribute to a structural or development fund on the basis of a percentage of their gross domestic product.

Mr Cole said a new formula would have to have “a strong development thrust that supports regional infrastructure, lead(s) to greater transparency and parliamentary oversight, (and) support(s) the expansion of Sacu”.

Revenues are a function of the tariff book and are highly dependent on higher-import-tariff consumer goods, which are hit hard in a recession. Mr Cole said about half of all customs revenue came from consumer goods, including vehicles (29%), electrical goods, footwear, beverages and clothing.

On the other hand, there were no or low tariffs on capacity- building capital goods and most inputs. Mr Cole said the review was also considered necessary because SA believed that revenue considerations should not be the single driver of trade policy decisions. “A great deal of polarisation is caused by trade and revenue reconciliation.”
Source: http://bit.ly/drXjl4

US Exports On Track To Double In Five Years

Top U.S. trade officials said Monday exports are on track to double over the next five years, in line with the goal set by President Barack Obama.

Commerce Secretary Gary Locke said the "aggressive" target will be a challenge to achieve, but that boosting sales of U.S. products abroad will serve as a necessary counter-weight to slowing consumer spending at home.

"These challenging times demand nothing less," Locke said in a prepared speech to an export summit in Richmond, Va.

"With millions of Americans out of work, and our competitors in Europe and Asia increasingly competing with us for the same customers, we can't simply keep doing what we've done in the past and hope things get better," he said.

Locke said the administration is on track to meet its goal with exports up 17.9% in the year to July, at a little over $1 billion.

Exports would have to increase by about 15% a year to increase two-fold in five years, though critics point out that the administration is using as its base year 2009, when sales abroad were at a three-year low below $1.6 billion.

The Export-Import Bank, which has focused on expanding financing to small and medium-size exporters, has also topped the previous year's amount of credit authorizations with one month to go in the fiscal year. It had authorized $21.5 billion in financing so far through July, following a total of $21 billion in fiscal 2009.

Fred Hochberg, Ex-Im Bank chairman and president, was scheduled to speak at the event with Locke. In a statement late Friday, he said this year's financing has supported an estimated 200,000 jobs.

"Again we are heartened by the export increase, which shows a growing appetite for U.S.-made goods and services, and that translates to more American jobs," Hochberg said.

The two officials, who are part of the president's export promotion cabinet, were speaking ahead of the first meeting of an advisory council made up of business and labor leaders later this week.
Source: http://bit.ly/buHCRn

Horticulture strategic to export sector growth: Zimbabwe

Zimbabwe's horticultural sector is essential to economic recovery and is strategic in respect of the enhancement of the country's export receipts.

Local horticultural production includes products such as cut flowers, fruit and tropical fruit, and out of season fruit and vegetables. At its peak during the late 1990s horticulture was the second largest agricultural foreign exchange earner after tobacco, recording exports figures in 1999 of US$144 million.

During that period horticulture contributed an average of 4 percent to Growth Domestic Product. However, like any other sector in Zimbabwe it has suffered from the macro-economic strictures that resulted from the decade long downturn, and has reflected in a fluctuating trend over the years.

Nonetheless, with the 2010 agricultural sector reflecting a steady growth path augmented by ramped up tobacco output, the horticulture sector is also expected to be bullish by the close of this year.

According to statistics from the Ministry of Agriculture, Mechanisation, and Irrigation Development, the horticulture sector output could hit the 43 000 tonne mark up from the 2009 figure of 35 000 tonnes, in line with the 18,8 percent projected growth for the year.

As aforementioned horticulture is quite strategic to the growth of the country's export sector as most of its products tend to be destined for the European market, but it is also important in another key economic area, that is, labour. In so far as the horticulture sector is labour intensive - on average any one new horticultural project can add 25 to 30 jobs per hectare - hence growth of the sector can simultaneously function to boost employment levels.

These requirements are constituted in the Agreement on the Application of Sanitary and Phytosanitary Measures (also known as the SPS Agreement) is an international treaty of the World Trade Organisation.

Under the SPS agreement, the WTO determines limitations on member-states' policies relating to food safety around issues such as bacterial contaminants, pesticides, inspection, labelling and animal and plant health (phytosanitary).

According to ZimTrade, during the ten year period between 1999 and 2008, Zimbabwean horticulture's export receipts declined by around 80 percent, from US$144 million in 1999 to US$24 million, this in contrast to an consistently expanding global horticulture market.
Source: http://bit.ly/aGxyZz

U.S. Exports Rise 17.9 Percent in First Seven Months of 2010

Exports of U.S. goods and services increased 17.9 percent during the first seven months of 2010, according to data released by the Bureau of Economic Analysis of the U.S. Commerce Department. The United States remains on track to meet President Obama's goal of doubling exports and supporting two million American jobs over the next five years.

"Again we are heartened by the export increase, which shows a growing appetite for U.S.-made goods and services, and that translates to more American jobs," said Ex-Im Bank Chairman and President Fred P. Hochberg. "For its part, Ex-Im Bank has authorized $21.5 billion in export financing and supported an estimated 200,000 U.S. jobs this fiscal year to date. We will continue to widen our outreach to U.S. businesses large and small, to help them grow their profits through exports."

President Barack Obama's National Exports Initiative is a government-wide effort to put the United States on a path to sustained economic growth by doubling exports and creating 2 million jobs by 2015. To support this effort, Ex-Im Bank is continuing to expand its outreach efforts and make its financing products accessible to more exporters.

Ex-Im Bank, an independent, self-sustaining federal-government agency, provides export financing that helps strengthen U.S. export competitiveness, and creates and maintains U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect exporters against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.

In fiscal year 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations.

In the first 11 months of FY 2010 (through August 2010), Ex-Im Bank authorized $21.5 billion in loans, guarantees and insurance.
source: http://bit.ly/ce8E9f

Five-Month High on Import Demand: Sugar and Cocoa also rises

Sugar extended gains, climbing to a five-month high, on speculation that countries including Indonesia, Russia and Pakistan will import more sweetener as adverse weather curbs production. Cocoa also rose.

Sugar importers in Indonesia, Southeast Asia’s largest buyer, may miss a target due to heavy rains, the government said Aug. 19. Russia’s production may be 20 percent smaller than forecast because of drought, and Pakistan said it may start buying the sweetener by December to make up for crop losses due to flooding.

“Supply conditions remain tight,” said Bruno Zaneti, a risk-management consultant at FCStone Group in Campinas, Brazil. “Also, funds are actively buying.”

Raw sugar for October delivery rose 0.12 cent, or 0.6 percent, to settle at 20.07 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, it touched 20.14 cents, the highest price for a most-active contract since March 10.

Refined-sugar futures for October delivery gained $2.40, or 0.4 percent, to $577.80 a metric ton on NYSE Liffe in London. The gain was the eighth straight, the longest rally since June 16.

“We have very low stocks of sugar around the world, and we have a number of weather problems that are threatening to affect production,” said Jonathan Kingsman, the managing director of Kingsman SA, a researcher and broker in Lausanne, Switzerland.

Hedge-fund managers and other large speculators increased their net-long positions in sugar futures in New York by 6.6 percent in the week ended Aug. 17 from a week earlier, according to U.S. Commodity Futures Trading Commission data.

Cocoa futures for December delivery rose $7, or 0.2 percent, to close at $2,834 a metric ton at 12:03 p.m. in New York.

In London, cocoa futures for September delivery gained 29 pounds, or 1.4 percent, to 2,090 pounds ($3,247) a ton, rising for the first time in seven sessions.
Source: http://bit.ly/9NJdDu

Cotton Exports Without Licenses in India

the world's second-largest cotton supplier, will allow cotton exports without mandatory licenses from the next marketing year starting Oct. 1, a government order said Tuesday, likely boosting the country's shipment and prices. But the contracts for cotton exports will have to be registered with the Textile Commissioner before shipments are made, the government order said.
The government currently controls cotton exports by granting licenses for individual shipments and gets an export tax of INR2,500 per metric ton. "Exporters are going to be active, which means the market is going to be strong. Prices will firm further up in the local market," said A. Ramani, joint secretary of the South India Cotton Association.
Cotton prices in India surged 12% in August to hit a record INR33,000 ($709.7) per 356 kilograms Tuesday, extending a rally from last month when the government allowed exports of around one million bales of 170 kg each that had been stuck because of a ban, said two senior industry officials. Ramani said the unrestricted export policy will boost the supplies to China and Pakistan, which has been hit by floods. China is the largest importer of Indian cotton by volume, accounting for more than 70% of shipments, followed by Pakistan, Bangladesh and Thailand.
India in May 2010 lifted the month-long ban on cotton exports, but put in place stringent export rules by introducing a licensing system as the government wanted to strike a balance between adequate cotton supplies to local mills and fair returns to farmers. According to official data, traders shipped 7.38 million bales from Oct. 1 to July 31, boosted by a recovery in global demand. Before the ban was briefly imposed in April, exporters had contracted to ship 8.52 million bales.
In the last marketing year that ended Sept. 30, the country's cotton exports fell 60% from a year earlier to 3.5 million bales amid the global economic downturn. Ramani said Indian cotton, despite running high in the physical market, is still cheaper than any other globally competitive variety and buyers will definitely turn to India to source their requirement.
Source: http://bit.ly/a8b2iR

United States Stands to Gain Wheat Forfeited by Russia

The United States stands to gain a good share of the wheat export market that Russia is forfeiting due to the Russian government's decision to halt grain exports until the end of the year, according to John Anderson, an economist with the American Farm Bureau Federation.

The Agriculture Department yesterday released its August World Agricultural Supply and Demand Estimates or WASDE report. In the report, USDA projected a huge drop in Russian wheat exports for the 2010-2011 marketing year: 3 million metric tons, compared to 18.5 million metric tons, in the 2009-2010 marketing year. Russia decided to exit the grain export market this year because of a serious drought that is reducing crop prospects.

"This is a jaw dropping reduction in exports for Russia," Dr Anderson said. "And because the United States is expecting a good wheat crop with good stock levels, our farmers stand to take up a big share of wheat exports that would have gone to Russia." Read more

Supreme Court: Secondary Packing is not Part of Excise

In a breather to the assessees, the Supreme Court has ruled that the cost of secondary packing for the purpose of convenience of customers and transportation of goods cannot be included in the value of the goods for assessment of excise duty.
The court partly allowed the appeal of the assessee , National Leather Cloth Manufacturing. It was engaged in the manufacture of coated fabrics. The price of goods declared by the assessee in the price list, as required under Rule 173C of the Central Excise Rules, 1944 was approved by the Revenue from time to time.
However, in the two revised price lists, of November 12, 1980, the assessee indicated that prices declared by it contained certain post manufacturing expenses, which had to be excluded while computing the value of the fabric for the purpose of assessment to excise duty.
The claim was rejected by the Adjudicating Authority on January 7, 1981. Thereafter, the assessee, made a claim of consolidated refund , amounting to 40,18,805.60 for the period from November 13, 1977 to November 12, 1980, representing differential excess duty paid by it on various elements of post manufacturing expenses.
One of the deductions so claimed was on account of cost of material used for packing the final product. The Central Excise department did not responded to such claim. Then, the assessee, moved the Bombay High Court seeking direction for refund along with interest. The adjudicating authority on April 12, 1984, rejected the claim for excluding the cost of polythene bags, printed as well as plain, and hessian cloth used for packing the fabrics.
According to department, packing of coated fabrics in polythene bags for delivery to the customers located in Bombay as also packing of such rolls in hessian cloth and stitching them into one bundle for dispatch to up-country customers was in the normal course of trade and, therefore, there was nothing special about such packing so as to exclude its cost from the value of the fabric.
Then assessee amended the petition to challenge the rejection order of the authority. The high court, however, dismissed the petition and affirmed the order of the department. The high court in its order had said, the denial of deduction on account of secondary packaging from the assessable value as post manufacturing expenses was justified. It is not the case of the assessee that the secondary packing was of a durable nature and returned by the buyer to the assessee.
Source: http://bit.ly/chxblS

United States Trade Deficit Unexpectedly Rises

The U.S. trade deficit unexpectedly widened in June with exports posting the largest drop in more than a year, the Commerce Department reported Wednesday.
The trade deficit rose to 49.9 billion dollars in June, an increase of 18.8 percent from May. That was the highest level since October 2008 when the deficit stood at 59.4 billion dollars. Economists had expected a decline in the trade gap due to lower global oil prices.
Imports rose 3 percent in June to 200.3 billion dollars, while exports dropped 1.3 percent to 150.5 billion dollars, the largest decline since April 2009.
The gain in imports reflected growing U.S. demand for foreign goods and services as the economic recovery unfolds, while the decline in exports indicated that demand from overseas markets may provide less support for the U.S. economy than previously anticipated.
June's export data may bring a blow to the Obama administration's export enhancement strategy, something heavily touted by the president as a useful weapon to prop up the economy.
Obama launched the National Export Initiative during his State of the Union address in January as part of a broad economic plan to stimulate economic and job growth, with a goal of doubling exports over five years.
Source: http://news.xinhuanet.com/english2010/world/2010-08/11/c_13440659.htm

China's Export Value Hits Record US$145.52 bln in July

China, the world's largest exporter, saw its export value jump 38.1% year on year to record US$137.4 billion in July this year, according to statistics released by the General Administration of Customs.

Last month, China's imports grew 22.7% year on year to US$116.79 billion, bringing the country's foreign trade value to record US$262.31 billion in the month.

In the first seven months of this year, the country's value of imports and exports jumped 40.9% year on year to US$1.62 trillion. China exported US$850.49 billion worth of goods, up 35.6% year on year, while the import value increased 47.2% to US$766.56 billion. Trade surplus decreased 21.2% to US$83.93 billion during the period, according to the statistics.

In the first seven months, the value of exports and imports in ordinary trade increased 44.3% year on year to US$812.11 billion, including US$390.12 billion in export value and US$421.99 billion in import value.

Total bilateral trade value between the EU and China rose 36.6% year on year to US$263.16 billion, and trade value between the U.S. and China was US$207.23 billion. Japan is the third-biggest trade partner of China with total trade value of US$161.71 billion.

Guangdong Province ranked first with US$413.93 billion in terms of total trade value in the period, followed by Jiangsu Province, Shanghai and Beijing with US$255.8 billion, US$204.32 billion and US$169.52 billion, respectively.

Source: http://www.chinaknowledge.com/Newswires/News_Detail.aspx?type=1&cat=INS&NewsID=36117

Bulgaria's Export to China Up by 240% in January-May 2010

Bulgaria’s export for China grew by the staggering 238% in the first five months of 2010 year-on-year.

According to data released recently by the Bulgarian National Statistical Institute, in January-May 2009, the Bulgarian export to the People’s Republic of China amounted to BGN 50.3 M, whereas in the same period of 2010 it is already BGN 170 M.

Bulgaria exports to China some hi-tech equipment items as well as copper ores and concentrates, copper alloys, lead, wines, yogurt leavening agent, cigarettes.

In the first five months of 2010, Bulgaria’s import from China declined by 18.2%. Its January-May 2009 export amounted to BGN 420 M, while it went down to BGN 343 M for the same period in 2010.

Thus, Bulgaria still has a huge trade deficit in its trade with the People’s Republic – BGN 173 M in January-May 2010. There is, however, a notable improvement from the deficit of BGN 369 M registered in the same period of 2009.

Single year's corn import quantity exceeds past decade's

Though as a large, self-sufficient grain producer, the quantity of corn China has imported this year was more than the total amount of the past 15 years, making it a 10-year record, according to media reports.

Data from China customs showed that from January to May of this year, the country had imported 23,500 tons, while the amount for the entire last year was of 2,150 tons.

According to Huang Liqun, with a Shanghai-based consultant firm, the reason of such increase is the 20-percent corn-output decrease in the country's Northeastern region, and a considerable increase in corn-processing demand.

The occasion is causing farm owners to leap with joy. But their enthusiasm is likely to be hit by the overseas market. Enjoying government protection, China's corn prices have maintained at high prices, while the US's corn prices were much cheaper than those in China, an insider at a Jilin-based corn-processing firm said.

In addition, 60 percent of all imported corn is genetically modified (GM).

Some analysts argue that opening up the door for corn imports can curb the high prices, thus, the country will be able to stabilize the domestic market through the international market. Some others object by saying that China should be in favor of farmer's benefits and protect them.

Import and export prices decrease in June

U.S. import prices declined for the second consecutive month in June, decreasing 1.3 percent. The drop was driven by declining fuel prices, although a downturn in nonfuel prices also contributed to the overall decrease. Export prices also fell in June, edging down 0.2 percent following three consecutive monthly increases.

In June, prices of U.S. imports fell 1.3 percent, after a 0.5-percent drop the previous month. The decrease was the largest monthly decline since a 1.3-percent decline in January 2009, which was also the last time the index fell in consecutive months. Despite the recent declines, import prices advanced 4.5 percent for the year ended in June.

Import fuel prices fell 4.0 percent in June, after a similar 4.1-percent decrease in May. The June decline was led by a 4.4-percent drop in petroleum prices and was the largest monthly decrease for that index since a 4.6-percent drop in January 2009. Partially offsetting the decline in petroleum prices, natural gas prices rose 1.5 percent in June. Despite the recent decreases, overall fuel prices increased 11.6 percent over the past year.

In June, the price index for import prices excluding fuel fell 0.6 percent, the first monthly decline since a 0.2-percent decrease in July 2009 and the largest since a 0.6-percent drop in March 2009. A 1.5-percent downturn in nonfuel industrial supplies and materials was the largest contributor to the June decline. For the 12 months ended in June, nonfuel import prices advanced 2.8 percent.

Higher import, export growth seen for 2010

ECONOMIC MANAGERS have become more optimistic about this year’s trade prospects -- a view supported by latest data -- but top exporters are tempering their expectations given continued global uncertainty.Officials said the interagency Development Budget Coordination Committee (DBCC) on Friday approved a recommendation to raise this year’s export and import growth targets, ahead of yesterday’s announcement of a 37.3% export surge in May.

The government now expects 2010 outbound shipments to grow by 15% to $43.1 billion, up from the 12% forecast (equal to $42 billion) approved last month, a DBCC document obtained by BusinessWorld showed.The 2010 import growth target, meanwhile, was raised to 20% from 18%, or $55.7 billion from $54.7 billion previously.

The latest assumptions mean a projected trade deficit of $12.6 billion this year, the widest since 2000 but narrower than the initial forecast of $12.7 billion. The trade gap was $4.7 billion in 2009.The Philippines last recorded a trade surplus in 2000, amounting to $3.6 billion.

Source: http://www.bworldonline.com/main/content.php?id=14180

Import and export prices rise in Spain for the sixth month in a row For Industrial Sector

The import prices of industrial products, in May, rose 10.2% over the same month in 2009, while exports rose 5.5% percent, which both accumulate six consecutive months of increases.

The activities that most influenced the year-on-year growth of export prices in May were metallurgy, with an annual rate of 27.3%, the paper industry, with a rate of 12.7% and the chemical industry, which had a rate of 6.6%.Industrial import and export prices rise in Spain for the sixth month in a row.

According to data released today by the National Statistics Institute (INE), the prices of imports rose by more than two points in May compared to April, mainly by the extraction of crude oil and natural gas sector, whose rate rose to 39.3% this year because prices have been higher than the same month of 2009.

Regarding exports data the activities that most influenced the rise, which was more than one point to April, were mainly due to the metal, manufacture of iron, steel and ferroalloys, which stood at an annual rate 27.3% due to higher prices this month in connection with the decline that occurred last year.

Exchange rates in Ukraine does not change

According to NBU, for I quarter 2010 financial institutions were able to earn foreign currency transactions of 337 million UAH., Or less than 10% of their commission income. This is less than that of the first quarter of last year, more than 5 times. Back then, “monetary” income of banks amounted to 1.8 billion UAH. Or more than 46% of total fees. Overall, in 2009 the Bank received from foreign currency operations 4.1 billion UAH., Or 25% of total commission income.

At the same time, market participants are referred to as other reasons for the reduction of income, than the stability of the hryvnia exchange rate against the dollar. According to participants, their earnings have decreased because of regulatory innovations.

“The main factors – the increase PF levied when buying foreign currency, as well as sufficiently stringent standards of the NBU in the amount of open foreign currency position,” – says Mr. Molodkin.

Indeed, since 2010 more than twice the fee was increased to the Pension Fund, levied when buying non-cash currency. This was due to the failure within the state budget for the current year. If in 2009 this collection amounted to 0,2% of the amount of currency purchased, then this year during the first five months – 0,5%. Note: the Law on State Budget-2010 provides complete abolition of the levy on 1 June. However, the new rules of calculation of currency positions, approved by the NBU in the spring of 2009, significantly restricted the ability of banks to buy foreign currency on its balance sheet for the implementation of speculative transactions.
Eurosceptics claim

Recently, domestic banks appeared prerequisites for earnings on the euro. As previously reported, the euro against the dollar (and, accordingly, the hryvnia) ranges from 1,21-1,26 USD / EUR. However, bankers can not yet boast of significant earnings. The reasons for this situation is called multiple. “Firstly, our own position on the euro in banks is much less than a dollar. Secondly, the euro is less than a dollar, is used in international payments. In this regard, the bank can not earn a lot of the exchange rate difference when buying foreign currency for customers. Third, the euro is difficult to predict, therefore, unlikely someone understands what it will be tomorrow, “- says Pavel Krapivin, first deputy chairman of the bank” Contract “(Kiev, since 1993, 130 people). . As is known, the total foreign exchange revenue banks receive from the sale and purchase transactions in the interbank currency for corporate clients, their own arbitrage operations within the limit of foreign exchange position, as well as from trading cash currency. This bank fees from the purchase of non-cash currency on behalf of clients are often determined individually, depending on the volume of operations. However, the average tariff is about 0,5% of transaction amount. Recall: in addition to commissions for buying and selling currencies client bankers traditionally earned on exchange. So, buying on behalf of the client’s currency on the interbank market for one course, they actually sell it for that client at a higher rate. This “currency” proceeds the financial institutions do not always depend on the volume of transactions. In this regard, revealing that the circulation of non-cash market in the I quarter of this year grew from month to month.

Read more: http://globalist.org.ua/eng/1443333-ukrainian-banks-cant-earn-on-the-difference-in-exchange-rates

World markets mixed amid China trade data

World stock markets were mixed Thursday, with strong Chinese trade figures to strengthen confidence of some investors, while others from riskier assets on fears that the oil giant could BP in bankruptcy over the Gulf of Mexico oil spill directed.

Oil extends gains above $ 74 a barrel, with prices jumping to a fall in U.S. crude inventories and after Federal Reserve Chairman Ben Bernanke said economic recovery in the U.S. remains on course. The dollar weakened against the yen and the euro enjoyed a slight increase compared to the greenback.

Wall Street was formed to a sell-off on Wednesday, with Dow futures rally to 33 points or 0.3 percent, and the broader Standard & Poors 500 futures up 6.2 or 0.6 percent, to 1,061.80 .

Shares were lower in early European trading opens, with the FTSE 100 index of leading British shares of 0.3 percent, in Germany the DAX off 0.4 percent and the French CAC-40 lower by 0.4 percent.

Better than expected trade data from China helped buoy markets in Asia. Imports and exports both rose by almost 50 percent in May over a year before in a positive sign for growth in the world's third largest economy.

"Chinese export data seemed very encouraging, at least on the surface," said Ben Kwong Man Bun, chief operating officer of KGI Asia Ltd in Hong Kong. "The market is not as anxious as before."

Japan's Nikkei 225 Stock Average added 103.52 points, or 1.1 percent, to 9,542.65. The Nikkei was down as the government said the Japanese economy - the world's second largest - grew a revised 5.0 percent in January-March quarter, up from an earlier estimate of 4.9 percent growth.

South Korea's KOSPI index closed up 4.48, or 0.3 percent to 1,651.70 while Australia's S & P / ASX 200 was up 1.1 percent at 4,435.3. Hong Kong Hang Seng was up 0.1 percent to 19,632.70. Benchmarks in Singapore, Taiwan and New Zealand also ended the day.

However, the Shanghai Composite Index went up by 0.8 percent to 2,562.58, with some investors expect negative headlines when China releases its inflation data Friday, "said Castor Pang, Director of Research at Cinda International in Hong Kong. Numbers are likely to show up 3 percent in consumer prices, and traders are worried that Beijing may, by clamping the other to respond to credit.

"China's stock market is not on stage very well, although export of data is excellent," said Pang. "Investors are still cautious."

Export Import From China

Exporting from China without any local representation or By establishing a sourcing presence in China It is important for companies to understand what strategies are available and how these structures could fit into their existing business models.

Outsource all export activities in China

Sourcing with no representation Many foreign companies may feel that in today's global economy, it is vital for their business to be present in the rapidly growing Chinese market. Not every company, however, has the resources to immediately set up their own entity or send expatriate staff to China. At the same time they may not feel complete loyalty from the local suppliers, trading agents and logistics providers.

A foreign company has the option of establishing a network of logistics providers all around China to assist in the export of goods as suppliers are located in various regions of China. Sourcing in China without any local warehousing facility is naturally the first step for many, but if any company wishes to expand and use the full potential of the China market, a local presence may be unavoidable as consolidated shipments may be required to customers all around the world.

Looking for an appropriate agent The greatest challenge for foreign buyers is to find dedicated, reliable, professional and credit-worthy agents. A long-term, focused and consistent strategy is needed to access and profit in the market. An agent could be a manufacturer who is in a similar field as the foreign company or an import/export company that is well established in the field and has connections and an extensive network with suppliers. Agents both buy and sell the products, or they act as commission agents receiving a sales commission.

A first step towards a buying representation in China would be to identify an agent who will search for reliable suppliers on the Chinese market; however this is not always a recommended method as the agents can be in conflict due to sister companies which produce similar products.

Outsource your "Buying Office" Service providers have developed services where the foreign company can utilize outsourcing services in order to establish their own buying and consolidation network without having to set up their own entity with fixed cost, or loose control over the order transactions to a local agent or logistics provider. As a second step, companies with their own representation can also outsource their local sourcing, invoicing and warehousing.

This effective outsourcing solution provides the foreign company with a customized outsourcing service for a smooth and trouble-free market entry. The foreign company may continue to utilize the service providers for as long as they wish. Usually, after a few years, clients have gained significant experience and access to the market, and are ready to set up their own entity. At this point it will also be possible for the foreign company to then take over the employees, which so far have been working for them in China within the service provider's structure.