Trade Policy Updates (From 09th Apr to 13th Apr 2018)
1) The Europe–Vietnam Free Trade Agreement (EVFTA) is expected to create momentum for the domestic textile industry to develop in the future.
2) Forty-Four African countries have signed the African Continental Free Trade Area (AfCFTA), which is expected to create a free-flow of goods and services across the continent.
Countries in Sub-Saharan Africa in particular, have been ramping up investments in apparel and textile manufacturing.
This will facilitate the movement of raw materials and inputs between one country and the next. This is expected to contribute to a more competitive manufacturing sector.
3) Bangladesh National Board of Revenue (NBR) wishes to set the tax at source based on export value, instead of on export return earnings.
Currently, the tax at source is based on export earnings, at a rate of 0.7%.NBR.
4) Once the EU-Vietnam FTA (EVFTA) is signed and the tariff is cut to zero percent, textile and garment exports to the market may obtain 7% to 8% growth rate per annum.
5) There are 1,300 products from China that will now face tariffs as high as 25%, which the U.S. has put in place, it could hit the textile sector in major.
Though the list doesn’t target apparel and footwear products directly, it does hit largely at the machinery and tools used to produce these products
6) The validity of an e-way bill will be counted from the day transporter fills in the details in the goods and service tax (GST) form for the first time.
7) India may extend the anti-dumping duty to jute sacking clothes from Bangladesh as the commerce ministry has found imports of the product to avoid duties on jute bags from the neighboring country.
8) E-Way Bill system for intra-state movement of goods in the states of Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh will be implemented with effect from 15th April 2018.
This is the first batch of 5 states where intra-state e-way bill will be made compulsory.
9) US-China trade tension appeared soft as China’s President promised to reduce tariffs.
10) The Authority for Advance Ruling (AAR) under the GST in Kerala held that merchant trade transactions, in which traded commodities never enter the country’s tax jurisdiction, are not liable to the GST as goods are never imported to India.
11) Pakistan recently put on hold the signing of a revised free trade agreement (FTA) with China at the last moment due to strong reservations regarding the final offer list shared by Beijing.