To give a push to e-commerce exports the government has also decided that the Electronic Bank Realisation Certificate (EBRC) will be self-generated from now.
The government on Friday exempted from imported goods that are used as inputs for exports from stringent quality control norms.
To give a push to e-commerce exports the government has also decided that the Electronic Bank Realisation Certificate (EBRC) will be self-generated from now. Earlier EBRC issued by a bank as confirmation that the exporter has received payment from the importer against the export of goods. For issuing EBRC certificate banks charge a fee of around Rs 1500. EBRC is an essential document for claiming export benefits.
“This (self generated EBRC) will help small exporters especially e-commerce exporters whose shipments are in small volumes and margins are small,” Director General and Chief Executive Officer of Federation of Indian Export Organisations Ajay Sahai said.
Announcement of both these decisions came after the review meeting of export scenario by Commerce and Industry Minister Piyush Goyal with different export promotion councils.
The exemption from mandatory quality control orders (QCOs) for imported inputs for exports have been a long-standing demand as it adds to costs.
The QCOs are applicable to products domestically manufactured as well as imported. Every manufacturing unit in and outside India has to comply with the QCOs if they want to sell locally. The focus of the government is to bring more and more products under the ambit of QCOs for the development of the quality ecosystem in the country and to provide the consumers with quality products. This also checks imports of poor quality cheap products into the country and provides protection to domestic industry.
Sahai said that despite recent geopolitical disruptions and the crisis In the Red Sea, this year’s goods and services exports will touch last year’s level of $770 billion.
He said despite the Red Crisis the impact on shipments have not been much as an increase in shipping costs has hit India and its competitors in Southeast Asia equally.
As the conflict in the Red Sea still continues there has been a further increase in freight rates to the US of another $1000 for a 20-foot container early this month. Now it costs $8000. Rates of transportation of a container to Europe are now $4400.
