Govt notifies new duty drawback rates from 1st Oct

New Delhi: The government on Friday came out with modified duty drawback rates for exporters, evoking sharp reaction from the apparel industry which will witness reduction in tax refunds.

The new all industry rates of duty drawback, the refund of duties on imported inputs for export items, will come into effect from 1 October.

The new refund rates for garments will come down to 2% as compared to the 7.7% drawback available till now, said Apparel Export Promotion Council (AEPC) in a statement.

“This low rate is unexpected as this body blow is coming at a time when the industry is facing continuous decline in exports due to global conditions, rupee over-valuation and uncertainties post the GST regime,” the garments exporters’ body said.

AEPC chairman Ashok G Rajani said the drawback was one of the key policy support measures towards lifting industry’s cost competitiveness in the wake of above slew of factors adversely affecting the sector.

With this steep decline in the drawback support, over 7,000 small and medium enterprises in the apparel exports will be crippled and doomed in uncertainties, he said.

The drawback rates for a host of items, including toys, furniture, musical instruments, aircraft, and vehicles, effective 1 October has been notified by the revenue department.

Source: livemint

Interested in Airline Rates? Here’s something, Hurdle Rates and Flight Capacity Utilization!

We recently asked an European Carrier for a Spot rate on a big shipment. The airline gave a quote and as we insisted that price was the critical factor on this shipment the carrier asked us to handover the shipment against which they will review further reduction. Subsequently, the carrier did confirm a reduced price.

In certain instances, ever wondered how we have reduced price after we had quoted or sometimes after the shipment has been handed over to the carrier? Yes, when the airline reduced the rates in such instances, we have passed on the benefit to our clients. However, what’s the logic beyond our relationship with the carrier?  

Hurdle Rates!

In layman’s term Hurdle rate is a dynamic minimum bid rate generated using automated business technology. It’s computed based on Customers bidding across the globe on a specific carrier, being dynamic changes on a day to basis and and encompasses a route or sector. Based on the Demand and Capacity this hurdle rate is computed.

Hurdle rate ensure optimized revenue to the airline on any given day for handling cargo. The system will determine whether rates established by Customers satisfy the hurdle rate criterion, if not the booking will not be accepted.

What does this mean from a service perspective?

Flight Capacity Utilization

Automated acceptance would be based on a validation of the shipment value against the yield-performance profile of each flight. The over-arching objective of flight capacity optimization is to ensure that low-value shipments are assigned to lower-demand flights and that capacity on high-demand flights is protected for higher-value shipments.

This is where if price negotiated is on low yield for the airline this would mean that the service I.e. transit and schedule in all probability is impacted. Higher yield shipments get priority over that of lower yield shipments.

Another key aspect of hurdle rate pricing is also whether the shipment is dense or volume. Volume shipments generally end up with higher hurdle rate meaning that the pricing is significantly higher. 

Most carriers now use automated business technology driven tariff management and flight capacity utilization to run cargo operations.

This means one day you could have a particular price and the next time a different one for the same sector on the same carrier. Its all about supply and demand!

Service Tax effective 01st June 2015

The rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)

Source: CCHAA

Dubai airport 80-day runway closure details

  

With the 80-day closure of two runways affecting flights at Dubai International Airport from May 1, airlines shift operations to different UAE airports, or scale back capacity.

The airport closure also affects Cargo operations routed via Dubai due to reduction in number of flights.

Dubai Airports has confirmed it has reduced the number of flights by 26 per cent to accommodate all flights on a single runway without disruption, with 17 airlines reserving slots for flights at the new Dubai World Central – Al Maktoum International Airport during the period.

While Emirates has stated the runway closure will affect 5,400 flights, flydubai will have a selected number of flights operating out of DWC.

Importance of long-term & trusted Freight Forwarder

As we approach the peak of globalization, it becomes more important that we examine the critical factors that will determine our ability to survive extreme competition in the international markets. In this instance, the choice of transport, sea and air, and their logistical coverage takes on added significance in keeping a-breast of the competition. According to some observers, this choice will have a 70 – 80 per cent bearing on the success, or failure of a venture.

Nevertheless, most shippers still fail to make a point of studying their logistical service provider. The most common mistake is to take ad-hoc decisions of shopping around each time as and when they have exports, making and breaking agreements on the basis of price differences. This approach runs contrary to building up strong partnerships that can lead to unseen colossal savings in freight costs. That most of our exporters do not see a long term benefit of building up links and prefer to chase after short-term cost savings may be termed as a classic case of ‘penny wise, pound foolish’.

Compounding the issue are developments in international trade that have removed protective measures that have been enjoyed by certain sectors. Sever competition will continue to pose a threat to each of our Export sector. Under the circumstances, it would be wise to re-examine our strategies in order to decipher weaknesses and strengths and also identify new opportunities.

With regard to the transport related factors, it is vital to establish a long-term and trusted freight forwarder.

Source: RIU

The following in our view remain some of the important forwarder parameters

1. Service Reliability

2. Customized Service based on the Sector and Client

3. Relationship and Understanding of the Carriers (Air & Ocean) (i.e. understanding of Carrier strengths on certain routes, space available, onward connections and transit times, rates and service tradeoff etc…)

4. Technology and Administrative service (Ability to handle, update and manage the Pre and Post Shipment services)

5. Global Understanding (Global Economics, Sector, Business, Cross Cultural etc.)

6. As a Consultant to the Client in making recommendations based on experience and facts to enable effective decisions.

What was the Problem?

Taxiing down the tarmac, the jetliner abruptly stopped, turned around and returned to the gate.

After an hour-long wait, it finally took off.

A concerned passenger asked the flight attendant, “What was the problem?”

“The pilot was bothered by a noise he heard in the engine,” explained the Flight Attendant, “and it took us a while to find a new pilot.”

Source: Jill

Customs Drawback Notification

With a view to expedite drawback to the exporters, as per this (attached) customs notification,

1. Exporters are given 14 days to respond to the queries (if any). For those queries that remain unanswered for 14 days or more the proper Officer shall process and decide such claims on the basis of available records without any further reference to the exporter concerned.

2. All claims pending, as on date, shall also be decided accordingly, in case the exporters do not furnish the requisite reply within 14 days from the date of notification. Date of Notification 09.05.2013

All India Transport Strike Notice

Export warehouse congestion at Mumbai airport.

Due to a Custom Clearing Agents strike held on 20th & 21st Mar, which was followed by a Mumbai Custom's system failure, the export clearance process for general cargo had been stopped.

Since, 22nd March the export clearance process has been facing delays which had resulted in more than 500 trucks queued up outside the cargo terminal to discharge export cargo.

Today, 26th March more than 10 Reefer truck have queued up so space during the day will be an issue, in addition to this a little over 100 trucks have already queued up outside the cargo complex waiting to discharge their export cargo.

Tomorrow, 27th March is Public holiday in Mumbai (BOM) on account of the festival of Holi, situation is likely to get worst today as agents will try to clear maximum of their cargo today. However, there is not much impact on exports of Fruit, Veg and temp control Pharma traffic as these are handled thru a different terminal

There are no issues for Imports into Mumbai (BOM) as well, so please forward cargo into Mumbai (BOM) as normal.

Please be informed, due to the above reasons the export warehouse at Mumbai (BOM) airport is full and heavily congested, this could possibly delay the exports ex Mumbai (BOM).

Source: Emirates SkyCargo

Karnataka Goods Transport Association . Strike Notice

Karnataka Good Transport's Association . Strike Notice

Public Notice . Commissioner of Customs Bangalore (Export Drawback)

Please take a few minutes of your time to read through this public notice issued by the Commissioner of Customs Bangalore yesterday, pertaining to areas of drawback.

The document clearly outlines the documents and the areas that the shippers need to complete for release of drawback and in the event the conditions are not fulfilled in certain instances the drawback will be considered at zero rate.

Commissioner Customs_Air Cargo Bangalore_Drawback

Chennai Port updates….

Operations at the Chennai port came to a standstill on Wednesday afternoon, following a tsunami alert issued for the entire Indian Ocean. Port operations were suspended in the afternoon and work was resumed late evening. All feeders currently in Chennai will face delays in sailing resulting in missed connections.  This will have a cascading effect on forth coming feeders.

1. Yard inventory at CCTL is at manageable level. 

Imports – 3027 units / 4581 TEUs,  Exports – 2692 units / 3729 TEUs

All road leading to the port continue to be chocked with queues of around 10 to 15 km longs.

APL

Chennai Port Strike . Update…

Understand that the strike has been called off while ago but the port decide to stop all the export vessel operations (vessel berthing) until 02^nd of April due to severe back lock of import containers inside the port which will in turn affect export planning.

Carriers are in the process of giving detailed advisory on further planning. Update from Chennai Container Terminal

Terminal update

Please be advised that yesterday afternoon due to an altercation between an
external trailer operator transport staff and  Chennai Port's CISF Security
staff, the total import and export trailer movement to and from the
port/terminal has come to a standstill.

Attempts were made to resolve the issue by the concerned agencies, but could not able to come to an understanding, which has added strain on terminal efficiencies resulting in high intensity of trailers and containers piled up in the container terminal
thereby also impacting vessel productivity.

With the present inventory levels 7000+ TEUs of Imports and with window
vessels arriving on proforma, we believe that inventory levels will exceed
beyond the manageable limits.

Hence, in view of above scenario and to restore normalcy at the earliest we
have taken following measures :

       1.    Suspend all vessel berthing/operations with immediate effect
for 3 days, till Monday, 2nd April 0600 hrs

       2.    Focus on evacuating imports and bring down to import
inventories manageable levels of 3500+ TEUs.

       3.    Allow export carting period between 3 days and 3.5 days
depending upon the service.

       4.    Issuance of Form 13's between 800  and 1000 for the time being
depending upon the vessel parcel size.

    5. Once we commence Vessel operations, we will berth two vessels.
With above measures, we expect to restore normalcy at the earliest.

T Global / Chennai Container Terminal

Chennai Port Strike

Please be informed that due to a clash between Truckers and Security officials at Gate around 1630 hrs Y’day, The Truckers stopped all the movements and called for a flash strike around 1700 Hrs, due to this most of the trucks were Held up at CY which caused the vsl operators also since the delivery stopped CCT find it difficult to destuff containers from the vsl due to space constrain and finally Vsl operators also stopped by 1830 hrs, all in/out movements including Vsl Operators standstill.

Please find attached the press report for your kind info/ref.

CCT officials started talking with the Truckers and the security officials till late night but couldn’t succeed.  However, the Chairman of Chennai Port have called for meeting Today morning to discuss further/sort out the issues.

Team Global

Chennai Port Update..impact of Strike…issues

Arising out of the recent issues between the trailer driver and custom officials, there has been a significant drop in the Gate productivity as the Customs have tightened up activities at the gate.

This is leading to another spate of congestion and productivity loss inside the Port, increased Port stay, erratic schedules and missed connections.   

The roads leading to the Port are complete choked with export queue of approx. 15 km long..

The situation inside the second terminal is normal, however Export containers are facing delays due to the long queue.

APL