Archive for the Budget 2016 Category

Season Begins for Pieces

Indian exporters are purchasing W240 at Rs7000+VAT/excluding packing/11.340 kilo and W320 around Rs6350+VAT/excluding packing/11.340 kilo. Domestic pieces consumption is also increasing because of the wedding and ice-cream season. Market may witness pieces shortage in the second half of April. Indian calendars prohibit auspicious celebrations in May and June but some important state elections and ever […]

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W320 Towards $4.00/Pound ?

During Olympics 2012, there was a huge demand for cashew kernel but prices rose after the Olympics. This was mainly because of heavy piled up stocks. This Olympics is hosted in Brazil which is the origin of Cashew. However this time there is no piled up stocks unlike earlier. There is an existing shortage of […]

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Is Import Duty A Waste Step ?

According to market rumors, duty free or under preferential rate of duty raw cashew import is possible from some African and Asian countries because of the Indian customs notification dated 1 September 1989. Global trade experts think that the notification is still valid due to the preferential trade agreement which India has with those countries. In coming days, neighboring traders will also […]

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Alternative to Import Duty (3)

Fixing a price limit on reckless imports requires strict quality control. In the export contracts, the final out-turn or the filling out turn should be above 21.5%. ( If possible it is better to assess the cutting out-turn during the customs clearance and it should not be below 27.5%). Find our price limits below – […]

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Aternative to Import Duty (2)

Government of India is not a trader. Protesters cannot ask the Govt to supply international raw cashew at a reasonable price. But the Government can fix a limit on the import prices based on quality and filling out-turn. 1) Any kind of statutory price limit on the imports should be aimed at stopping the erosion […]

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Alternative to Import Duty (I)

The very name of Cashew Export Promotion Council of India suggests its duty. When the raw cashew import crossed the yearly export volume and became a huge burden on country’s Forex reserves, the council has to suggest necessary steps to the Government in order to control reckless imports. So instead of protesting against the CEPCI, […]

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Duty free Import of Cashew Nut Should Not be Allowed Under SAARC Billing

According to market rumors, cashew kernel import from SAARC countries is on increase in India. Indian domestic pieces market is struggling because of such imports. If this is true, then the import tax becomes meaningless. In coming days, even duty free raw cashew may enter India through the SAARC route. Therefore, Duty free import of […]

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Two Specific Schemes to Save on Customs Duty (2)

There is also a scheme for exporters to claim the refund of Customs duty paid on raw cashew. The refund is available after the export of processed kernel. But in this scheme imported raw cashew should be required to be processed for export. Exporter can claim Drawback by submitting duty paid receipts after completion of each export […]

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Two Specific Schemes to Save on Customs Duty (1)

If the imported raw nuts are to be used for further export after processing, the best scheme is Advance Authorization Scheme. Despite this scheme disallows Drawback of 1% Rate, kernel exporters can import their requirements under duty free basis. But they have to follow export obligations both in terms of quantity and amount – Under […]

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Special Additional Duty and Cashew Industry (2)

Customs duty is different on raw cashew and cashew kernel. So if the customs or central sales tax department declare both as separate commodities, problems may arise in getting SAD as an input credit under CENVAT or in any other central scheme. This was the real problem in some Indian states during the state sales […]

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Special Additional Duty and Cashew Industry

Special Additional Duty is a Indian customs levy to support VAT and domestic trade. Domestic trade is covered by VAT and CST but importers pay VAT only when they sell the imported goods with in the Indian territory. As there is no VAT during the import stage, SAD or Special Additional Duty acts as a substitute […]

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Clear View is Necessary on Special Additional Duty

Raw cashew import in India now attracts 5% Basic Duty + 4% Special Additional Duty + cess But among these charges 4% SAD is refundable subject to some conditions. Most probably, refund is easy if it is deducted from the monthly VAT or CST bill when the imported raw cashew is resold as it is. […]

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Breaking News : ‘9.36%’ Import Tax on Raw Cashew?

According to some budget analysts, import duty on raw cashew will be 5%+extra charges+cess from 1st March 2016. Thus the total tax on raw cashew imports will become 9.36%. – West African raw cashew sector may suffer heavy losses in this season.

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Indian Budget 2016-17 : Interesting Factors

Indian finance minister will present the union budget on Monday, 29 February 2016. He can not shift to GST rates before passing the GST in both houses of the parliament. So he has to present the budget for FY 2016-17 in accordance with the existing tax system. That means, the system will continue for some time. Therefore even if […]

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