Import/Export Industry Notifications

RBI Governor Press Conference Highlights:

1. Repo rate reduced by 75 basis points to 4.4%
2. Rev repo reduced by 90 basis points to 4%
3. GDP growth for Q4 19-20 and FY 20-21 to be affected
4. Aggregate demand may weaken
5. Future outlook uncertain and negative
6. CRR reduced by 100 basis points to 3% for 1 year to release 1.37 lakh crores
7. Min daily CRR balance reduced from 90% - 80% till 30/06/2020
8. 3.74 lakh crore liquidity injected
9. 3 month moratorium on payment of instalments of Term Loan outstanding
10. Interest on WC facilities to be deferred by 3 months
11. Such deferment not to be considered for NPA
12. Revised DP calculations by reassessing WC cycle
13. All measures not to effect credit history
14. Total liquidity injection 3.4% of GDP

Given the COVID-19 pandemic, the major Indian ports including Adani Ports have declared force majeure at its facilities. During this period, the port will not be responsible for any claims, damages, charges, etc. directly or indirectly. It could include vessel demurrages or any other delays. Accordingly, the discharge rate guaranteed under the agreement shall also not be applicable for all vessels to be handled at the port for any delay or disturbance.

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The department of commerce in Indian Government has issued a notice announcing that export of surgical/ disposable masks, ventilators and the raw materials used to make them, is prohibited indefinitely with effect immediately.

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  1.  Income Tax Related

• Last Date for Income Tax Return of FY 2018-19 extended till 30th June 2020
• Interest rate is 9% for delayed payments for FY 2018-19
• Delayed deposit of TDS will incur an interest rate of 9% instead of 20%

  2.  Vivaad se Vishswaas scheme, Aadhaar PAN linking & dates for notice filing is extended to 30 June 2020

  3.  GST-related Relief

• The last date for filing Mar-April-May 2020 GST returns extended to 30 June 2020
• For a company with less than Rs. 5 Crore turnover, no interest, no late fee and no penalty will be charged
• For companies with a turnover of over Rs 5 Crore will be charged with a reduced interest rate of 9%

  4.  Customs Clearance will operate 24*7 till 30th June 2020

  5.  Sabka Vishwas scheme for settling disputes in indirect tax regime is extended to 30 June 2020. During this period, people who are paying will have no interest.

  6.  Relaxation of a period of 60 days till the next two quarters for holding board meetings

  7.  No additional 10% charge on VivaasSe Vishwas scheme

  8.  IBC Section 7,9,10 may be relaxed

• The threshold for default has been raised to Rs 1 Crore

  9.  Compliance -related to Aquaculture

• The expiry date of all SIPs for import of shrimp brute and other aquaculture inputs have been extended for three months
• Delay up to one month of the arrival of shipment won't be considered as a delay
• Rebooking of quarantine cubicle for cancelled consignment in aquatic quarantine facilities in Chennai can be done without any extra cost.
• Verification of documents and grants of NOC for quarantine will be relaxed for 7 days to 3 days

 10.  Bank charges to be reduced for digital trade transactions for all trade finance consumers.

Takeaways from Finance Minister press conference, 3 months in focus

• Finance Minister announced a stimulus package of ₹1.7 lac crores, a mix of cash transfer and food security to help migrant, Urban and rural poor.
• Insurance cover of ₹50 lac per person to health/sanitization people working tirelessly to fight the virus.
• Extra 5kg rice/wheat per person every month at no price along with 1kg pulses per household for the next 3 months.
• PM Kisan – front loading the instalment to 86.9 mn farmers of ₹2000 quarterly payment.
• MNREGA – Wage increased to ₹202 per day from ₹182 per day benefit to 50 mn workers.
• Old age, Widows/ Divyang – ₹1000 per months for three months in two instalments, 30 mn people would benefit.
• Jan Dhan Yojana - 200 mn women to get ₹500 per month for the next 3 months.
• Ujjwala - Free LPG cylinder to 80 mn women for the next 3 months.
• Women Self help group - 6.3 mn to get ₹2 mn instead of ₹1mn as collateral-free loan.
• EPFO - 24% contribution from govt. For <100 employees cos with 90% earning salary < ₹15,000 per month allow withdrawal from PF account on a non-refundable basis.
• Construction workers - 35 mn registered workers,  ₹310 bn to be utilized.
• District Mineral fund - request States to use this fund for health welfare.
• While some benefits are part of current schemes, 3 months means preparing for a long battle.

Focus on social support and consumption in current measures

The world leader in shipping and logistics, CMA CGM group has closed a deal of Terminal Link joint venture with China Merchants Port (CMP) where 51% is owned by CMA CGM and 49% by CMP. According to this, the company reduce its debt increasing their liquidity. Also, they have managed to strengthen their balance sheet amidst the high uncertainty created by the global Covid-19 health crisis.

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A complete lockdown for 21 days in effect to the widespread of COVID 19 across the country, CMA CGM group of companies have closed down all their counters. They have also announced that the cheque and demand drafts will not be accepted until further notice and those that wish to make the payments can do so online by availing their E- payment facilities. Details for the same are available.

Click Here To See The Official Notification

Although the COVID-19 (Corona Virus) pandemic is spreading widely across the world, CMA CGM group of companies ensure that they will be taking utmost precautions to keep operations fully functional and provide the best customer service during these challenging days. Also, they strongly suggest that customers use their digital e-business platform for transactions, price, e-signatures, original e-invoice etc… without having to visit their offices or counters. Moreover, their customer services are fully prepared to provide tailor-made solutions in the coming days.

Click Here To See The Official Notification