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TRADE & BUSINESS DEVELOPMENT:

• The Committee was chaired by Mr. S. K. Ray, Sr. Executive Vice President (Polymers), Reliance Industries Ltd.
• ICC submitted its Pre-Budget Memorandum for the year 2008-2009 to the Government of India.
• ICC delegation consisting of Mr. S. N. Singh, Mr. S. K. Agrawal, Mr. R. R. Gokhale, Mr. D. Sharma and Mr. R. Balasubramaniyan met Mr. S. K. Singhal, Chairman, Central Board of Excise & Customs and submitted Pre-Budget recommendations.
• Trade & Business Development Expert Committee during its meeting on 12 March 2008 reviewed the features of the Union Budget presented in the Parliament and noted that some of the recommendations made by ICC has been approved as follows :
  
  
  • No change in the peak custom duty
  • Reduction in the CST by 1%
  • Reduction in the Excise Duty
  • Reduction in the duty on Crude Sulphur


• Pre-Budget Memorandum for the year 2009-10 :
  
  ICC submitted Pre-Budget Memorandum and important recommendations made are as follows. The recommendations included all the previous suggestions made for overcoming the present crisis due to the meltdown. In addition following recommendations are made for consideration of the Government:
  • Capital goods for upgradation, modernization, R&D etc. to be exempted from the duty.
  • Make the entire excise amount eligible for CENVAT credit.
  • Excise rate to be uniform at 8%.
  • Make all the state levies vatable.
  • DEPB norms to be reviewed. Also license system to be abolished and the grant to be immediately credited in company account in Indian rupees after submission of proof of exports.
  • All existing income tax benefits as per Section 10A and 10B of the Income Tax Act for the exporters to be extended by further three years.
  • For exports pre-shipment credit period to be extended to 270 days against earlier 180 days.
  • Post-shipment period (currently 90 days) to be extended to 270 days at least or preferably 360 days.
  • Imposition of specific duty to match export subsidy accorded to Chinese exports.
  • Term loan interest and principle moratorium for 2 - 3 years be granted.
  
  However, in the budget none of the major recommendations are considered by the Government probably because budget was being "vote of accounts". We will continue active follow-up with the Government for consideration for the main budget. Suggestions in this regard from all the members are solicited.
• Government of India had announced an export package comprising of enhanced DEPB and Drawback rates to help Indian exporters which have suffered due to Rupee appreciation. The package was announced to neutralize the adverse impact of Rupee appreciation on Indian exports in 9 sectors i.e. Textiles, Readymade Garments, Leather products, Handicrafts, Engineering products, Processed Agricultural products, Marine products, Sports Goods and Toys. Further, all exporters from the SME sector will be eligible for increased Drawback rates under the package. Chemical industry whose exports are substantial have been excluded. DCPC has been requested to include chemical industry for the Relief Package.
• The Council has developed good rapport with bureaucrats in Delhi as well as State Government officials especially, Maharashtra, Gujarat, West Bengal, Tamilnadu, Andhra Pradesh etc.
• During the year, Council made several representations to the Central Government and State Governments.
• During the recent interactions of ICC delegation with Government officials in New Delhi in connection with the Crisis Situation in the industry, it was brought to the notice of the delegation that industry is not coming forward and filing the Safeguard and Antidumping applications and that awareness about these facilities needs to be created. Accordingly ICC organized a Seminar on "Anti-Dumping and Safeguards Duties Measures" on 21 February 2009 at Mumbai. Mr. A. K. Gupta renowned authority on Antidumping and Safeguard Measures conducted the Seminar.


• Memorandum of Understanding with overseas associations and agencies:
  
  
  • ICC delegation, led by Mr. Dipankar Dutta Gupta, President, ICC (Managing Director, EAST INDIA PHARMACEUTICAL WORKS LTD), consisting of Mr. Jai Hiremath, Vice President, ICC (Vice Chairman & Managing Director, HIKAL LIMITED), Mr. Deepak C. Mehta (Managing Director, DEEPAK NITRITE LTD), Mr. S. Subramanian (Adviser - New Business, THIRUMALAI CHEMICALS LTD), Mr. S. Ganesan (General Manager - Mktg., EXCEL CROP CARE LTD), Mr. Yogesh M. Kothari (Chairman & Managing Director, ALKYL AMINES CHEMICALS LTD),Mr. A. G. Pai (Chief Operating Officer, Mangalore Refinery & Petrochemicals Ltd), Mr. V. V. Joshi (General Manager - Corporate Planning, SOMAIYA ORGANO CHEMICALS LTD.), Mr. B. Sam Bob, IAS (Principal Secretary to Government of Andhra Pradesh), Mr. B. P. Acharya, IAS (Chairman & Managing Director, ANDHRA PRADESH INDUSTRIES & INFRASTUCTURE CORPORATION, Mr. M. Pratap, IPS (Additional Secretary to Chief Minister, Government of Andhra Pradesh), Mr. D. P. Misra, Director General, ICC and Mr. R. R. Gokhale, Secretary General, ICC visited China from 21 - 26 April 2008.
    
    The visit was arranged in cooperation with China Petroleum and Chemical Industry Association (CPCIA). The delegation had very fruitful interaction with SINOCHEM JIANGSU CORPORATION - who had set up Joint Venture with HIKAL LTD. The delegation visited chemical parks at Nanjing, Changshu, Taixing and Taizhou. Members were impressed as a result of infrastructural development that have been carried out, cluster approach followed by authorities in setting up chemical parks, water ways used for transportation, huge storage facilities built up etc.
    
    Delegation also visited 9th China International Chemical Industry Fair "ICIF China 2008" held 23 - 25 April 2008 at Shanghai and it was great honour for ICC as its President, Mr. D. Dutta Gupta was given honour of joining dignitaries on the dais, along with Presidents of other Industry Associations including Industry Associations from Europe, during the Inaugural Session of ICIF China 2008.
    
    ICC signed MoU with CPCIA for mutual cooperation and for increasing trade between two countries. This visit was extremely fruitful and it is hoped that in coming years, ICC and CPCIA will benefit due to the signing of MoU.
  • ICC signed Partnership Agreement with Access Intelligence LLC (Chemical Week). The Agreement has been designed to leverage the combined strengths of both parties to produce, manage and implement a Conference entitled the 2008 Indian Chemical Industry Outlook which was held on 15 - 16 April 2008 in Mumbai.
  • At the invitation from India - Taipei Association to participate in '2008 Taiwan Chemical Industry Forum' organized by Taiwan Chemical Industry Association (TCIA) as a guest speaker on 3-4 September 2008. Mr. S. K. Ray, Sr. Executive Vice President, Reliance Industries Ltd participated in the forum on behalf of ICC.
    MOU was signed by the ICC & TCIA.
  • In the recent past ICC had entered into MoUs with overseas chemical associations such as ASEAN Chemical Industries Club (ACIC), National Association of Chemical Distributors (NACD), Singapore Chemical Industry Council (SCIC), Associquim Sincoquim and now European Association of Chemical Distributors (FECC) and Gulf Petrochemicals and Chemicals Association (GPCA). While signing of MoUs is a good beginning, the deriving benefits out of that is totally dependent on members. Therefore members are requested to use this vista for developing trade between these countries.


• Visit of Delegations:
  
  
  • Mr. M. Kani, Executive Consultant, Mitsubishi Chemical Techno-Research Corporation (one of the Mitsubishi Chemical group companies which is research & consulting organization) visited ICC - Mumbai office on 27 May 2008 and had interaction with Director General and Secretary General. The main purpose of his visit was to understand activities of ICC and current situation and future prospect of Indian chemical industry.
  • Coinciding India Chem 2008, ICC organized Interactive Sessions with the representatives of overseas Industry Associations on 20 - 21 October 2008 at Mumbai. The meeting with representatives of overseas associations includes presentations of current status of the chemical industry in respective countries and to effect of International Laws like REACh Policy of European Union, SAICHEM (Strategic Approach to International Management of Chemical Substances), International Treaties on Chemical Industry in their country etc.
    
    National Association of Chemical Distributors (NACD), Associquim Sincoquim, Association of Chemical Industry of the Czech Republic, Chemical Industries Council of Malaysia, The European Association of Chemical Distributors (FECC), New Zealand Chemical Industry Council, Atlanta Quimica, Chemical Industry Club, Gulf Petrochemicals & Chemicals Association, China Petroleum and Chemical Industry Association, China Dyestuffs Industry Association participated in the Interactive Sessions.
    
    Way Forward :
    
    At the end of the Interactive Sessions all the delegates agreed for common program as below:
    Share Information
    Exchange Experts
    Create public advocacy & share views
    Facilitate commercial initiatives
    Invite each other to national programs
    Promotion of Responsible Care Initiative
    Facilitate Global Chemical Management System like GHS, SAICHAM, etc.


• Sponsorship of Events:
  
  
  • Chemspec India 2008 - the international exhibition and conference for fine and specialty chemicals was organized from 9 - 10 April 2008 at Mumbai by Chemical Weekly. ICC had a stall where our stall was patronized by quite a few visitors.
  • ICC extended support to the 6th edition of Pharma Summit 2008 organized by CII in September 2008 at Mumbai.
  • Department of Chemicals & Petrochemicals (DCPC), Government of India and Federation of Indian Chambers of Commerce & Industry (FICCI), Indian Chemical Council (ICC) with support of other organizations had organized INDIA CHEM 2008 - 5th International Exhibition & Conference on 20-22 October 2008 at Mumbai. ICC participated in India Chem 2008 and exhibited its publications and proceedings of the various seminars / workshops organized by ICC. Industry Meet on PCPIR and India Chem 2008 Exhibition was held on 11 July 2008 at Hyderabad. Similar meet was also held on 7 August 2008 at Vadodara.

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