Kashmir Chamber of Commerce Presses Government for Expeditious Action on Trade Facilitation Measures
Srinagar, December 15, 2023: Following a constructive meeting with Union Commerce Minister Piyush Goyal in March, the Kashmir Chamber of Commerce & Industry (KCCI) held a follow-up discussion with Reenu Lata, Economic Advisor at the Department of Commerce. The KCCI delegation sought concrete progress on several vital issues impacting the export sector and overall economic development of Kashmir.
Pre-export Pashmina DNA Lab: The KCCI emphasized the critical need for a NABL-accredited Pre-export Pashmina DNA Testing Lab in Srinagar to address export delays and seizures. Despite the Minister’s directive in March 2023 for establishing the lab at IICT, Srinagar, tangible progress remains elusive. The KCCI urged swift action to safeguard artisan livelihoods and prevent potential foreign exchange losses.
Inland Container Depot (ICD): The KCCI highlighted the lack of an ICD in Srinagar, which significantly hinders the movement of diverse exports, including handicrafts, horticulture, and agriculture products. The delegation reminded the Economic Advisor of Minister Goyal’s surprise at the absence of an ICD and his subsequent on-spot orders for its establishment. However, the KCCI expressed concern about the lack of visible progress on this crucial infrastructure project.
ROSCTL Scheme and High GST on Shawls: The KCCI raised concerns about the capped benefits of the ROSCTL scheme for high-value woolen and Pashmina shawls exceeding the current limit of Rs. 438. They proposed the creation of a separate HSN code for these value-added products to ensure fair and adequate incentive benefits, thereby fostering export growth. Additionally, the KCCI reiterated their plea for reducing the GST rate on shawls from 12% to 5%, citing the significant burden this places on the artisan-dependent sector. They emphasized the positive impact such a reduction could have on artisan livelihoods and the overall handicraft industry.
Positive Engagement with Economic Advisor: The KCCI delegation acknowledged the Economic Advisor’s attentive and positive engagement during the discussion. Ms. Lata assured the delegation that the matters raised would receive prompt attention and efforts would be made to resolve them expeditiously. The KCCI expressed their appreciation for her receptive approach and expressed optimism that their concerns would be addressed meaningfully.
This meeting highlights the KCCI’s continued efforts in advocating for policies and infrastructure that will facilitate trade and bolster economic growth in Kashmir. The organization remains committed to constructively engaging with the government and monitoring progress on these critical issues.
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NO:KCC&I/PN/12/2023/ 3330 15th December, 2023
PRESS RELEASE
The President Kashmir Chamber of Commerce & Industry ( KCCI) Javed Ahmad Tenga along with Treasurer Zubair Mahajan and the Executive Committee Member Lateef Ahmad Bhat met Smt. Reenu Lata, Economic Advisor, Department of Commerce, Ministry of Commerce & Industry at New Delhi on 14th of December, 2023. The meeting was a follow up of the meeting held earlier with the Union Minister of Commerce & Industry , Mr. Piyush Goyal. The progress on the following matters were discussed/ reviewed with the Advisor Economic : –
1. Establishing Pre-export Pashmina DNA Lab at Srinagar:-
The Economic Advisor’s attention was invited to Union Commerce Minister’s on the spot orders for establishing Pre-export Pashmina DNA Testing Lab accredited with NABL and Wild Life Department at Srinagar/ Delhi where over 95% Pashmina is manufactured. And the necessity of Certification at the proposed lab to be made mandatory for customs to accept for clearance of export consignment to avoid seizure and delay in exports. It is a known fact that export shipments have a delivery schedule and any delay not only causes loss to the exporter but results in cancellation of future orders besides loss of foreign exchange earning. Furthermore, it earns a bad name in the importing Country and sets in a chain reaction subjecting artisan/ weaver community to joblessness. The Commerce Minister in KCCI’s first meeting of 23rd of March, 2023 had issued on the spot orders for establishing the laboratory urgently. Subsequently KCCI was informed by officials of the Ministry that DNA lab would be established at IICT ,Srinagar where space and other infrastructure was adequately available. However, despite the fact that nine months have passed since then the Lab is yet to be established which need to be put on fast track.
2. ESTABLISHMENT OF ICD at Srinagar:-
KCC&I has for long been demanding the establishment of Inland Container Depot (ICD) at Srinagar to facilitate the movement of export cargo. It has gained importance in view of growing international demand for Kashmir Handicrafts/ Horticulture/Agriculture/Floriculture/ spices/wooden & Papier Machie products etc. The potential for the growth of horticulture sector from the present 10000 crores to 25000 crores will substantially add to the SDGP with its trickledown effect to remote corners. The Hon’ble Minister had expressed surprise on learning that the ICD did not exist in Srinagar and had issued on the spot orders for its establishment. Yet no progress seems to have been made about it.
3. ROSCTL:
The Jammu & Kashmir is famous for its handicrafts, more particularly, hand embroidered woollen and Pashmina shawls providing employment to about five lac people directly or indirectly.
The Central Government would provide assistance to exporters including the shawls. However, the Central Government stopped MEIS against the export of woollen and Pashmina Shawls w.e.f 7th March,2019 and was replaced by ROSCTL (Reference of State Central Taxes Levies) on Woollen and Pashmina Shawl Falling under ITCHS-CODE NO: 62142010. However, a cap of Rs. 438/- was placed for such export. Ironically, by putting a Cap the Shawls costing more than Rs 438/- gets the same benefit as that of Rs. 438/-. The woollen shawls made in Jammu & Kashmir cost above 3500/- and a minimum Rs. 7000/- for a Pashmina shawl. At present such shawls are also getting the same benefit as shawls of Rs. 438/- The KCCI strongly pleads that this anomaly existing in Foreign Trade Policy 2023-28 be removed (We we’re disappointed that it was not done despite raising it at various levels). The KCCI suggests that a separate HSN CODE to provided to cover Value Added & Pashmina Shawls so that adequate benefits are available to the exporters whose products cost thousands and in some cases lakhs of rupees. These products take many months to complete with hand. Similarly, the Incentive on other handicrafts wooden/ Papier Machie need a review.
4. High Rate of GST:
The artisan dependent cottage Shawl products are levied 12 % GST. KCCI has all along been pleading that the GST rate on shawls be reduced to lower 5 % slab. We understand that it is the mandate of Union Finance Ministry to consider it but given the importance and nodal role your ministry plays for the growth and development of artisanal based shawl and handicrafts sector, the Ministry may consider recommending the case of reducing GST on Shawls from present 12% to 5 %. This step will help in the development and rehabilitation of lacs of artisans who face an uncertain future due to ups and downs experienced by them from time to time.
The Economic Advisor’s attention was drawn to the keen interest shown by the Prime Minister, Shri Narendra Modi Ji, for development and growth of Kashmir Pashmina Shawls by wearing Kashmiri Jamawar Shawls. It has accorded dignity to the artisans and the brand Kashmir – the renewed international exposure.
The Economic Advisor assured that the matters discussed in the meeting, and also referred to , by the Union Commerce Minister will be resolved as early as possible. The President KCCI thanked her for listening to them with keen interest and positive approach .
Faiz Ahmad Bakshi
Secretary General
