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  • Alternative to Import Duty (1)

    Mar 12th, 2016

    <p></p><p>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 the country’s Forex reserves, the council has to suggest necessary steps to the Government in order to control reckless imports. <br></p> <p>So instead of protesting against the CEPCI, processors and traders should try to find a solution to the issue. It is true that Indian importers cannot compete with their Vietnamese counterparts after the levy of import duty. But when the African countries utilize their cheapest labor to process their own raw material, Vietnamese importers will also face the same problem. Cautious Indian processors will survive in the competition because of the domestic pieces consumption. <br></p> <p>Protesters are also demanding the Government help to control the prevailing exorbitant prices in the international market. They cannot control the market as their number is in thousands. They are compelled to make reckless purchases, even when they lose all their money and loans sanctioned by the banks. <br></p> <p>Aternative to Import Duty (2) <br></p> <p>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. <br></p> <p>1) Any kind of statutory price limit on the imports should be aimed at stopping the erosion of country’s Forex reserves.</p> <p>2) Should save the money and investment of processors, traders and their creditors.</p> <p>3) Cashew kernel imports will increase after the introduction of duty on raw cashew. Therefore, import tax on kernels should be raised proportionately or at least by 20%.</p> <p>4) No raw cashew or cashew kernel should be duty free from any country including SAARC nations.</p><p>5) Raw cashew import should not be permitted from any country known as a “Tax Haven” <br></p> <p>Aternative to Import Duty (3) <br></p> <p>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 - <br></p> <p>Filling Out-turn &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Maximum Price Limit per ton</p> <p>21.5% – 22.5 % &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $1100</p> <p>22.5% – 23.5% &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $1200</p> <p>23.5% &amp; above &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $1300 <br></p> <p>Raw cashew from Tanzania, Indonesia, Cambodia and Guinea Bissau are said to be better in terms of out-turn. Beninese nuts are better in terms of size and shape. So addition of $100 should be permitted for imports from such countries.</p><p>There are now more than 25 countries in the raw cashew export field. Cashew Export Promotion Council of India should make a research on the quality of imports from all these countries <br></p> <p>Find our price limits below – <br></p> <p>Filling Out-turn &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Maximum Price Limit per ton</p> <p>21.5% – 22.5 % &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $1100</p> <p>22.5% – 23.5% &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $1200</p> <p>23.5% &amp; above &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $1300 <br></p> <p>Raw cashew from Tanzania, Indonesia, Cambodia and Guinea Bissau are said to be better in terms of out-turn. Beninese nuts are better in terms of size and shape. So addition of $100 should be permitted for imports from such countries. <br></p> <p>There are now more than 25 countries in the raw cashew export field. Cashew Export Promotion Council of India should make a research on the quality of imports from all these countries<br></p><p></p>


    Source: www.worldcashew.com
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