CARPET EXPORT PROMOTION COUNCIL
EXECUTIVE SUMMARY ON NTBs / NTMs / FTAs etc.

 
S No. Name of Country Exports US$M {2012-13} Report Comments / Remarks
Country wise position of WTO issues  /  NBTs  /  FTAs  /  Negative List  /  PTA - CEPC
1. Africa Negligible Nil We have not received any problems being faced by our member exporters in African continent. 
2. Afghanistan Not importing Carpets Nil We would like to inform you that Afghanistan is not an importing country for Handmade Carpets hence inclusion of Handmade Carpets in the Negative List does not affect the India’s exports to Afghanistan
3. Australia Contd. Australia 33.00 Import of 570110 be kept in the Negative List of India i.e. importation of these items from Australia be restricted. The items at HSG 510119, 510310, 510320 are removed from restricted list of items.
We would request you to please place the following suggestion in before the concerned & appropriate authorities : Handmade Carpets, Rugs, Druggets and other Floor coverings may please be included under GSP (Preferential Trade Agreement (PTA) with Australia. Handmade Carpets, Rugs, Druggets and other Floor coverings meant for display in the Fairs / Exhibition in Australia (Exhibition Goods) should be exempted from the levy of import duty on self-declaration by the exhibitors. However, duty may be charged if the exhibition goods are sold during the exhibition. Australia & New Zealand are focus markets under MDA Scheme. These are small markets.  India’s exports of Carpets & Floor coverings to Australia & New Zealand are around US$ 34.85 million during the year 2012-13. The Hand knotted Woollen Carpets, Rugs, Druggets and other Floor covering. Council is exploring these markets by organizing regular participation through important Fairs / Exhibitions.  
4. Argentina 1.33 Value in Rupees Crores
(Value in US $ Million)
Country 2010-11 2011-12 2012-13
Argentina 14.85(3.26) 15.86(3.32) 16.66(3.05)
Import duty on handmade carpet and other floor coverings are very high as = 35% + 20% Surcharge
5. Brazil, Chile & Cuba Contd:
Brazil, Chile & Cuba
 
11.86
3.88
During Council’s participation in 37 House & Gift Fair in Sao Paulo (Brazil) it was experienced that the following issues / problems needs suitable remedial at appropriate level  :
Import Regulations in Brazil is cumbersome and takes long time in clearance of the goods. Import regulations for clearance of Exhibition Goods should be simplified.
  •  
  •  
  • Import Duty on Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings is high more than 100% after adding local state taxes & duties, which should be brought down.
Exports Value in Rupees Crores
(Value in US $ Million)
Country 2010-11 2011-12 2012-13
Brazil 61.22 (13.46) 84.35(17.64) 103.85 (19.06)
Chile 29.38(6.45) 28.90(6.05) 50.45(9.26)
  •  
  • Brazil: Import Duty: 22.5% +18% VAT+ Custom Clearance charges which comes around 40% of CIF Value;
  •  
Chile: Import Duty: 6% on value upto US$ 1000, 9% over US$ 1000 + 18% VAT + 50% additional Duty is UTM 2 per sq mtr.
  • Network system in Brazil is very poor which needs improvement;
We would request you to kindly take up the above issues during the meeting with the concerned authorities.
6. Belarus India Inter Govt Commission (IBIGC) 0.62 Nil We have not received any problems being faced by our member exporters.
7. Brazil Trade Monitoring Mechanism (TMM) 11.88 During Council’s participation in House & Gift Fair in Sao Paulo (Brazil) it was noticed that the following issues/problems needs suitable remedial at appropriate level  :
  •  Import Regulations in Brazil is cumbersome and takes long time in Clearance of the goods. Import regulations for clearance of Exhibition Goods should   be simplified.
  • Total Duties including local state  taxes & duties etc. on Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings comes around 100% on FOB value of goods, which should be brought down to a competitive rate to
  • Network system in Brazil is very poor which needs improvement.
 We would request you to kindly take up the above issues in the next meeting of Trade Monitoring Mechanism.
8 Chile PTA Contd. Chile TPA 3.88 We would request you to please include the following items in the list of Prudential Trade Agreement of Chile with the level of 50%  of total import for particular country including India :
List Sl. No. HS Code Product
2281 57031010 Carpets & Textile Floor coverings tufted of
wool or Animal hair
2282 57031090 Other Floor Coverings
2283 57033010 Carpet Carpeting And Rugs
To be included after Sl. No. 2282 57032010 Carpet Carpeting & Rugs Tufted
of Man Made Fibre.
We are giving below following issues for taking up appropriately:
  • Import duty on Handmade Woollen Carpets, Rugs, Druggets & other Floor coverings in Chile is high i.e. 25% (Duty+VAT) the same should be brought down. It may be mentioned that Chile is an upcoming market of Handmade Carpets & other Floor coverings and there is a tremendous scope for these items. If the import duty is brought down, the exports of these items from India could be increased.
  •  
  • Free movement of Exhibition Goods should be allowed in Chile. The Member-exporters of this Council experienced that they are facing problem in release of exhibition goods meant for “Display” in the Fairs / Exhibitions in Chile, hence want to back out from future participation in exhibitions in Chile.  Thus, CEPC therefore is of the opinion that the matter be taken up in the PTA meeting for desirable redressal.
9. Colombia & Panama --
2.40
We are giving below details of import tariff in respect of the following countries :
Sl. No.

Country

 Import Duty on Handmade Carpets
 & other Floor coverings under
 Chapter – 57.
1. Colombia Import Duty 20% + GVAT  16%
(on CIF+duty) + Custom Fee 1.2%
on CIF value.
2. Panama 10-15% + GVAT
  
   In LAC region the following are the formalities :-
  • Only valid Import License holders can import the goods.
  • Time consumed in clearance of goods after completion of so many formalities.
  • Exhibition goods cannot be sold on spot which attract heavy penalty.
Visa should be granted to the Indian Exporter of Carpets on priority for participation in the Fairs/Exhibitions as well as for Export Promotion tour in Colombia and Panama.
10 China 7.06 CEPC would request for consideration of liberalization of tariff on Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings also under Chapter – 57 in China; Request received from CEPC Industry  Members: Request for promotion of Indian made Handmade Carpets to China as well as to improve balance of trade between China and India  and to consider the following suggestions:
  • The Exhibitors from India showcasing their products in Exhibitions in China be allowed duty free with a restricted value.
  • The Import Duty at present is 34% on FOB value.
  • The Import of Handmade Carpets from India to China be exempted from levy of duty and this will not have any adverse impact on Chinese Carpet Industry.
  • In order to have effective distribution of Handmade Carpets into China a Bonded Warehouse facility to be provided in the Carpet City, Xining (Qinghai Province) this will help the Importers to cater the domestic market. 
The above consideration and support will definitely result in;
  • Strengthening Friendship;
  • Improving And Developing Trade Ties;
  • Improving  Balance Of Trade;
  • Establishing Economic And Cultural Relations for  Mutual Benefits;
11 Ethiopia Negligible Nil We have not received any problems being faced by our member exporters.
12 Greece 2.43 CEPC would like to inform you that Greece is upcoming market for Handmade Carpets and having great potential. India’s exports of Carpets and other Textile Floor coverings in Greece have been increased substantially over the periods. In order to promote  exports of Handmade Carpets & other Textile Floor coverings in Greece following assistance is required in the larger interest of both the countries  :
  • Provide 100% financial assistance on Space rent, Freight & Publicity for participation in Fairs & Exhibitions in Greece;
  • Import Regulation including clearance of Exhibition Goods in Greece should be simplified without any tariff barrier;
  • Fairs & Exhibitions of Carpets & Floor coverings required to be organized jointly under Joint Ventures; 
  • Visa formalities of the participants for participation in Fairs & Exhibitions in Greece should be simplified and applicant should be issued visa on priority.
We would request you to kindly place the above points before the next meeting of the Indo-Greece Joint Economic Commission.
13 Ghana Negligible Nil We have not received any problems being faced by our member exporters.
14 Ivory Coast Negligible Nil We have not received any problems being faced by our member exporters.
15 India Japan CEPA & Indian EU BTIA 12.90 We would like to inform you that during Council’s participation in Japantex Fair in Tokyo (Japan)  in 2014-15, CEPC proposes to participated in this Fair. The import procedure of exhibition goods should be simplified so that exhibitors will not face problems in getting delivery of their goods in their stand before start of the exhibition. Custom Duties, Consumption Tax etc. in Japan is reported to be high which should be brought down.  Labeling procedures for Household goods in Japan is also very complicated & expensive which should be simplified. Besides the above procedures there is regulations and procedural requirements at the time of importation in Japan such as Foreign Exchange and Foreign Trade Law (Import Trade Control Order), Regulations and Procedural Requirements at the time of Sale, Fire Service Law etc. Therefore, it is suggested that the exhibition goods meant for display in the exhibition should be liberalized and cleared immediately by the Japanese Custom Authorities without any restrictions. We would, therefore, request you to kindly place the above issue in the Inter Ministerial Meeting, appropriately.
16 India Polish Protocol 3.47 Nil  
We have not received any problems being faced by our member exporters.
17 ISACA 11.39 We would like to inform you that during one of the Buyer Seller Meet organized by the Council it was experienced that the custom clearance at South Africa’s end, procedures for release of exhibition goods are very cumbersome and it takes four to five days to get delivery of the exhibition goods, meant for Display. We would therefore, request you to kindly take up the matter with the South African Authorities in the next meeting for simplification of the custom clearance procedures for release of exhibition goods.
18 Israel  - FTA 2.54 Exports of Carpets into Israel are not much encouraging but there is potential in the market. In order to increase exports of Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings, the CEPC would like to make the following suggestions :
  • There may not be any tariff or Non-Tariff Barriers for exports of Indian Carpets into Israel.
  • The Exhibition goods should be exempted from any levy  of duty / tax on their sale during the Exhibition which may secure good business for Indian exporters. 
19 Kazakhstan 0.29 Nil We would like to inform that at present we do not have required issues, as exports to Kazakhstan is negligible.
20 Korea (Enhance market access) 2.63 Nil Not having advance impact. We have not received any problems being faced by our member exporters.
21 Lebanon 2.17 Nil We have not received any problems being faced by our member exporters.
22 Malaysia 5.45 The CEPC would like to inform that Handmade Woollen Carpets, Rugs; Druggets etc. have not been included in the Proposed Exclusion (Negative) List of India under India-Malaysia, hence no comments warranted from CEPC; 
23 Mexico BHLG 3.15 We are giving following points with the request to kindly place these issues in the meeting of BHLG with Mexico in respect of Handmade Carpets and other Floor coverings : Import Regulations in LAC region including Mexico is cumbersome and takes long time in clearance of the goods from Customs. Import regulations for clearance of Exhibition Goods should be simplified. Import Duty on Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings  in Mexico is 20% plus VAT which should be brought down to a competitive international rate.
Exports: Value in Rupees Crores
(Value in US $ Million)
Mexico 24.94(5.47) 27.27(5.75) 28.26(5.19)
It may be mentioned that there is a scope of increasing exports of Handmade Carpets & other Floor coverings to Mexico being a moderate economy of the country.
24 Morocco Negligible We would like to inform you that Morocco is a carpet producing country and India’s competitor.  As such there is no action on the part of this Council in this regard.
25 NAFTA (US, Canada & Mexico) 485.76 We would like to inform you that this Council under Ministry of Textiles Scheme had organized Carpet Exhibition in Toronto (Canada) some time back, where 11 member-exporters participated and display their products in this event. They have secured confirmed orders worth US$ 360,000 and orders worth US$ 500,000 were under negotiation. 
26 Negative list of EU Nil No mentions of Carpets, rugs, Floor Coverings
27 New Zealand   contd
New Zealand
Reasonable exports
(1.85)
We would like to inform you that New Zealand is a potential market for Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings. India’s exports of Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings in New Zealand is given below :
 
Particulars 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
Values in Rs. Lacs 996.74 1,171.65 1,641.11 1,378.60 1,802.01
Values in US$ Million 2.2 2.47 3.6 2.86 3.31
In order to increase India’s exports of the above items in New Zealand tariff elimination for Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings in New Zealand under CECA Negotiation is very much essential. We would, therefore, request you to please recommend tariff elimination on the above items in New Zealand at the earliest. New Zealand comes under focus market under MDA Scheme. These are small markets.  India’s exports of Carpets & Floor coverings to New Zealand are around US$ 33 million during the year 2010-11. The Council is exploring these markets by organizing regular participation in Decoration + Design Show in Melbourne, Australia.
28 Nepal Nepal is a competitive country.
We would like to inform that at present this Council has no issue regarding trade in Nepal relating to Carpet.
29 Poland 3.47 Nil We would like to inform that Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings not included in the Protocol List sent to us, hence, no comments warranted; 
30

 

Russia Working Group on Trade & Economic Cooperation (IRWGTE).

5.59 Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings may please be included in the discussion during the next Session of India-Russia Working Group. List of Items covered under the purview of this Council and their ITC HS Code were sent to Ministry for doing the needful. We would request you to please take up the matter for reduction of import duty on Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings in Russia as well as hassle free export of Hand-made Woollen Carpets, Rugs, Druggets other Floor coverings from India. Procedural problems are there in Russia; Custom clearance problems of exhibition goods problems;
31

SCMA (Standing Council for Market Access
Agreement)

  • Exports of Indian Handmade Carpets, Rugs, Druggets and other floor coverings in Israel are not encouraging as such there is no strategy from this Council;
  • As already informed by us that the item mentioned in the list does not mention the products covered under the purview of this Council i.e. Handmade Carpets, Rugs, Druggets and other Floor Coverings; 
  • Already requested to remove all Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings as mentioned under HS Code Nos.5702, 5703, 5704 & 5705;
  • Issue not concerning this Council as exports of Indian carpets in Indonesia is negligible;
  • Handmade Carpets, Rugs, Druggets and other Floor coverings not mentioned in the Protocol as already informed;
  • Products not mentioned in the Protocol as already informed
  • This Council do not have any proposal/project;
  • Reduction of duty on Handmade Carpets, Rugs, Druggets and other floor coverings in LAC region especially in Brazil is 71%.including local taxes;
  • Simplify the import regulations for clearance of Exhibition Goods specially Carpets & Floor coverings in LAC Region.
32 SAFTA We would like to inform that the items mentioned in the List not covered under the purview of this Council. As such the comments invited from the Council may kindly be treated as Nil.
33 Southern & Eastern Africa (COMESA)
CEPA with Common market

We would like to bring to your kind notice that during the Buyer Seller Meets organized by the Council in South Africa, the following problems experienced  by the Council :

  • Import Duty on Handmade Woollen Carpets, Rugs, and Druggets etc. in South Africa is reported to be 34% (30% +14 VAT) which should be brought down;
  • Import clearance procedures of Exhibition goods in South Africa are cumbersome and take 10-15 days time. The import procedure of exhibition goods should be simplified so that the purpose of sending the goods for display in the exhibition is fulfilled because sometime due to cumbersome procedure the clearance of goods is done after the exhibition is over and the purpose is defeated. 
We would request you to kindly place the above issues before the Trade & Economic Relations Committee in its next meeting which will help in strengthening the exports of Indian Handmade Woollen Carpets, Rugs, Druggets etc. into South Africa.
34 Tanzania Negligible Nil We have not received any problems being faced by our member exporters.
35 Tajikistan Negligible Nil We have not received any problems being faced by our member exporters.
36 TPR of Southern African Customs Union – SACU No issues Nil At present this Council has no specific issues in respect of Southern African Customs Union-SACU.
37 Thailand FTA Negligible
3.07
Nil We would like to inform that exports of Handmade Woollen Carpets, Rugs, Druggets and other Floor coverings in Thailand is almost negligible.  But we would like to capture the domestic market there; hence they may not be allowed to have the Free Trade Regime. 
38 Tajik Negligible Nil We have not received any problems being faced by our member exporters.
39 The Republic of the Azerbaijan
   
Negligible
0.73
Nil We have not received any problems being faced by our member exporters.
40 US (Enhance market access) Not having advance impact Nil We have not received any problems being faced by our member exporters.
41 Venezuela 1.18 Nil Exports: Value in Rupees Crores
(Value in US $ Million)
Venezuela 2.81(0.62) 5.45(1.15) 8.93(1.64)
Import Duty: 20% + 2% + VAT
42 Zambia Negligible Nil We have not received any problems being faced by our member exporters.
43 Zimbabwe Negligible Nil We have not received any problems being faced by our member exporters.