AEPC recently organised AEO Program at conference Hall of Bombay Stock Exchange Building, Fort, Mumbai. The program was conducted with the assistance of Office of The Commissioner of Customs and Forex Hedging through Exchange Traded Contracts” and “Perspective on SME IPO Listing”. The aim of the program was to create awareness on GST refunds, Hedging of funds and also special benefits for AEO members from customs department.
PAEO is a voluntary program, which enables Indian customs to enhance and streamline cargo security through close cooperation with the principle stakeholders of the international supply chain viz, importers exporters, logistics providers, custodians or terminal operators, custom brokers and warehouse operators. During the event Ravi Kumar, Asst. Commissioner, AEO cell Mumbai customs gave the power point presentation on AEO and explained how Central board of Indirect Taxes & Customs has developed a comprehensive unified trade facilitation programme by incorporating the existing ACP scheme and ongoing AEO programme into a revised AEO program vide Circular No. 33/2016-Customs, dated 22.07.2016 which provides additional facilities to the legitimate trade who have demonstrated strong internal control system and willingness to comply with laws administered by the Central Board of Excise and Customs.
Indian Custom offers its AEO members with certain benefits including inclusion of direct port delivery of imports to ensure just-in-time inventory management by manufacturers-clearance from wharf to warehouse for AEO T1, T2 and T3; inclusion of Direct Port Entry for factory stuffed containers meant for export by AEOs T1, T2 and T3; ID cards to be issued to AEO’s personnel for allowing entry to Customs House, CFS ICD and faster disbursal of drawback amount within 72 hours of EGM submission.
Faster disbursal of refund, including IGST refund and rebate for AEO status holder within 45 days of submission of complete documents and recognition by Partner Government Agencies and other Stakeholders as part of this programme is also facilitated. Indian Customs signed two Mutual Recognition Agreements with the Customs Administrations’ of South Korea and Hong Kong also. Future MRA’s are in negotiation with the US and Taiwan. MRA initiating proposals have been forwarded to major trade countries in South East Asia like Malaysia, Singapore, Thailand, Philippines and Indonesia. Additionally, few major regional economic blocks like East African Community have proposed MRA with India.
The process for AEO accreditation has been systematically decentralized. The Indian AEO Programme is a game-changer as it will lead India to become a manufacturing and exporting power-house. Indian Customs is fully committed to make this vision a reality by playing its mandated role in India‘s growth story through its AEO initiative.
Gautam Chopra from Jurisperitus gave presentation on GST– Refund , mismatching of invoices etc. He informed that main reason for delay in refunds is mismatching of invoices. He shared that an extra care must be taken while punching the entries.
All exporters and importers understand the need to manage their foreign exchange exposures in order to protect their profits. But many of them get severely affected by these movements even though they have no direct imports or exports. Exchange rate risk can be avoided with proper hedging techniques and having awareness of currency movements. In fact, by employing a systematic and a knowledge driven approach risks can be minimized and one can gain from the currency markets.
Rohit Dubey from Asit C Mehta gave the power point presentation on Perspective on SME IPO Listing. Listing provides an opportunity to the corporates / entrepreneurs to raise capital to fund new projects / undertake expansions / diversifications and for acquisitions. Listing pre supposes good Corporate Governance which results in sustainability of the company. Also it raises a company’s public profile with customers, suppliers, investors, financial institutions and the media. This mode of fund raising through infusion of equity can help the companies to raise borrowed funds at efficient rate. Equity financing lowers the debt burden leading to lower financing costs and healthier balance sheets for the firms.