EEPC INDIA :: Info Bulletin

My dear fellow exporters,

Indian engineering exports slipped back into the negative territory in October 2020 declining by 6.3% (year- on year) to US$ 5785.3 million after recording positive growth in the month of September 2020. India’s engineering exports also witnessed negative growth in October 2020 from US$ 6171.3 million in October 2019 to US$ 5785.3 million in October 2020. In cumulative terms the first seven months recorded a decline to the extent of 14.1% from US$ 44425.72 million in April-October 2019-20 to US$ 38140.85 million in April-October 2020-21, given the fact that COVID still continues to impact global trade and economy negatively.The decline was majorly triggered by huge fall in exports of ferrous and non- ferrous metals. Interestingly since April 2020, when exports of all commodities fell due to Covid-19 pandemic, major metals such as copper, iron and steel, aluminium, nickel experienced a rise in exports. The recovery in the previous months were purely due to factors such as sudden surge in demand from China and re-emergence of several industries from lockdown. However with months of depressed demand, even from before Covid-19, the scare of over supply had always loomed high. With UNCTAD predicting a 20% decline in merchandised trade in 2020, it seems, recovery would be difficult and we may witness the declining trend in the coming months.

In the domestic front however, the festive season has witnessed a growth in demand across sectors. At the same time the Indian Government has introduced a number of packages braided under the name of “Atmanirbhar Bharat” for the industry. The latest of the package – Atmanirbhar Package 3.0 is very well targeted and is expected to kick-start demand, investment, exports, etc. While it will require time, such steps would act as a catalyst and enabler in our economy’s recovery.

Thank you,

Mahesh Desai

Amidst India’s faltering merchandise export growth and prolonged contraction in export credit growth, exporters have at least seen some silver lining as both the domestic government and the monetary regulatory authority RBI have been in consultation to ease priority sector lending norms for exports in order to ensure higher flow of credit towards export sector, according to news source. The Commerce and Industry minister has very recently held a meeting with senior public-sector bankers to push for easier and higher flow of credit disbursalfor exporters at cheaper rates. The government is expected to announce a slew of measures to boost export growth very soon while the RBI is also likely to change credit norms in favour of the exporters.

The measures to reinvigorate export credit has been the demand of the exporters as many MSME exporters have already been forced to go out of business due to excessive financial crunch and many are facing the same threat. To ensure availability of hassle-free credit to small exporters is a priority for the commerce minister.According to the latest RBI data, export credit of scheduled banks shrank as much as 36.1% year-on-year as of June 21, even on a low base of 42.7% contraction a year earlier.

The interest subvention provided to the exporters to the extent of three to five percent on bank credit has to make way for suitable alternative as WTO has raised objection to this kind of schemes on the ground of non-compliance. An alternative mechanism to facilitate export credit is desperately required. EEPC India has already suggested refund of embedded taxes for the exporters.

EEPC India, as a premiere trade and investment promotion body under the Ministry of Commerce and Industry, wholeheartedly thank the government for its initiative to revive exports from India.

Bosnia and Herzegovina
(Source : Embassy of India, Budapest)

Potential products of imports from India

Commodity - 870332 Motor cars and other motor vehicles principally designed for the transport of persons, incl. ...

Rationale - For the month, imports of this product from the World were in the value of USD 25.5 mln while imports from India were nil.

Commodity - `851712 Telephones for cellular networks "mobile telephones" or for other wireless networks.

Rationale - For the month, imports of this product from the World were in the value of USD 7.2 mln, while imports from India were USD 0.01 mln.

Commodity - `760120 Unwrought aluminium alloys.

Rationale – For the month, imports of this product from the World were in the value of USD 7.0 mln, while imports from India were USD 0.59 mln.

Commodity - `870333 Motor cars and other motor vehicles principally designed for the transport of persons, incl. ...

Rationale – For the month, imports of this product from the World were in the value of USD 7.0 mln, while imports from India were nil.

Tariff and Non-Tariff Barriers to Trade:

Import Tariffs: The tariff rate on imports averages a comparatively low 1.1% of the value of goods (for international trade), which is the lowest figure regionally and third lowest figure in the whole Emerging Europe region. Bosnia’s import tariffs are harmonised each year with the combined nomenclature of EU and legislative regulations.

Anti-Dumping and countervailing duties: In 2009 Bosnia introduced a law for the protection of domestic products against imports from Croatia and Serbia. The law stipulates that safeguard measures were necessary owing to the influx of imports and the dumping of particular agricultural products from Croatia and Serbia, as well as a conceivable decrease in exports from Bosnia to Serbia.

Customs and Non-tariff Barriers: As a result of BiH not having EU member status event though the majority of its trading partners are EU member states, export and import supply chains will face more onerous border and documentary times and costs when compared with those of EU states.

The most salient risk is the high cost associated with import border compliance processes, which is higher than that of countries such as North Macedonia and contributes towards Bosnia’s status as regional under performer in relation to customs burdens. Businesses operating in BIH face a high import burden as infrastructural development, industrial capacity and diversification remains weak because of a dearth of fixed capital formation and a lack of political resolve in the country. Imports are driven by the country’s need for complex machinery and its energy requirements, such as oil and gas, as well as metals and manufactured goods that cannot be produced locally.

To spur trade, Bosnia has exempted tariff payments from certain equipment that is being imported as part of share capital, with the exceptions of passenger vehicles and slot or gambling machines. To enjoy this benefit, foreign investors must submit a written request to the appropriate customs authority, along with evidence of the investment arrangement and registration of the foreign share. Alternatively, imports into one of Bosnia”s four free trade zones are exempt from customs duties and fees. These zones can be found at Vogosca, Visoko, Mostar and Holc Lukavac and clearly mitigate cost risks for businesses seeking to trade internationally with Bosnia.

Bosnia has applied to join the EU, and accession would open up trade, investment and growth opportunities for the economy. The country has already made good strides in establishing free trade and preliminary agreements to speed up the process of EU accession although, political instability threatens the prospect of EU membership in the medium term. Bosnia is also currently discussing the possibility of the creation of a Western Balkans Customs Union with its South Eastern-Europe counterparts.

Significant trends in trade and investment

7601 Unwrought aluminium - The product group experienced a growth n the Jan-June

period of 2020 over the same period of 2019 from Nil to USD 1.8 mln. It represents 6.1% of Imports from India to BiH.

8414 Air or vacuum pumps (excluding gas compound elevators and pneumatic elevators and conveyors) - The product group fell back by 38.3% in the Jan-June period of 2020 over the same period of 2019 to USD 3.6 mln. It represents 11.7% of Imports from India to BiH.

Hungary
(Source : Embassy of India, Budapest)

Potential products of imports from India

Commodity - 851762 Machines for the reception, conversion and transmission or regeneration of voice, images or other data, incl. switching and routing apparatus (excl. telephone sets, telephones for cellular networks or for other wireless networks).

Rationale - Hungary for the month imported this product from the World in the value of USD 127.0 mln, while imports from India to Hungary were USD 2.0 mln.

Commodity - 851712 Telephones for cellular networks "mobile telephones" or for other wireless networks.

Rationale - Hungary for the month imported this product from the World in the value of USD 123.3 mln, while imports from India to Hungary were nil.

Commodity - 854231 Electronic integrated circuits as processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits.

Rationale - Hungary for the month imported this product from the World in the value of USD 116.7 mln, while imports from India to Hungary were USD 0.3 mln.

Commodity - 847330 Parts and accessories of automatic data-processing machines or for other machines of heading 8471, n.e.s.

Rationale - Hungary for the month imported this product from the World in the value of USD 112.51 mln, while imports from India to Hungary were USD 0.4 mln.

Overview of General Barriers to FDI in Hungary:

Regulatory barriers and administrative burden are affecting all sectors but particularly energy, construction, and banking: The overall administrative burden, including start-ups, negatively affects investment decisions. The instability of the regulatory framework, with frequent and unpredictable regulatory changes, creates uncertainty for investors and is hindering both internal investment and FDIs.

The Hungarian government imposes a 100% offset requirement for defined sector investments over HUF 1bln (€2.8 mln). Efficiency of procedures in construction and environmental permitting is insufficient, while corruption raises risk for investors. There is no requirement that investors must purchase from local sources, but the EU Rule of Origin applies.

Ownership restrictions (all non-EU)

According to the 2014 Land Law, only private Hungarian or EU citizens resident in Hungary with a minimum of three years experience of working in agriculture or holding degree in agriculture can purchase farmland, which is limited to 300 hectares. All others may lease farmland. All farmland purchases must be approved by a local land committee and Hungarian authorities, local farmers and young farmers must be offered a chance to purchase the land first. Up to 1200 hectares for a maximum of 20 years may be leased.

State intervention in Banking, energy, agriculture, media, telecommunications, and retail sectors.

Since 2012 government has invested in state-owned enterprises with the objective of lessening the participation of foreign-owned competitors, especially in the energy sector. Recent additions from 1 Jan 2019 include the chemical industry, the telecom sector, vehicle construction, metallurgy, optics and electric equipment production, the defence industry, water and sewage management, the financial sector, food industry and agriculture, production of construction materials, state administration, health care, wage management, transport and tourism sectors. Foreign investors in the targeted sectors have expressed concerns that the tax regime has become unpredictable and the additional levies appear to have been aimed against some industries with a high level of foreign ownership.

Basic Rules of the Protection Of Strategic Assets Concerning Foreign Investments

The European Commission has issued Communication 2020/C 99 I/01 in which it has given guidance to the Member States of the EU concerning the protection of Europe’s strategic assets from the foreign direct investment, ahead of the application of Regulation (EU) 2019/452 (FDI Screening Regulation) which is applicable from 11 October 2020. Hungary first adopted FDI screening mechanisms by Act LVII of 2018 for FDIs violating the security interests of the country, then in the economic crisis caused by COVID-19, further screening rules were adopted for FDIs by Government Decree nr. 227/2020. (V.25.). According to the above, certain transactions concerning Hungarian-seated companies operated in strategic sectors by foreign investors shall be reported to the Minister of Finance and the acknowledgement of the Minister of Finance is necessary for the realisation of the acquisition of the shares until 31 December 2020. These transactions include the acquisition of shares, the increase of the registered capital and the transformation of the company. The strategic sectors specified by the Government Decree include energy, communication, finance, agriculture and food industry, healthcare, construction, transport industry, tourism, IT, mechanical engineering, etc. Those foreign investors that have shares in a company registered in the EU, European Economic Community or in Switzerland shall only report the transaction if majority interest will be acquired indirectly.

Conversely, the foreign investors wishing to acquire shares in a Hungarian company directly has to report any transactions by which the foreign investor would acquire shares at a ratio of at least 10% and the value of the investment is at least 350 000 000 HUF (appx EUR 1 mln). The Minister of Finance has 45 days or in specific and duly justified cases 60 days to decide on the acknowledgement of the transaction. Should the Minister provide a negative decision, then the exact reason of the prohibition is not required to be mentioned. The review of the prohibiting decision can be initiated at the Metropolitan Court.

Banking, agriculture, defence and energy The Hungarian government has publicly declared that reducing foreign bank market share in the Hungarian financial sector and tightening regulations governing NGOs are key priority areas. Several state-led initiatives over the past several years targeted the banking sector and reduced foreign participation.

Significant trends in trade and investment

Trade in Goods Hungarian imports from India

Details of significant trend - 2933 Heterocyclic compounds with nitrogen hetero-atom(s) only.

Analysis - The value of imports decreased by 13.4 % in the Jan-July period of 2020 over the same period of 2019 reaching USD 260.9 mln.

Details of significant trend - 2933 Heterocyclic compounds with nitrogen hetero-atom(s) only.

Analysis - The product group increased by 4.9% in the Jan-July period of 2020 over the same period of 2019 to USD 31.9 mln. It represents 12.2% of Imports from India to Hungary.

Details of significant trend - 8473 Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading 8469 to 8472, n.e.s.

Analysis - The product group fell back by 43.4% in the Jan-July period of 2020 over the same period of 2019 to USD 15.2 mln. It represents 5.8% of Imports from India to Hungary.

Details of significant trend - 8411 Turbojets, turbopropellers and other gas turbines.

Analysis - The product group increased by 24.3% in the Jan-July period of 2020 over the same period of 2019 to USD 10.5 mln. It represents 4.0% of Imports from India to Hungary.

Venezuela
(Source : Embassy of India, Caracas)

Potential products of exports for India

Auto-parts - India is one of the top manufacturers of auto-parts in the world. Venezuela is in dire need of auto-parts for all kinds of vehicles.

Oil and gas machinery and spare parts - Venezuela needs oil and gas industry machinery and spare parts to reactivate their oil industry. The Venezuelan oil industry uses machinery and parts which are US standards compliant, and India manufactures such items compliant with US standards at lower rates.

Electric Steel - Venezuelan power generation industry requires an approximate of 5,326 metric tons of two grades of electric steel to be used in the recovery of 20,000 transformers in 2020.

84% surge in Venezuelan crude oil stockpiles: According to media reports, Venezuelan crude inventories have surged 84% over the last three weeks as the threat of U.S. sanctions wards away buyers of the nation’s most important commodity. That raises the risk that state-run PDVSA will have to start shutting the production again. The port of Jose, the main gateway of the country’s oil exports, has been empty for a week as importers of Venezuelan crude including India’s Reliance Industries Ltd, Spain’s Repsol SA and Italy’s Eni SpA skipped oil purchases this month. The three companies last month took a combined 9.7 million barrels, accounting for more than half of September’s exports. Oil stored at the Jose terminal and nearby facilities known as upgraders almost doubled to 10.6 million barrels since the end of September, reversing a 3-month decline. At these levels, inventories are dangerously close to volumes that in the past have prompted the state oil company PDVSA to shut its wells because it didn’t have anywhere else to store its crude. While U.S. sanctions have crippled Venezuela’s oil export trade, socalled crude-for-diesel swaps between PDVSA and Asian and European refiners were permitted for humanitarian reasons. In September, Reliance bought 12 million barrels of Canadian oil, possibly a precursor to a more permanent shift away from Venezuela.

Project	Bangladesh Urban Resilience Project Loan No. : IDA-55990 Project ID : P149493
DB Ref. No.	WB-P594600-11/20
Issued by	Abdul Latif Helaly, Project Director Urban Resilience Project: RAJUK Part RAJUK Commercial Complex cum Car Parking Building Gulshan 1, Dhaka 1212, Bangladesh Cell : +88-01730013947 E-Mail : helalyrajuk@yahoo.com; pd.urp@uru.gov.bd
Bid No.	URP/RAJUK/G-24
For	Procurement of Equipment : Cutter Crane with 10 inch RCC Slab Cutting Capacity & 3.65 Ton Lifting Capacity.
Tender cost	Non-refundable fee of BDT 4,200.00 (Four Thousand Two Hundred Bangladesh Taka) or US$ 50.00 (Fifty US Dollar). The method of payment will be cash or pay order in favor of “Project Director, Urban Resilience Project: RAJUK Part”.
Bid Security	BDT 0.6 Million (Zero point Six Million Bangladesh Taka) or US$ 7,000 (Seven Thousand US Dollar).
Bid deadline	*28.12.2020*

Project	Gambia Electricity Restoration and Modernization Project Loan No. : IDAD3090 Project ID : P163568
DB Ref. No.	WB-P594975-11/20
Issued by	National Water & Electricity Company Limited 53, MamadyManiyang Highway Conference Room, 1st Floor P. O. Box 609 Banjul, The Gambia Attn. : Mrs. HaddyNjie, Project Coordinator Tel. : +220 4375990 Fax : +220 4375990 E-mail : hnjie@nawec.gm, mfsanyang@nawec.gm
Bid No.	GM-NAWEC-180789-GO-RFB
For	Supply of 30,000 Single – phase Smart AMI Prepayment Meters with Associated Accessories.
Tender cost	Non-refundable fee of US$ 300. The method of payment will be electronic transfer. The document will be sent by courier mail.
Bid Security	US$ 10,500.00.
Bid deadline	*07.01.2021*

Project	Sierra Leone Agri-Business and Rice Value Chain Support Project Loan No. : 2100155040116 Financing from the African Development Fund (ADF)
DB Ref. No.	AfDB-P601269-11/20
Issued by	The Project Manager Sierra Leone Agribusiness & Rice Value Chain Support Project (SLARiS) Ministry of Agriculture and Forestry (MAF) 1st Floor, West Wing Youyi Building, Brookfilelds Freetown, Sierra Leone Tel. : 232 76601493 E-mail : henkuyembeh@yahoo.com
Bid No.	SLARIS/ICB/Field Equipt/03/20
For	Supply of Agricultural Field Equipment.
Tender cost	Non-refundable fee of US$ 100 or SLLe900,000.00.00. Payments hall be made by cash, cashier’s cheque or telegraphic transfer into Account No. 02-01-1017177414901 BBAN No. 02-01-1011970 BBAN : 002001002101197079, Swift Code : RCBKSLFR.
Bid Security	US$ 18,000.00 or SLLe176,400,000.00.
Bid deadline	*18.12.2020*
Source	UN Development Business Website

Tender No.	RFP/EWA/2020/36 (2020-162-RP-FRSD)
Tender for	Air-conditioning equipment maintenance
Tender details	Maintenance of air-conditioning equipment and systems for offices.
Bid bond	BD 4,000
Cost of tender documents	BD 100
Closing date	*23.12.2020*
Issued by	Electricity & Water Authority Directorate of Central Stores Room 21-4, Ground Floor P. O. Box 5325 Sitra, Bahrain Tel. : (973) 17995500 Website : www.tenderboard.gov.bh

Tender No.	RFP/INT/CSD/2020/45 (IN/CSD/MM/2020/182)
Tender for	Cable cut-outs
Tender details	Supply of 280 cut-outs for cross-linked polyethylene (XLPE)-insulated cable.
Bid bond	BD 500
Cost of tender documents	BD 15
Closing date	*30.11.2020*
Issued by	Electricity & Water Authority Directorate of Central Stores Room 21-4, Ground Floor P. O. Box 5325 Sitra, Bahrain Tel. : (973) 17995500 Website : www.tenderboard.gov.bh

Contents

From Chairman’s Pen

OVERSEAS SECTION

Global Business Opportunities

DOMESTIC SECTION

Highlights

Overseas Information

OVERSEAS MARKET INFORMATION

TENDER INFORMATION

Domestic Information

PUBLIC NOTICE

STEEL PRICES

Steel Market Current Report

EEPC INDIA OFFICE BEARERS

REGIONAL CHAIRMEN / CHAIRPERSON

EEPC INDIA OFFICES

REGIONAL OFFICES

SUB-REGIONAL OFFICE

Tender No.	RFX-2122000153
Tender for	Desalination plant steel structure works
Tender details	Refurbishment of evaporator roof steel structures including insulation, cladding and vent pipe line modification in a desalination plant at G station, Jebel Ali.
Bid bond	AED 400,000
Cost of tender documents	AED 630
Closing date	*20.12.2020*
Issued by	Dubai Electricity & Water Authority Office of the Contracts Manager Zabeel East, P. O. Box 564 Dubai, UAE Tel. : (9714) 3244444 Fax: (9714) 3248111 E-mail: contracts@dewa.gov.ae Website :www.dewa.gov.ae; https://srm.dewa.gov.ae
Source	MEED.com website

Project	Greater Yangon Water Supply Improvement Project Phase 2 Loan Agreement No. : MY-P19 IFP No. : My-P 19 / PQ-02
Package No.	ICB-02
Issued by	U MyintZaw Than Head of Department Engineering Department (Water & Sanitation) Yangon City Development Committee No.390, 12-storey New Building Merchant Road, Botahtaung Township Yangon, Myanmar E-mail : kokkowa5@gmail.com
For	“Construction of Zone 9 and Pearl Service Reservoirs, Pumping Stations, and Transmission Pipeline from Kokkowa Water Treatment Plant to Hlaing River.” - Construction of Transmission Pipeline of Ductile Iron Pipe (DIP, DN 1600mm) from Kokkowa Water Treatment Plant to Hlaing River with total length of approx.. 28.2 km; - Construction of Zone 9 Service Reservoir having capacity of 52,300 m3 (11.5MG) with Pumping Station, including Mechanical and Electrical equipment of Transmission Pumps for Zone 1 (70.5 m3/ min) and Distribution Pumps for Zone 9 (82.1 m3/min), Sub Power Station, Generator System and SCADA System for Pump and DMA; - Construction of Pearl Service Reservoir having capacity of 39,550 m3 (8.7MG) with Pumping Station, including Mechanical and Electrical equipment of Distribution Pump for Zone 1 High Subzone (47.4 m3/min), Sub Power Station, Generator System and SCADA System for Pump and DMA; - Construction of operation buildings including accommodation building, generator house, security house and associated facilities and landscaping in the reservoir Sites.
Tender Cost	Non-refundable fee of MMK 50,000 (Fifty thousand Myanmar Kyat). Payment shall be by cash or online.
Deadline	*28.12.2020*
For further details, please contact	HtetHtet San Commerce Wing Embassy of India Yangon Tel. : +95-1-391219, +95-1-388412 E-mail : comnewsyangon@gmail.com
Source	Embassy of India, Yangon

M. S. Rounds	4 mm	5 mm	6 mm	8 mm	10 mm	12 mm	16/20 mm	22/25 mm
Mild	4400	4420	4420	4430	4410	4510	4570	4430
Zindi Pass (Drawing)	-	-	-	4420	4490	4500	4590	4590

Heavy Rounds	28 to 53 mm	63 to 100 mm	110 to 125 mm	140 to 150 mm	165 mm	180 mm	200 mm
Mild	4550	4550	4570	4570	4570	4590	4470

M. S. Squares	4 mm	5 mm	6 mm	8 mm	10 mm	12 mm	16/20 mm	22/25 mm
Mild	4620	4620	4590	4650	4650	4650	4590	4580

M. S. Angles	20 mm	25 mm	32 mm	40 mm	50 mm	65 mm	75 mm	100 mm	110 mm	150 mm	200 mm
3 mm	4490	4450	4490	4570	4570	4640	-	-	-	-	-
5 mm	–	4340	4450	4570	4570	4640	4670	4570	-	-	-
6 mm	–	4470	4530	4570	4570	4640	4670	4660	-	-	-
8 mm	-	-	-	4570	4640	4640	4660	4660	-	-	-
10 mm	–	-	-	4570	4640	4640	4660	4720	4660	-	-
12 mm	–	-	-	4570	4640	4320	4640	4650	-	4740	-
16 mm	–	-	-	4570	4640	4650	4640	4720	-	-	-

M. S. Flats	20 mm	25 mm	32 mm	40 mm	50 mm	65 mm	75 mm	100 mm
3 mm	4430	4420	4430	4460	4560	4520	-	-
5 mm	4430	4420	4430	4430	4660	4720	4660	4660
6 mm	4460	4490	4430	4430	4580	4710	4660	4660
8 mm	-	-	4310	4430	4530	4660	4640	4660
10 mm	-	-	4310	4430	4530	4660	4640	4640
12/25 mm	-	-	4300	4430	4530	4660	4640	4640
18/19 Gauge	4260	4340	4510	4430	4530	4640	4640	4640

H.O. (Cell)	REGISTERED & HEAD OFFICE
Suranjan Gupta Executive Director EEPC INDIA Vandhna (4th Floor) 11 Tolstoy Marg New Delhi 110 001 Tel.: 91-11-23353353, 23711124/25 Fax : 91-11-23310920 E-mail : eepcto@eepcindia.net URL : www.eepcindia.org	Adhip Mitra Addl. Executive Director & Secretary EEPC INDIA Vanijya Bhavan (1st Floor) International Trade Facilitation Centre 1/1 Wood Street, Kolkata 700 016 Tel.: 91-33-22890651/52/53 Fax : 91-33-22890654 E-mail : eepcho@eepcindia.net URL : www.eepcindia.org