Dear Members,

Happy New Year!!!

In the WTO update of 13 December 2024, global trade volume for the year through September was up 2.4%, slightly less than the WTO’s most recent forecast of 2.7% for 2024. Meanwhile, the value of merchandise trade was up 1.6% over 2023. Slower trade growth in value terms than in volume terms implies a small (less than 1%) decline in prices of traded goods during this period. The projected 2.7% increase in the volume of world merchandise trade in 2024 is attainable if quarter-on-quarter growth in Q4 continues at around the same rate of 1.1% as in Q3. This is quite likely since the most recent WTO Goods Trade Barometer of 9 December signalled continued trade expansion through the end of the year. However, the short-term outlook for trade is clouded by rising global trade tensions.

During April-December 2024, Indian merchandise exports increased by 1.6% to US$ 321.71 billion, while services exports grew by 11.6% to US$ 280.94 billion, resulting in an overall export growth of 6% to US$ 602.64 billion. Due to the transition from SEZ Online to ICEGATE, effective from July 1, 2024, the mechanism for data sharing between the DG System and the Commerce Ministry regarding exports and imports from SEZs is still under process.

Chairman, EPCES participated in the Hon’ble Finance Minister’s pre-budget consultation of the “Trade and Services” group on 26th December 2024 and raised the issue of delay in SEZ reforms through either long pending DESH Bill or through amendment in SEZ Act. He requested to have some amendments in SEZ Act through Finance Bill for SEZ to DTA supply on duty foregone basis and payment in INR for supplies to DTA.

Rollout of ICEGATE in SEZs w.e.f. 1.7.2024 has been very difficult for our members. EPCES has strongly take it up with the Department of Commerce and the Department of Revenue/ CBIC. Commerce Secretary reviewed the same on 10.12.2024. Commerce Ministry has decided for parallel operation of existing arrangement through SEZ Online till 17.2.2025. EPCES has also taken up with Government for extension of RoDTEP to SEZs and EOUs till 30.9.2025 on the pattern of DTA exporters. It has been extended for SEZs and EOUs till 29.1.2025 on an interim basis. On EPCES follow up, Hybrid work facility in SEZs has also been extended till 31.12.2027.

Among our regular articles, you will find information about the status of issues taken by the EPCES with the Government, details of queries answered by our knowledge partner in addition to activities at headquarter and regional levels. We will be happy to hear from you for suggestions for improving the news magazine.

With best wishes,