• AEPC Or­gan­ises Au­tho­rized Eco­nomic Op­er­a­tor (AEO) Pro­gram in Mum­bai

Ben­e­fits of Hedg­ing, AEO and be­ing a IPO Listed Com­pany Dis­cussed

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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.

AEO 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 gamechanger as it will lead In­dia to be­come a man­u­fac­tur­ing and ex­port­ing pow­er­house. 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

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