CHEMEXCIL-Launch of Bi-Monthly Bulletin, CHEMEXCIL NEWS- October-November 2024 edition

Issue October to November - 2024 Bi - Monthly Edition www.chemexcil.in @chemexcil.in From left Shri Raghuveer Kini, Director General, CHEMEXCIL, Ms. Viveka Roychowdhury, Editor, The Indian Express Limited, Shri Abhay Udeshi, Chairman CHEMEXCIL, Mr. Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance at the event Reimagining Spend Management & Supply Chain for Pharma and Chemical Industry 25th September - 2024 at Jio World Convention Centre, Mumbai

Shri Abhay Udeshi, Chairman addressing the gathering Shri Raghuveer Kini, Director General passing the important resolutions Members of Chemexcil attending 61st Annual General Meeting Dr. Satish Wagh, Vice-Chairman proposing Vote of Thanks Shri Raghuveer Kini, Director General, Shri Abhay Udeshi, Chairman and Dr. Satish Wagh, Vice-Chairman during 61st Annual General Meeting GLIMPSES OF 61ST ANNUAL GENERAL MEETING 2024 Held on 26th September 2024 at The Orchid Hotel, Mumbai Group Photograph of Newly Elected Committee of Administration www.chemexcil.in @chemexcil.in

ing GLIMPSES OF 61ST ANNUAL GENERAL MEETING 2024 Held on 26th September 2024 at The Orchid Hotel, Mumbai Group Photograph of Newly Elected Committee of Administration www.chemexcil.in @chemexcil.in

1 October - November 2024 Disclaimer:-

1. News, Views, Article, Strategy in this publication are not necessarily those of council. These are provided only for information as a service & reference to members. The Publisher and editors are in no way responsible for these views.
2. Please note that this bi-monthly bulletin covers activities from October - November 2024. However, to provide a comprehensive overview of our Council's recent accomplishments, we have also included important events that took place from June 2024. Editorial Mr. Abhay Udeshi Chairman Dr. Satish Wagh Vice Chairman Dr. Sangeeta Srivastava Member - CoA Mr. Raghuveer Kini Director General Mr. Prafulla Walhe Director

IN THIS ISSUE 1 Chairman Desk 2 Articles 4 Important Government Meetings 3 Brazil Enacts its “REACH” Export Statistics 5 7 Trade Promotion Activities & Capacity Building Initiatives Important Notifications and Circulars 8 Dear Member-Exporters, I am delighted to announce the relaunch of CHEMEXCIL's Bulletin, "CHEMEXCIL News." This bulletin will now be published every two months to provide valuable insights of our Council's important Trade Promotional Activities, Capacity Building Initiatives, and crucial trade-related information.

n will now be published every two months to provide valuable insights of our Council's important Trade Promotional Activities, Capacity Building Initiatives, and crucial trade-related information. It will also feature updates on Key Notifications, Government Circulars, Export Statistics, and more. The Indian Chemical Industry is highly diversified, encompassing bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. As the sixth-largest producer of chemicals globally and the third-largest in Asia, India contributes approximately 7% to the national GDP.
In FY 2023-24, India's chemical exports reached USD 29.37 billion . For 2024-25, the Department of Commerce has set a target of USD 31.53 billion, and during the period April to September 2024, we have achieved USD 14.10 billion (Source Niryat Portal). I extend my sincere gratitude to the Hon'ble Commerce & Industry Minister for his continuous engagement with exporters and addressing the challenges we face. His proactive approach has been instrumental in ensuring seamless exports. The Ministry of Commerce and Industry, Government of India, has been actively involved in various initiatives. These include: Chairman’s Desk 6 Policy & Regulatory Updates

seamless exports. The Ministry of Commerce and Industry, Government of India, has been actively involved in various initiatives. These include: Chairman’s Desk 6 Policy & Regulatory Updates

2 • India hosted the 2nd Meeting of the India-Cambodia Joint Working Group on Trade & Investment (JWGTI) in New Delhi on June 19, 2024. The JWGTI discussed measures to enhance trade and investment. • An Indian delegation met with Qatari officials in Doha on July 10, 2024, to review the progress of ongoing discussions for Memoranda of Understanding (MoUs) on Food Safety and Cooperation in exchange of pre-arrival information for trade facilitation. • The Secretary-General of ASEAN met with Shri Piyush Goyal, Minister of Commerce and Industry of India, on September 1, 2024, to discuss strategies to strengthen ASEAN-India connectivity and enhance participation in global value chains. • Union Minister of Commerce & Industry, Shri Piyush Goyal, inaugurated Invest India's new office in Singapore on September 22, 2024. This office will serve as a dedicated point of contact for companies looking to invest in India. CHEMEXCIL has been actively promoting the Indian chemical industry globally through various events and exhibitions. In July and August 2024 alone, we issued 19 circulars and organized 5 Techno Commercial webinars, 25 virtual meetings/Export strategy meets, 1 workshop, 5 physical seminars, 1 Virtual Buyer Seller Meet, and 14 physical meetings.

we issued 19 circulars and organized 5 Techno Commercial webinars, 25 virtual meetings/Export strategy meets, 1 workshop, 5 physical seminars, 1 Virtual Buyer Seller Meet, and 14 physical meetings. These efforts aim to enhance industry knowledge, facilitate business connections, and strengthen India's export performance. CHEMEXCIL has recently onboarded the Trade Connect e-Platform for issuing Certificates of Origin (COO), streamlining export-related processes. This platform will enhance efficiency and transparency in managing export documentation. We continually submit representations to the Ministry to resolve issues affecting chemical exports. I urge all members to actively contribute their inputs to pre-budget proposals and other representations. Your feedback is crucial for enhancing the competitiveness of the chemical sector. I hope that you find this CHEMEXCIL News Bulletin informative and useful. We look forward to your valuable feedback and suggestions, which will help us improve future editions. Warm regards, Shri Abhay Udeshi Chairman, CHEMEXCIL Chairman’s Office: M/s. Jayant Agro-Organic Ltd. 701, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel West, Mumbai 400 013 Tel: +91 22 40271300 Email: abhay.udeshi@jayantagro.com

an’s Office: M/s. Jayant Agro-Organic Ltd. 701, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel West, Mumbai 400 013 Tel: +91 22 40271300 Email: abhay.udeshi@jayantagro.com

3 S uccess in export lies not just in producing quality goods but in staying ahead of regulations and compliances. The chemical export industry plays a vital role in the global economy, contributing significantly to international trade and fostering cross- border collaboration. However, with increasing regulatory complexities, both in terms of compliance and constant changes in policies, exporters face challenges in navigating the ever-evolving landscape of international trade laws. This is especially true for the chemical sector, where non-compliance can result in heavy penalties, business disruptions, or loss of market access. In this article, we will explore the latest updates in export and import compliances for the Indian Exporters and specifically to chemical exporters along with the crucial steps required to remain compliant in today’s dynamic trade environment. This guide aims to offer chemical exporters a strategic approach to managing compliance efficiently, understanding regulatory changes, and maintaining a competitive edge in the global market. The Compliance Landscape for Chemical Exporters

1. Foreign Trade Policy Updates:

The Foreign Trade Policy 2023 (FTP 2023) serves as the backbone of India’s trade framework, providing detailed guidelines on how businesses must manage their exports.

reign Trade Policy Updates:

The Foreign Trade Policy 2023 (FTP 2023) serves as the backbone of India’s trade framework, providing detailed guidelines on how businesses must manage their exports. One of the essential updates for exporters includes the modification of the Importer Exporter Code (IEC), which mandates that all IEC holders ensure their information is updated online every year between April and June Non-compliance with this requirement can lead to the deactivation of the IEC, hindering business operations.

For chemical exporters, this update emphasizes the importance of periodic administrative checks to prevent business interruptions. The IEC can now be updated via digital platforms, making it easier and quicker for businesses to stay compliant with minimal disruption. 2. Advance Authorisation Scheme (AA): One of the key compliance measures in the export sector is the Advance Authorisation Scheme (AA), which allows duty-free imports of inputs used in export products. For the chemical sector, where raw materials are often imported before being processed and exported, this scheme provides a vital cost- saving mechanism. Under this scheme, businesses must adhere to strict timelines for fulfilling export obligations. Exporters need to ensure they complete their obligations within 18 months from the date of issue of the Authorisation. Furthermore, the policy now permits an extension of the export obligation (EO) period, but this comes with composition fees, and these extensions should be requested in a timely manner.

risation. Furthermore, the policy now permits an extension of the export obligation (EO) period, but this comes with composition fees, and these extensions should be requested in a timely manner. The EO Composition fees are now based on a fixed tabulation of CIF Value rather than the EO Fulfilled calcution, making it easier to process the extension applications online. Exporters can strategically leverage of the same. For exporters dealing with complex supply chains, this policy adjustment can provide much-needed flexibility, though managing these obligations requires rigorous planning and efficient record- keeping. 3. E-Status Holder Certification: Exporters that have demonstrated consistent performance are recognized as “Status Holders” under the Foreign Trade Policy. This recognition allows businesses to benefit from several trade facilitation measures. For the chemical industry, the ability to obtain double weightage in calculating export performance under certain conditions, such as being an MSME or exporting from specific regions like the North-East, is a notable advantage. However, to maintain this status, exporters must Navigating Compliances and Latest Changes in Chemical Exports - A Comprehensive Guide Mr. Mihir Ajit Shah Well-regarded Advisor, Consultant, and Trainer in International Business ARTICLES

s must Navigating Compliances and Latest Changes in Chemical Exports - A Comprehensive Guide Mr. Mihir Ajit Shah Well-regarded Advisor, Consultant, and Trainer in International Business ARTICLES

4 ensure their data is accurate and up-to-date. From 2024, the government has automated the issuance of E-Status Holder Certificates based on merchandise export data, further simplifying the process. Yet, businesses must be vigilant in maintaining their records to avoid discrepancies during certificate issuance. 4. RoDTEP Scheme Enhancements: The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme continues to be a cornerstone for exporters, providing rebates on unrefunded taxes and duties. The recent updates to the scheme have introduced new product categories and clarified eligibility criteria for sectors including chemicals. RoDTEP Scheme is also available for exporters availing the benefit of Advance Authorisation Scheme, EOU Exporters and SEZ Units at a different rate as notified under Appendix 4RE. Understanding how to leverage this scheme effectively can significantly enhance export profitability. For instance, a chemical exporter leveraging the RoDTEP scheme can recover up to 0.80% of FOB Value thereby lowering operational costs.

effectively can significantly enhance export profitability. For instance, a chemical exporter leveraging the RoDTEP scheme can recover up to 0.80% of FOB Value thereby lowering operational costs. This could allow them to redirect these savings toward enhancing product innovation or expanding their market reach. 5. EPCG Scheme Simplifications: The Export Promotion Capital Goods (EPCG) scheme, designed to facilitate the import of capital goods for production, has undergone simplifications in terms of documentation and compliance. For chemical exporters using complex machinery for manufacturing, this scheme allows duty exemptions on imported capital goods, provided the exporter fulfills an export obligation (EO) of six times the duties saved within a stipulated period of 6 Years. Exporters must remain diligent in reporting their progress towards fulfilling the EO, as failure to do so can result in duty payment with interest and additional penalties and costs. 6. Digital Transformation in Compliance: Digital transformation has revolutionized trade compliance. With initiatives like the self- generation of eBRC (Electronic Bank Realization Certificate) by the exporter and New online platform for issuing Certificates of Origin (CoO), exporters can now handle their documentation and compliance obligations more efficiently than ever.

Certificate) by the exporter and New online platform for issuing Certificates of Origin (CoO), exporters can now handle their documentation and compliance obligations more efficiently than ever. Event Customs platform of ICEGATE 2.0 has been more effective to provide ease of operations and information. Chemical exporters should prioritize integrating digital tools into their workflow to streamline processes, reduce the risk of errors, and enhance compliance management. These systems not only ensure quicker access to important documents but also offer greater transparency when dealing with international clients or authorities. Export compliance is no longer just about following regulations; it’s about staying competitive and ensuring seamless operations in a highly regulated environment. The chemical export industry, with its unique challenges, must remain agile and proactive in managing its regulatory obligations. The recent changes in trade policies, coupled with the advancements in digital tools, have made compliance more accessible but also more demanding in terms of attention to detail. Key Takeaways: 1. Stay Updated: Ensure regular updates of all registrations like IEC and RCMC to avoid business disruptions. 2. Leverage Financial Schemes: Maximize profitability by utilizing schemes like Interest Equalisation Scheme, RoDTEP and EPCG. 3. Embrace Digital Transformation: Use digital tools to manage documentation and compliance more effectively. “In the world of chemical exports, success comes not just from innovation but from being able to

Digital Transformation: Use digital tools to manage documentation and compliance more effectively. “In the world of chemical exports, success comes not just from innovation but from being able to juggle products and paperwork with equal finesse.” Remember what Groucho Marx the American comedian and actor said: “Those are my principles, and if you don’t like them…well, I have others!” When it comes to compliance, there’s no room for alternatives—staying on top of regulations is non- negotiable! About the Author :

5 Mihir Ajit Shah is a well-regarded Advisor, Consultant, and Trainer in International Business, with expertise spanning Foreign Trade Policy, GST, FEMA, RBI, and customs regulations. Mihir has conducted over 100 trainings annually, impacting more than 4,500 participants. His work has earned recognition across multiple industries, including the chemical export sector, where he provides in-depth training and advisory services to exporters and importers. Mihir’s unique approach blends practical experience with academic knowledge, making him a trusted voice in global trade. He also is an ICC Incoterms® 2020 Registered Trainer in India.

importers. Mihir’s unique approach blends practical experience with academic knowledge, making him a trusted voice in global trade. He also is an ICC Incoterms® 2020 Registered Trainer in India.

6 I ntroduction The European Parliament enacted Regulation (EU) 2023/956 for establishing a Carbon Border Adjustment Mechanism (‘CBAM’) on 10 May 2023. CBAM was formulated as part of the European Union’s (‘EU’) ‘Fit for 55’ package, which aims at reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels1. The EU claims that CBAM has been designed to put a fair price on the carbon emitted while manufacturing the goods being imported into the EU, and thereby preventing carbon leakage. According to the EU, carbon leakage occurs when businesses start relocating industries to or products are imported from countries, with less stringent environment policies, apparently to circumvent the cost-intensive climate policies in the European Union. Before getting into the fundamentals of the CBAM, it is essential to shed light upon EU’s climate-related policies that have contributed towards the occurrence of carbon leakage in the first place. The genesis of the CBAM The EU has consistently attempted to be at the forefront of reduction of greenhouse gas emissions. This ambitious goal became the foundational aspect of not only the CBAM, but also the European Union Emissions Trading System (‘EU ETS’), which led to the establishment of one of the world’s first major carbon trading market.

e foundational aspect of not only the CBAM, but also the European Union Emissions Trading System (‘EU ETS’), which led to the establishment of one of the world’s first major carbon trading market. The EU ETS is a system within the European Union that penalizes carbon-intensive manufacturing of products and incentivises low-carbon emissions. The EU ETS follows a ‘cap and trade’ system under which a cap is placed upon the maximum volume of permitted emissions by manufacturing installations. Companies are given some free allowances, and each allowance gives the manufacturer the right to emit one tonne of Carbon Dioxide or an equivalent greenhouse gas. The maximum cap of allowable emissions is reduced annually. In case the companies exhaust their free allowances, they must buy extra allowances from other traders or the EU market. This system, referred to as the ‘cap and trade’ system, encourages the manufacturers to alter their production processes and reduce greenhouse gas emissions. However, because of the high costs associated with the EU ETS, companies are being encouraged to relocate their production facilities to countries having laxer environment related policies, thereby causing ‘carbon leakage’. Therefore, to apparently level the playing field, the EU came up with the CBAM to place accountability on the imported goods in certain carbon-intensive industry sectors. CBAM: Scope and Coverage CBAM currently covers six sectors: iron and steel, aluminum, cement, fertilizers, hydrogen, and electricity.

imported goods in certain carbon-intensive industry sectors. CBAM: Scope and Coverage CBAM currently covers six sectors: iron and steel, aluminum, cement, fertilizers, hydrogen, and electricity. For the goods covered under these sectors (‘CBAM goods’), importers are required to declare the direct emissions (such as those related to raw materials and manufacturing) and indirect emissions (such as those related to electricity) embedded in the CBAM goods being imported into the EU. These emissions are specific to each product and manufacturing facility, making importers dependent on their exporters/ producers for all CBAM-related details. Consequently, the responsibility indirectly falls on the exporters/ producers of CBAM goods to provide this information. Timelines and Phases of CBAM The CBAM is being implemented in two phases: transitional and definitive. Transitional Phase (October 2023-December 2025): The transitional phase, that came into effect in October 2023, is the initial phase that was specifically designed to give EU importers a breathing period to understand the nuances of CBAM and prepare for its complete implementation. During this period, importers of CBAM goods are required to report the embedded carbon emissions in the imported goods without any financial implication.

prepare for its complete implementation. During this period, importers of CBAM goods are required to report the embedded carbon emissions in the imported goods without any financial implication. The primary objective of this period is to collect accurate data, and allow companies to adapt to the reporting requirements, identify potential issues, and make necessary changes and adjustments before the Regulation is completely enforced during the definitive phase. This phase is crucial for exporters of CBAM goods to the EU because the EU importers will use this phase to Navigating the European Union’s Green Trade Frontier: Decoding EU-CBAM for Indian exporters By Ankur Sharma 1 Fit for 55, COUNCIL OF THE EUROPEAN UNION, Fit for 55 - The EU’s plan for a green transition - Consilium (europa.eu) (last visited May 28, 2024).

7 identify suppliers who can support them in providing all CBAM related information and are committed to reducing their carbon footprint. The importers will also check whether their exporters are able to accurately capture and calculate their direct and indirect emissions. This will help importers identify long-term suppliers who will aid them in reducing their CBAM- related liabilities when the definitive phase of the regulation begins. Definitive Phase (Starting 1st January 2026): Post the transitional phase, CBAM will enter its definitive phase.

heir CBAM- related liabilities when the definitive phase of the regulation begins. Definitive Phase (Starting 1st January 2026): Post the transitional phase, CBAM will enter its definitive phase. During this phase, EU importers will not only be required to report embedded carbon emissions, but also to buy and surrender Carbon Certificates that correspond to the embedded carbon emissions of the imported goods. The cost of the Carbon Certificates will be aligned with the prices of allowances provided under the EU ETS. It is abundantly clear that to match the obligations and additional responsibilities placed on EU manufacturers by the EU ETS, the EU is now extending obligations upon the importers in the European Union. Do the exporters need to worry? Since the coming into force of the transitional phase of CBAM from October 2023, exporters of CBAM goods who are keen on retaining their access to the EU market have been taking steps towards compliance with the CBAM. The reporting of carbon emissions in the past two quarters has shown us that the exporters of CBAM goods to the EU have to take a lot of effort to comply with the CBAM. This is primarily because all the information that must be reported under the CBAM is production centric. Hence, even though the direct implication of the CBAM is on the importers in the EU, the main onus of compliance is on the exporters of the covered goods to the EU.

he CBAM is production centric. Hence, even though the direct implication of the CBAM is on the importers in the EU, the main onus of compliance is on the exporters of the covered goods to the EU. Compliances required by exporters to the EU • Data collection and recording: To continue exports to the EU, every manufacturer outside the EU is now required to share their emissions data with their importers in the EU. This information is calculated by monitoring and recording all details related to production, consumption of raw materials, identifying suppliers of raw materials consumed, tracking consumption of fuels and gases, dividing consumption details between different products and between CBAM and non-CBAM goods being produced in the same manufacturing facility. • Rigorous record keeping: From the manufacturers’ perspective, it is an additional responsibility to now rigorously record the consumption of raw materials, fuels, electricity at different steps of the production process, specifically for CBAM goods on a quarterly basis. • Emissions data of Precursors: Another cumbersome process is obtaining the emissions data of the precursors, i.e., the raw materials of covered goods that are themselves CBAM goods, from their suppliers, in the absence of which the manufacturers will have to use the default values provided by the European Commission. These default values are considerably higher than the actual emission values and are bound to increase the emission factor significantly.

e the default values provided by the European Commission. These default values are considerably higher than the actual emission values and are bound to increase the emission factor significantly. Checkpoints for companies In light of the compliances required by exporters, there are a few checkpoints that will have to be kept in mind going forward: • Rigorous monitoring is the key: It is imperative that companies start monitoring the consumption of raw materials, fuels and other consumables on a monthly basis. The companies must accurately record consumption and production details on actual basis. However, sometimes, the companies count a product as produced even when the product is in semi-finished state and has to still undergo another cycle of production process. This leads to double counting of production, and such mistakes must be avoided. • Process-wise Monitoring of Electricity Consumption: Tracking the monthly consumption of electricity through the electricity bills will not be enough. This is simply because the electricity bills capture the entire usage of electricity, including electricity usage for administrative blocks of the manufacturing facility and for manufacturing of non-CBAM goods. Hence, to avoid an increase in indirect emissions due to imprecise electricity consumption for the manufacturing

ive blocks of the manufacturing facility and for manufacturing of non-CBAM goods. Hence, to avoid an increase in indirect emissions due to imprecise electricity consumption for the manufacturing

8 of CBAM goods, it is advisable that companies start tracking electricity usage separately for each production process. This will leave no room for error. • Limiting usage of Default Values: CBAM requires the reporting of not only the direct and indirect emissions during the production processes, but also emissions embedded in the precursors, i.e., the raw materials covered under CBAM. In the initial compliance period, manufacturers have used the default values provided by the EU due to difficulty in obtaining CBAM reports from their vendors. This approach needs to change, as the usage of default values without any limitation is permitted only for the first three reporting quarters. From the fourth reporting quarter, i.e., July 2024-September 2024, the usage of default values shall be limited to 20% only. • Inculcating ‘permanent’ solutions: Monitoring data on an actual basis, and rigorously collecting the actual emissions of the precursors used in the manufacturing are crucial steps. However, these should not overshadow the ultimate goal of reducing carbon emissions. The EU is nudging companies to adopt greener practices to avoid financial consequences of carbon-intensive manufacturing.

ese should not overshadow the ultimate goal of reducing carbon emissions. The EU is nudging companies to adopt greener practices to avoid financial consequences of carbon-intensive manufacturing. To remain competitive and profitable while exporting goods to the EU, companies must immediately start working towards reducing their carbon footprint by adopting green technology, using renewable energy, and monitoring their consumptions of raw materials and fuels. Conclusion It is important that Indian manufacturers exporting CBAM goods to the EU efficiently produce the required data if they want to maintain access to the EU market. Moving forward, it is expected that EU policymakers will continue to refine the CBAM and increase the pressure on exporters to provide accurate data. Other countries are likely to follow suit and implement similar programs and regulations. Further, EU policymakers are expected to add new products, such as plastics and chemicals, and include within the scope of CBAM, all products covered under the EU ETS by 2030. This, however, can be seen as a business opportunity by companies to align their carbon footprint monitoring with international practices, get ahead of industry peers and attract customers by demonstrating their strong commitment to sustainability and climate change related legal compliances. [The first author is a Partner while the other two authors are Associates in WTO and International Trade Division in Lakshmikumaran & Sridharan Attorneys, New Delhi]

e related legal compliances. [The first author is a Partner while the other two authors are Associates in WTO and International Trade Division in Lakshmikumaran & Sridharan Attorneys, New Delhi]

9 T he Eco-design for Sustainable Products Regulation (ESPR) (EU) 2024/1781, which entered into force on 18 July 2024, is an ambitious new EU framework to make environmentally sustainable products the norm in the EU throughout their lifecycle, and starting with the product design. The ESPR is rooted primarily in the European Commission’s Circular Economy Action Plan of March 2020, which in turn is based on the European Green Deal of 2019. This article aims to answer key questions on how ESPR may affect chemicals exporters from India to the EU market. What does the framework architecture of the ESPR mean? The regulation governs virtually all products (physical goods) placed on the market or put into service in the EU, not limited to consumer products. There are only very limited exclusions (e.g. for food, feed, medicinal products). However, since ESPR is designed as a framework regulation, this means that it does not create direct legal obligations for companies. This will require the subsequent setting of eco-design requirements for specific product groups and economic operators over time, which will be part of Commission delegated acts. The implementation of the ESPR framework will follow a prioritization approach, according to multi-annual Commission working plans.

ors over time, which will be part of Commission delegated acts. The implementation of the ESPR framework will follow a prioritization approach, according to multi-annual Commission working plans. In the 1st ESPR Working Plan, which shall be adopted by 19 April 2025, the Commission shall prioritize 11 product groups, unless justified otherwise. What types of chemicals may be prioritized first? Among the 11 product groups to be prioritized from 2025 onwards are detergents, paints, lubricants and “chemicals”. It is important to note that the product groups will be further defined as part of upcoming Commission preparatory work for the definition of eco- design requirements. For example, it is not expected that all “chemicals” placed on the EU market will be regulated, but only those identified subgroups with a relatively high environmental impact, such as certain large volume inorganic and organic chemicals, as well as certain basic inorganic chemicals. As of today, such preparatory work is only ongoing for certain textiles (apparel) and steel, not yet for chemicals. So remember that the bulk of the ESPR work still lies ahead. What aspects could be regulated under ESPR for chemicals? The Regulation foresees 16 product aspects that circumscribe the scope of environmental sustainability comprehensively. They serve as a kind of ‘pick list’ for the European Commission to select the most relevant ones.

s 16 product aspects that circumscribe the scope of environmental sustainability comprehensively. They serve as a kind of ‘pick list’ for the European Commission to select the most relevant ones. For ‘chemicals’, aspects such as minimum recycled content, energy used, correct use and disposal and sourcing of raw materials from certified sustainable practices were mentioned by the Commission’s Joint Research Centre back in 2023 to be potential topics of measures. The preparatory work by the Commission for these product groups needs to be awaited to know better what the Commission wants to be focusing on. Eco-design requirements can take the form of performance requirements or information requirements; the latter shall include, as a minimum, requirements related to substances of concern and to the Digital Product Passport (DPP). What is a DPP? The DPP is foreseen as a decentralized tool to electronically register, process and share product- related information amongst supply chain businesses, authorities and consumers. Data access is enabled through a data carrier and a unique identifier. The primary responsibility to provide a DPP will be with the economic operator that puts a regulated product on the market. DPPs are currently expected at the earliest from 2027 (e.g. for certain textiles).

y responsibility to provide a DPP will be with the economic operator that puts a regulated product on the market. DPPs are currently expected at the earliest from 2027 (e.g. for certain textiles). ESPR obligations for non-EU suppliers and Authorized Representative option Non-EU manufacturers of regulated products are currently expected to have the same ESPR compliance obligations as their EU competitors related to tasks such as conformity assessment, technical documentation and information requirements (incl. DPP). However, the enforcement in the EU will start at the stage of importation of the product into the EU. Manufacturers of regulated products may mandate “ The new EU Ecodesign for Sustainable Products Regulation is now in force: How will it affect chemicals exporters from India to the EU market?” By Tim Becker 1 Fit for 55, COUNCIL OF THE EUROPEAN UNION, Fit for 55 - The EU’s plan for a green transition - Consilium (europa.eu) (last visited May 28, 2024).

rters from India to the EU market?” By Tim Becker 1 Fit for 55, COUNCIL OF THE EUROPEAN UNION, Fit for 55 - The EU’s plan for a green transition - Consilium (europa.eu) (last visited May 28, 2024).

10 a natural or legal person established in the EU in writing to act as an ‘authorized representative’ on the manufacturer’s behalf in relation to specified tasks with regard to the manufacturer’s obligations under ESPR. Even though the appointment of an authorized representative is not mandatory, non-EU manufacturers may need to choose this option in order to facilitate their future business in the EU for regulated products. Also, do not confuse it with the ‘only representative’ role under EU REACH Art. 8! It should also be noted that even if your specific chemical product is not (or not yet) targeted by ESPR requirements in the foreseeable future, you may face requests from your downstream customers and value chain regarding required compliance information. How is ESPR related to other laws such as EU REACH? Other requirements such as EU REACH and CLP governing chemical safety and related communication will continue to apply in parallel. Some provisions have been made in ESPR to avoid double regulation. Hence, compliance with REACH and CLP does not exempt companies from compliance with possible future ESPR obligations. Other new requirements may also have to be addressed by chemicals exporters in the near future, e.g. customer requests under the Corporate Sustainability Due Diligence Directive or the proposed Green Claims Directive.

may also have to be addressed by chemicals exporters in the near future, e.g. customer requests under the Corporate Sustainability Due Diligence Directive or the proposed Green Claims Directive. How can chemicals exporters to the EU prepare for the ESPR implementation? Companies marketing products in the EU are advised to enhance their understanding of the regulation and monitor the ESPR implementation process. This concerns especially first-priority products (textiles, steel, as well as related value chains, see above). Trade associations and companies may also participate as a stakeholder for the preparation of eco-design requirements, for example in the new Eco-design Forum. One important action is to look out for the Commission work to adopt its 1st ESPR Working Plan by 19 April 2025. How can I follow the ESPR implementation and obtain further information and support? Companies may follow the European Commission website on ESPR for general and our company REACH Law for more dedicated support. REACH Law operates an ESPR landing page with up-to-date information about the ESPR and an overview of further support services that REACH Law may provide (e.g. acting as an authorized representative). REACH Law also organizes webinars on the topic, such as recently done on 4.9.2024 for Chemexcil (link to recording) and 12.9.2024 for the general public (link to recording). You may follow our YouTube channel “REACH Law Talks” for the ESPR and other regulatory topics that we help with.

excil (link to recording) and 12.9.2024 for the general public (link to recording). You may follow our YouTube channel “REACH Law Talks” for the ESPR and other regulatory topics that we help with. For further information and support, please send an email to tim.becker@reachlaw.

11 B razil has taken a major step forward in management of chemical substances with the adoption on November 14, 2024, of Law 15.022, its REACH-inspired law. Now, Brazil joins the community of Latin American countries with similar national schemes that will, for the first time, create national inventories, prioritize chemicals of concern, conduct risk assessments, and finally institute risk management measures in some instances. Similar regulations are already registering chemicals in Colombia and Chile. Peru has adopted its chemical framework law and is at work on the implementing regulation. Other countries, like Argentina, have pending proposals. Brazil’s New Law in a Nutshell Essentially, Brazil’s new law calls for the creation of a new national online platform for registration of covered chemical substances when produced or imported in quantities over one (1) ton per year. From those registered substances, two new entities – the Technical Committee for the Evaluation of Chemical Substances and the Deliberative Committee for Chemical Substances – will select priority substances and conduct risk assessments on them.

– the Technical Committee for the Evaluation of Chemical Substances and the Deliberative Committee for Chemical Substances – will select priority substances and conduct risk assessments on them. Finally, when warranted, these new entities will suggest risk management measures to be taken to control or minimize the risks identified. Implications for Industry If companies export to, manufacture in, or import into Brazil any type of chemical substances in quantities over one (1) ton per year, then they should start the process of determining if the new scheme applies to them.
First, the new law defines a “chemical substance” as a “chemical element and its compounds, in a natural state or obtained by a manufacturing process, including any additive necessary to preserve its stability and any impurity deriving from the process used, but excluding any solvent that can be separated without affecting the stability of the substance or modifying its composition.” Then, the law provides a laundry list of exemptions. Companies should study that list to determine whether the substances they export to, produce in, or import into Brazil might be exempt.

tion.” Then, the law provides a laundry list of exemptions. Companies should study that list to determine whether the substances they export to, produce in, or import into Brazil might be exempt. Many final products that already require some sort of registration in the country are exempt from the new law, including cosmetics, fertilizers, pesticides, among others. If a company’s chemicals are not exempt, then it will have three (3) years from the implementation of the new IT system for online registration of covered substances to get do the initial registration.  Like the schemes in Chile, Colombia, and Peru, this registration is NOT a full REACH dossier but more like a notification – at least with regards to getting into the national inventory system. Substances Exempt under the Law The following substances are exempt from the law: • radioactive substances; • chemical substances in development; • chemical substances intended exclusively for research; • non-isolated reaction intermediates; • substances that can be used for national defense; • waste; • chemical substances, mixtures and articles subject to customs supervision that have not undergone any kind of treatment or processing; • substances resulting from an unintentional chemical reaction during the storage of another substance, mixture or article, as well as those resulting from exposure of another substance or article to environmental factors such as: a) air; b) sunlight; c) humidity; d) micro-organisms; • the following products, subject to control under specific legislation:

of another substance or article to environmental factors such as: a) air; b) sunlight; c) humidity; d) micro-organisms; • the following products, subject to control under specific legislation: e) food; f) manufacturing technology adjuvants; Brazil Enacts its “REACH” By Melissa Owen Regional Context

12 g) food additives; h) medicines, active pharmaceutical ingredients, medicinal gases and preparations and substances intended for the prevention, diagnosis or treatment of health classified as medical devices; i) pesticides and related products, their premixes and technical products; j) cosmetics, personal care products, and perfumes; k) sanitizers; l) for veterinary use; m) intended for animal feed; n) fertilizers, inoculants and correctives; o) wood preservatives; and p) environmental remediators; • the following substances, with the exception of those which are chemically modified or which contain or consist of substances classified as hazardous to health or the environment, in accordance with the criteria and requirements of the Globally Harmonized System of Classification and Labelling of Chemicals (GHS): a) ores and concentrates thereof, as well as other rocks and minerals, including coal and coke, crude oil, natural gas, liquefied petroleum gas, natural gas condensate and gases and components of mineral production processes; b) natural substances; c) fats, essential oils and fatty oils extracted by milling, pressing or bleeding, even when purified, provided they result in products

s of mineral production processes; b) natural substances; c) fats, essential oils and fatty oils extracted by milling, pressing or bleeding, even when purified, provided they result in products with characteristics identical to the original; and d) glass, frit and ceramics; • narcotic, psychotropic and immunosuppressive substances; • substances used exclusively as ingredients in tobacco and tobacco products; • metal alloys in the form of plates, sheets, strips, billets, ingots, beams and the like for structural purposes; • explosives and their accessories. Exemptions from Registration The law provides that the following will not be subject to the registration requirement: • mixtures, • articles; • monomeric units when they are part of polymers and additives added to preserve the stability of polymers; and • polymers of low concern, according to criteria set out in a future regulation. More Regulatory Infrastructure Still Needed The new law still needs some regulatory infrastructure to be fully operational: • New Committees

The government will create the Technical Committee for the Evaluation of Chemical Substances and the Deliberative Committee for Chemical Substances, new entities that carry out different roles under the new system. • Implementing Regulation

Government has 180 days from November 15, 2024, to issue an important implementing regulation that fleshes out details left open in the law.  Officials recently announced that a Working Group will be formed at the next meeting of Brazil’s exemplary

sue an important implementing regulation that fleshes out details left open in the law.  Officials recently announced that a Working Group will be formed at the next meeting of Brazil’s exemplary interdisciplinary, multistakeholder chemical group, CONASQ, to develop that draft.  It’s worth noting that CONASQ was the group that developed the original text of the new law. • Registration Platform

The law gives the government up to three years from now to develop the IT for the new registration platform.  Officials recently announced that they are already beginning work on the consultancy that will create the new system – and it could be ready a good bit sooner than the three-year deadline. Timeline for Industry Companies that determine they will need to register their substances should be very alert to the development of (a) the new implementing regulation and (b) the online registration platform. The law makes it clear that the finalization of the online registration platform will

ry alert to the development of (a) the new implementing regulation and (b) the online registration platform. The law makes it clear that the finalization of the online registration platform will

13 be what kicks off the three-year timeline for chemical registration mentioned above. And industry should be watching for the new implementing regulation both in its draft form and once final. If the government opts to release the draft regulation for public comment, industry may want to review it and submit comments in an effort to ensure a reasonable, productive final draft. Once final, industry needs to take note of many important details that have been left to the regulation, including such things as the definition of “polymers of low concern” which will be exempt from registration in the new system. Good News for Foreign Manufacturers Brazil is the first country in the region to allow an option akin to the Only Representative in the EU whereby a foreign manufacturer can register its own substances through a local appointed agent.  It is worth noting that the Brazil law calls for the local OR-analog to “assume the responsibilities and obligations imposed” on an importer.

its own substances through a local appointed agent.  It is worth noting that the Brazil law calls for the local OR-analog to “assume the responsibilities and obligations imposed” on an importer. This high burden may dissuade some local consultants from stepping into this market.  It will be important to see whether the implementing regulation provides any further guidance on this issue. The New Model As the biggest country in South America, Brazil’s adoption of a REACH-inspired law means that the trend is now firmly established.  Countries on the fence about their chemical regulatory future are more likely now to join the bandwagon. Author Contact Information:
mowen@ambientelegal.com www.ambientelegal.com https://www.linkedin.com/in/melissa-owen/

14 A. BOARD OF TRADE MEETING The Board of Trade meeting, chaired by Commerce and Industry Minister Shri Piyush Goyal, was held on September 13, 2024, in Mumbai. Chairman along with Senior Council officers attended the meeting wherein Shri Piyush Goyal emphasized the government’s dedication to driving economic growth through robust partnerships with state governments and introduced key initiatives aimed at enhancing India’s trade environment. Key highlights from the meeting: 1. Launch of the Jan Sunwai Portal: The portal aims to streamline communication between stakeholders and government authorities, offering a transparent and direct channel for addressing trade and industry-related issues.

ai Portal: The portal aims to streamline communication between stakeholders and government authorities, offering a transparent and direct channel for addressing trade and industry-related issues. It includes video conferencing services for regular and on-demand interactions, accessible to several bodies under the Department of Commerce, such as the DGFT, Coffee Board, Tea Board, Spices Board, Rubber Board, APEDA, MPEDA, ITPO, and EIC. 2. ECGC’s Online Service Portal and SMILE-ERP System: These new digital initiatives mark a shift towards paperless processing and faceless service delivery for exporters benefiting both exporters and banks. This transformation will not only streamline customer services but also enhance ECGC’s core operational efficiency. Key outcomes include full automation of processes, business process integration, quicker claim disposals, enhanced operational control, and a meaningful reduction in the carbon footprint to support sustainability goals. ECGC’s embrace of digital solutions underscores its unwavering commitment to innovation, operational excellence, and customer satisfaction, ensuring world-class services for Indian exporters. 3. State Government Participation: Several states, including Uttar Pradesh, Karnataka, Tamil Nadu, Telangana, and Madhya Pradesh, presented their export promotion achievements and ease of doing business initiatives.

Participation: Several states, including Uttar Pradesh, Karnataka, Tamil Nadu, Telangana, and Madhya Pradesh, presented their export promotion achievements and ease of doing business initiatives. States from the North East, such as Assam, Tripura, and Sikkim, contributed suggestions to unlock export potential from the region. 4. E-Commerce Export Benefits: The Central Board of Indirect Taxes & Customs (CBIC) announced that RoDTEP, RoSCTL, and Drawback benefits would now extend to exports made via courier, with plans to extend these benefits to postal exports in the near future, promoting a more equitable environment for e-commerce exporters. The meeting was attended by ministers from 10 states, emphasizing the role of the Board of Trade as a key platform for collaboration between the government and industry stakeholders, aimed at shaping India’s international trade ecosystem. Inputs Shared by CHEMEXCIL at the BOARD OF TRADE MEETING 2024-25

1. Interest Equalization Scheme (IES):

The Interest Equalization Scheme (IES) has significantly aided exports in other sectors providing the needed support and financial assistance. CHEMEXCIL suggested to extend the scheme for three more years and restoring subvention rates from 3% to 5% for MSMEs and 4% for other manufacturers, especially given the rise in repo rates. This would benefit chemical sector exporters under HS Code Chapter 29. 2. RoDTEP Scheme for Chemicals:

Current RoDTEP rates for chemicals are fixed at 0.8% instead of the recommended 2.3%.

ates. This would benefit chemical sector exporters under HS Code Chapter 29. 2. RoDTEP Scheme for Chemicals:

Current RoDTEP rates for chemicals are fixed at 0.8% instead of the recommended 2.3%. CHEMEXCIL proposed to rationalize rates to 2.3% to enhance cost competitiveness in global markets by reducing production costs through actual tax reimbursement. 3. MAI Scheme and Funding Allocation:

CHEMEXCIL emphasizes that MAI funding cuts have reduced overseas promotional activities, particularly for MSMEs. It requests full allocation of MAI funds without deductions and a review of reimbursement limitations for REACH registration to benefit all chemical exporters, regardless of export turnover. 4. Environmental Issues: a. Green Space Reservation: Proposal to allow industries to maintain 33% green space within a 200 km radius of factory premises. IMPORTANT GOVERNMENT MEETINGS

15 b. Construction Before Environmental Clearance (EC): CHEMEXCIL suggested to allow plant construction to begin before EC approval to reduce production delays while ensuring operational consent is granted post- EC. 5. Inverted Duty Issue in ASEAN FTA (Oleochemicals): CHEMEXCIL highlighted the inverted duty structure for oleochemicals, which hinders competitiveness for domestic manufacturers. It requests rectification during upcoming ASEAN FTA negotiations. 6. Infrastructure Challenges at Seaports: Poor infrastructure around major ports like Nhava Sheva and Mundra causes delays.

rers. It requests rectification during upcoming ASEAN FTA negotiations. 6. Infrastructure Challenges at Seaports: Poor infrastructure around major ports like Nhava Sheva and Mundra causes delays. CHEMEXCIL suggested to expand road networks, improving maintenance, and addressing traffic congestion to facilitate smoother transport of goods. 7. R&D Incentivization for New Chemical Molecules: CHEMEXCIL advocates for a significant increase in R&D tax benefits (up to 250-300%) for DSIR- registered units, including MSMEs, to drive innovation and enhance global competitiveness in the chemical sector. 8. Random Container Checks at Customs: The current practice of random container checks increases costs and delays for exporters. CHEMEXCIL suggests exempting factory-stuffed containers from checks at ports to streamline shipments. 9. Bulk Storage Tanks for Chemicals at Seaports: Proposes creating large chemical storage tanks near seaports, enabling efficient management of feedstock and easing the commercial burden on chemical manufacturers. CHEMEXCIL recommends broader stakeholder consultation on this initiative. 10. Upgradation of PCPIRs: To enhance sustainability, CHEMEXCIL suggests introducing green hydrogen and carbon capture facilities in PCPIRs.

s broader stakeholder consultation on this initiative. 10. Upgradation of PCPIRs: To enhance sustainability, CHEMEXCIL suggests introducing green hydrogen and carbon capture facilities in PCPIRs. It also proposes providing “plug-and-play” infrastructure and appointing nodal officers to assist with regulatory clearances. 11. Creation of Indian Chemical Regulation: CHEMEXCIL calls for the establishment of an Indian chemical regulation akin to the EU’s REACH to provide data for policy-making, improve transparency, and enhance safety measures in the chemical industry. 12. Challenges in Rupee-Ruble Trade: Issues in payments and settlements under the rupee-ruble trade mechanism due to sanctions on designated banks like Sberbank are affecting trade with Russia. CHEMEXCIL requests solutions to streamline transactions under this mechanism. B. STAKEHOLDER CONSULTATION ON “TRADE INTELLIGENCE AND ANALYTICS PORTAL” BEING DEVELOPED BY DEPARTMENT OF COMMERCE A stakeholder consultation on “Trade Intelligence and Analytics Portal” being developed by Department of Commerce, has been conducted under the Chairmanship of Additional Secretary (ASB) Shri Amardeep Singh Bhatia on Friday, 19 July, 2024 at Vanijya Bhawan, New Delhi in hybrid mode. CHEMEXCIL and various other stakeholders were also part of this consultation wherein their current trade data and analytical requirements were discussed and also feedback on the content of the portal being developed was provided. An overview of the Trade Intelligence and Analytics Portal was presented by E&Y.

analytical requirements were discussed and also feedback on the content of the portal being developed was provided. An overview of the Trade Intelligence and Analytics Portal was presented by E&Y. They highlighted that the portal development is divided into two phases and expected completion is by Jan 2025. Demo of the portal was presented showcasing its functionalities and data sources, which include: DGCI&S, UN Comtrade, and other publicly available sources. Major headers in the portal include Trade Statistics, Data Intelligence, Thematic Insights, Reports and other features like an AI chatbot, discussion boards, query management, and news tracker. The portal is designed as a one-stop shop for data analytics, catering to 62+ analytical needs organized into 15+ dashboards/tools. Features include: User profiles, Latest and relevant information tracking from social media and news handles, specific to country/ commodity/theme, Single Source DoC Database, Reports and Analysis, Commodity Data etc. Feedbacks and suggestions were submitted to E&Y as below:

social media and news handles, specific to country/ commodity/theme, Single Source DoC Database, Reports and Analysis, Commodity Data etc. Feedbacks and suggestions were submitted to E&Y as below:

16 • The inclusion of country-specific certifications and MFN (Most Favored Nation) and FTA (Free Trade Agreement) related queries was requested. • Clarification of the “Others” category of products for EPCs was discussed. • Being a sectoral inclusion, Domestic and production capacity were requested by CHEMEXCIL. C. ESTABLISHMENT OF A WEB-BASED PLATFORM FOR INDUSTRY-ACADEMIA COLLABORATION IN THE CHEMICAL AND PETROCHEMICAL SECTORS Department of Chemicals and Petrochemicals established a new initiative aimed at strengthening the collaboration between the industry and academia which will be essential for driving research, innovation and sustainable growth in the chemicals and petrochemical sector. To facilitate this, a web-based platform is being developed to enable seamless interaction, partnership, and technology exchange between the Industry and the Academia. To ensure the success of this platform, DCPC has shared a concept note along with a datasheet template that outlines the information required for the portal. CHEMEXCIL has invited all it’s members to participate actively in this initiative by nominating a nodal person from their respective organizations and provide details of their existing R&D facilities as well as any future requirements. Active participation of trade organizations in this

ing a nodal person from their respective organizations and provide details of their existing R&D facilities as well as any future requirements. Active participation of trade organizations in this regard is crucial in shaping this platform into a valuable resource for our industry. D. CHEMEXCIL MEETING WITH FREIGHT FORWARDERS ASSOCIATION OF INDIA DATED 3RD OCTOBER 2024. CHEMEXCIL organised meeting with Freight Forwarders Association of India on 3rd October 2024. In order to address the issue of high cost of freight. Altogether 35-Indian Chemical Exporters attended this meeting and raised the following issues • High Freight Rates and Container Charges: Exorbitant freight rates and container charges imposed by shipping lines, particularly for exports to the EU and USA. • Lack of Transparency: There was a lack of transparency in the calculation and application of surcharges and additional fees imposed by shipping lines and terminal operators. • Favouritism Towards Chinese Exporters: Participants noted that Chinese exporters benefit from lower freight rates and have explored alternative trade routes like the Arctic, giving them a competitive advantage. • Inefficiency and Delays: Delays in vessel arrivals and inefficient processes at ports led to additional costs for exporters, such as ground rent charges and offloading fees. • Government Intervention: Participants called for government intervention to address these issues, including regulating shipping lines, reducing terminal charges, and promoting the use of Indian-flagged carriers.

vention: Participants called for government intervention to address these issues, including regulating shipping lines, reducing terminal charges, and promoting the use of Indian-flagged carriers. Suggested Solutions: • Government Intervention: Participants suggested that the government should regulate shipping lines, particularly regarding surcharges and fee calculations. • Direct Payments to Terminal Operators: Exporters and importers should be allowed to make direct payments to Container Terminal Operators (CTOs) to reduce costs and improve efficiency. • Use of Indian-Flagged Carriers: Promoting the use of Indian-flagged carriers could help stabilize services and preserve foreign exchange reserves. • Negotiation and Collaboration: Participants emphasized the need for collaboration between exporters, importers, and shipping lines to negotiate better terms and conditions. IMPORTANT GOVERNMENT MEETINGS A. Meeting With Embassy of India, Guatemala on Organizing Virtual BSM A productive meeting was held with the Embassy of India in Guatemala on 8th October 2024 at 9:30 PM (IST) to plan a Virtual Buyer-Seller Meet (BSM) focused on boosting trade between India and Guatemala. The discussions focused on understanding the demand for Indian products in Guatemala, especially in chemicals, dyes, cosmetics, and essential oils. Strategies and Agenda of the BSM were exchanged between both the sides to ensure that this initiative provides a direct platform for Indian Exporters to interact with the potential buyers in Guatemala.

gies and Agenda of the BSM were exchanged between both the sides to ensure that this initiative provides a direct platform for Indian Exporters to interact with the potential buyers in Guatemala.

17 B. Virtual BSM – India- Guatemala CHEMEXCIL along with the Embassy of India, Guatemala, successfully organised the Virtual Buyer- Seller Meet (BSM) between India and Guatemala on 22nd October 2024 at 8:00 PM (IST). The BSM was addressed by the Director General of Chemexcil and Ambassador of India, Guatemala. This virtual event had a tremendous participation from key stakeholders including 24 Indian exporters and 20 buyers from Guatemala. The Indian exporters introduced their company and product sectors and their interest to expand in Guatemala. The BSM facilitated real-time discussions and inquiries about business collaborations. C. Preparatory Meeting India-South Africa Joint Working Group on Trade and Investment (JWGTI) A preparatory meeting on India South Africa Joint Working Group on Trade and Investment (JWGTI) had been organized by the FT Africa Division, Department of Commerce, Government of India on 23rd October 2024 at 3:00PM chaired by Ms. Priya Nair, Economic Advisor, to discuss the critical trade and investment issues such as trade and investment barriers, regulatory hurdles, technology , supply chain issues and the scope for joint ventures between India and South Africa. Sector specific trade to South Africa were discussed along with the opportunities and challenges faced by the industry stakeholders to enter in this market. D.

ures between India and South Africa. Sector specific trade to South Africa were discussed along with the opportunities and challenges faced by the industry stakeholders to enter in this market. D. Meeting to Discuss the National Conference on Strategic Trade Controls Chemexcil attended the meeting held to discuss the agenda of National Conference on Strategic Trade Controls on 24th October 2024 at 11: AM under the Chairmanship of Shri Santosh Sarangi, Director General (DGFT), Vanijya Bhawan. The NCSTC was earlier organized under the aegis of DGFT and the Ministry of External Affair (MEA) on 30th January 2024. Now, NSCTC 2025 has proposed a 2-day conference organized jointly by DGFT and MEA and other government departments in Bengaluru on 16 – 17 January 2025 with an expected participation of 500 – 700 participants which will include international participation as well. This outreach program will feature panel discussions, workshops, sectoral sessions and interactive forums. E. Submissions Of Anomalies and Apparent Errors in The Revised RODTEP Rates Chemexcil had attended the virtual meeting titled Submission of Anomalies and Apparent Errors in the Revised RODTEP Rates on 24th October 2024 at 4:00PM chaired from DGFT division. The meeting focused on to point out the inconsistencies in rates for the products of industry concerns to ensure the exporters receive fair benefits.

er 2024 at 4:00PM chaired from DGFT division. The meeting focused on to point out the inconsistencies in rates for the products of industry concerns to ensure the exporters receive fair benefits. The department had asked to submit written representations along with the evidences and proper documentation to get their request considered and offered the opportunity to represent their concern in the committee meeting. Chemexcil had submitted the representations received from the industry stakeholders to the department. F. Budget Proposals for The Year 2025- 26 In Respect of Chemicals Sector The meeting to discuss the budget proposal for the year 2025-26 in respect to chemical sector was held on 29th October 2024 at 11:00AM under the chairmanship of Shri Deepankar Aron, Joint Secretary, Chemicals, Department of Chemicals and Petrochemicals. Chemexcil had deliberated and submitted the budget proposals received from the exporters to the department for consideration.

ecretary, Chemicals, Department of Chemicals and Petrochemicals. Chemexcil had deliberated and submitted the budget proposals received from the exporters to the department for consideration.

18 A. TARGET ORGANIC & INORGANIC CHEMICALS (SOURCE: NIRYAT) Organic & Inorganic Chemicals Target for the Period April-September 2024 (Value in USD Billion) Commodity View Yearly Target Achieved in % Growth % Achieved % Share of Total Export Target Rate (p.m.) Short- fall Required Run Rate (p.m)* April- September 2023 April- September 2024 Organic and Inorganic Chemicals 31.53 13.48 14.10 4.60 45% 100.00% 2,628 1,671 2,906 Source: Niryat Portal Region-wise Organic & Inorganic Chemicals Target for the period April-September 2024 (Value in USD Billion) Region Yearly Target Achieved in % Growth % Achieved % Share of Total Export Target Rate (p.m) Short- fall Required Run Rate (p.m)* April- September 2023 April- September 2024 EUROPE 7.19 3.28 3.29 0.34 0.46 0.23 599.00 310.00 651.00 NAFTA 4.86 2.05 2.25 9.95 0.46 0.16 405.00 181.00 435.00 WANA 5.77 2.26 2.01 -11.39 0.35 0.14 481.00 880.00 628.00 NEA 3.41 1.43 1.84 28.61 0.54 0.13 284.00 -133.00 262.00 ASEAN 4.16 1.52 1.62 6.38 0.39 0.11 346.00 461.00 423.00 LAC 2.42 1.26 1.25 -0.09 0.52 0.09 202.00 -44.00 194.00 SOUTH ASIA 1.49 0.69 0.75 9.31 0.50 0.05 124.00 -6.00 123.00 AFRICA 1.44 0.64 0.69 7.20 0.48 0.05 120.00 31.00 125.00 CIS 0.58 0.25 0.28 8.64 0.48 0.02 48.00 14.00 51.00 OCEANIA 0.21 0.10 0.13 24.57 0.61 0.01 18.00 -23.00 14.00 Total 31.53 13.48 14.10 4.60 45% 100% 2,627.76 1,671.02

.20 0.48 0.05 120.00 31.00 125.00 CIS 0.58 0.25 0.28 8.64 0.48 0.02 48.00 14.00 51.00 OCEANIA 0.21 0.10 0.13 24.57 0.61 0.01 18.00 -23.00 14.00 Total 31.53 13.48 14.10 4.60 45% 100% 2,627.76 1,671.02 2,906.26 Source: Niryat Portal B. CHEMEXCIL’S EXPORT PERFORMANCE FOR THE YEAR 2023-24 & PERIOD APRIL-SEPTEMBER 2024 OVER P.Y. EXPORT STATISTICS

19 Value in USD Billion Chapter No./Panel 2023-24 April-Aug. 2023 April-Aug. 2024 % Growth April-Sept. 2023 April-Sept. 2024 % Growth (32) Dyes & (29) Dye Intermediates 2.32 0.94 1.04 10.64 1.12 1.26 12.73 (32) Dyes 2.15 0.87 0.98 12.64 1.04 1.19 14.02 (29) Dye Intermediates 0.17 0.06 0.06 0.00 0.08 0.08 -4.22 (28) Inorganic, (29) Organic & (38) Agro Chemical 13.76 5.64 6.00 6.38 6.70 7.18 7.26 (28) Inorganic Chemical 2.02 0.80 0.90 12.50 0.97 1.09 12.07 (29) Organic Chemical 7.54 3.04 3.38 11.18 3.60 3.99 10.78 (38) Agro Chemical 4.19 1.80 1.72 -4.44 2.12 2.10 -0.95 (33) Cosmetics, (34) Toiletries & (33) Essential oils 3.23 1.38 1.26 -8.70 1.66 1.50 -9.51 (33) Cosmetics, (34) Toiletries 2.91 1.27 1.12 -11.81 1.50 1.34 -11.01 (33) Essential oils 0.32 0.11 0.14 27.27 0.16 0.16 4.98 (15) Castor oil 1.07 0.46 0.51 10.87 0.54 0.62 14.19 Total 20.38 8.42 8.81 4.63 10.02 10.57 5.47 Source: DGCI&S 1.70 2.18 -0.48 1.85 2.65 -0.80 EXPORT IMPORT TRADE BALANCE CHEMEXCIL TRADE - AUGUST August 2023 August 2024 8.41 11.95 -3.54 8.81 12.51 -3.70 EXPORT IMPORT TRADE BALANCE CHEMEXCIL TRADE - APRIL - AUGUST

April-August 2023 April-August 2024 1.59 2.20 -0.61 1.76 2.51 -0.75 EXPORT IMPORT TRADE BALANCE September 2023

.81 12.51 -3.70 EXPORT IMPORT TRADE BALANCE CHEMEXCIL TRADE - APRIL - AUGUST

April-August 2023 April-August 2024 1.59 2.20 -0.61 1.76 2.51 -0.75 EXPORT IMPORT TRADE BALANCE September 2023 September 2024 CHEMEXCIL TRADE - SEPTEMBER 10.02 14.18 -4.15 10.57 15.02 -4.45 EXPORT IMPORT TRADE BALANCE CHEMEXCIL TRADE - APRIL - SEPTEMBER April-September 2023 April-September 2024 CHEMEXCIL TRADE TRENDS Source: DGCI&S

20 2.15 2.37 August 2023 August 2024 ORGANIC & INORGANIC CHEMICAL - AUGUST

Values in USD Billion 2.17 2.35 September 2023 September 2024 ORGANIC & INORGANIC CHEMICAL SEPTEMBER

Values in USD Billion 1 NEA 2 OCEANIA 3 ASEAN 4 NAFTA 5 WANA 6 SOUTH ASIA 7 AFRICA 8 LAC 1 NEA 2 OCEANIA 3 NAFTA 4 SOUTH ASIA 5 CIS 6 AFRICA 7 ASEAN 8 EUROPE 1 EUROPE 2 CIS 1 LAC 2 WANA 11.30 11.75 April-August 2023 April-August 2024 Values in USD Billion

ORGANIC & INORGANIC CHEMICAL APRIL - AUGUST

13.48 14.10 April-September 2023 April-September 2024 ORGANIC & INORGANIC CHEMICAL APRIL - SEPTEMBER

Values in USD Billion Source : Niryat Source : Niryat REGIONWISE ORGANIC & INORGANIC CHEMICALS EXPORT GROWTH/DECLINE IN AUGUST 2024 (YoY %) REGIONWISE ORGANIC & INORGANIC CHEMICALS EXPORT GROWTH/DECLINE IN SEPTEMBER 2024 (YoY %)

Niryat Source : Niryat REGIONWISE ORGANIC & INORGANIC CHEMICALS EXPORT GROWTH/DECLINE IN AUGUST 2024 (YoY %) REGIONWISE ORGANIC & INORGANIC CHEMICALS EXPORT GROWTH/DECLINE IN SEPTEMBER 2024 (YoY %)

21 CHEMEXCIL TOP ITEMS EXPORT FOR THE PERIOD OF APRIL - SEPTEMBER 2024 OVER P.Y. Value in USD Million Sr. No HSCode Product 2023-24 Value (USD Million) Apr-Sept 2023 Apr-Sept 2024 Growth % 1 29022000 BENZENE 1318.7 610.31 823.06 34.86 2 38089390 OTHER HERBICIDES ANTI-S-SPROUTING PRODUCTS AND PLANT GROWTH REGULATORS 1449.15 781.84 744.24 -4.81 3 15153090 CASTOR OIL AND ITS FRCTNS OTHR THN EDBLE GRADE 988.95 506.27 574.96 13.57 4 38089199 OTHER INSECTICIDE N.E.S. 1111.94 553.14 487.64 -11.84 5 38089290 OTHER FUNGICIDES 898.76 443.60 458.82 3.43 6 28030010 CARBON BLACK 404.76 180.33 246.06 36.45 7 33049990 OTHER BEAUTY MAKE-UP PREPARATION 683.1 400.98 177.95 -55.62 8 29024300 P-XYLENE 260.07 167.13 166.69 -0.26 9 38231900 OTHER INDUSTRIAL MONOCARBOXYLIC FATTY ACID 234.03 113.13 147.49 30.37 10 32041751 PIGMENT BLUE 15 (PATHALOCYANINE BLUE) 241.43 114.38 137.09 19.85 11 29012400 BUTA-1 3-DIENE AND ISOPRENE 122.93 53.21 116.12 118.23 12 32041680 REACTIVE BLACKS 213.44 96.94 113.30 16.88 13 29332990 OTHER COMPNDS CNTNG AN UNFUSED IMIDAZOLE RING (W/N HYDRGNTD 230.34 115.44 95.94 -16.89 14 33029011 SYNTHETIC PERFUMERY COMPOUNDS 144.49 67.85 85.69 26.29 15 28151110 FLAKES OF SODIUM HYDROXIDE (CAUSTIC SODA) 141.11 63.15 77.07 22.04 16 32041650 REACTIVE BLUES 138.05 66.60 72.28 8.53 17 32041761 PIGMENT GREEN 7(PATHALOCYANINE GREEN) 114.74 56.43 70.03 24.10 18 29319090

S OF SODIUM HYDROXIDE (CAUSTIC SODA) 141.11 63.15 77.07 22.04 16 32041650 REACTIVE BLUES 138.05 66.60 72.28 8.53 17 32041761 PIGMENT GREEN 7(PATHALOCYANINE GREEN) 114.74 56.43 70.03 24.10 18 29319090 OTHER ORGANIC/INORGANIC COMPOUNDS 121.19 57.10 67.68 18.53 19 38086900 OTHER 137.88 65.63 65.20 -0.66 20 29322090 OTHER LACTONES 100.47 47.23 63.10 33.60 21 29252990 OTHER IMINES AND THEIR DERIVATIVES SALTS THEREOF 137.13 64.61 62.08 -3.92 22 33030090 OTHER PERFUMES AND TOILET WATERS 135.73 75.82 60.66 -19.99 23 29145000 KETONE-PHENOLS AND KETONES WITH OTHER OXYGEN FUNCTION 138.72 65.84 55.73 -15.36 24 29142990 OTHER CYCLANIC CYCLENIC/CYCLOTERPENIC KETONES WITHOUT OTHER OXYGEN FUNCTION 100.74 45.48 55.24 21.46 25 38089135 CYPERMETHRIN TECHNICAL GRADE 91.02 43.45 54.00 24.28 SOURCE: MOC&I

22 CHEMEXCIL EXPORTS TO TOP 25 COUNTRIES FOR THE PERIOD OF APRIL - SEPTEMBER 2024 OVER P.Y (Value in USD Million) Country September % Growth April-September, % Growth 2023 2024 2023 2024 U S A 198.89 242.52 21.94 1284.95 1360.55 5.88 BRAZIL 127.36 148.92 16.93 818.8 830.13 1.38 CHINA P RP 86.24 106.54 23.54 400.02 488.07 22.01 JAPAN 44.73 84.58 89.11 302.34 471.5 55.95 SAUDI ARAB 64.17 89.37 39.26 584.63 466.8 -20.15 U ARAB EMTS 64.37 62.79 -2.45 615 425.46 -30.82 NETHERLAND 55.51 56.08 1.03 395.96 364.59 -7.92 SINGAPORE 53.31 40.15 -24.69 308.48 315.34 2.23 BANGLADESH PR 45.89 54.13 17.97 269.57 303.52 12.6 BELGIUM 51.78 35.54 -31.36 311.29 273.09 -12.27 KOREA RP 36.37 41.06 12.89 216.79 251.86 16.17 INDONESIA 35.48 50.42 42.1 219.06 241.46 10.23 GERMANY 35.77 40.43 13.03 215.8 208.08

269.57 303.52 12.6 BELGIUM 51.78 35.54 -31.36 311.29 273.09 -12.27 KOREA RP 36.37 41.06 12.89 216.79 251.86 16.17 INDONESIA 35.48 50.42 42.1 219.06 241.46 10.23 GERMANY 35.77 40.43 13.03 215.8 208.08 -3.58 MEXICO 21.48 28.89 34.48 137.78 193.42 40.38 TURKEY 35.47 26.44 -25.47 203.8 191.08 -6.24 SPAIN 20.3 25.25 24.43 162.84 189.98 16.67 TAIWAN 27.35 18.07 -33.94 66.67 182.9 174.32 ITALY 23.64 27.43 16.03 147.03 174.01 18.35 MALAYSIA 39.31 24.53 -37.6 243.95 169.48 -30.53 VIETNAM SOC REP 27.45 23.56 -14.15 162.89 166.98 2.51 THAILAND 22.68 26.6 17.28 141.92 150.52 6.06 FRANCE 25.74 30.1 16.95 147.76 149.5 1.18 U K 19.65 25.26 28.56 136.37 133.87 -1.83 RUSSIA 20.54 22.71 10.55 105.26 128.65 22.22 SOUTH AFRICA 21.72 24.36 12.15 121.17 128.44 5.99 Source: MOC&I

23 A. ARGENTINA’S SENASA ACCEPTS EQUIVALENCIES OF AGROCHEMICALS APPROVED IN OTHER COUNTRIES JUL. 5, 2024 Argentina’s Senasa (National Service of Agrifood Health and Quality) has issued two resolutions to facilitate the use of products already approved in other countries. Resolution Senasa 694/2024 recognized equivalencies for active phytosanitary substances approved by the United States, Mexico, European Union, United Kingdom, Australia, New Zealand, and Brazil. The new Argentine regulation included both chemical and biochemical active substances of phytosanitary products.

States, Mexico, European Union, United Kingdom, Australia, New Zealand, and Brazil. The new Argentine regulation included both chemical and biochemical active substances of phytosanitary products. The Argentine government body argued that these measures deregulated and simplified procedures. “The regulation establishes the conditions and requirements to request the recognition of equivalence of technical-grade active substances approved by the competent authorities” of other countries, Senasa stated. The resolution is recognized as equivalent in those cases where the technical-grade active substance to be registered comes from the same manufacturing establishment and has a minimum purity equal to or higher than that registered in the mentioned countries. On the other hand, the organization allowed the possibility of pausing the registration procedures for phytosanitary products. Resolution 693/2024 established the deadlines for the expiration of procedures linked to administrative expirations. This measure covered the registrations of phytosanitary products and gave the administrator the possibility to pause a procedure initiated in the Directorate of Agrochemicals and Biologicals of the National Directorate of Plant Protection. This request could be made up to four times. It would be possible as long as the number of paused days did not exceed 730 consecutive and accumulated days. “All actions by Senasa and the administration linked to the process will be suspended until it decides to continue it through its reactivation.

did not exceed 730 consecutive and accumulated days. “All actions by Senasa and the administration linked to the process will be suspended until it decides to continue it through its reactivation. For this, you must choose to reactivate the process,” indicated the agency. Senasa explained that, after these instances, if the registration process remained incomplete or incorrect, the Directorate would declare ex officio and, without further processing, its expiration, and the process will be definitively filed. “These changes, developed based on the work carried out with the Secretariat of Simplification of the Chief of the Cabinet of Ministers, aimed to improve efficiency, streamline procedures, and reduce management times,” Senasa indicated. h t t p s : / / n e w s . a g r o p a g e s . c o m / N e w s / NewsDetail---50690.htm ECHA to SME registrants: check your company size If your company is micro, small or medium-sized (SME), check that you have stated your company size correctly in REACH-IT when registering your substance.

SME registrants: check your company size If your company is micro, small or medium-sized (SME), check that you have stated your company size correctly in REACH-IT when registering your substance. If the size was declared incorrectly, inform ECHA to avoid an administrative charge. Helsinki, 10 September 2024 - ECHA is continually initiating new verifications on the size of companies who have declared they are an SME at the time of their REACH registration. If you realise that the company size you declared at the time of your registration was smaller than it actually was, contact ECHA’s Helpdesk without undue delay. If ECHA identifies the error during the verification process, you will have to pay an administrative charge of up to EUR 19 900, in addition to the difference to the correct registration fee. However, if you inform ECHA about the correct company size before the verification process begins, you will not have to pay the administrative charge, but only the difference to the correct registration fee. Help on how to determine your company size is available on ECHA’s website. Remember to upload documents that support your SME status in REACH-IT. Also, regularly check your REACH- IT account for new messages and tasks, and keep your registrations and contact details up to date. https://echa.europa.eu/-/echa-to-sme-registrants- check-your-company-size POLICY & REGULATORY UPDATES

account for new messages and tasks, and keep your registrations and contact details up to date. https://echa.europa.eu/-/echa-to-sme-registrants- check-your-company-size POLICY & REGULATORY UPDATES

24 B. INDIA FINE TUNING FTAS WITH COUNTRIES TO SUIT DOMESTIC INDUSTRY India is revising FTAs with South Korea, Malaysia and various other Asean countries to benefit the domestic industries, Union Minister of State for Ministry of Commerce and Industry Jitin Prasada said on Monday. At the 64th annual session of ACMA (Automotive Component Manufacturers Association) here, he noted that the free trade agreements (FTAs) with the UK and the European Union are being spearheaded by Prime Minister Narendra Modi. “It will play a great role for the auto components industry,” the minister said. He further said: “We are also revising and reworking our FTAs with Korea, with Malaysia, with Asean countries, which will be fine-tuned to the demands of our industry.” Prasada also urged the auto components industry to increase investment in R&D activities. “We are not investing enough in R&D, I believe this is 1 per cent of the revenue that is being invested so this is very crucial,” he noted. He also emphasised the importance of boosting exports, reducing import dependence and ensuring growth. https://www.business-standard.com/economy/news/ india-fine-tuning-ftas-with-countries-to-suit-domestic- industry-prasada-124090900792_1.html India-Oman free trade pact talks at advanced stage, says Ambassador Narang Discussions for the proposed free trade agreement

s-with-countries-to-suit-domestic- industry-prasada-124090900792_1.html India-Oman free trade pact talks at advanced stage, says Ambassador Narang Discussions for the proposed free trade agreement (FTA) between India and Oman are at an advanced stage and both sides hope to conclude the pact early, Indian Ambassador to Oman Amit Narang said on Tuesday. The pact will give a significant push to bilateral trade and investment ties between the two countries, he said. The pact, officially known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to boost Indian exports to the west Asian country by eliminating duties, especially on petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel. “Discussions for a bilateral CEPA with Oman are at an advanced stage. We hope to conclude these discussions early and once this is done, this will be a significant push to bilateral, not just trade, but also bilateral investment ties,” Narang said. Addressing an event organised by FICCI here, the Indian Ambassador to Oman also highlighted the significant potential for enhancing direct shipping links between the two nations as a large part of Indian exports to Oman come not directly but through the UAE. He said the India-Oman bilateral trade, which crossed $ 12 billion in 2022-23, has moderated and settled at $ 8 billion in FY24. “Between 2021 and 2023 the bilateral trade between India and Oman more than doubled...

man bilateral trade, which crossed $ 12 billion in 2022-23, has moderated and settled at $ 8 billion in FY24. “Between 2021 and 2023 the bilateral trade between India and Oman more than doubled... we went from $ 5 billion to cross $ 12 billion. “In the past financial year, the bilateral trade has moderated a little bit, it has settled to $ 8 billion... moderation is mainly on account of over dominance of hydrocarbons in the bilateral trade,” Narang said. “India imports a lot of oil and fertilisers from Oman and this decline in the value terms of the trade this year is a reflection of the decline in values of these two commodities globally,” Narang said. He pointed out that a large part of Indian exports to Oman come not directly but through the UAE and these are not reflected in the India-Oman bilateral trade but in India’s trade with the UAE, adding that there is potential for enhancing direct shipping links. “Currently, I understand that there are two shipping lines...

the India-Oman bilateral trade but in India’s trade with the UAE, adding that there is potential for enhancing direct shipping links. “Currently, I understand that there are two shipping lines... there is therefore huge potential for direct shipping to reduce cost of bilateral trade and that will have a significant impact in further improving our bilateral trade figures,” Narang said. Addressing the event virtually, Indian Ambassador to the UAE Sunjay Sudhir said India will soon upgrade its political engagement with the GCC (Gulf Cooperation Council) as a whole in the very near future. The Gulf Cooperation Council (GCC) brings together six Arab countries -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. “With ongoing efforts towards integration of our card system, instant payment platforms and messaging systems, economies of India and the UAE will be more closely integrated in the future,” Sudhir said. He further asserted that GCC has emerged as an important hub for innovation with countries like the UAE and Saudi Arabia leading the charge, adding that the future holds immense potential for deeper cooperation in emerging sectors such as artificial intelligence, health-care and space technology reflecting the mutual aspirations for prosperity and sustainable development. https://www.business-standard.com/industry/news/

ors such as artificial intelligence, health-care and space technology reflecting the mutual aspirations for prosperity and sustainable development. https://www.business-standard.com/industry/news/

25 india-oman-free-trade-pact-talks-at-advanced-stage- says-ambassador-narang-124082700678_1.html Next round of India-Australia comprehensive trade pact talks in November Senior officials of India and Australia are expected to hold their next round of talks for a compressive free trade agreement in November here, the commerce ministry said on Sunday. The two countries implemented an interim trade agreement in December 2022 and are now under negotiations to expand its scope. It said that the tenth round of India-Australia CECA (comprehensive economic cooperation agreement) negotiations was held from 19-22 August in Sydney in the areas of goods, services, digital trade, government procurement, rules of origin and agri-tech. Intense discussions were held on each of these tracks bringing in clarity and understanding for convergence in the remaining provisions, it added. “The next round of CECA negotiations is likely to be held in November,” it said in a statement. The Indian delegation was led by Rajesh Agrawal, the Chief Negotiator and Additional Secretary, Department of Commerce and the Australian delegation was led by Ravi Kewalram, the Chief Negotiator and First Assistant Secretary in the Department of Foreign Affairs and Trade. “The meeting saw intensive discussions and negotiations to narrow down the differences through

e Chief Negotiator and First Assistant Secretary in the Department of Foreign Affairs and Trade. “The meeting saw intensive discussions and negotiations to narrow down the differences through better understanding of each other’s proposals and the way to bring in convergence. Efforts were made by both the sides keeping in mind the domestic sensitivities for reaching a balanced outcome,” the ministry said. Further the ministry said that the Australian side proposed to hold the first meeting of the India-Australia Agri Tech Forum (IAATF), a newly constituted forum by Australia, in New Delhi on September 23, with the Indian agricultural stakeholders including industry, research institutions and government. The objective of the meet is to build on mutually beneficial relationships by exploring opportunities for focused activity around technology transfer and knowledge sharing in agriculture and horticulture sectors. Australia is an important trading partner of India in the Oceania region, with merchandise trade between India and Australia reaching around USD 24 billion in 2023-24. India’s exports to Australia last fiscal stood at USD 7.94 billion, while imports were USD 16.15 billion. The trade between the two countries has been hovering at around USD 25 billion mark since 2021-22. https://www.business-standard.com/economy/news/ next-round-of-india-australia-comprehensive-trade- pact-talks-in-november-124082500165_1.html C. EU CBAM ADVISORY The European Union has come up with Carbon Border Adjustment Mechanism (CBAM) regulation.

ound-of-india-australia-comprehensive-trade- pact-talks-in-november-124082500165_1.html C. EU CBAM ADVISORY The European Union has come up with Carbon Border Adjustment Mechanism (CBAM) regulation. It is the tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. The Carbon Border Adjustment Mechanism (CBAM) aims to achieve climate neutrality by 2050, preventing carbon leakage by regulating carbon-intensive imports. The European Commission introduced CBAM in respect of certain sectors with high carbon footprint, such as steel, cement, and chemicals. EC states that this new mechanism would counteract this risk by putting a carbon price on imports of certain goods from outside the EU. The European Union’s CBAM went into effect on October 1, 2023, and will require importers to pay a fee for the GHG emissions (Green House Gas) associated with the covered products they import.  The current transitional phase lasts between 2023 and 2025.  CBAM will apply in its definitive regime from 2026 when the CBAM fee starts in limited form, and full implementation begins in 2034. At present following 4 Chemical products are falling under the purview of the EUs-CBAM regulation.

egime from 2026 when the CBAM fee starts in limited form, and full implementation begins in 2034. At present following 4 Chemical products are falling under the purview of the EUs-CBAM regulation. (The Product list is likely to increase in future) 28030010 CARBON BLACK 28342100 POTASSIUM NITRATE 28041000 HYDROGEN 2814 AMMONIA, ANHYDROUS OR IN AQUEOUS SOLUTION   To provide further clarity on the EU’s Carbon Border Adjustment Mechanism (CBAM), members can access detailed information on this regulation through the official EU website: https://taxation-customs.ec.europa. eu/carbon-border-adjustment-mechanism_en

26 Trade Promotional Activities from July-October 2024 TRADE PROMOTION ACTIVITIES & CAPACITY BUILDING INITIATIVES

27

1. Webinar on Global Economic Outlook and Hedging solutions for managing FX Risk CHEMEXCIL organized a webinar on Global Economic Outlook and Hedging solutions for managing FX Risk” in association with SBI Bank on 25th June 2024 at 3:00pm Total 22 Members attended and interacted in this webinar.
2. Webinars on Korea - REACH (K-REACH) Regulations CHEMEXCIL organized a Webinars on K-REACH Regulations” in association with REACHLaw India P. Ltd on July 25th 2024 12:00 PM. Total 42 Members attended and interacted in this Webinar. The session was very much absorbing.

inars on K-REACH Regulations” in association with REACHLaw India P. Ltd on July 25th 2024 12:00 PM. Total 42 Members attended and interacted in this Webinar. The session was very much absorbing. 3. Webinars on Bureau of Indian Standards (BIS) and Regulatory Implications: CHEMEXCIL organized a Webinars on Bureau of Indian Standards (BIS) and Regulatory Implications – 31st July, 2024” in association with Aleph India Group Total 108 Members attended this webinar and interacted

28 with the speaker. 4. Webinars on EU’S CARBON BORDER ADJUSTMENT MECHANISM (CBAM) CHEMEXCIL organized a Webinars  on EU’S CARBON BORDER ADJUSTMENT MECHANISM (CBAM) in association with Lakshmikumaran & Sridharan (L&S) on 20th Aug,2024 at 15:00 hrs. Total 36Members attended and interacted in this Webinar. 5. Webinar on “K-REACH – How to apply for Exemptions (include Polymers)” CHEMEXCIL organized a webinar on “K-REACH – How to apply for Exemptions (include Polymers)” in association with REACH Law India, on 28/08/2024 at 12:00 pm. A total of 28 members participated and interacted with the speakers.

29

“K-REACH – How to apply for Exemptions (include Polymers)” in association with REACH Law India, on 28/08/2024 at 12:00 pm. A total of 28 members participated and interacted with the speakers.

29

30 Council had organized Seminar on Membership Benefits, Export & MSME Incentives, Logistics, and Procedures on 12th July, 2024 at Rajpark Hotel, TTK Alwarpet, Chennai. Valuable insights and practical information to MSME companies in Chemical Industry was provided during the Seminar. Shri Kiran Dev Satuluri, IEDS, Assistant Director Gr.I, MSME DFO, Chennai Office was the Guest of Honour for the said seminar. Mr. Rohan Muralidharan, Associate Partner at Lakshmikumaran & Sridharan, Mr. Murgan: Sales Director from ATC Shipping & Logistics & Ms. Lalitha: Advocate & Consultant from Exim Consultant were the key speakers. This Seminar was attended by over 76 participants, including manufacturers and exporters. Discussion during the Seminar on Membership Benefits, Export & MSME Incentives, Logistics, and Procedures Mr. Rohan Muralidharan, Associate Partner at Lakshmikuma- ran & Sridharan, Mr. Murgan: Sales Director from ATC Shipping & Logistics & Ms. Lalitha: Advocate & Consultant from Exim Con- sultant and CHEMEXCIL Officials IGNITE MAHARASHTRA SEMINAR CHEMEXCIL participated in IGNITE Maharashtra Seminar which was organized by District Industries Centre, Thane on 19.07.2024 in Thane. Mr. Raghuveer Kini Director General of CHEMEXCIL was invited as a special invitee to brief on CHEMEXCIL and its benefits as an Export Promotion Council.

entre, Thane on 19.07.2024 in Thane. Mr. Raghuveer Kini Director General of CHEMEXCIL was invited as a special invitee to brief on CHEMEXCIL and its benefits as an Export Promotion Council. Audience were briefed on various benefits and initiatives of the Council. Seminar was attended by more than 200 attendees. Mr. Raghuveer Kini, Director General, CHEMEXCIL and Mr. Bhalchandra Rane, Chairman The Federation of Industries (TMA) lighting the lamp during the inauguration of IGNITE Maharashtra Seminar Mr. Bhalchandra Rane, Chairman, The Fedration of Industries (TMA) felicitating Mr. Raghuveer Kini, Director General, CHEMEXCIL . Seminar On Chemexcil’s Membership Benefits, Exports & MSME Initiatives, Logistics and Procedures.

31 ISCMA Conference CHEMEXCIL participated in ISCMA Conference on 7th September, 2024 at Suryavanshi Kshatriya Sabhagriha, Dadar, Mumbai. Shri Abhay Udeshi, Chairman CHEMEXCIL, delivered the keynote address, highlighting the significant contributions of the Indian Chemical Industry. He discussed how the sector has navigated global disruptions, including the Russia- Ukraine war, crises in the Red Sea and Suez Canal, and economic slowdowns in key markets such as the US and Europe.

ssed how the sector has navigated global disruptions, including the Russia- Ukraine war, crises in the Red Sea and Suez Canal, and economic slowdowns in key markets such as the US and Europe. He also elaborated on CHEMEXCIL’s role in supporting chemical industry entrepreneurs and MSMEs and how the council’s export promotion activities benefit the industry. The conference was well-attended, with over 100 participants. Shri Abhay Udeshi, Chairman of CHEMEXCIL, delivering the keynote address during ISCMA Conference Participants during ISCMA Conference Fireside Chat at thought leadership Conclave along with Panel Discussion. The Indian Express Limited had invited Mr. Abhay Udeshi, Chairman- CHEMEXCIL on the panel discussion during Fireside Chat at thought leadership Conclave on September 25, 2024. Remaining Spend Management & Supply Chain for Pharma and Chemical Industry was the theme of the discussion which explored how smart supply chain technology optimizes spends and maximizes global growth opportunities in pharma & chemical exports. During this discussion Chairman, CHEMEXCIL highlighted on how stakeholder consultations during the COVID crisis helped the chemicals sector to scale up to meet demand. Now, the sector is awaiting its own PLI scheme to help to meet the increased demand from pharma as part of the China-Plus One strategy. Further, Mr. Udeshi expanded on how the Indian Chemical Industry is increasingly investing in the production of specialty chemicals, which have higher value and margins.

the China-Plus One strategy. Further, Mr. Udeshi expanded on how the Indian Chemical Industry is increasingly investing in the production of specialty chemicals, which have higher value and margins. He also shared how digital technology streamlined the operations during the COVID crisis and also empowered Indian chemical exporters to compete more effectively on the global stage. Shri Sudarshan Jain, Secretary General- The Indian Pharmaceutical Alliance, Ms. Viveka Roychowdhury, Editor- The Indian Express, Shri Abhay Udeshi, Chairman-CHEMEXCIL during the Fire Chat on Remaining Spend Management & Supply Chain for Pharma and Chemical Industry Ms. Viveka Roychowdhury, Editor- The Indian Express Limited & Shri Abhay Udeshi, Chairman-CHEMEXCIL during the Fire Chat on Remaining Spend Management & Supply Chain for Pharma and Chemical Industry

32 Seminar on Breaking the Chains of Fear-Transform Safety into Profit CHEMEXCIL had conducted dual Seminar Sessions on September 26, 2024 at The Orchid Hotel, Prive Hall, Mumbai. The first session was on Breaking the Chains of Fear-Transform Safety into Profit by Mr. Rajendra Utturkar (Author). This seminar covered industry’s most pressing challenges: safety, sustainable growth, and profitability. Total 53 members from 41 companies participated in the event. Shri Abhay Udeshi, Chairman-CHEMEXCIL felicitating Seminar Faculty Mr. Rajendra Utturkar. Mr.

y, sustainable growth, and profitability. Total 53 members from 41 companies participated in the event. Shri Abhay Udeshi, Chairman-CHEMEXCIL felicitating Seminar Faculty Mr. Rajendra Utturkar. Mr. Rajendra Utturkar, during the session on Breaking the Chains of Fear-Transform Safety into Profit Seminar on Online Compliances for Exporters with specific details on eBRC Module The second session was on Online Compliances for Exporters with specific details on eBRC Module by Mr. Mihir Ajit Shah (Universal Connections LLP). This session highlighted on- Overview of FTP, Latest Current Online Compliances under FTP, New Online eBRC Module with Bulk Upload Facility, New COO Portal for Non - Preferential COO & ICEGATE 2.0 and ICEGATE Portal. Total 53 members from 41 companies participated in the event. Shri Prafulla Walhe, Deputy Director, CHEMEXCIL felicitating Mr. Mihir Ajit Shah from Universal Connections LLP. Mr. Mihir Ajit Shah from Universal Connections LLP. Highlighting the members on Online Compliances for Exporters with specific details on eBRC Module

ihir Ajit Shah from Universal Connections LLP. Mr. Mihir Ajit Shah from Universal Connections LLP. Highlighting the members on Online Compliances for Exporters with specific details on eBRC Module

33 Beauty Istanbul 2024 CHEMEXCIL had organized India Pavilion at Beauty Istanbul 2024, Turkey from 2nd - 4th October 2024 at Hall 8F, Istanbul Congress Center & Lutfi Kirdar & Hilton Istanbul Bosphorus, Taksim-Istanbul-Turkey. CHEMEXCIL participated in this event under MDA Scheme of IC Scheme of Ministry of MSME. Shri Raj Kumar Tanwar, Consul (Commercial), Consulate General of India, Istanbul and Shri Preet Kumar, Attache, Embassy of India, Istanbul inaugurated the CHEMEXCIL India Pavilion during the exhibition.  Total 15 Indian Exporters participated through CHEMEXCIL in this exhibition.  Inauguration of India Pavilion by Shri Raj Kumar Tanwar, Consul (Commercial), Consulate General of India in Istanbul and Shri Preet Kumar, Attache, Embassy of India in Istanbul during Beauty Istanbul 2024 exhibition Shri Raj Kumar Tanwar, Consul (Commercial), Consulate General of India in Istanbul and Shri Preet Kumar, Attache, Embassy of India in Istanbul and Ms. Shalaka Wakankar, Section Officer, CHEMEXCIL at CHEMEXCIL stall during Beauty Istanbul 2024 exhibition Seminars on October 28, 2024 at Prive Hall, The Orchid Hotel, Mumbai Council had organized a Three Seminars on October 28, 2024 at Prive Hall, The Orchid Hotel, Mumbai. Total 55 members attended the Seminar.

n October 28, 2024 at Prive Hall, The Orchid Hotel, Mumbai Council had organized a Three Seminars on October 28, 2024 at Prive Hall, The Orchid Hotel, Mumbai. Total 55 members attended the Seminar. The three Seminars were on –

1. EU’s CBAM - Opportunities and risks for chemical industry by Mr Ankur Sharma, Partner-M/s. Laxmikumaran  & Sridharan (L & S) Attorneys.

Topics covered:

¾ Background and reasons for introduction

¾ Goods coverage

¾ Compliances till December 2025

¾ Finding opportunity in adversity Mr. Ankur Sharma, Partner-M/s. Laxmikumaran & Sridharan (L & S) Attorneys being felicitated by Mr. Abhay Udeshi, Chairman & Mr. Raghuveer Kini, Director General - CHEMEXCIL Mr. Ankur Sharma, Partner-M/s. Laxmikumaran & Sridharan (L & S) Attorneys during EU’s CBAM - Opportunities and risks for chemical industry

34 2. Challenges & Solutions in International Trade by Mr. Sourabh Lodha, Business Head- Retail Trade Forex and Cash Management, YES Bank Topics covered:

¾ Exports Financing

¾ Various modes of Collection

¾ Hedging Solutions Mr. Sourabh Lodha, Business Head- Retail Trade Forex and Cash Management, YES Bank being felicitated by Mr. Abhay Udeshi, Chairman & Mr. Raghuveer Kini, Director General- CHEMEXCIL Mr. Sourabh Lodha, Business Head- Retail Trade Forex and Cash Management, YES Bank during Seminar on Challenges & Solutions in International Trade 3. Standardizing Chemical Industry Quality Control Orders by Mr Rahul Limaye, Partner-M/s.

x and Cash Management, YES Bank during Seminar on Challenges & Solutions in International Trade 3. Standardizing Chemical Industry Quality Control Orders by Mr Rahul Limaye, Partner-M/s. Laxmikumaran  & Sridharan (L & S) Attorneys

Topics covered:

¾ Quality Control Orders – What, How, Why, and Role of Line Ministries

¾ BIS – Offences, Penalties, etc.

¾   Conformity Assessment Schemes

¾ Opportunities for domestic industries Mr. Rahul Limaye, Partner- M/s. Laxmikumaran & Sridharan (L & S) Attorneys being felicitated by Mr. Abhay Udeshi, Chairman & Mr. Raghuveer Kini, Director General and Mr. Prafulla Walhe, Dy. Director CHEMEXCIL Mr. Rahul Limaye, Partner- M/s. Laxmikumaran & Sridharan (L & S) Attorneys during the Seminar on Standardizing Chemical Industry Quality Control Orders

35 Workshop on FTA Fundamental Equipping MSMEs for Internationalization by CII on 12th November 2024 at Vadodara, Gujarat. Chemexcil participated in workshop on FTA Fundamental Equipping MSMEs for Internationalization by CII on 12th November 2024 at Vadodara, Gujarat. Mr. Bhupendra Patel, Regional Chairman-Gujarat Region, Mr. Ankit Patel, Regional Chairman-Northern Region & Mr. Raghuveer Kini, Director General were amongst the Panelist for the discussion Total 58 Chemexcil members attended the workshop.

arat Region, Mr. Ankit Patel, Regional Chairman-Northern Region & Mr. Raghuveer Kini, Director General were amongst the Panelist for the discussion Total 58 Chemexcil members attended the workshop.

36 Khimia 2024 The 26th edition of KHIMIA international exhibition was a perfect platform for Indian companies to interact and connect with the Russian chemical industry and explore opportunities of trade as the market is currently looking for potential and reliable suppliers amid current crisis due to sanctions from European nations. The Inauguration Ceremony was organized on 21st October, 2024 at 10:00 hrs. (Russian Time). The Indian Pavilion was inaugurated by Mr. Selivanov Sergey, Deputy General Director of Moscow exhibition center along with Shri Prafulla Walhe, Deputy Director, CHEMEXCIL. Total 20 member exporters participated in this event. Mr. Selivanov Sergey, Deputy General Director of Moscow exhi- bition centre along with Shri Prafulla Walhe, Deputy Director, CHEMEXCIL along with members exporters during the inaugu- ration of Indian Pavilion during KHIMIA International Exhibition. CHEMEXCIL stall at Indian Pavilion during KHIMIA International Exhibition

CHEMEXCIL along with members exporters during the inaugu- ration of Indian Pavilion during KHIMIA International Exhibition. CHEMEXCIL stall at Indian Pavilion during KHIMIA International Exhibition

37 Upcoming Overseas Events & Exhibitions 2024-25 Sr. No. Event Name Commodity Name Region City Name Event Date No. of Indian Exhibitors 1 BUYER SELLER MEET IN AFRICA REGION (Approved) Beauty, Chemical AFRICA Nigeria, South Africa, Tanzania, Uganda 01/01/2025 To 07/01/2025 20 List Of Proposed Events For The Year 2025-26 Under MAI & MSME Scheme Sr. No. Event Name Region Country Proposed Month Proposed No. of Participants 1 CHINA AGROCHEMICAL & CROP PROTECTION 2025-26 (26TH CHINA INTERNATIONAL AGROCHEMICAL AND CROP PROTECTION EXHIBITION (CAC)) NEA China Mar-26 25 2 47TH DYE+CHEM BANGLADESH 2025 SOUTH ASIA Bangladesh Sep-25 30 3 CHINA INTERDYE 2025 (24TH China International Dye Industry, Pigments and Textile Chemicals Exhibition) NEA China Apr-25 50 4 BUYER SELLER MEET IN NAFTA REGION - USA & CANADA NAFTA Canada, United States Sep-25 25 5 BUYER SELLER MEET IN GCC (WANA) REGION –UAE & QATAR WANA Qatar, United Arab Emirates Apr-25 25 6 COATING EXPO VIETNAM 2025 COINCIDING WITH AGRI VIETNAM 2025 ASEAN Vietnam Jun-25 30 7 BUYER SELLER MEET IN AFRICA REGION – NIGERIA & UGANDA AFRICA Nigeria, Uganda Jan-26 25 8 CHEMSPEC EUROPE 2025 EUROPE Germany Jun-25 20 9 BUYER SELLER MEET IN ASEAN REGION – THAILAND & INDONESIA ASEAN Indonesia, Thailand Jun-25 25 10 BUYER SELLER MEET IN OCEANIA REGION - AUSTRALIA & NEWZELAND OCEANIA Australia, New Zealand Jan-26 25 11

SELLER MEET IN ASEAN REGION – THAILAND & INDONESIA ASEAN Indonesia, Thailand Jun-25 25 10 BUYER SELLER MEET IN OCEANIA REGION - AUSTRALIA & NEWZELAND OCEANIA Australia, New Zealand Jan-26 25 11 BUYER SELLER MEET IN NEA REGION - TAIWAN & KOREA NEA South Korea, Taiwan Feb-26 25 12 BUYER SELLER MEET IN SAARC REGION - BANGLADESH & SRI LANKA SOUTH ASIA Bangladesh, Sri Lanka Nov-25 25 13 BUSINESS DELEGATION TO BRAZIL & MEXICO NAFTA, LAC Brazil, Mexico Jul-25 25 14 BUYER SELLER MEET IN CIS REGION – RUSSIA & UZBEKISTAN CIS Russia, Uzbekistan Nov-25 25 15 AGRI BUSINESS GLOBAL (ABG TRADE) SUMMIT 2025 NAFTA United States Aug-25 15 16 45TH DYE+CHEM BRAZIL 2025 LAC Brazil Jul-25 30 17 ATEM FAIR 2025 /K-CAF Expo 2025 NEA South Korea Jul-25 25 18 KHIMIA 2025 CIS Russia Apr-25 20 19 BEAUTYWORLD MIDDLE EAST 2025 WANA United Arab Emirates Oct-25 15 20 BEAUTY ISTANBUL 2025 EUROPE Turkey Sep-25 15 21 BUYER SELLER MEET AT ARGENTINA, COLOMBIA,
GAUTEMALA & PERU LAC Argentina, Colombia, Guatemala, Peru Jul-25 25 22 BUYER SELLER MEET TO KENYA, TANZANIA, MOZAMBIQUE & ETHIOPIA AFRICA Ethiopia, Kenya, Mozambique, Tanzania Dec-25 25 23 EGY BEAUTY AFRICA 2025 WANA Egypt May-25 20 24 Indo Intertex ASEAN Jakarta, Indonesia Apr-25 20 25 INTERNATIONAL EXHIBITION FOR CHEMICALS & COSMETICS (IECC) India Mumbai February / March 2025 250

EGY BEAUTY AFRICA 2025 WANA Egypt May-25 20 24 Indo Intertex ASEAN Jakarta, Indonesia Apr-25 20 25 INTERNATIONAL EXHIBITION FOR CHEMICALS & COSMETICS (IECC) India Mumbai February / March 2025 250

38 Supriya Lifescience Ltd; is a 37-year-old generic manufacturer headquartered in Mumbai. API manufacturing facility is based in Lote Parshuram, Chiplun and a new FDF facility is coming up in Ambernath. Its success is built on a seamless integration of design, innovation, and execution. Te company's cutting-edge production facilities, together with its global reach, exemplify proficiency in API creation adapted to specific customer requirements. Facility Accreditations: 3 times USFDA, 2 times EUGMP/EDQM, Health Canada, Cofepris, Anvisa, KFDA, NMPA, PMDA, TGA Our products and services are spread across generic Active Pharmaceutical Ingredients (API) being supplied to more than 120 countries across the globe. Our core business is driven by ethical values and EHS Standards. We leverage our R&D expertise along with manufacturing strengths to meet our customers’ requirements.

120 countries across the globe. Our core business is driven by ethical values and EHS Standards. We leverage our R&D expertise along with manufacturing strengths to meet our customers’ requirements. Our focus is to develop APIs, FDFs, and Intermediates for both Innovators, Generic companies and we also partner exclusively as CMO. Anti Histamines: Chlorpheniramine Maleate, Pheniramine Maleate, Mepyramine Maleate, Dexchlorpheniramine Maleate, Brompheniramine Maleate, Dexbrompheniramine Maleate. Analgesics/ Anti-pyretic, Anesthetic: Ketamine Hydrochloride, Esketamine Hydrochloride, Tramadol Hydrochloride, Sevoflurane, Midazolam, Midazolam Hydrochloride, Midazolam Maleate Vitamins: Riboflavin-5-Phosphate Sodium, Methylcobalamine, Hydroxocobalamine Base, Hydroxocobalamine Acetate, Hydroxocobalamine Hydrochloride, Hydroxocobalamine Sulphate Decongestant: Dextromethorphan Hydrobromide Hemorreologic Agent: Pentoxifylline Anti-Allergic: Cetirizine Dihydrochloride, Diphenhydramine Hydrochloride. Anti- Gout: Allopurinol. Products under pipeline: Lisdexamfetamine, Iohexol, Semaglutide, Liraglutide, Isoflurane, Desflurane Contact Details for Trade Inquires: 207/208, Udyog Bhavan, Sonawala Road, Goregaon (East), Mumbai - 400 063, Maharashtra. India Tel: 91 22 40332727  Fax: 91 22 26860011 Email ID: supriya@supriyalifescience.com / sale@supriyalifescience.com

, Udyog Bhavan, Sonawala Road, Goregaon (East), Mumbai - 400 063, Maharashtra. India Tel: 91 22 40332727  Fax: 91 22 26860011 Email ID: supriya@supriyalifescience.com / sale@supriyalifescience.com

39 WORLD BANK’S B-READY PROJECT DTD. 19TH JULY 2024 Department of commerce conducted meeting on World Banks B-Ready Project on International Trade topic and DPIIT questionnaire. This Project is a comprehensive initiative aim to support the growth and development of the chemical sector in developing countries, including India. The key features of the project are • Infrastructure Investment: Funding for the development of transportation infrastructure, industrial parks, and energy facilities. • Technology Transfer: Support for the adoption of advanced technologies and best practices. • Regulatory Reform: Assistance in streamlining and modernizing regulatory frameworks. • Environmental Sustainability: Promotion of green chemistry and sustainable practices. • Capacity Building: Training programs and workshops for industry stakeholders. The World Bank’s B-Ready Project plays an important role in supporting the growth and development of India’s chemical and other sector. THE INDO-PACIFIC ECONOMIC FRAMEWORK DTD. 6TH AUGUST 2024 The Indo-Pacific Economic Framework for Prosperity (IPEF) is a US-led economic initiative aimed at strengthening economic ties and cooperation among countries in the Indo-Pacific region. India is a key participant in the IPEF, which is structured around four pillars.

conomic initiative aimed at strengthening economic ties and cooperation among countries in the Indo-Pacific region. India is a key participant in the IPEF, which is structured around four pillars. It is a 14-country plurilateral grouping aim to promoting economic growth and cooperation in the entire region. This framework is structured around four pillars and India is part of Pillars II-IV • Pillar I:- Trade • Pillar II:-Supply Chain • Pillar III:-Clean Economy • Pillar IV Fair Economy. The member countries of IPEF include Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, and the USA. India is a signatory to Supply Chain Resilience Agreement (Pillar-II) which is in force since February 24, 2024. The Agreement, which is a first-of-its-kind pact, envisages collaboration for a resilient supply chain ecosystem in sectors which are important for an IPEF partner from the perspective of national security, public health, food security, safety of citizens and economic stability. The idea is to find solutions through concerted approach and efforts by the IPEF partners. Lack of self-sufficiency and dependence of imports over a reasonable limit in certain segments bring vulnerability to the supply chain ecosystem and causes supply chain disruption. Therefore, it becomes important to identify and address supply chain concentration and vulnerabilities before they become bottlenecks.

he supply chain ecosystem and causes supply chain disruption. Therefore, it becomes important to identify and address supply chain concentration and vulnerabilities before they become bottlenecks. This agreement is aim to improve government-industry coordination to minimize disruptions and vulnerabilities in those important sectors /goods. Considering the demand for various goods, their production and the import trends, the Centre for WTO Studies (a Ministry of Commerce and Industry organization) has identified Chemical is one of the important sectors from the perspective of national security and economic stability. The Chemicals commodity profile also matches with the other factors mentioned in the Agreement such as : (i) high level of dependence on a single supplier/country/ region/geographic location; (ii) low availability and reliability of alternative suppliers’/supply locations; (iii) significant imports required to meet domestic demand; (iv) lack of availability of adequate domestic production capacity; (v) great extent of interconnectedness with other critical sectors and goods; and (vi) challenges on account of actual or potential transport constraints. Accordingly, CHEMEXCIL conducted a detailed analysis of various products imported into India, focusing on IMPORTANT POLICY UPDATES

lenges on account of actual or potential transport constraints. Accordingly, CHEMEXCIL conducted a detailed analysis of various products imported into India, focusing on IMPORTANT POLICY UPDATES

40 their origins, uses, and the challenges faced due to the current duty structures and manufacturing capacities. The same is submitted to the department for further action. Fatty Acid (HS Code 38231900) • Source Countries: Malaysia and Indonesia • Usage: Converted to fatty alcohols used in Speciality Chemicals, cosmetics and toiletries. • Issue: There is an inverted duty structure where raw materials are imported at a higher duty, while finished products are exported at zero duty. This disparity has been raised in discussions with FT ASEAN. Key Feedstocks • Toluene, P-Xylene, Terephthalic Acid, Styrene, Vinyl Chloride: F These are essential feedstocks with limited or no manufacturing facilities in India. F P-Xylene: Though there is some manufacturing capability, Reliance Industries’ plant shutdown for 3-4 months has led to a high dependency on imports from Korea and Indonesia. • Terephthalic Acid: Widely used in India for the production of PET bottles and other industrial applications. • Phosphoric Acid F Usage: Primarily used as a fertilizer;

rom Korea and Indonesia. • Terephthalic Acid: Widely used in India for the production of PET bottles and other industrial applications. • Phosphoric Acid F Usage: Primarily used as a fertilizer; secondary usage in the food industry. F Manufacturing Capacity: India does not have sufficient capacity, making it heavily reliant on imports. Other Chemicals F Acetic Acid and Acetone: India lacks manufacturing capacity for these chemicals. F Phenol: Only two major manufacturers are present in India, leading to significant import dependency. CHEMEXCIL’s analysis highlighted the critical need for addressing the inverted duty structure and enhancing domestic manufacturing capacities to reduce dependency on imports and support local industries. BHARAT AFRICA SETU INITIATIVE: A BRIDGE TO CHEMICAL EXPORTS DTD. 23RD AUGUST 2024 CHEMEXCIL participated in the discussions of India’s flagship initiative “BHARAT AFRICA SETU” with the Department. Bharat Africa Setu is a flagship initiative launched by the Indian government to strengthen economic ties and cooperation with African nations. The initiative aims to create a bridge between India and Africa, fostering trade, investment, and cultural exchange. One of the key sectors that stands to benefit significantly from this initiative is the Indian chemical Industry. Africa presents a vast and untapped market for Indian chemical products. With a growing population and increasing industrialization, the demand for chemicals is on the rise.

ian chemical Industry. Africa presents a vast and untapped market for Indian chemical products. With a growing population and increasing industrialization, the demand for chemicals is on the rise. Bharat Africa Setu provides a platform to connect Indian chemical manufacturers with African buyers, facilitating market entry and expansion. The initiative encourages Indian companies to invest in Africa’s chemical industry. This can involve setting up manufacturing facilities, joint ventures, or partnerships with local players. Such investments can help India gain a foothold in the African market, while also contributing to the development of Africa’s chemical sector. India possesses advanced chemical technology and expertise. Bharat Africa Setu can facilitate the transfer of this technology to African countries, helping them to modernize their chemical industries and improve product quality. This can lead to increased collaboration and mutually beneficial partnerships. The initiative aims to improve infrastructure in Africa, including transportation and logistics facilities. This is important for the smooth flow of chemicals and other goods between India and Africa. By investing in infrastructure, India can help to create a more conducive environment for trade and investment. Bharat Africa Setu is a key component of India’s economic diplomacy strategy. By strengthening ties with African nations, India can enhance its global influence and position itself as a reliable partner for development.

ey component of India’s economic diplomacy strategy. By strengthening ties with African nations, India can enhance its global influence and position itself as a reliable partner for development.

41 INDIA’S PARTICIPATION IN GLOBAL VALUE CHAINS (GVCS) IN CHEMICAL SECTOR Dtd. 29TH AUGUST 2024 India has emerged as a significant player in global value chains (GVCs), integrating into the global economy through its participation in various production and trade networks. Recently there were high level discussion at NITI AAYOG on India’s participation in Global Value Chains (GVCs) in Chemical Sector. For the same, CHEMEXCIL has submitted following inputs and data to the department. • India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. • India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. • India’s chemical sector, which was estimated to be worth US$ 220 billion in 2022, is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040. (Ref. IBEF) • CHEMICAL SECTOR Issus 1. Environmental issue 2. Import substitution/ inclusion of chemicals under PLI scheme 3. Focus on research and development incentivization for new chemical molecules 4. Expansion and Extension of Interest equalization scheme 5. Correction in RODTEP rates for chemicals 6. Sufficient allocation of MAI funds for trade promotional activities /revision in MAI scheme. 7.

nsion and Extension of Interest equalization scheme 5. Correction in RODTEP rates for chemicals 6. Sufficient allocation of MAI funds for trade promotional activities /revision in MAI scheme. 7. Inverted Duty issue of oleochemical sector 8. ICEGATE system issue 9. Creation/recommendation of lab infrastructure for chemical exports. 10. Creation and Implementation of Indian chemical regulation 11. Upgradation of PCIPRs (Petroleum, Chemicals and Petrochemical Investment Regions) VISIT OF MR. DIEGO M TAUBE, FORMER MANAGING DIRECTOR ARGENTINE CHAMBER OF CHEMICAL PRODUCTS (CAPQ) ON 30TH AUGUST 2024. CHEMEXCIL has singed MOU with CAPQ on 2nd October 2023 in order to work jointly in the following areas- • Regular exchange of trade-related information • Cooperation in organizing trade visits • Assistance to members in participating in trade promotion activities • Cooperation for joint ventures • Promotion of new products and technology • Support in statutory compliances • Updates on trade-related issues, etc. In view of the above, CHEMEXCIL had meeting with Mr.

peration for joint ventures • Promotion of new products and technology • Support in statutory compliances • Updates on trade-related issues, etc. In view of the above, CHEMEXCIL had meeting with Mr. Diego M Taube, Director, CHEMPRO S.A., former Managing Director Argentine Chamber of Chemical Products (CAPQ) was held on 30th August 2024 at CHEMEXCIL office. The following points were discussed- • The current trade scenario for chemicals in Argentina • A proposal to organize a regulatory meeting for decision-makers from Latin American government agencies to work towards harmonizing chemical regulations in the region • The possibility of organizing virtual; interactions between Argentinian buyers and Indian sellers • Regular exchange of regulatory information between Argentina and India • To seek information of Environmental norms for Chemical Industries in Argentina • A proposal to appoint Mr. Taube as CHEMEXCIL’s representative in Argentina to source trade-related information and issues. This information would be used to advocate

cal Industries in Argentina • A proposal to appoint Mr. Taube as CHEMEXCIL’s representative in Argentina to source trade-related information and issues. This information would be used to advocate

42 for Indian exporters as well as during various ministerial meetings. We would also inform the Embassy of India in Argentina and the LAUNCH OF TRADE CONNECT e-PLATFORM DTD. 11TH SEPTEMBER 2024 On 11th September 2024 Hon. Union Minister of Commerce and Industry, Shri Piyush Goyal launched the Trade Connect e-Platform in New Delhi. The Trade Connect e-Platform is a new digital initiative launched by the Department of Commerce to enhance India’s global trade footprint, especially for small and medium-sized enterprises (SMEs). The key features of this platform are • Single-Window Access: It provides a single- window access to real-time trade information, resources, and government support. • Connectivity: The platform connects over 6 lakh Importer Exporter Code (IEC) holders, Indian Missions abroad, Export Promotion Councils, and financial institutions². • Tools and Resources: Exporters can access market insights, Free Trade Agreement (FTA) benefits, e-commerce guides, and expert advice. • Integration: It integrates with other government initiatives like the Open Network for Digital Commerce (ONDC) and Government e-Marketplace (GeM), providing suppliers with wider market access Department of Commerce and Industry about his appointment. • Support for SMEs: The platform is designed to support SMEs by providing comprehensive

), providing suppliers with wider market access Department of Commerce and Industry about his appointment. • Support for SMEs: The platform is designed to support SMEs by providing comprehensive trade-related information and connecting them with key stakeholders This initiative helps in simplifying the trade processes, promote economic growth, and help India to achieve its ambitious export targets. MEETING WITH JOINT SECRETARY EP-CAP, DTD. 27TH SEPTEMBER 2024 On 27th September 2024 CHEMEXCIL Chairman along with prominent member exporters attended meeting with Ms. Aishvarya Singh IAS, Joint Secretary EP-CAP, Department of Commerce and Industry to discuss Indian Chemical Sector and its Export performance. Chairman CHEMEXCIL and Industry stakeholders highlighted the following

1. Organic Chemicals: • India has the potential to become a major exporter of benzene and p-xylene because of upcoming capacity expansions. • Purified Terepthalic Acid (PTA) exports are likely to decline due to insufficient domestic production capacity.
2. Agrochemicals: • India’s agrochemical exports to the USA and Brazil have declined due to factors such as Mr. Abhay Udeshi, Chairman, Mr. Raghuveer Kini, Mr. Prafulla Walhe, Deputy Director & Mr. Diego M Taube, Former Managing Director Argentine Chamber of Chemical Products during the discussion Mr. Raghuveer Kini, Mr. Prafulla Walhe, Deputy Director welcoming Mr. Diego M Taube, Former Managing Director Argentine Chamber of Chemical Products

mber of Chemical Products during the discussion Mr. Raghuveer Kini, Mr. Prafulla Walhe, Deputy Director welcoming Mr. Diego M Taube, Former Managing Director Argentine Chamber of Chemical Products

43 lower commodity prices, geopolitical issues, and unfavourable weather conditions. • India has the potential to become the world’s largest agrochemical exporter due to the “China+1” policy. • Challenges faced by Indian agrochemical exporters include regulatory compliances, lengthy registration processes, and trade barriers. 3. Specialty Chemicals: • The Indian specialty chemical industry, particularly the oleo chemical industry, faces duty inversion issues in ASEAN FTA. • Semiconductor chemicals offer significant potential for India, but require specialized infrastructure and technology. • Government support for refining equipment and technology is important for Indian companies to enter this market. 4. Natural Menthol: • India is the world’s largest producer of natural menthol, but faces competition from synthetic menthol imports. • Measures to protect the domestic natural menthol industry include increased GST on synthetic menthol, extended RODTEP benefits for natural menthol, and establishment of C-14 testing facilities. 5.

easures to protect the domestic natural menthol industry include increased GST on synthetic menthol, extended RODTEP benefits for natural menthol, and establishment of C-14 testing facilities. 5. Policy Suggestions: • RoDTEP: Reinstatement and revision of RoDTEP rates for chemicals. • Environmental Issues: Streamlining the process for obtaining environmental clearances for product changes. • Research and Development: Reinstatement of weighted tax deduction for R&D units. • Interest Equalization Scheme (IES): Extension of validity and restoration of subvention rates. • MAI Subsidy: Reinstating the old criteria for reimbursement of REACH registration charges. EXTENSION OF INTEREST EQUALISATION SCHEME DTD. 30TH SEPTEMBER 2024 O/o DGFT has issued a Trade Notice No. 18/2024-25 dated 30th September 2024 on extension of Interest Equalization Scheme for pre and post shipment export credit for 3-months beyond 30th September 2024 (up to 31st December 2024). Please note the following • The total benefit under the scheme will be restricted to Rs. 50 Lakhs for FY 24-25 till 31st Dec 2024. • Exporters who have already available the benefit of Rs. 50 Lakhs or more till Sept 2024 will not be eligible for the benefit in the extended period. Members are requested to go through the detailed notice on below link https://content.dgft.gov.in/Website/dgftprod/ eb30448c-6078-49bd-88ca-4c0a368322d8/ Trade%20Notice%20no.%2018.pdf
EXTENSION OF RODTEP SCHEME DTD.

ed to go through the detailed notice on below link https://content.dgft.gov.in/Website/dgftprod/ eb30448c-6078-49bd-88ca-4c0a368322d8/ Trade%20Notice%20no.%2018.pdf
EXTENSION OF RODTEP SCHEME DTD. 30TH SEPTEMBER 2024 O/o DGFT has issued Notification No: 32/2024-25 dated 30th September, 2024 on Extension of RODTEP scheme for exports made from DTA Units and AA/EOU/ SEZ Units -reg Accordingly, the RODTEP Scheme, for export of products manufactured by DTA Units, is being extended beyond 30.09.2024 till 30.09.2025. In case of export of products manufactured by Advance Authorization holders (Except deemed exports), Export Oriented Units (EOUs) and SEZ Units, is being extended beyond 30.09.2024 till 31.12.2024. The outgo of RoDTEP fund remains within the approved budget of the Scheme. The new RoDTEP rates based on the recommendation of RoDTEP Committee are being notified w.e.f. 10.10.2024 under revised Appendix 4R (for DTA units) and Appendix 4 RE (for Advance Authorization holders (Except deemed exports), Export Oriented Units (EOUs) and SEZ Units).

ng notified w.e.f. 10.10.2024 under revised Appendix 4R (for DTA units) and Appendix 4 RE (for Advance Authorization holders (Except deemed exports), Export Oriented Units (EOUs) and SEZ Units).

44 However, for exports made between 01.10.2024 and 09.10.2024, the existing rates as in Notification No.70/2023 dated 08.03.2024 shall continue to apply. The new Appendix 4R and Appendix 4 RE containing the eligible RoDTEP export items, rates and per unit value caps, wherever applicable is available at the DGFT portal- www.dgft.gov.in under the link ‘Regulations>RoDTEP’. The copy of detailed notification can be viewed on below link h t t p s : / / c o n t e n t . d g f t . g o v. i n / W e b s i t e / dgftprod/8a5fe49d-609d-47ee-9357-2f27b0900fcf/ Notification%2032%20Eng.pdf RODTEP rates published dated 30th September 2024 are in the range from 0.3% to 2.5% with respect to the various tariff lines. As per as Chemicals are concerned total of 1080 chemical tariff lines are covered under this scheme. CHEMEXCIL has done the analysis of the all-tariff lines with respect to the revised rates mentioned in Appendix 4R - RoDTEP Schedule which is as under. Rate as % age of RoDTEP rate Feb 2023 RoDTEP rate current 30.09.2024 0.5% 2 3 0.6%     0.7%   832 0.8% 991 119 0.9% 29 9 1.0% 7 16 1.1%   3 1.2% 2 24 1.3%   58 1.4% 41 11 1.5% 3   1.8%   3 2%-2.5% 3 2 NO RATE 2   TOTAL 1080 1080 From above it is clear that the RODTEP rates for majority of tariff lines (832 Nos.) have been decreased to 0.7% from 0.8%.

58 1.4% 41 11 1.5% 3   1.8%   3 2%-2.5% 3 2 NO RATE 2   TOTAL 1080 1080 From above it is clear that the RODTEP rates for majority of tariff lines (832 Nos.) have been decreased to 0.7% from 0.8%. And only a small number of tariff lines have allocated the increase to between 0.9% and 2.5%. INTRODUCTION OF DRISHTI SOFTWARE BY JNCH DTD. 7TH OCTOBER 2024 The office of Commissioner of Customs at Jawaharlal Nehru Custom House, Nhava Sheva has issued a Public Notice No. 84/2024 dated 7th October 2024 informing about the introduction of new software system called DRISHTI for monitoring export sale proceeds. This initiative has introduced to enhance the effectiveness of tracking the realization of export sale proceeds, particularly for recovering ineligible Drawback, RoDTEP, and RoSCTL due to non-realization or partial realization of export sale proceeds. Previously, the RBI-BRC Module was used for monitoring these proceeds, however it has some concerns such as non-reporting of remittances by bank received in multiple parts, difficulties in closing cases after exporters returned proportionate drawbacks, etc. Because of the high volume of shipping bills processed annually by JNCH port (approximately 14-15 lakh), the need for a more efficient system was recognized, resulting in the development of the DRISHTI software. The DRISHTI module will be applicable to all shipping bills with a Let Export Order (LEO) date on or after April 1, 2014.

stem was recognized, resulting in the development of the DRISHTI software. The DRISHTI module will be applicable to all shipping bills with a Let Export Order (LEO) date on or after April 1, 2014. Exporters can access information regarding their pending shipping bills by contacting the Drawback Recovery Cell or via email on dbkrc-jnch@gov.in as per the specified format in the notice for inquiries. For any related queries of this new module, exporters can reach out to the Deputy/Assistant Commissioner in charge of the Drawback Recovery Cell. The detailed notice can be viewed/downloaded from below link https://jawaharcustoms.gov.in/pdf/PN-2024/PN-84- 2024.pdf

45 IMPORTANT NOTIFICATION & CIRCULAR CIRCULAR 1 EPC:LIC:PW:RODTEP:APP4R:2024-25:357 1st October 2024 To, ALL MEMBERS OF THE COUNCIL  Sub: Important Update on RoDTEP Rates Revised for Chemical Sector (Appendix 4R - RoDTEP Schedule for DTA Exports w.e.f. 10.10.2024 Notified vide Notification No. 32 Dated 30.09.2024)  Dear Sir/Madam This has in continuation of our circular No. EPC:PW:LIC:DGFT:RODTEP:2024-25:MISC. dated 30th September 24 on DGFT Notification on Extension of RODTEP scheme for exports made from DTA Units and AA/EOU/SEZ Units -reg. O/o DGFT has issued Appendix 4R - RoDTEP Schedule for DTA Exports by the DGFT, effective from October 10, 2024.

Extension of RODTEP scheme for exports made from DTA Units and AA/EOU/SEZ Units -reg. O/o DGFT has issued Appendix 4R - RoDTEP Schedule for DTA Exports by the DGFT, effective from October 10, 2024. This notification has revised the RoDTEP rates for various commodities, including the chemical sector. As you may be aware, the CHEMEXCIL had previously requested the Department to revise (increase) the RoDTEP rates for the chemical sector from 0.8% to 2-3%. Unfortunately, the revised rates announced in Appendix 4R have decreased further for most of Chemicals. The new RoDTEP rates for the chemical sector are as under • Inorganic chemicals: 0.7% • Organic chemicals: 0.7% and for some organic chemicals- 0.8%-1.4% • Dyes and its intermediate: 0.7% • Agrochemicals: 0.7% to 0.8% • Essential oils: 0.8% • Castor -0.5% We request you to go through the Appendix 4R published on link below carefully to understand the specific RoDTEP rates applicable to your products. https://content.dgft.gov.in/Website/Appendix+4R+wef+10th+October+2024.pdf Similarly refer Appendix 4RE - RoDTEP Schedule for Advance Authorization (AA)/Export Oriented Unit (EOU)/ Special Economic Zones (SEZ) Exports w.e.f. 10.10.2024 Notified under Notification No 32 Dated 30.09.2024 on below link https://content.dgft.gov.in/Website/Appendix+4RE+wef+10+October+2024.pdf We understand that this may be a disappointing news for Indian Chemical Exporters.

tion No 32 Dated 30.09.2024 on below link https://content.dgft.gov.in/Website/Appendix+4RE+wef+10+October+2024.pdf We understand that this may be a disappointing news for Indian Chemical Exporters. However, please be assured that CHEMEXCIL will continue to represent the revision of RoDTEP rates to ensure that the chemical sector remains competitive in the global market. Do not hesitate to write us on pw@chemexcil.in with copy to dg@chemexcil.in Thank you for your continued support. Raghuveer Kini Director General CHEMEXCIL Encl : Appendix +4R+wef+10th+October+2024 Appendix+4RE+wef+10+October+2024

46 CIRCULAR 2 EPC:PW:LIC:DGFT:RODTEP:2024-25:MISC.  1st October 2024 To, Sub: (Important) DGFT Notification on Extension of RODTEP scheme for exports made from DTA Units and AA/EOU/SEZ Units –reg.  Dear Members  O/o DGFT has issued Notification No: 32 /2024-25 dated 30 September, 2024 on above subject. Accordingly, the RODTEP Scheme, for export of products manufactured by DTA Units, is being extended beyond 30.09.2024 till 30.09.2025. In case of export of products manufactured by Advance Authorization holders (Except deemed exports), Export Oriented Units (EOUs) and SEZ Units, is being extended beyond 30.09.2024 till 31.12.2024. The outgo of RoDTEP fund remains within the approved budget of the Scheme. The new RoDTEP rates based on the recommendation of RoDTEP Committee are being notified w.e.f.

d 30.09.2024 till 31.12.2024. The outgo of RoDTEP fund remains within the approved budget of the Scheme. The new RoDTEP rates based on the recommendation of RoDTEP Committee are being notified w.e.f. 10.10.2024 under revised Appendix 4R (for DTA units) and Appendix 4 RE (for Advance Authorization holders (Except deemed exports), Export Oriented Units (EOUs) and SEZ Units).  However, for exports made between 01.10.2024 and 09.10.2024, the existing rates as in Notification No.70/2023 dated 08.03.2024 shall continue to apply. The new Appendix 4R and Appendix 4 RE containing the eligible RoDTEP export items, rates and per unit value caps, wherever applicable is available at the DGFT portal- www.dgft.gov.in under the link ‘Regulations>RoDTEP’. The copy of detailed notification can be viewed on below link  https://content.dgft.gov.in/Website/dgftprod/8a5fe49d-609d-47ee-9357-2f27b0900fcf/Notification%2032%20 Eng.pdf Members are requested to take the note of this important notification.  Thanks and regards  Raghuveer Kini Director General  CHEMEXCIL  Encl : Notification 32 Eng. CIRCULAR 3 EPC: LIC: INDIA-EU FTA_PSRs /2024-25/391  8TH OCTOBER 2024 To, Sub: INPUTS FOR INDIA – EU FTA – RULES OF ORIGIN – PSRs Dear Members, India is currently negotiating a Free Trade Agreement with the EU.

C: LIC: INDIA-EU FTA_PSRs /2024-25/391  8TH OCTOBER 2024 To, Sub: INPUTS FOR INDIA – EU FTA – RULES OF ORIGIN – PSRs Dear Members, India is currently negotiating a Free Trade Agreement with the EU. As a part of this agreement, both the countries negotiate on a range of products that would be offered tariff concessions to each other under this agreement. To ensure that benefits of tariff concession accrue to products that are sufficiently produced in either country, there are certain rules in place that ensure sufficient transformation of the products in the territory of both countries. For your reference we are mentioned some examples of PSRs under Rules of origin below : • WO: Wholly Obtained • CC: A change from any other chapter • CTH: A change from any other heading • CTSH: A change from any other subheading Sometimes, twin rules like CTSH + VA X% are also present. This means that the exporter has to ensure that there is

47 a change at the tariff subheading level as well as a value addition of X%.

ading Sometimes, twin rules like CTSH + VA X% are also present. This means that the exporter has to ensure that there is

47 a change at the tariff subheading level as well as a value addition of X%. These are some examples of rules of origin. We have enclosed an excel sheet received from Department of Chemicals & Petrochemicals which lists out EU proposal of tariff lines (268 HS Codes) falling under the purview of CHEMEXCIL for your review.    We request you to provide your inputs (PSRs)  for the tariff lines pertaining to Chapter 28 to 38 in Column H & I (Stakeholder’s column ) filled in with Red Colour and send it on amrita@chemexcil.in ; ad.del@chemexcil.in  with a copy to pw@chemexcil.in; dg@chemexcil.in latest by 11th October 2024 (Forenoon).     Thanks, and Regards Raghuveer Kini Director General CHEMEXCIL Encl : EUs PSR Proposal - Chemexcil products CIRCULAR 4 EPC/REG/AS/DCPC/204-25/388  8TH OCTOBER, 2024  To, Sub: Global Framework on Chemicals - Regd Dear Members, As you may be aware, the global chemical industry , estimated at US$5 trillion in 2017, is expected to double by 2030. Climate change, nature and biodiversity loss, pollution and waste are world’s most pressing environmental challenges. Pollution is responsible for 9 million deaths a year. Pollution related deaths have increased by 66 per cent over the last two decades. Every year 1 million workers die from exposure to hazardous chemicals.

n is responsible for 9 million deaths a year. Pollution related deaths have increased by 66 per cent over the last two decades. Every year 1 million workers die from exposure to hazardous chemicals. This means every 30 seconds a worker dies from chemical exposure in the workplace. In view of the above, delegates from around the world representing Government, industry, civil society, academia and youth convened to negotiate a new “Global Framework on Chemicals” (GFC) at the fifth International Conference on Chemicals Management (ICCCM5) held in September 2023 in Bonn, Germany. The GFC presents a comprehensive plan to guide countries and stakeholders in jointly addressing the lifecycle of chemicals, including products and waste. The framework presents five strategic objectives and 28 targets for the sound management of chemicals and waste, with a vision for a safe, healthy and sustainable future to be reached by 2030 or by 2035. Resolutions of the Fifth International Conference on Chemicals Management adopted in Bonn in September 2023 is attached for your ready reference. We encourage members to review this framework and stay updated on this topic to ensure compliance. In case of any comments / feedback please do not hesitate to write to us on amrita@chemexcil.in  with copy to pw@chemexcil.in ; dg@chemexcil.in . Thanking you.     Yours Faithfully,
Raghuveer Kini Director General CHEMEXCIL Encl:- GFC Brochure (Mini) GFC Brochure (Main)

ta@chemexcil.in  with copy to pw@chemexcil.in ; dg@chemexcil.in . Thanking you.     Yours Faithfully,
Raghuveer Kini Director General CHEMEXCIL Encl:- GFC Brochure (Mini) GFC Brochure (Main)

48 CIRCULAR 5 EPC:PW:LIC:JNCH:2024-25:    9th Oct 2024 To,  Sub: JNCH Public Notice Introduction of DRISHTI Software (Export Sale Proceed Monitoring System) : Regarding Dear Sir/Madam The office of Commissioner of Customs at Jawaharlal Nehru Custom House, Nhava Sheva has issued a Public Notice No. 84/2024 dated 7th October 2024 informing about the introduction of new software system called DRISHTI for monitoring export sale proceeds. This initiative has introduced to enhance the effectiveness of tracking the realization of export sale proceeds, particularly for recovering ineligible Drawback, RoDTEP, and RoSCTL due to non-realization or partial realization of export sale proceeds. Previously, the RBI-BRC Module was used for monitoring these proceeds, however it has some concerns such as non-reporting of remittances by bank received in multiple parts, difficulties in closing cases after exporters returned proportionate drawbacks, etc. Because of the high volume of shipping bills processed annually by JNCH port (approximately 14-15 lakh), the need for a more efficient system was recognized, resulting in the development of the DRISHTI software. The DRISHTI module will be applicable to all shipping bills with a Let Export Order (LEO) date on or after April 1, 2014.

system was recognized, resulting in the development of the DRISHTI software. The DRISHTI module will be applicable to all shipping bills with a Let Export Order (LEO) date on or after April 1, 2014. Exporters can access information regarding their pending shipping bills by contacting the Drawback Recovery Cell or via email on dbkrc-jnch@gov.in as per the specified format in the notice for inquiries. For any related queries of this new module, exporters can reach out to the Deputy/Assistant Commissioner in charge of the Drawback Recovery Cell. The detailed notice can be viewed/downloaded from below link https://jawaharcustoms.gov.in/pdf/PN-2024/PN-84-2024.pdf Members are requested to take the note of this important initiative. Thanks and Regards Raghuveer Kini Director General CHEMEXCIL Encl : PN-84-2024 CIRCULAR 6 EPC:LIC:PW:RODTEP:INP:2024-25:410 15th October 2024 To, Sub: (IMPORTANT) Inputs for revised RoDTEP rates for Chemical Sector (Appendix 4R and 4RE):- regarding Dear Sir/Madam, This has reference to DGFT Notification No: 32 /2024-25 dated 30th September, 2024 on Extension of RODTEP scheme for exports made from DTA Units and AA/EOU/SEZ Units -reg. DGFT has issued following Appendix effective from October 10, 2024. • Appendix 4R- RoDTEP Schedule for DTA Exports by the DGFT

TEP scheme for exports made from DTA Units and AA/EOU/SEZ Units -reg. DGFT has issued following Appendix effective from October 10, 2024. • Appendix 4R- RoDTEP Schedule for DTA Exports by the DGFT

49 • Appendix 4RE-RoDTEP Schedule for Advance Authorization (AA)/Export Oriented Unit (EOU)/Special Economic Zones (SEZ) Exports.  These Appendix has revised the RoDTEP rates for various commodities, including the chemical sector. CHEMEXCIL did the internal analysis of the revised rates with respect to earlier RODTEP rates. The summary of the same is as under Unfortunately, the revised rates announced in Appendix 4R have decreased further for most of Chemicals. (Total 832 Nos.) We understand that this may be a disappointing news for Indian Chemical Exporters. However, CHEMEXCIL is in receipt of communication from Central Board of Indirect Taxes informing that in case of any anomalies and apparent errors of the revised RODTEP rates members may submit the representation along with sufficient reasoning and documentary evidences to the council for onward communication to drawback division. In view of above members are requested to go through the attached analysed excel sheets and submit their inputs pertaining to their tariff lines along with sufficient reasoning and documentary evidences to the council on or before 18th October 2024 at pw@chemexcil.in with copy to dg@chemexcil.in (NOTE: The department will only consider requests for revision in RODTP rates if it is accompanied by precise

council on or before 18th October 2024 at pw@chemexcil.in with copy to dg@chemexcil.in (NOTE: The department will only consider requests for revision in RODTP rates if it is accompanied by precise embedded taxes data and adequate supporting documentation with proper justification.) Thank you for your continued support. Raghuveer Kini Director General CHEMEXCIL Encl : Analysis Appendix +4RE11-10-2024 Analysis Appen- 4R11-10-2024 CIRCULAR 7 EPC:LIC:PW:DGFT:AA-DFIA-APPE H: 2024-25:MIS-1 18TH OCTOBER 2024   To, Sub: DGFT Trade Notice No. 21/2024-25, dated October 17, 2024 on Electronic Submission of Appendix 4H Certificates for Advance Authorization: Regarding Dear Sir/Madam O/o DGFT has issued a Trade Notice No. 21/2024-25, dated October 17, 2024 on Electronic Submission of Appendix 4H Certificates for Advance Authorization: Regarding Appendix 4H is an important document under the Directorate General of Foreign Trade (DGFT) regulations in India. It serves as a register for accounting the consumption and stocks of duty-free imported or domestically procured raw materials, components, etc., allowed under the Advance Authorization (AA) and Duty-Free Import Authorization (DFIA) schemes. Appendix 4H is mandatory for exporters availing the benefits of AA or DFIA schemes, maintaining accurate records.

er the Advance Authorization (AA) and Duty-Free Import Authorization (DFIA) schemes. Appendix 4H is mandatory for exporters availing the benefits of AA or DFIA schemes, maintaining accurate records. Appendix 4H requires following information • Details of imported or domestically procured inputs • Quantity consumed and stock maintained • Verification by a chartered accountant or cost accountant In recent times, the DGFT has been transitioning their procedures to online platforms and digital systems. As per Para 1.04(f) of the Handbook of Procedures (HBP), electronic systems must be introduced to facilitate the

50 uploading of digitally signed documents by certifying authorities such as Chartered Accountants (CAs), Company Secretaries (CSs), and Cost Accountants. Now, through this notice the DGFT has announced a new facility for certifying authorities (i.e., CAs, CSs, and Cost Accountants) to digitally link Appendix 4H for Advance Authorization applications and DFIA (Duty-Free Import Authorization) schemes. The Trade Notice indicates the workflow for both exporters and certifying authorities.

1. Exporters has to fill in Appendix 4H-related data online through the DGFT website.

Then exporters should forward draft Appendix 4H data to their certifying authority online via the certifying authority’s registration number. 3. The Certifying authorities (CAs, CSs, Cost Accountants, etc.) should register on the DGFT platform under the category “Certifying Authority.” 4.

the certifying authority’s registration number. 3. The Certifying authorities (CAs, CSs, Cost Accountants, etc.) should register on the DGFT platform under the category “Certifying Authority.” 4. Once the exporter submits the data to the certifying authority through the DGFT website, the certifying authority can view and approve the Appendix 4H using their DGFT credentials. 5. The certifying authority will digitally sign and approve Appendix 4H. 6. The approved Appendix 4H will be available for viewing and downloading by the exporter and will be automatically linked to the redemption application for the Advance Authorization and DFIA schemes. This new digital feature for Appendix 4H will streamline the process and reduce the time required for application and redemption under the Advance Authorization & DFIA Schemes. The detailed trade notice can be viewed on following link https://content.dgft.gov.in/Website/dgftprod/3a1175fa- d385-45df-93a6-14f940189658/document%20(16).pdf Exporters are requested to take the note of it and do the needful ASAP Do not hesitate to write us on pw@chemexcil.in with copy to dg@chemexcil.in if you need any clarification. Thanks and regards Raghuveer Kini Director General CHEMEXCIL Encl : Document - 16 CIRCULAR 8 EPC/Ro-Del/PG/PRE_BUDGET_2025-26 :50 24th October 2024 To,  Sub: V.IMP.

f you need any clarification. Thanks and regards Raghuveer Kini Director General CHEMEXCIL Encl : Document - 16 CIRCULAR 8 EPC/Ro-Del/PG/PRE_BUDGET_2025-26 :50 24th October 2024 To,  Sub: V.IMP. REMINDER- Inviting Pre-Budget Proposals for the Year 2025-26-Regarding  Dear Members, We have received the final intimation from the department regarding the submission of Pre-Budget Proposals for the Year 2025-26.  With this intimation, Export related Pre-Budget Proposals for Pre-Budget Exercise of the Union Government for the year 2025-26 are invited, duly filled up in the prescribed Pro-forma (UPDATED Copy enclosed with detailed instructions). Please consider following points while preparation/ submission of your pre-budget proposals: i.      Budget Proposals should be complete in all respects, properly categorized and HS Codes for each commodity must be provided. ii.     Justification given in favor of the proposals shall be restricted to 300 words and Annexures should be used, if necessary. iii.      Issues discussed year after year but never agreed to, may not be raised again. iv.      In order to justify the rationalization of custom duty information on relevant parameters such as Production,

Issues discussed year after year but never agreed to, may not be raised again. iv.      In order to justify the rationalization of custom duty information on relevant parameters such as Production,

51 Capacity, Imports etc may be provided in the enclosed proforma (copy attached).  v.      Identify cases of inverted duty structure, affecting growth of the chemical sector, which need to be corrected/ rectified. Interested member-exporters are requested to take note of this circular and kindly forward their pre-budget proposals in the specified format with full details latest by  25th October-2024 on our e-mail id’s: ad.del@chemexcil. in;  pw@chemexcil.in; dg@chemexcil.in Your timely responses in the specified formats will enable us collate the proposals and forward them to DOC for examination/ further deliberations. Thanks and Regards Raghuveer Kini Director General CHEMEXCIL Encl : Format for Pre-Budget 2025-26 CIRCULAR 9 EPC:LIC:PW:DGFT:PN:RODTEP:2024-25:MISC-2 24th Oct 2024   To, Sub: (IMPORTANT)- DGFT Public Notice No. 27/2024-25- An introduction of the filing of the Annual RoDTEP Return (ARR) for RoDTEP claims.  Dear Sir/Madam, O/o DGFT has issued a public notice no. 27/2024-25 dated 23rd October 2024 on filing of the Annual RoDTEP Return (ARR) for RoDTEP claims as part of the Foreign Trade Policy, 2023. This is a new requirement, stated in Para 4.94 of the Handbook of Procedures 2023, mandating exporters claiming RODTEP benefits to submit an ARR by March 31 of the following financial year, starting with those whose claims exceed Rs.

Para 4.94 of the Handbook of Procedures 2023, mandating exporters claiming RODTEP benefits to submit an ARR by March 31 of the following financial year, starting with those whose claims exceed Rs. 1 crore in a financial year across all 8-digit HS Codes. This notice is issued in order to streamline the process for exporters and ensure compliance with the RODTEP scheme, enhancing transparency and accountability in the export sector. The key aspects of this notice are as under : • The ARR for claims filed in the financial year 2023-24 must be submitted by March 31, 2025.  Non- compliance will result in denial of benefits under the RODTEP scheme, and no further claims will be processed after June 30, 2025, unless a composition fee is paid. • A fee of Rs. 10,000 will apply for late submissions up to June 30, 2025, and Rs. 20,000 thereafter. Claims will be resumed within 45 days after payment of the applicable fee. • Exporters must maintain physical or digital records supporting their duty remission claims for five years, which may be requested by authorities. • The ARR may be subject to periodic assessments for due diligence, and certain cases may be selected for further scrutiny based on risk criteria. Any excess claims identified must be refunded or surrendered, or further benefits will be halted. • The ARR must be submitted in a specified format, detailing various costs associated with the export product, including taxes, duties, and transportation costs, among others. The format is specified in attached public notice.

a specified format, detailing various costs associated with the export product, including taxes, duties, and transportation costs, among others. The format is specified in attached public notice.

52 The detailed notice can be viewed on following link https://content.dgft.gov.in/Website/dgftprod/4c208b04-bd1c- 4983-a87c-3d6c59051b2f/PN%2027%20(English).pdf We request members to take the note of this important notice and comply with the same. Do not hesitate to write to us on pw@chemexcil.in with copy to dg@chemexcil.in if you need any clarification Thanks and Regards Yours faithfully, Raghuveer Kini Director General CHEMEXCIL Encl : PN 27 (English) CIRCULAR 10 EPC:LIC:PW:DGFT:PN:RODTEP:2024-25:MISC-2 24th Oct 2024   To, (IMPORTANT)- DGFT Public Notice No. 27/2024-25- An introduction of the filing of the Annual RoDTEP Return (ARR) for RoDTEP claims. Dear Sir/Madam, O/o DGFT has issued a public notice no. 27/2024-25 dated 23rd October 2024 on filing of the Annual RoDTEP Return (ARR) for RoDTEP claims as part of the Foreign Trade Policy, 2023. This is a new requirement, stated in Para 4.94 of the Handbook of Procedures 2023,  mandating exporters claiming RODTEP benefits to submit an ARR by March 31  of the following financial year,  starting with those whose claims exceed Rs. 1 crore in a financial year across all 8-digit HS Codes.

porters claiming RODTEP benefits to submit an ARR by March 31  of the following financial year,  starting with those whose claims exceed Rs. 1 crore in a financial year across all 8-digit HS Codes. This notice is issued in order to streamline the process for exporters and ensure compliance with the RODTEP scheme, enhancing transparency and accountability in the export sector. The key aspects of this notice are as under : • The ARR for claims filed in the financial year 2023-24 must be submitted by March 31, 2025.  Non- compliance will result in denial of benefits under the RODTEP scheme, and no further claims will be processed after June 30, 2025, unless a composition fee is paid. • A fee of Rs. 10,000 will apply for late submissions up to June 30, 2025, and Rs. 20,000 thereafter. Claims will be resumed within 45 days after payment of the applicable fee. • Exporters must maintain physical or digital records supporting their duty remission claims for five years, which may be requested by authorities. • The ARR may be subject to periodic assessments for due diligence, and certain cases may be selected for further scrutiny based on risk criteria. Any excess claims identified must be refunded or surrendered, or further benefits will be halted. • The ARR must be submitted in a specified format, detailing various costs associated with the export product, including taxes, duties, and transportation costs, among others.

efits will be halted. • The ARR must be submitted in a specified format, detailing various costs associated with the export product, including taxes, duties, and transportation costs, among others. The format is specified in attached public notice. The detailed notice can be viewed on following link https://content.dgft.gov.in/Website/dgftprod/4c208b04-bd1c- 4983-a87c-3d6c59051b2f/PN%2027%20(English).pdf

53 We request members to take the note of this important notice and comply with the same. Do not hesitate to write to us on pw@chemexcil.in with copy to dg@chemexcil.in if you need any clarification Thanks and Regards Yours faithfully, Raghuveer Kini Director General CHEMEXCIL Encl : PN 27 (English) CIRCULAR 11 EPC:LIC:PW:RODTEP:2024-25:MISC-3/KR-482 28th October-2024 To, Sub: (IMPORTANT)- RODTEP-INPUTS REQUIRED ON ANOMALIES AND APPARENT ERRORS IN REVISED RODTEP RATES FOR CHEMICAL SECTOR-REGARDING  Dear Members, Greetings from CHEMEXCIL! This is in continuation of our circular no. EPC:LIC:PW:RODTEP:INP:2024-25:410 dated 15th October-2024 on inputs for revised RoDTEP rates for Chemical Sector (Appendix 4R and 4RE):- regarding. (https://chemexcil.in/ circulars/imp---inputs-for-revised-rodtep-rates-for-chemical-sector--appendix-4r-and--4re-:--regarding/6282/ a47a0d7e1fe06734f3ac1cf2ebf174b2.html) Today, CHEMEXCIL secretariat attended a meeting with the DGFT to discuss on submissions of anomalies and apparent errors in the revised RoDTEP Rates.

ing/6282/ a47a0d7e1fe06734f3ac1cf2ebf174b2.html) Today, CHEMEXCIL secretariat attended a meeting with the DGFT to discuss on submissions of anomalies and apparent errors in the revised RoDTEP Rates. It is suggested by the department to get inputs regarding any anomalies or errors identified in the revised RoDTEP rates for member companies’ products. In view of above we request members to submit their representations in writing along with the documentary evidence and reasoning indicating anomalies or errors identified in the revised RoDTEP rates on or before 4th November 2024 at pw@chemexcil.in with a copy to ad.del@chemexcil.in and dg@chemexcil.in. Inputs received after the deadline (4th November 2023) may not be considered. We look forward to receive your feedback to take it forward. Thanks and Regards Raghuveer Kini Director General CHEMEXCIL

54 CIRCULAR 12 EPC:PW:LIC:QCO:2024-25:497/KR-498 29th October 2024 To, Sub: IMPORTANT- Gazette Notification for extension of enforcement date of QCOs of 6 Chemicals  Dear Sir / Madam, Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers has issued the Gazette Notification No. CG-DL-E-22102024-258140 dated 22nd October 2024 or  extension of enforcement date of Quality Control Orders (QCOs) for 06 Chemicals viz.

cals and Fertilizers has issued the Gazette Notification No. CG-DL-E-22102024-258140 dated 22nd October 2024 or  extension of enforcement date of Quality Control Orders (QCOs) for 06 Chemicals viz. (i) Lauric Acid (ii) Acid Oil (iii) Palm Fatty Acids iv) Rice Bran Fatty Acids v) Coconut Fatty Acids vi) Hydrogenated Rice Bran Fatty Acids. The deadline for the extension for the QCO for (i) Lauric Acid (ii) Acid Oil (iii) Palm Fatty Acids iv) Rice Bran Fatty Acids v) Coconut Fatty Acids vi) Hydrogenated Rice Bran Fatty Acids is till 24th day of April, 2025”. Enclosed herewith is the published Gazette notification for your information. The same can be viewed on below link https://chemicals.gov.in/sites/default/files/notification/Gazette_Notification_0.pdf Concerned members are requested to take the note of this important change and inform their sellers in overseas country. Do not hesitate to call us if you need any clarification on the said subject Thanks and Regards Raghuveer Kini Director General CHEMEXCIL Encl : Doc-20241028-WA0085 CIRCULAR 13 EPC/Admn/ Rashtriya Ekta Diwas /2024/Misc/     October 30, 2024 To,  Sub: Observance of “Rashtriya Ekta Diwas” (National Unity Day) on 31st October, 2024 the 149th Birth Anniversary of Sardar Vallabhbhai Patel Dear Members, As you are aware the Government of India observes October 31st all over the country as ‘Rashtriya Ekta Diwas’ (National Unity Day) to commemorate the Birth Anniversary of Sardar Vallabhbhai Patel.

As you are aware the Government of India observes October 31st all over the country as ‘Rashtriya Ekta Diwas’ (National Unity Day) to commemorate the Birth Anniversary of Sardar Vallabhbhai Patel.  The occasion provides us an opportunity to re-affirm the inherent strength and resilience of our nation to withstand the actual and potential threats to the unity, integrity and security of our country.  In order to boost and intensify this campaign, as per the directive of the Ministry, we are happy to inform you all that CHEMEXCIL has decided to undertake the following activities along with all of you and the employees of CHEMEXCIL on Rashtriya Ekta Diwas- i. Floral tribute to Sardar Vallabhbhai Patel may be given to commemorate the Birth Anniversary. ii. To administer “Rashtriya Ekta Diwas Pledge” by head of organization before conducting “Run for the Unity”.  iii. Create social awareness through social media platforms.

Apart from the above activities we appeal our member exporters - i. To organize a “Run for the Unity” programme at appropriate locations, involving people from all section of the society.  Efforts to be made to mobilize all employees for the run.  Head of the office should be at the forefront of the run along with Dignitaries /Public figures, who may be invited to join the run.

ety.  Efforts to be made to mobilize all employees for the run.  Head of the office should be at the forefront of the run along with Dignitaries /Public figures, who may be invited to join the run.

55 ii. Relevant activities such as quiz, essay writing, Street Plays, etc. may be conducted as part of the “Rashtriya Ekta Diwas” to create awareness in the public. iii. Efforts to be also made to increase the number of activities by holding the pledges/runs in other regional/ related offices of the organisations. iv. Standees/Banners/Selfie points to be installed at appropriate locations in the office premises to create awareness. Finally, we would like to inform you all that the Council shall use social media (i.e., through Emails, Web uploads, Twitter, etc.  as the means of Networking with all of you. Thereafter, it is our earnest request to you to send us your feedback of activities undertaken along with photographs on shalaka@chemexcil.in so as to enable us to inform the same to the Ministry. In view of the importance of the above, we solicit your co-operation and assistance to observe the Rashtriya Ekta Diwas on October 31, 2024 to foster and reinforce our dedication to preserve and strengthen the unity, integrity and security of our nation. Thanking you, Yours faithfully, Raghuveer Kini Director General CHEMEXCIL CIRCULAR 14 EPC:PW:LIC:QCO:2024-25: 873:KR-914 22nd November 2024 To,  Sub: (IMPORTANT) Gazette Notification on enforcement date of QCOs of 2 Chemicals viz.

huveer Kini Director General CHEMEXCIL CIRCULAR 14 EPC:PW:LIC:QCO:2024-25: 873:KR-914 22nd November 2024 To,  Sub: (IMPORTANT) Gazette Notification on enforcement date of QCOs of 2 Chemicals viz. (i) H-Acid (ii) Vinyl Sulphone. Dear Sir/Madam, Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers has issued the Gazette Notifica- tion No. CG-DL-E-14112024-258654 dated 14th November 2024 on Quality Control Orders (QCOs) for H-Acid and Vinyl Sulphone by Department of Chemicals & Petrochemicals (DCPC). These orders mandate that manufacturers of these 2-chemicals must obtain a license from the Bureau of Indian Standards (BIS) to use the Standard Mark, ensuring compliance with the specified Indian Standards. These QCOs will come into force from the expiry of one hundred and eighty days from the date of its publica- tion in the Official Gazette i.e., 13th May 2025. The orders do not apply to chemicals intended solely for export. Enclosed herewith is the published Gazette notification for your information. The same can be viewed on below link https://chemicals.gov.in/sites/default/files/notification/Gazette_Notification%20%281%29.pdf Concerned members are requested to take the note of this important deadline and comply with the same. Do not hesitate to call us if you need any clarification on the said subject Thanks and Regards Raghuveer Kini Director General CHEMEXCIL Encl : Gazette Notification

ine and comply with the same. Do not hesitate to call us if you need any clarification on the said subject Thanks and Regards Raghuveer Kini Director General CHEMEXCIL Encl : Gazette Notification

56 CIRCULAR 15 EPC:LIC:EXPTGT:2024-25:983  25.11.2024 Sub: Inputs on challenges faced by Indian exporters in specific countries regarding. Dear Sir/Madam CHEMEXCIL is in receipt of communication from Department of Commerce. It is suggested to prepare a detailed note outlining India’s specific concerns with the countries such as •      Austria, •      Bulgaria, •      Hungary, •      Poland, •      Romania, •      Slovakia, •      Slovenia, •      Montenegra  In view of above members are requested to share the challenges faced by Indian Chemical exporters in above  markets on pw@chemexcil.in with copy to dg@chemexcil.in by tomorrow evening for onward submission.  Thanks and Regards  Raghuveer Kini Director General CHEMEXCIL CIRCULAR 16 EPC:LIC:ASEAN:FTA:2024-25:976/CP-980 25th November 2024 To, Sub: (URGENT) Inputs on Challenges faced by Exporters in ASEAN Countries. Dear Sir/Madam CHEMEXCIL is in receipt of communication from FT(ASEAN) Division, Department of Commerce, Government of India, informing about the compilation of  the challenges being  faced by Indian exporters in ASEAN markets. In view of above members are requested to provide the issues outlining India’s specific concerns with ASEAN countries (Product specific).

hallenges being  faced by Indian exporters in ASEAN markets. In view of above members are requested to provide the issues outlining India’s specific concerns with ASEAN countries (Product specific). This information will be compiled and sent to concerned department. Kindly provide the information by tomorrow evening on pw@chemexcil.in with copy to dg@chemexcil.in Thanks and Regards, Raghuveer Kini Director General CHEMEXCIL

57 CIRCULAR 17 EPC:LIC:IND_THAI:JTC:2024-25:1014 27th November 2024  Sub: 14th India-Thailand   Joint Trade Committee (JTC) Meeting regarding Dear Sir /Madam, Greetings from Chemexcil! CHEMEXCIL is in receipt of communication from Department of Commerce on the 14th India-Thailand Joint Trade Committee (JTC) meeting at Additional Secretary level proposed to be held shortly. In view of above we seek your input on chemical trade-related issues faced by the exporters while dealing with Thailand.   This will help us to represent the Indian chemical Industries interest during this JTC meeting. Members are requested to provide the issues with regards to following pointers   1. Tariffs Barriers 2. Regulatory Issues 3. SPS measures 4.

chemical Industries interest during this JTC meeting. Members are requested to provide the issues with regards to following pointers   1. Tariffs Barriers 2. Regulatory Issues 3. SPS measures 4. Any other issue. Please share the same on ad.del@chemexcil.in with copy to  pw@chemexcil.in   on or before 8th December 2024. Thanks and Regards, Raghuveer Kini Director General CHEMEXCIL CIRCULAR 18 EPC/REG/AS/DCPC/2024-25/1040  29th November 2024 To, Sub: Launch of the First Round of Applications for the Global Framework on Chemicals Fund (Deadline: 31 January 2025) Dear Members, Please refer to our earlier circular no EPC/REG/AS/DCPC/2024-25/  dated 8th October 2024 on the subject “Global Framework on Chemicals”. Further to that, we are pleased to inform that the Global Framework on Chemicals (GFC) Fund Secretariat has launched the first round of applications for the GFC Fund. This initiative is part of the Global Framework on Chemicals, which aims to address critical environmental challenges related to chemical management, pollution, and waste. The first round of applications for the fund will remain open until 31st January 2025. The GFC Fund is designed to support projects that align with the Global Framework on Chemicals and its strategic priorities. Applicants can find all of the information regarding the Fund on the UNEP website link  https://www.unep.org/

rojects that align with the Global Framework on Chemicals and its strategic priorities. Applicants can find all of the information regarding the Fund on the UNEP website link  https://www.unep.org/

58 global-framework-chemicals/gfc-fund The application forms, guidelines, and eligibility criteria are available online on the link https://www.unep.org/ global-framework-chemicals/gfc-fund/applying-funding#criteria . We encourage all interested members to submit their concept notes and applications by the deadline. This is a significant opportunity to support initiatives in line with the global chemical management goals. Thanking you.                                                                                                                      Yours Faithfully,   

Raghuveer Kini Director General CHEMEXCIL CIRCULAR 19 EPC:LIC:FT-EU:TRI:2024-25:1088:KR:1089 3rd December 2024  To ALL THE MEMBERS OF THE COUNCIL Sub: Request for information on issues faced by Indian Chemical Exporters in Germany Dear Sir/Madam CHEMEXCIL is in receipt of communication from Indian Mission in Germany on above subject. Indian Mission in Germany would like to assist in resolving / addressing the issues and challenges being faced by Indian Chemical Exporters in Germany.  In view of above members are requested provide the inputs regarding the following:

1. Common challenges or barriers faced by Indian Chemical exporters in Germany.

dian Chemical Exporters in Germany.  In view of above members are requested provide the inputs regarding the following:

1. Common challenges or barriers faced by Indian Chemical exporters in Germany. (Except REACH regulation)
2. Feedback or concerns regarding your experiences in the German market;
3. Additional insights or recommendations you believe could be valuable in the above context. Kindly share the above information on pw@chemexcil.in with copy to dg@chemexcil.in on or before 7th December

Thanks and Regards Raghuveer Kini Director  General CHEMEXCIL

59

60 CHEMEXCIL Membership Subscription Fees from 1st April-2022: F.Y. 2024-2025 fee will be charged based on FOB Value of exports in Rs. F.Y. 2022-23. F.Y. 2023-2024 fee will be charged based on FOB Value of exports in Rs. F.Y. 2021-22. F.Y. 2022-2023 fee will be charged based on FOB Value of exports in Rs. F.Y. 2020-21. Renewal Fee of Manufacturer and Merchant Exporters Sr. No. FOB Exports (Rs) New Fees in Rs. GST @ 18% in Rs. Total Amount with GST in Rs. 1 0 to 10 Lacs 6500/- 1170/- 7670/- 2 Above 10-25 Lacs 8500/- 1530/- 10030/- 3 Above 25 Lacs - 1 Crore 14000/- 2520/- 16520/- 4 Above 1 Crore - 10 Crores 18000/- 3240/- 21240/- 5 Above 10 Crore - 20 Crores 22000/- 3960/- 25960/- 6 Above 20 Crores - 50 Crores 29000/- 5220/- 34220/- 7 Above 50 Crores - 100 Crores 35000/- 6300/- 41300/- 8 Above 100 Crores - 250 Crores 40000/- 7200/- 47200/- 9 Above 250 Crores - 500 Crores 45000/- 8100/- 53100/- 10 Above 500 Crores - 1000 Crores 50000/- 9000/- 59000/- 11 Above 1000 Crores 55000/- 9900/- 64900/-

Crores - 250 Crores 40000/- 7200/- 47200/- 9 Above 250 Crores - 500 Crores 45000/- 8100/- 53100/- 10 Above 500 Crores - 1000 Crores 50000/- 9000/- 59000/- 11 Above 1000 Crores 55000/- 9900/- 64900/- Entry Fees for NEW (FRESH) MEMBERS Sr. No. Category Entrance Fee in Rs. 1 Large Scale Manufacturer Exporter 10500/- 2 Small Scale Exporter (CA Certify Last Three F.Y. Export Turnover Present) As per MSME criteria up to 250Cr.) 2000/- 3 Small Scale Manufacturer Exporter ( CA Certify Last Three F.Y. Export Turnover NIL) 500/- 4 Merchant Exporter 3500/- PLEASE NOTE THE FOLLOWING : 1. Start-ups and New entrance MSME’s having export turnover Zero shall be charge Rs.1000/- in addition to ‘One Time’ Entrance Fee of Rs. 500/- with applicable GST. However, for the sake of clarity, from next year onwards at the time of renewal of membership, the Membership will be charged as per their Export Turnover of the company (as per above table). 2. It is mandatory for every member to submit the CA certified export turnover of last 3-Financial Years of the company. 3. For any Amendment in RCMC certificate, an amount of Rs.1180/- (Rs.1000/- + Rs.180/- GST) will be charged as administrative fees from the entity. 4. VALIDITY OF MEMBERSHIP:- Membership subscription is charged once in a year and its validity expires on 31st March of every year. 5. Cancellation of membership: In case of any reasons of cancellation of membership by member membership fees will not be refunded.

in a year and its validity expires on 31st March of every year. 5. Cancellation of membership: In case of any reasons of cancellation of membership by member membership fees will not be refunded.

61 RENEWAL/ FRESH MEMBERSHIP DOCUEMNTS LIST Sr. No. Name of the Documents Manufacturer Exporter Merchant Exporter 1 Last three Financial Year CA Certified Export Turnover on CA letterhead. Yes Yes 2 PAN copy Yes Yes 3 GST copy Yes Yes 4 SIA or IEM copy or Udyam/ Udyog Aadhar copy Yes Not Applicable 5 If your company having State Pollution Board copy ( Not Compulsory ) Yes Not Applicable 6 Import Export Code Copy Yes Yes 7 Product List with HSCODE on Company Letterhead with Production Capacity in Metric Ton. Yes Yes 8 Director List with their DIN number, EMAIL id, Direct Tel. No. on Member Company Letterhead. Yes Yes 9 Partnership Deed copy (if the company is Partnership firm / LLP). Yes Yes 10 If your company having Star Trade House Cert. Copy issued by DGFT. Yes Yes 11 Name , Designation, Mobile No. and Email Id of your company Export Head , Regulatory Head & Accounts Head on Member Company Letterhead. Yes Yes Please note that as per trade notice no 35/2021-2022 dated 24th February 2022 of DGFT it is mandatory for exporters and EPC’s to file and issue RCMC through DGFT common platform from 1st April 2022.

Please note that as per trade notice no 35/2021-2022 dated 24th February 2022 of DGFT it is mandatory for exporters and EPC’s to file and issue RCMC through DGFT common platform from 1st April 2022. Hence,  From 1st April 2022 onwards Chemexcil RCMC will be issued through DGFT website portal only. Below  is the You Tube video link  Watch “How to Apply for  renewal of RCMC/RC on DGFT e-platform” :- https:// youtu.be/f4ijdmD4X4I For more details please contact our representatives below: Region Name of Officer Contact No. Email id Mumbai, Ahmedabad, Delhi, Bengaluru, Kolkata Mr. Charudatta Paradkar +91 90042 02920 paradkar@chemexcil.in Mrs. Girija Tulaskar +91 99690 08079 pramila@chemexcil.in Ms. Kalpana Rane

• 91 84849 18213 kalpana@chemexcil.in Membership Helpline No. : +91 77389 33059 Driving Export Excellence - Become a CHEMEXCIL Member Today!

62 CHEMEXCIL Membership benefits: 1. Exhibitions Participation: CHEMEXCIL actively participates in international exhibitions abroad, showcasing Indian exports and facilitating connections with global markets. Additionally, it invites overseas delegations to India, fostering long-term strategic alliances that enhance trade relationships and expand export opportunities. This initiative aims to elevate the visibility of Indian products and strengthen the country’s presence in the global market. 2. Policy Advocacy: CHEMEXCIL is dedicated to addressing the policy concerns of its members by engaging with relevant ministries.

products and strengthen the country’s presence in the global market. 2. Policy Advocacy: CHEMEXCIL is dedicated to addressing the policy concerns of its members by engaging with relevant ministries. It actively participates in Grievance Committee Meetings organized by the Directorate General of Foreign Trade (DGFT) to tackle issues faced by member-exporters related to customs, central excise, and port authorities. Through this advocacy, the Council works to resolve challenges, ensuring that exporters can navigate regulatory landscapes effectively and promote a more conducive environment for trade. 3. Dissemination of Trade Information: The CHEMEXCIL ensures its members stay informed through regular updates via circulars and email newsletters. These communications provide vital information on market trends, regulatory changes, export opportunities, and industry insights, empowering members to make informed business decisions and stay competitive in the global market. 4. Export Awards: CHEMEXCIL recognizes and celebrates exceptional export performance through its Export Awards program. By organizing an annual Export Award Function, it honors outstanding exporters for their contributions and achievements. This initiative not only acknowledges excellence within the industry but also inspires others to strive for higher standards in export practices. 5. Networking Opportunities: To connect within the chemical industry.

ot only acknowledges excellence within the industry but also inspires others to strive for higher standards in export practices. 5. Networking Opportunities: To connect within the chemical industry. CHEMEXCIL Participates in international exhibitions being held abroad and invites overseas delegations to India to promote our exports and establish long term strategic alliances. 6. Trade Facilitation and Trade & Policy Assistance: CHEMEXCIL provides comprehensive support for regulatory compliance and grievance resolution, guiding members through trade and policy matters involving the DGFT, banks, customs, and MSME regulations. It offers expertise on various export incentives, including the Duty Exemption Scheme, EPCG scheme, RoDTEP, and benefits for status holders. As the nodal agency appointed by the Ministry of Commerce & Industry for compliance with EU REACH legislation, it helps members navigate complex regulatory requirements. Additionally, CHEMEXCIL assists in identifying suppliers and facilitating smooth trade deals between buyers and sellers. Members also gain access to a comprehensive industry database, enhancing their ability to source Indian chemical products effectively. 7. Representation: CHEMEXCIL plays a crucial role in advocating for trade issues with government authorities. It prepares and submits an Annual Action Plan to the Ministry of Commerce & Industry, focused on promoting exports of items within its purview.

ocating for trade issues with government authorities. It prepares and submits an Annual Action Plan to the Ministry of Commerce & Industry, focused on promoting exports of items within its purview. This plan includes budget proposals for participation in various international exhibitions and buyer-seller meets, both abroad and in India. By effectively representing the interests of member-exporters, the organization seeks to enhance export opportunities and support the growth of the industry. 8. Documentation Support: CHEMEXCIL provides essential documentation support to its members, issuing various certificates, including Certificates of Origin, RCMC, and Export Turnover Certificates. It also prepares recommendation letters for consulates and embassies to facilitate visa applications for member-exporters attending exhibitions, delegations, and business promotion tours abroad. CHEMEXCIL issues Non-preferential Certificates of Origin for exports of qualifying items manufactured in India. This support streamlines the export process and helps members comply with international trade requirements. 9. Government Schemes & Export Incentives: CHEMEXCIL provides comprehensive handholding support for members to access government schemes and export incentives. This includes financial assistance through initiatives like the Market Access Initiative (MAI), which covers approved international trade fairs, exhibitions, and virtual buyer-seller meets.

ntives. This includes financial assistance through initiatives like the Market Access Initiative (MAI), which covers approved international trade fairs, exhibitions, and virtual buyer-seller meets. Additionally, it offers guidance on statutory compliance in buyers’ countries, ensuring that members meet eligibility criteria for various support programs. By facilitating access to these resources, CHEMEXCIL helps enhance members competitiveness in the global market. 10. New Business Support: CHEMEXCIL creates platforms for new businesses and MSMEs to connect and grow. Export Guidance on Step-by-step guides on how to start exporting, secure trade financing, and ensure compliance with international regulations. 11. Overseas Buyer Services: CHEMEXCIL helps overseas buyers in identification of reliable suppliers based on quality, quantity, pricing, and specifications. 12. Council’s activities and Knowledge sharing Platforms: CHEMEXCIL, engages in various activities aimed at supporting exporters and promoting knowledge sharing across industries. These activities provide platforms for businesses to gain insights, network, and enhance their market access.

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64 Glimpses of events and conferences conducted and participated by CHEMEXCIL in months of July and August. Meeting with Hon'ble Minister of Commerce & Industry, GoI. Meeting with FFAI During CHEMEXCIL Seminar in Chennai Virtual B2B with Turkish Chemical & Cosmetics Importers organized by CHEMEXCIL and Embassy of India Ankara, Turkey During ISCMA Conference

I. Meeting with FFAI During CHEMEXCIL Seminar in Chennai Virtual B2B with Turkish Chemical & Cosmetics Importers organized by CHEMEXCIL and Embassy of India Ankara, Turkey During ISCMA Conference

Somaiya Bhavan, 45-47, Mahatma Gandhi Road, Fort, Mumbai - 400 001. INDIA Ph: 022-61702100 / 61702221 w Email: sales@somaiya.com, alka@somaiya.com Web: www.godavaribiorefineries.com Godavari Biorefineries Ltd. Leading Manufacturer of Biobased Products ISO 9001:2015 & RC / ISO 140001: 2015 GODAVARI BIOREFINERIES LTD. Biobased Butyl Acetate (Naturo BuTac) & n-Butanol 2-Ethyl Hexanol (Bio Based) 3-Methoxy Butanol & 3-Methoxy Butyl Acetate 1,3-Butylene Glycol (Naturo BG®) Ethyl Vinyl Ether Other Products Triacetin Cinnamaldehyde Acetaldehyde / Formaldehyde Di Ethyl Acetal Paraldehyde Crotonaldehyde Biobased Ethyl Acetate
(Naturo EA) & Acetic Acid

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