Volume XVII: December 2016

In this

Issue….

Basic Facts

Brief

Clippings on:

US-India bilateral ties

India-North

America total trade and

engineering trade pattern

Current News

Anti Dumping

Matters

Fairs/Exhibiti

on

Tender

Information

Chairman’s Pen….

India and the North America (consisting of USA, Canada and Mexico), have learned a great deal from each other. There exists tremendous possibilities in India-USA economic ties, the latter being one of the largest trading partner. When it comes to deepening bilateral economic relations between the countries, progress has been mixed. Much work lies ahead to make India-North America relationship a ‘defining one’ in the coming years, as we are headed in the right direction. Significant development at the engineering trade front has also been realized. India’s engineering exports to the region accounts for 15.5% to India’s total engineering exports during April-November 2016-17. Overall, engineering products have a share of over 22.8% in India’s total export, and US is its biggest market. During the recent months (April-November 2016-17), however, India’s export of engineering products to the region, particularly US and Canada, has experienced a decline; while exports to Mexico realized a massive jump of more than 43%. With four months remaining of this fiscal we expect the trend in USA and Canada to revive back and come in lines with Mexico.

This ‘Newsletter on North America’ presents a brief note on the current

trade trend between India and North America. I hope this will be

insightful for our readers and they will enjoy reading it.

Tarvinder Singh Bhasin

This seventeenth edition of Territorial Newsletter for North America encaptulates the

latest developments on US-India bilateral ties on the domestic front in India .The current

edition also presents a brief insight on the total trade pattern of the engineering sector in

North America during the April-November of the fiscal 2016-17. Further, it discusses the

top engineering product bilaterally traded between the countries of the region.

Upcoming tenders from the region along with key news items and factsheets of Anti

Dumping Duty matters is compiled and presented for the benefit of our members. I am

hopeful that the Newsletter will give fruitful information to our readers.

Anupam Shah

Area: 24.71 million Sq. km

Population: 576,163,467 (2015)

GDP: USD 20,834.888 billion (2014)

Currency: US Dollar ($)/ Canadian Dollar

Climate: North America includes all of the mainland and related offshore islands lying North of the Isthmus of

Panama which connects it with South America. It has a variety of climate, from the dry, bitter cold of the Arctic to

the steamy heat of the tropics. The North American tundra, the vast treeless plain of the far north, has

temperature rises above freezing for only a short period each summer. In the far south there are low-lying areas

which are always hot and rainy.

Natural resources: North America produces most of the world's corn, meat, cotton, soybeans, tobacco, and wheat, along with a variety of other food and industrial raw material crops. Mineral resources are also abundant; particularly coal, iron ore, bauxite, copper, natural gas, petroleum, mercury, nickel, potash, and silver.

December, 2016:

Few noteworthy developments on US-India bilateral ties in 2016 on the domestic front in India:

Message from Chairman, Committee on Trade with North America

Basic Facts: North America

2016 Updates on U.S.-India bilateral ties

The U.S. Chamber of Commerce, the U.S. India Business Council (USIBC), and the Federation of

Indian Chambers of Commerce and Industry (FICCI) recently hosted the India–United States

Workshop on Trade Facilitation in New Delhi, India. Participants included over 65 representatives

from the Governments of India and the United States and the Indian and U.S. business community.

From the private sector’s perspective, the workshop was a welcome and positive development,

reflecting the type of public-private communication and collaboration that the World Trade

Organization Trade Facilitation Agreement (TFA) is intended to foster. Through these efforts, the

private sector seeks the implementation of “TFA-plus” customs reforms in India, facilitating trade in

legitimate goods, increasing the competitiveness of Indian business, and improving customs risk

management and targeting. As a follow-up, USIBC applauds the Central Board of Excise and Customs

(CBEC) for reducing, and in many instances, eliminating physical printouts for customs clearances

effective December 1, 2016. The business community is buoyed by the coordination between all

customs houses at ports, air cargo complexes, and other freight depots, to graduate to a paper-free

environment, and push for data integration to enhance ease of doing business for importers and

exporters. This move to reform documentation is an important step in the right direction for India’s

ratification of the WTO TFA.

In a major development, the Government of India released its updated draft model of the GST Law.

This weekend, the GST Council will hope to find consensus on the administration of this major reform.

The Government of India aims to introduce legislation in Parliament based on the agreement that will

be concluded by the GST Council. Specific rates for certain sectors will likely be announced by the end

of January.

The draft GST Compensation law that was also released last week states that the Central government

will compensate states every quarter for GST revenue loss, but the final annual number would be

decided only after an audit is carried out by the Comptroller and Auditor General (CAG). The

compensation would be met through a levy of a cess called 'GST Compensation Cess' on luxury items

goods like tobacco, for the first five years.

Earlier this month, the Government of India demonetized INR 500 and INR 1000 notes in a bid to

curb the circulation of black money in the Indian economy and de-risk national security challenges

posed as a result of counterfeit currency. At present, black money accounts for nearly 25%-26% of

India’s GDP, and by removing the impact there will be greater control on inflation while providing an

impetus to the government’s Digital India initiative. However, the implementation of this system

seems to have gone off-track –India is now faced with a cash crunch and the Indian rupee faces risk of

serious devaluation.

India’s relationship with North America have transformed in recent years. As regards India’s overall exports, the

region has consistently been the one of the top export destinations for Indian engineering goods with India

exporting US$ 6.2 billion during April-November 2016-17 to North America. India’s exports to North America

ranks second just after European Union (EU). Exports to the region account for more than 15% of our global

engineering exports. Exports to North America represent a diversified phenomenon as it includes different trade

patterns with the three countries (USA, Mexico and Canada) of the region.

India engineering export with North America – country wise during April-November of the fiscal of 2016-17 is

depicted in the table below. Nations which had the highest demand for Indian engineering products during the

first eight months of the new fiscal 2016-2017 in absolute values include:

Table1: Engineering Exports to North America (country wise)

(Value in USD million)

North America April-November 2015-16 (USD million)

April-November 2016-17 (USD million)

Growth (%)

USA 4636.1 4314.7 -6.9 Mexico 1109.5 1591.8 43.5 Canada 306.8 271.5 -11.5 Total 6052.5 6177.9 2.1

Source: DGCI&S

Chart 1: Trend in Total Engineering Export in North America during 2016-17

(month wise)

727.9 696.7771.4 805.9 805.3 816.1

912.3

702.9

0.0

200.0

400.0

600.0

800.0

1,000.0

Va

lue

in

US

$ M

illi

on

Month Wise Export Pattern in North America during 2016-17

Export

India-North America Information Guide

Trade Trend Analysis in North America

Table 2: Top 15 engineering panels exported to North America in April-November 2016-17

DGCI&S Engineering Panels India’s export in April-November 2015-16

(USD million)

India’s export in April-November 2016-17

(USD million)

Growth (%)

Motor Vehicle/cars 542.3 984.1 81.5 Products of Iron 1015.1 853.8 -15.9 Auto Components/Part 726.5 653.4 -10.1 Electric Machinery 380.8 499.4 31.2 Industrial Machinery 561.7 427.6 -23.9 Aircrafts Spacecrafts 331.9 394.3 18.8 Other Misc. items 378.0 383.6 1.5 Aluminum and products 345.9 340.2 -1.6 Iron and Steel 376.6 306.8 -18.5 IC Engines and Parts 278.8 271.5 -2.6 Machinery for ATMs 196.6 185.4 -5.7 Medical and Scientific Instruments 142.3 162.3 14.1 Copper and products 106.5 99.8 -6.3 Hand Tools Cutting 96.2 86.5 -10.1 Pumps of all types 111.8 75.4 -32.5

Source: DGCI&S

Indian Engineering exports to North America rank second during April-November of the current fiscal 2016-17,

after European Union, while ASEAN and Middle East and West Asia (MEWA) ranks third and fourth during the

same time period.

USA remained at the top for Indian engineering exports registering a slight negative monthly growth of 1.9 % in November 2016 vis-à-vis November 2015. The main engineering products exported to the country include Products of Iron and Steel, Auto Components/Parts, Electrical Machinery and Equipment, Aircrafts and Spacecrafts, Industrial Machinery, Other Misc Items, etc during April- November 2016-17. The following pie chart demonstrates share of different North American countries in India’s total export during April- November 2016-17.

Fig1: India’s engineering export share to North American Countries (%) in April- November 2016-17

Source: DGCI&S

70%

26%

4%

USA Mexico Canada

Trade with USA: Indian engineering exports to USA, continues to be one of the highest during April-

November 2016-17. At present, it accounts for 10.8 per cent of India's eng exports. Top products traded in USA: Top traded products to USA during April-November 2016-17 include Products of Iron and Steel, Auto Components/Parts, Electrical Machinery and Equipment, Aircrafts and Spacecrafts, Industrial Machinery, Other Misc Items, etc.

Trade with Mexico: Mexico is presently India's 4th largest export destination for engineering products

moving up from the 8th rank during the last fiscal 2015-16. At present, it accounts for 4.0 per cent of India's eng exports during April-November 2016-17. Top products traded in Mexico: Top traded products to Mexico during April-November 2016-17 include Motor Vehicles/cars, Iron and Steel, Aluminium and products, Auto Components and Parts, Industrial Machinery, Two and Three Wheelers, etc.

Trade with Canada: India’s engineering trade with Canada accounted for 0.7 per cent of India's

engineering exports in April-November 2016-17. Top products traded in Canada: Major exported products to Canada in April-November 2016-17 include Products of Iron and Steel, Auto Components/Parts, Other Misc Items , Iron and Steel, Machinery for ATMs, Electrical Machinery and Equipment, Aluminium and products, Industrial Machinery, Aircrafts and Spacecrafts etc.

India, US strike deal on advance pricing agreement

India started its bilateral APA process with the USA by accepting applications from the Indian taxpayers from FY 2012-13.

“The two competent authorities reached an agreement on the terms and conditions of the first ever

Bilateral APA involving India and the USA,” a finance ministry statement said on Thursday. At a meeting

held in the last week of October, the two countries resolved 66 transfer pricing disputes and 42 cases

related to treaty interpretation.

News in Focus

MAP, under the Double Taxation Avoidance Agreement (DTAA), is an alternative dispute settlement mechanism available to authorities and foreign investors. “The total amount that was locked up in dispute in these cases is approximately `5,000 crore and these cases were related to Assessment Years ranging from AY 1999-2000 to AY 2011-12,” it added.

The resolved cases pertain to various issues like transfer pricing adjustments made to the international transactions in the nature of payment of royalty, management fees, cost contribution arrangements, engineering design services, contract R&D services, investment advisory services, Marketing Support Services and Software Development Services.

The treaty interpretative issues were in the nature of presence of permanent establishment in India and profit attribution to such PEs, disputes pertaining to royalty income v/s business income of foreign companies.

Advance pricing provides certainty to taxpayers in respect of cross-border sales among related entities by specifying the methods of transfer pricing and determining the arm's length price of international transactions in advance for usually a maximum of five years ahead.

Though India started its Bilateral APA process with the US by accepting applications from the Indian taxpayers from FY 2012-13, the US started its bilateral process with India only in February 2016 by way of accepting applications from US taxpayers. Within a short span of eight months, the agreement has been reached upon in the first ever bilateral APA involving India and the US.

“The speedy resolution of cases and agreement on Bilateral APA due to effective mechanism of development of mutual trust and cooperation between the Competent Authorities of two countries would really be a positive factor in creating a conducive atmosphere for investments and business by US Companies in India,” the finance ministry statement said.

Source: http://economictimes.indiatimes.com/news/economy/policy/india-us-resolve-100-tax-dispute-

cases-worth-rs-5000-crore/articleshow/55475109.cms

India, US must share wish lists to resolve issues

With Donald Trump set to take charge as the next US President, Indo American Chamber of Commerce on Monday suggested that India and the US should exchange wish lists to fast track resolution of bilateral issues which are impeding accelerated investment flow.

Broad contours of the wish lists should include amicable settlement of IPR issues leading to earliest conclusion of a bilateral investment treaty (BIT), totalisation agreement, a sound legal framework to expeditiously settle disputes, settlement of issues emanating from non-tariff measures and importantly, a fast solution to nagging visa problems.

Billionaire businessman Trump is set to take over as the next President of the United States in January. Indo American Chamber of Commerce (IACC) National President N V Srinivasan said there is a growing realisation among the US corporations that India, lying mid-way between West and the East, has the potential to emerge as a gateway for serving both markets. "Many corporations are seriously discussing these ideas in their boardroom meetings, while others are taking concrete steps towards investing in India with a renewed interest. We have to capitalise on the situation by removing impediments to the flow of investments and take concrete steps towards ease of doing business in India to leverage our position as an attractive investment destination," Srinivasan said.

US President-elect Trump has made it clear that he is averse to regional trade agreements like North American Free Trade Agreement (NAFTA), emerging Trans Pacific Partnership (TPP) etc which, according to him, have been militated against the US interests, IACC noted. "He (Trump) is in the process of recalibrating the policies to deal pragmatically with each country by their level of importance and economic engagement.

"Against this backdrop, India's recent policy initiatives like Make in India, Digital India, Smart Cities project, high budget investments in infrastructure etc where critical technical and financial investments are needed, would stand to benefit," Srinivasan said.

Flagging contentious issues that are coming up in the bilateral economic negotiations, such as retrospective tax regime in India, tardy intellectual property rights (IPR) protection and their enforcement, insistence on deciding economic disputes under Indian laws etc, the IACC President said these issues can be settled in a spirit of 'give and take'. "We are happy and privileged to have two administrations in the US and India, which are pro-business and believe in creating an environment for seamless business activities. "Donald Trump's significant business interests in India in various sectors and his statement of

intent to forge a strong business relationship are pointers to an exciting bilateral business relationship," he said.

Source: http://m.dailyhunt.in/news/india/english/deccan+herald-epaper-

deccan/india+us+must+share+wish+lists+to+resolve+issues-newsid-61888578

U.S.-India Business Council concludes Inaugural Manufacturing Mission to India

The U.S.-India Business Council (USIBC) concluded its inaugural manufacturing industry mission to New Delhi yesterday.

The delegation was led by representatives from the automotive, chemical, consumer products, packaging, and other advanced manufacturing companies.

The delegation delivered an optimistic message, and congratulated government officials on the tremendous achievements on the Goods and Services Tax (GST), bankruptcy law, and the advancement of the Trade Facilitation Agreement.

"We are committed to the Government of India's Make in India ambitions, and we focused this week on advancing a vision of 'Make in India for the World' by aggressively pursuing an expanded manufacturing-driven trade policy and facilitating ease of doing business throughout the country," said James Rowland, Regional Director Government Affairs for Asia Pacific at Ford Motor Company and Co-Chair of the USIBC Manufacturing Executive Committee.

The policy priorities for the delegation were focused on three main areas: ease of doing business, international trade, and the GST implementation.

First, the delegation advocated for more collaboration between the state and central governments on issues such as standards, labour, and real estate.

Second, delegates encouraged the Government to further integrate India into the global trade community through joining forums such as the Asia Pacific Economic Cooperation (APEC), expanding the number of export markets by completing more trade agreements, and fully embracing the implementation of the Trade Facilitation Agreement.

Finally, the delegation discussed GST implementation and provided input from the manufacturing sector on critical areas of consideration for the GST.

"We were delighted by the level of engagement with Government officials. It's clear that they are serious about attracting investment in the manufacturing sector and are trying to implement the necessary steps," said Brandon Banner, Senior Manager for manufacturing at the USIBC.

"The purpose of this mission and of the USIBC Manufacturing Committee in general is to bring global manufacturers together with the Government of India to prioritize barriers to future investment and identify strategies to overcome them."

The USIBC delegation also participated in a U.S.-India Workshop on Trade Facilitation hosted in partnership with the Federation of Indian Chambers of Commerce and Industry (FICCI) and the U.S. Chamber of Commerce.

The workshop brought together representatives from the U.S and Indian private sector and government officials to chart a path forward to implement the World Trade Organization Trade Facilitation Agreement (TFA).

The mission was attended by senior representatives from General Motors, Dow, Lyondell Basell, Guardian Industries, Honeywell and Commercial Vehicle Group.

U.S.-India Business Council formed in 1975 at the request of the U.S. and Indian governments, the U.S.-India Business Council is the premier business advocacy organization, comprised of 400 top-tier U.S. and Indian companies advancing U.S.-India commercial ties. Source: http://www.business-standard.com/article/news-ani/u-s-india-business-council-concludes-

inaugural-manufacturing-mission-to-india-116102101126_1.html

Table 4: CVD/AD Petitions

Docket No. Received Type Commodity

3176 9/20/16 701 & 731 Petition Steel Concrete Reinforcing Bar

3168 8/16/16 337 Complaint Personal Transporters

3161 6/30/16 701 & 731 Petition Finished Carbon Steel Flanges

3150 5/23/16 337 Complaint Semiconductor Devices and Semiconductor Device Packages

3148 5/18/16 337 Complaint Personal Transporters, Components Thereof, and Packaging and Manuals Therefor

3144 4/26/16 337 Complaint Carbon and Alloy Steel Products 3142 4/18/16 Other Primary Unwrought Aluminum

3138 4/11/16 337 Complaint Passenger Vehicle Automotive Wheels

3136 4/8/16 701 & 731 Petition Carbon and Alloy Steel Cut-to-Length Plate 3129 3/22/16 337 Complaint Motorized Self-Balancing Vehicles 3124 2/24/16 332 Request Unwrought and Wrought aluminum products 3121 2/12/16 701 & 731 Petition Stainless Steel Sheet and Strip

3112 1/8/16 337 Complaint Surgical Stapler Devices

3108 12/16/15 701 & 731 Petition Large Residential Washers

Source: http://www.usitc.gov/petitions_and_complaints

CVD/AD matters: Recent petitions filed with USITC

Table 5: Country wise Anti Dumping (AD) Cases against India

Country initiating AD investigation

Case ID Case_Code Product Initiating Date

Dumping Date

Injury decision date

Canada CAN-AD-373 CAN-AD-372

Certain Carbon Steel Welded Pipe

05/14/2012

08/13/2012

07/13/2012

Canada CAN-AD-401 CAN-AD-400

Certain Oil Country Tubular Goods

07/21/2014

12/03/2014

09/19/2014

Canada CAN-AD-410 CAN-AD-410

Certain Hot-rolled Carbon Steel Plate and High-strength Low-alloy Steel Plate

6/10/2015

9/8/2015

8/10/2015

Mexico MEX-AD-305 MEX-AD-305

Carbon Steel Tubing with Longitudinal Seams

12/24/2014

MI MI

Mexico MEX-AD-314 MEX-AD-314

Ferro-silico-manganese 9/8/2015 MI MI

USA USA-AD-1191 USA-AD-1191

Circular Welded Carbon-Quality Steel Pipe

11/03/2011

06/01/2012

12/16/2011

USA USA-AD-1213 USA-AD-1213

Certain Steel Threaded Rod 07/03/2013

02/18/2014

11/05/2013

USA USA-AD-1215 USA-AD-1215

Certain Oil Country Tubular Goods

07/10/2013

02/25/2014

08/22/2013

USA USA-AD-1251 USA-AD-1251

Certain Steel Nails 06/04/2014

. 07/18/2014

USA USA-AD-1275

USA-AD-1274

Certain Corrosion-Resistant Steel Products

06/09/2015

MI 07/24/2015

USA USA-AD-1285

USA-AD-1283

Cold-Rolled Steel Flat Products

08/03/2015

MI 09/17/2015

USA USA-AD-1298

USA-AD-1298

Welded Stainless Steel Pressure Pipe

10/07/2015

MI 11/20/2015

Table 6: Safe Guard Matters of India

Safe Guard Initiating Country

PRODUCT PET_DATE WTO_INIT_DATE

India Seamless Pipes, Tubes and Hollow Profiles of Iron or Non–Alloy Steel MI 04/22/2013

India Cold Rolled Flat Products of Stainless Steel of Chromium Type (400 series)

MI 09/19/2014

India Not-Alloyed Ingots of Unwrought Aluminium MI 04/07/2014

India Hot-rolled Flat Products of Non-alloy and Other Alloy Steel in Coils of a width of 600 mm or more

MI 09/07/2015

India Hot-rolled Flat Sheets and Plates (excluding hot rolled flat products in MI 12/7/2015

Country wise Anti-dumping matters in the last six years (2010-2016) against India

India’s Safe Guard initiating matters since last six years (2010-2016)

coil form)

Source: http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGRAMS/EXTTRADERESEARCH/0,, contentMDK:22561572~pagePK:64168182~piPK:64168060~theSitePK:544849,00.html

On November 22, 2016, the Department of Commerce (Commerce) announced its affirmative

preliminary determination in the countervailing duty (CVD) investigation of imports of finished

carbon steel flanges from India.

Source: http://enforcement.trade.gov/download/factsheets/factsheet-india-finished-carbon-steel-

flanges-cvd-prelim-112216.pdf

On October 25, 2016, the United States International Trade Commission (USITC) determined that

a U.S. industry is materially injured by reason of imports of welded stainless steel pressure pipe

from India that the U.S. Department of Commerce (Commerce) has determined are subsidized and

sold in the United States at less than fair value.

Source: https://www.usitc.gov/press_room/news_release/2016/er1025ll676.htm

On September 23, 2016, the Department of Commerce (Commerce) announced its affirmative

final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations

of imports of welded stainless pressure pipe from India.

Source: http://enforcement.trade.gov/download/factsheets/factsheet-india-welded-stainless-pressure-

pipe-ad-cvd-final-092316.pdf

On September 2, 2016, the United States International Trade Commission (USITC) announced its

determinations in its antidumping and countervailing duty investigations concerning imports of

cold-rolled steel flat products from Brazil, India, Korea, Russia, and the United Kingdom that the

U.S. Department of Commerce (Commerce) has determined are sold in the United States at less

than fair value and subsidized by the governments of Brazil, India, Korea, and Russia.

Source: https://www.usitc.gov/press_room/news_release/2016/er0902ll649.htm

On July 21, 2016, the Department of Commerce (Commerce) announced the initiation of

antidumping duty (AD) investigations of imports of finished carbon steel flanges from India, Italy,

and Spain, and a countervailing duty (CVD) investigation of imports of finished carbon steel

flanges from India.

Source: http://enforcement.trade.gov/download/factsheets/factsheet-multiple-steel-flanges-ad-cvd-

initiation-072116.pdf

Factsheets on Antidumping Duty and Countervailing Duty Investigations of Imports

Table 7: List of Exhibitions

Table 7: Tender related information

Title Deadline Country Link Bus Wash Systems 8 March

2017 USA http://www.tendersinfo.com/detai

ls/37219672 Heavy-duty Vehicle Filters 13 Feb 2017 USA http://www.tendersinfo.com/details/

37218800

Blower Replacement Project 3rd Feb 2017 USA http://www.tendersinfo.com/details/37224189?desc=Blower-Replacement-Project

Energy Recovery Units 02 Feb 2017 USA http://www.tendersinfo.com/details/37223514?desc=Energy-Recovery-Units

Sales Of Three Pieces Of Equipment

06 Feb 2017 USA http://www.tendersinfo.com/details/37223510?desc=Sales-Of-Three-Pieces-Of-Equipment

Dunbar Community Centre Boiler Replacement

07 Feb 2017 Canada http://www.tendersinfo.com/details/37218611?desc=Dunbar-Community-Centre-Boiler-Replacement

Vehicle Maintenance And Repair 3rd Feb 2017 USA http://www.tendersinfo.com/details/37204740

Welding Fume Extraction System 9 Feb 2017 USA http://www.tendersinfo.com/details/37205397

Supply Of Parts Kit,valve 10 March 2017

USA http://www.tendersinfo.com/details/37206070

For more contract notices, Please register with Tender info and follow the link: http://www.tendersinfo.com/searchresult#

Events Date Venue Link

2017 IPC APEX EXPO 12-16th February 2017

San Diego Convention Center, California

http://www.ipcapexexpo.org/html/default.htm

ATX West-Automation Technology Expo

9th-11th Feb, 2017

Anaheim, USA http://anaheim.ubmcanon.com/automation

Conexpo 7th-11th March, 2017

Los Angeles Convention Center, USA

http://www.conexpoconagg.com/

Tender information in North America

EEPC India North America Territorial Newsletter Contact: Shrilata Mitra

Email: smitra@eepcindia.net Phone no: 033-40120360

Upcoming Exhibitions in North America