Andhra Pradesh Chambers of Commerce members met the Minister of State for Commerce & Industry Shri Som Parkash at 6:30 pm on 4 July 2022. Mr. O Naresh Kumar, on behalf of Vizag Development Council, addressed topics concerning development in Vizag and represented various issues to improve the ease of doing business.

The Andhra Pradesh Chambers of Commerce members met the Minister at  Marriot Hotel. During the meeting, the members requested the release of incentives under SEIS for the FY 2020-21 and 2021-22, Industry status to the logistics sector and other things, SEZ issues, rental enhancements, and wheat exports.

By granting industry status to the sector, logistics sector activities will be considered industrial activities by all state development authorities in the context of land use. The Industry status also offers many advantages such as land conversion, warehouse construction, and property taxes and will also attract investments supporting the various projects of the State Governments. SEZ Material Inputs for Self Consumption is being treated as export and subjected to the general Levies. So this may be Exempted. For instance, any steel consumed by the unit in SEZ has been deemed an export consignment, and Taxes/levies are applied. The council members have addressed this issue. 

Shipment is getting damaged due to the monsoon, and supply got disrupted due to the government's overnight decisions. This led to many Exporters being stuck with Cargo at Port. They cannot export, leading to wheat grains deteriorating mainly due to Port's high humidity and moisture conditions. In addition to pest and weevil deterioration leading to congestion at Port Warehouses, this cargo is using up precious covered Warehouse space and thus inhibiting handling and storage of other inbound and outbound shipments.

Further to the government allowing Wheat Exports, a lot of wheat was moved to Port. As per usual Export Practice, the Exporters first accumulate the cargo at Port and then Finalize Orders and Export receivables on either LC or CAD basis. However, GOI has issued a circular that Exports will be permitted for cargoes for which the Firm LC date was given before 13 May 2022. 

Apart from these discussed, Anti-Dumping Duty on Shrimps exported to South Korea. Shrimp export to South Korea and other ASEAN countries is subjected to high import customs duty. In the absence of FTA with some of the Exporters, the products are often indirectly routed to South Korea through Vietnam, resulting in higher prices to the ultimate consumers of the country.

Andhra Pradesh Chambers of Commerce members addressed these issues and requested about them for the development of the state.