MM TAX CLUB_whatsapp

MM TAX CLUB

Accounting & Tax Consultancy Firm

Blogs

CBIC clarification

CBIC Clarification on Electro-Chemiluminescence Immunoassay kits

Circular No. 10/2022 Dated: 25.07.2022

In relation to the benefit of exemption of duties accorded to Chemiluminescence Immuno Assay (CLIA) kits, the Board is in receipt of representations seeking a clarification on whether Electro chemiluminescence Immuno Assay (ECLIA) kits are covered under the ambit of CLIA diagnostic kits.

The relevant entries and the notifications are as below:

a) Serial no 167(A) of Notification 50/2017(Cus) read with Serial no 57 of List 4

b) Serial no. 180 to Schedule I of Notification 01/2017(Integrated Tax-Rate) , read with Serial no 178 to List 1

The notifications against the said serial numbers specify CLIA diagnostic kits'. However, there is no specific mention of ECLIA diagnostic kits.

The matter was examined in consultation with the Ministry of Health and Family Welfare(MoHFW). The significant points on which a clarification was sought from MoHFW and the response received are tabulated below

Sr. No.

Clarification sought

Response from MOHFW

1

How is a CLIA diagnostic kit defined? What are the different parameters that need to fulfilled to be considered as a CLIA diagnostic kit?

Chemiluminescence immunoassay (CLIA) is la widely used detection method which combines the highly-sensitive chemiluminescence assay with highlyspecific Immune response and affinity of antibodies. In CLIA diagnostic kits, chemiluminescence technique is combined with immunochemical reactions. CLIA Kits are designed to detect the chemiluminescence reactions. In CLIA the label, i.e. the true "indicator" of the analytic reaction, is a luminescent molecule.

2

Whether CLIA is a generic term that includes other technologies such as ECLIA etc.

CLIA  have different label systems according to  the difference of physical chemistry mechanism of the light emission which are mention below :-

i. Label Chemical Directly Involved in the Light Emission Reaction

i. Enzyme Catalyzed Light Emission Reaction

iii. Redox Reaction Mediated Light Emission Reaction (ECLIA).

 

3


If yes, what are the other technologies that are considered to be included within CLIA

 

4

Whether an ECLIA diagnostic kit that is imported can also be used as a CLIA diagnostic kit.

CLIA and ECLIA (Electrochemiluminescence immunoassay) both,  are  advanced  methods  of Immuno diagnostics  based on the concept of antibody- antigen binding. CLIA  uses a chemical reaction to   generate chemiluminescence   following   antibody-antigen  binding  while  ECLIA  uses  an electrochemical reaction to generate chemiluminescence signals in the  immunoassay technique. Both techniques are rapid,  specific  and  similar  in  following points;-

  • Both use the concept of chemiluminescence for detection.
  • Both techniques rely on the concept of antigen-antibody binding.
  • Both are mainly used for disease diagnostics based on analyte detection

 

5

What are the parameters on the basis of which it is concluded that CLIA and ECLIA are one and the same.

6

Whether CLIA and ECLIA kits can be considered the same and if the exemption granted to CLIA can be extended to ECLIA.

Chemiluminescence lmmuno assay (CLIA) is a self sufficient kit which provides a sensitive, high throughput alternative to conventional colorimetrie methodologies. In Chemiluminescence Immuno assay (CLIA). the luminescence is produced as a result of chemical reaction where as in Electro Chemiluninescencelmmunoassay (ECLIA). theluminescenee is produced as a result of electrochemical reaction. The CLIA and ECLIA can accommodate many immunoasay principles while providing superior performance and the applications, uses of both the techniques are same. Hence both CLIA and ECLIA are one and the same.

 

The above clarifications from MoHFW clearly elaborate the various aspects of CLIA and ECLIA kits. It is advised that field formations take into account the above clarifications and make reasonable decisions on the assessment of the CLIA and ECLIA kits.

Press Release

ECGC New scheme

ECGC introduces new scheme providing enhanced export credit risk insurance cover up to 90% for small exporters

ECGC has introduced a new scheme to provide enhanced export credit risk insurance cover to the extent of 90% to support small exporters under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB- WTPC & PS).  The scheme is expected to benefit a number of small-scale exporters availing of export credit with banks which hold the ECGC WT-ECIB covers. This will also enable the small exporters to explore new markets/new buyers and diversify their existing product portfolio competitively.

Addressing  a press conference in Mumbai today, ECGC Chairman M Senthilnathan said, “We expect the cover to play a game changing role. We expect this to bring up percentage of accounts with up to Rs. 20 crore, thereby lending further stability to ECGC portfolio”. He further said, “By giving 90% cover to banks, we expect more small companies to get export credit from banks, benefiting these industries greatly. We expect banks to provide more concessions. The net effect will be benefit to exporters, involving reduction in interest rate”.

Thanking the Commerce Ministry and the Minister Shri Piyush Goyal, ECGC Chairman said, “The Government supported us with adequate capital infusion in recent years. This, as well as the need to make our cover more helpful to exporters has led us to take the decision being announced”.

Explaining the role played by the premier Export Credit Agency of the Government of India, Shri Senthilnathan said, “Countercyclical role played by organizations like ECGC is similar to that of a fireman, when credit is suffering, credit insurance agencies step in to stabilize the market”.  

Shri Senthilnathan further remarked, all governments took various measures to stabilize the market in view of COVID-19, because of which, ECGC has not withdrawn cover given to exporters, against expectations, export credit insurance agencies all over the world have witnessed only average levels of claim ratios, not high ratios.

Enhanced Cover to Banks

  • The enhanced cover shall be available for manufacturer- exporters availing fund-based export credit working capital limit up to ₹ 20 crore (i.e., total Packaging Credit and Post Shipment limit per exporter/exporter-group) excluding the Gems,  Jewellery & Diamond sector and merchant exporters/traders.
  • This new scheme will enable the banks holding ECGC’s WT-ECIB cover to explore the possibility of reducing interest rates further so that all the stakeholders are benefitted. The enhanced cover percentage shall be made available to State Bank of India as per the previous year’s premium rate in view of its favourable claim premium ratio. However, for other Banks there may be a moderate increase in the prevailing premium rates.

ECGC had extended support to exports amounting to Rs.6.18 lakh crore in the last FY 2021-22. As on 31/03/2022, more than 6,700 distinct exporters were benefitted by the direct cover issued to exporters and more than 9,000 distinct exporters benefitted under the Export Credit Insurance for Banks (ECIB). Notably, around 96% of these are small exporters.

Press Release

Toy export from india

Government providing all round support to domestic toy industry

Exports of toys increased by 61.38% in last three years, from USD 202 Million in FY 2018-19 to USD 326 Mn in FY 2021-22

Import of toys reduced by 70% in last three years, from USD 371 Mn in FY 2018-19 to USD 110Mn in FY 2021-22

Government is providing all round support to domestic toy industry to make them more competitive. Some of the measures include promoting Made in India toys; designing of toys based on Indian values, culture, and history; using toys as a learning resource; organizing hackathons and grand challenges for toy designing and manufacturing; monitoring quality of toys; restricting imports of sub-standard and unsafe toys and promoting indigenous toy clusters.

Exports of toys have increased by 61.38% in the last three years, from USD 202 Million in Financial Year (FY) 2018-19 to USD 326 Mn in FY 2021-22. The import of toys has reduced by 70% in the last three years, from USD 371 Mn in FY 2018-19 to USD 110Mn in FY 2021-22. The value of exports and import of toys during 2018-19 to 2021-22 are enclosed at Annexure-A.

 

Some steps taken by Government to increase the domestic production and reduce imports of toys are as follows:

  1. Directorate General of Foreign Trade (DGFT) vide Notification No.33/2015-2020, dated 02.12.2019 has mandated sample testing of each consignment and no permission for sale unless the quality testing is successful. In case of failure, the consignment is either sent back or destroyed at the cost of the importer.
  2. Basic Custom Duty (BCD) on Toys-HS Code-9503 has been increased from 20% to 60% in February, 2020.
  3. The Government has issued Toys (Quality Control) Order, 2020 on 25/02/2020 through which toys have been brought under compulsory Bureau of Indian Standards (BIS) certification with effect from 01/01/2021. As per the Quality Control Order (QCO), every toy shall conform to the requirements of relevant Indian Standard and bear the Standard Mark under a licence from BIS as per Scheme-I of BIS (Conformity Assessment) Regulations, 2018. This QCO is applicable to both domestic manufacturers as well as foreign manufacturers who intend to export their toys to India.
  4. Ministry of Education organized Toycathon 21, a unique effort by 6 Ministries & Departments to crowd- source solutions to problems faced by toy industry. Over 1.2 lakh registrants for the event and submitted over 17,000 ideas and 13900 teams formed to win a large number of prizes up to Rs. 50 lakh.
  5. A Virtual Toy Fair ‘The India Toy Fair, 2021 (TITF)’  was organized from 27th February to 04th March 2021. About 1074 exhibitors from 30 states and UTs covering 68 clusters were on boarded onto the virtual platform. 11 States participated as ‘Partner States’. More than 25 lakhs visitors participated in the fair. 103 eminent speakers across the globe attended 41 sessions/webinars.
  6. Under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) of Ministry of Micro, Small & Medium Enterprises (MSME), 19 toy clusters have been approved. Out of these 19 clusters, 9 are approved in Madhya Pradesh, 3 in Rajasthan, 2 in Uttar Pradesh, 2 in Karnataka and 1 each in Andhra Pradesh, Maharashtra and Tamil Nadu. These clusters are Kondapalli Wooden Toy Cluster, Channapatna Lacware Toys Cluster , Sagara Woodcrafts Cluster, Toy Cluster Budni, Soft Toys and Sportswear Cluster, Bamboo based Indigenous Toys Cluster, Traditional Indian Bamboo and Wood based toys cluster, Wood based traditional Indian Toys and Associated Fabric Based Accessories Cluster, Bamboo Craft and Bamboo Toys Cluster, Soft Toys Cluster, Indore Mahila Garment Leather Toys and Jute Product Cluster, Wood Based Toys Cluster, Plush Toys Cluster, Wood Craft Cluster, Traditional Indian Fabric based Toys Cluster, Deep Hast Shilp Wooden Toys Cluster, Palm Leaves Toys and Leather Products Cluster, Wooden Toys and Carving Cluster and Lucknow Soft Toys Cluster. These clusters propose to benefit 11,749 artisans with a Government of India assistance of Rs. 55.65 crore.

vii.   Ministry of Textiles has identified 13 clusters across the country with a view for the overall development of cluster artisans. These clusters are located at Channapatna, Kinhal, Kondapalli, Etikopaka, Nirmal, Tanjore, Cudappah, Varanasi Chitrakoot, Jaipur, Dhubri, Bishnupur and Indore.

  1. DPIIT organized ‘Toy Business League’ on 4th -5th January 2022 for enabling a meaningful dialogue between innovators and toys manufacturers with a view to creating collaboration opportunities for Toycathon 2021 winners and realizing the vision of designing toys based on Indian values, culture and history.
  1. Government of India has signed Free Trade Agreement with United Arab Emirates (UAE). India- UAE Comprehensive Economic Partnership Agreement (CEPA) has come into effect from 1st May 2022. Under this agreement UAE provides zero duty market access for exports of Indian toys. 

Press Release

 

Steel export from india

Government’s Efforts to Increase Export of Steel

merchandise export

India’s overall (merchandise plus services) exports increased from USD 52.8 billion in June 2021 to USD 64.9 billion in June 2022

The overall (merchandise plus services) exports increased from USD 52.8 billion in June 2021 to USD 64.9 billion in June 2022.  The overall (merchandise plus services) imports increased from USD 52.9 billion in June 2021 to USD 82.4 billion in June 2022.

Government has taken the following measures to boost exports:

  1. Foreign Trade Policy (2015-20) extended upto 30-09-2022.
  2. Assistance provided through several schemes to promote exports, namely, Trade Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI) Scheme. 
  3. Rebate of State and Central Levies and Taxes (RoSCTL) Scheme to promote  labour oriented textile export has been implemented since 07.03.2019.
  4. Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been implemented since 01.01.2021.
  5. Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization by exporters.
  6. 12 Champion Services Sectors have been identified for promoting and diversifying services exports by pursuing specific action plans.
  7. Districts as Export Hubs has been launched by identifying products with export potential in each district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to generate employment in the district.
  8. Active role of Indian missions abroad towards promoting India’s trade, tourism, technology and investment goals has been enhanced.
  9. Package announced in light of the COVID pandemic to support domestic industry through various banking and financial sector relief measures, especially for MSMEs, which constitute a major share in exports.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Lok Sabha.

Press release