Srinagar: In a surprising turn of events, the Directorate General of Foreign Trade (DGFT) de-listed the Kashmir Chamber of Commerce and Industry (KCCI) from its roster of authorised agencies to issue Certificates of Origin (Non-preferential).
This decision has far-reaching consequences, affecting the ability of exporters in the region to demonstrate the Kashmiri origin of their commodities for international trade.
Certificates of Origin are essential documents required by exporters in India to establish the origin of the goods they intend to export.
These certificates are issued by chambers and councils approved by DGFT.
The DGFT made this move public through a public notice issued on September 20, 2023, in which it announced the de-listing of 29 chambers and agencies, including two from Jammu and Kashmir, from Appendix 2E of the Foreign Trade Policy (FTP) 2023.
The primary reason for this decision, as cited in the notice, was the repeated failure of these agencies to adhere to DGFT’s directives regarding the transition to the e-CoO platform for electronic issuance of Certificates of Origin.
Among the two chambers de-listed from Jammu and Kashmir are the Kashmir Chamber of Commerce and Industry and the Jammu and Kashmir Walnut Exporters Association.
The effective date of this de-listing, according to the public notice, is immediate, leaving these agencies unauthorised to issue Certificates of Origin (Non-Preferential).
The decision has raised significant concerns among exporters affiliated with these agencies, as it could potentially disrupt their international trade operations.
Speaking to Greater Kashmir, KCCI President Javid Ahmad Tenga expressed shock and strong objection to the DGFT’s decision.
Tenga vehemently refuted the contents of the notice and questioned why the KCCI had not received any communication or notification about the transition to the DGFT platform.
Tenga revealed that the KCCI had no prior knowledge of the process until the delisting notice was issued.
He expressed his belief that the “decision to de-list the KCCI had been predetermined, given the contents of the notice, which the chamber intends to challenge vigorously at all levels. The KCCI has already raised the matter with DGFT and other relevant authorities”.
In the meantime, according to Tenga, KCCI has taken proactive measures to assist exporters in obtaining Certificates of Origin.
“Any exporter seeking to obtain a Certificate of Origin can approach the KCCI for assistance in this regard. The chamber remains committed to supporting its members and the wider business community during this challenging period,” he said.
Former KCCI president Rauf Punjabi expressed his disappointment over the de-listing of KCCI from its authority to issue non-preferential certificates of origin.
“This setback is unfortunate for our exporters. KCCI plays a vital role in representing exporters at both national and international forums. Without the certificate of origin for local exporters, conducting their trade becomes considerably challenging. This situation should have been avoided,” he said.
Former Secretary General of KCCI, Musadiq Shah, attributed the de-listing to the lackadaisical approach of those in charge of the chamber’s affairs.
“KCCI’s certificate of origin holds immense importance for exporters engaged in trade. It facilitates tax savings, particularly in Middle Eastern countries, benefiting local artisans and exporters. This marks the first instance in KCCI’s history where the prestigious chamber has been removed from the list of authorised issuers by the DGFT,” he said.
Exporter and KCCI member Sheikh Feroz attributed this development to a failure to adhere to the established procedures.
He lamented the occurrence, saying that it was regrettable and should not have transpired.
“Given KCCI’s status as the oldest business chamber, such events are deemed unacceptable,” Feroz said.