Update on Laws in India and China India Unveils New Direct Tax Code The Indian government released a comprehensive discussion paper and draft of the new Direct Tax Code that seeks to revamp and simplify the Direct Tax Law and its administration in the country through several radical changes. The code, which the government plans to enact and implement FY2012 onwards with suitable changes if required, envisages meaningful reduction in the tax rates while simultaneously being revenue neutral for the government. It aims to achieve this by increasing the tax base and rationalising the myriad tax incentives prevalent under the current law. Some of the major proposed changes include, reduction in effective tax rates for individuals, increase in tax deduction limit on savings from Rs. 1 Lakh at present to Rs. 3 Lakh, reduction in the Corporate Tax rate from 33% (including surcharge) to 25% and changes in MAT provisions. The code also provides for some investment-based incentives for various sectors, including Generation, transmission and distribution of Power, Specified infrastructure projects, Hospitals, - Food processing, packaging, cold storage, agricultural warehouse, Oil and Gas and SEZs.
China Drafts Regulation On Monopoly Price China's top economic planner, the National Development and Reform Commission, unveiled on 12th August 2009 a draft regulation to prevent monopoly prices and to endorse fair competition so as to safeguard the interests of consumers and the public. The regulation applies to cases of monopoly prices both inside and outside the country, when monopoly prices outside the country impact the domestic market. Other than deals reached among more
26
than two parties for the purpose of monopolizing prices, power abuse of government agencies to eliminate or limit competition is also regarded as violation of the regulation. Those who violate the regulation would be punished according to stipulations in the country's anti-monopoly law, according to the commission. Individual retailers or producers may face confiscation of illegal earnings and a fine of up to 10 percent of last year's sales, while industry associations are subject to a fine of no more than 500,000 Yuan ($73,529.4) or could be dismissed as an association. Government agencies that violate the regulation would be ordered by their superiors to correct their actions, and officials held responsible would be disciplined according to relevant laws.
China Passes Draft Regulation to Enforce Environmental Evaluation On Projects China's State Council passed a draft regulation on 12th August 2009, on environmental evaluation over new projects to prevent pollution or ecological destruction from the beginning. Under the regulation, environmental evaluations are required before the planning of development projects could be approved. Such a regulation covers all development activities, from land use and the development of rivers or oceans, to development projects related to industrial, agricultural, husbandry, and forestry sectors as well as energy, water conservation, transportation, urban construction, tourism, and exploration of natural resources. The regulation would be revised and later publicized by the State Council for enforcement.
INDIA-CHINA CHRONICLE Aug - Oct '09 - www.icec-council.org
TBT and SPS Notifications by India and China (August-October 2009) SPS/TBT Notification Number
Date
Products Affected
Details
G/TBT/N/CHN/210/ Rev.1
21 August 2009
NCS (new chemical substances) that have not been manufactured, imported, processed or used in China
Notifies revised measures on the Environmental Administration of New Chemical substances (Order of SEPA, No.17) which came into force on Oct.15, 2003. The main revised contents, include: improving the system of screening and identifying the risky part of NCS and adding procedures for low volume notification and scientific research record notification, and setting up prior controlling mechanism for the risky part of NCS.
G/TBT/N/CHN/680
5 October 2009
Powered support for coal mine (ICS: 73.100)
Notifies the mandatory terminology and definitions, classification, requirements, test methods, inspection rules, signs, packing, transportation and storage of hydraulic control system and valve for coal mine hydraulic support.
G/TBT/N/CHN/681
5 October 2009
Flat panel televisions (ICS: 27.010, HS: 8528)
Notifies the mandatory energy efficiency grades, minimum allowable values of energy efficiency, evaluating values of energy conservation, energy efficiency and passive standby power for flat-panel TV.
G/SPS/N/CHN/119
13 August 2009
Food items
On the basis of the Food Safety Law of the People’s Republic of China, this regulation specifies the requirements for application and acceptance, approval and publication procedures and other contents for importing foods that lack national food safety standards.
G/SPS/N/CHN/120
13 August 2009
Materials and products which are directly in contact with food and used in food packages, containers and tools and equipments for producing and managing foods; additives used in food containers and package materials; detergent; disinfectant used in foods.
On the basis of the Food Safety Law of the People’s Republic of China, this regulation specifies the range of administrative license, the requirements for application and acceptance, approval and publication procedures and other contents for new variety of food related products.
G/SPS/N/CHN/121
27 August 2009
Foods; food additives; packaging materials, containers, detergent and disinfectant used for foods; tools and equipments used for food producing or marketing.
The Food Safety Law of the People’s Republic of China was promulgated to ensure food safety, safeguard public health and human life. This law contains ten Chapters and 104 Articles. The main contents include general principles; risk monitoring and assessment for food safety; food safety standards; the production and marketing of food; food inspection; food import and export; handling of food safety incidents; supervision and management; legal responsibility and supplementary provisions.
G/SPS/N/CHN/122
27 August 2009
Foods; food additives; packaging materials, containers, detergent and disinfectant used for foods; tools and equipments used for food producing and marketing.
Defines the responsibility of enterprises in food safety management; strengthens the coordination, link, and cooperation among regulatory authorities; provides details for relevant provisions of the Food Safety Law to make them practicable.
INDIA-CHINA CHRONICLE Aug - Oct '09 - www.icec-council.org
27
Exhibitions in India and China (October 2009 - January 2010) INDIA S. No.
28
Exhibition
Date
Place
Products / Sectors Covered
1.
The Economic Times ACETECH
Nov 05 - 08, 2009
Bombay Exhibition Centre (BEC), Mumbai
Architecture, Construction, Engineering & Building Materials.
2.
Telecoms World India
Nov 09 - 12, 2009
Hyatt Regency, New Delhi
Telecom Products & Services
3.
Global Auto Expo
Nov 12 - 14, 2009
Palace Grounds, Bengaluru
Automotive Electronics
4.
India Energy 2009
Nov 13 - 15, 2009
Bombay Exhibition Centre(BEC), Mumbai
Latest technology and products and services catering to the Indian Energy sector
5.
Metals Minerals Manufacturing Expo 2009
Nov 14 - 17, 2009
Science City, Kolkata
Products, Services, Technologies on Minerals, Metals, Metallurgy & Materials
6.
India International Trade Fair
Nov 14 - 27, 2009
Pragati Maidan, New Delhi
Multi-product exhibition
7.
China Sourcing Fair: Electronics & Components - India
Nov 20 - 22, 2009
Bombay Exhibition Centre(BEC), Mumbai
Electronics & Components
8.
Annapoorna - World of Food India
Nov 25 - 27, 2009
Bombay Exhibition Centre(BEC), Mumbai
Food & Beverage industry
9.
Excon
Nov 25 - 29, 2009
Bangalore International Exhibition Centre (BIEC), Bengaluru
Construction Equipment & Construction Technology Machinery, machine tools & quality
10.
Machine & Machine Tools Expo
Dec 03 - 05, 2009
Sun N Sand Hotel, Pune
control systems & equipment, accessories, consumables etc.
11.
India Telecom 2009
Dec 03 - 05, 2009
Pragati Maidan, New Delhi
Telecoms related Equipments & Technologies
12.
Facades & Roofing Solutions 2009
Dec 11 - 13, 2009
Koramangala Indoor Stadium, Bengaluru
Roofing & Cladding systems and solutions
13.
EnergyTech
Dec 11 - 14, 2009
Pragati Maidan, New Delhi
Energy Products & Related Items
14.
Auto Expo
Jan 05 - 11, 2010
Pragati Maidan, New Delhi
New generation of vehicles and state-of-the-art components and ancillaries
15.
International Garment Technology Expo
Jan 08 - 11, 2010
NSIC Exhibition Centre, Machinery and services for sectors of New Delhi fabrics, sewing, knitting, dyeing, laundry, fabric and garment printing, finishing, embroidery.
16.
India International Garment Fair
Jan 20 - 22, 2010
Pragati Maidan, New Delhi
Apparel & Clothing
INDIA-CHINA CHRONICLE Aug - Oct '09 - www.icec-council.org
CHINA S. No.
Exhibition
Date
Place
Products / Sectors Covered
1.
Industrial Automation Show 2009
November 03 07, 2009
Shanghai New International Expo Center, Shanghai
Production Automation Solutions, Electrical Engineering, Mechanical Engineering, Industrial Software & Engineering and Microtechnology
2.
InfoComm China 2009
November 9 11, 2009
China National Agricultural Exhibition Center, Beijing
Audio Video Products
3.
China (Beijing) International Automobile Manufacturing and Production Facility Exposition
November 11 13, 2009
China International Exhibition Center, Beijing
Product, technology and property rights
4.
China Int'l Trade Fair for Household Products and Accessories
November 11 14, 2009
Shanghai Exhibition Center, Shanghai
Interior & Lifestyle products
5.
Guangzhou Classical Furniture Expo
November 13 15, 2009
China Import and Export Fair Pazhou Complex, Guangzhou
Consumer Articles
6.
Automechanika Shanghai 2009
December 09 11, 2009
Shanghai New Int'l Expo Centre, Shanghai
Automotive Parts, Equipment and Services
7.
China (Shenzhen) International Logistics & Transportation
December 09 11, 2009
Shenzhen Convention & Exhibition Center, Shenzhen, Guangdong, China
Railway, Shipping & Aviation
8.
The 16th Guangzhou International Hotel Equipments and Supply Exhibition
December 10 12, 2009
China Import and Export Fair Pazhou Complex, Guangzhou
Hotel Equipment
9.
China (Guangzhou) International 3G Industry & Mobile Exhibition
December 11 13, 2009
Guangzhou Mart, Guangzhou, Guangdong, China
Mobile and Telecommunication
INDIA-CHINA CHRONICLE Aug - Oct '09 - www.icec-council.org
29
Economic Indicators
30
Indicator
India
China
GDP
INR 33,39,375 Crore (2008-2009)
13986200 million Yuan (1-2 Quarter 2009)
GDP Growth Rate
6.7% (2008-2009)
7.1% (1-2 Quarter 2009)
Exports (August 2009)
US$ 14.289 Billion
US$ 103.7 Billion
Imports (August 2009)
US$ 22.661 Billion
US$ 88 Billion
Trade Balance (August 2009)
US$ -8.372 Billion
US$ 15.7 Billion
Foreign Exchange Reserves
US$ 279.910 Billion (As on September 25, 2009)
US$ 2131.606 Billion (June 2009)
Foreign Direct Investment (FDI)
US$ 10.492 Billion (April-July 2009)
US$ 55.86 Billion (January-August 2009)
Number of Wireless Subscribers
456.74 Million (August 2009)
702.651 Million (July 2009)
INDIA-CHINA CHRONICLE Aug - Oct '09 - www.icec-council.org
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SCHEDULE A Sl. No.
Category
Subscription (Rs.)
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SCHEDULE B Sl. No.
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Total (Rs.)
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3,000
10,000
13,000
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Corporate (Less than Rs. 100 Cr.)
6,000
20,000
26,000
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Corporate (More than Rs. 100 Cr.)
10,000
30,000
40,000
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7,000
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26,000
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