European Parliament 2014-2019 Committee on the Internal Market and Consumer Protection 22.3.2017 NOTICE TO MEMBERS (0001/2017) Subject: Report on the IMCO delegation visit to India on 21 – 23 February 2017 Introduction A delegation of the Internal Market and Consumer Protection Committee (IMCO) visited India (Mumbai and New Delhi) between 21 and 23 February 2017. The mission underlined the importance of the EU-India strategic partnership and covered regulatory issues in areas such as services, standardisation, customs and consumer protection. Members were particularly interested in: the Indian customs’ priorities (including the management of port controls and relevant customs IT systems); in developing a better understanding of how India ensures safe products, combats counterfeiting, safeguards consumer rights, cracks down on anti-competitive behaviour and reduces administrative burden sharing; in cooperation on standardisation between India and the EU. In particular, in Mumbai and New Delhi the delegation met: .the Minister for Skill Development and Entrepreneurship, .the Minister of Consumer Affairs, .the Minister of for Information Technology, .the Chairmen of the Indian parliamentary committees on Information Technology and on Consumer Affairs, .the Governor of Maharashtra, .Mumbai customs authorities, .the EU Ambassador to India, .the EU Member States Counsellors and representatives of the EU business, .the Director of the Council of EU Chambers of Commerce of India, .the Director of the Seconded Expert Standardisation Expert in India (SESEI), .representatives of the Consumer Guidance Society of India (CGSI), CM\1119991EN.docx PE601.155v01-00 EN United in diversity EN .representatives of NASSCOM and Mastek, start-up incubators. Led by the IMCO Chairman, Vicky Ford (ECR, UK), the delegation was composed of Andreas Schwab (EPP, DE), Ivan Stefanec (EPP, SK), Evelyne Gebhardt (S&D, DE), Olga Sehnalova (S&D, CZ) and Marlene Mizzi (S&D, MT). Summary report Tuesday, 21 February 2017 (Mumbai) (1) The delegation visit started in the morning of Tuesday, 21 February with a meeting with the Mumbai Customs authorities. The Chief Commissioner of Customs, Zone I, Rajeev Tandon, explained that Mumbai Customs consists of Zone I (Mumbai port), Zone II (Jawaharlal Nehru Custom House (JNCH)) and Zone III (Air Cargo and Airport). The delegation learnt that Mumbai Customs is the biggest Customs department in India and that the EU is India’s number one trading partner with 13% of India’s overall trade with the world in 2014-15, well ahead of China (with 9,5%) and USA (with 8,5%). Germany, Belgium, France and Italy are India’s top 25 trade partners while India is the EU’s 9th trading partner (with 2,2% of EU’s overall trade with the world). Exchanges with the Principal Commissioner of Customs, Bani Bhattacharya, focused on the key elements of the customs’ modernisation in India: .the move from physical control to self-assessment; .the shift from manual processing to online EDI system (e-filing and e-payment) and since 2016 from 9 separate forms to one integrated declaration (“SWIFT”); .the adoption of digital signature for importers, exporters, airlines and shipping lines; .the adoption of Service Quality Management Standards; .a tax payer service centre, and .an e-helpline (online facility for clarifying doubts of trade agents and industry operators). Members were particularly interested in knowing about how digital customs works in practice in India. Emphasis was placed on the role of “ICEGATE”, a portal that provides e-filing services to the trade and cargo carriers who can avail facilities of self e-filing documents, e- payments, real time tacking and checking query status. In 1995 India also introduced the Customs EDI System (ICES) which computerises customs related functions including import/export, general manifest and ex-bond clearance of warehoused goods. This system serves to respond more quickly to the needs of trade agents, to reduce interaction between them and government agencies and to improve transparency and accountability. Members also inquired about how international standards and consumer protection are enforced and what is put in place to combat counterfeit. (2) The delegation had then an overview of the infrastructure of the three terminals of Mumbai’s port, followed by a meeting with the Chief Commissioner of Customs, Zone II, Dr. John Joseph. Mumbai Customs Zone-II is the biggest Customs Zone in the country in terms of revenue collection and contributes about 24% of the National Customs Revenue and about 4.6% of the total revenue receipt of the Central Government of India. It is also the biggest in terms of import and export cargo handled in containers. PE601.155v01-00 2/9 CM\1119991EN.docx EN Exchanges with customs officers focused on the measures taken to facilitate top importers/commodities/manufacturers to promote “Make in India -green corridor” ensuring free clearance and move towards cashless and paperless customs. The digitalisation of the entire cargo clearance system was also the subject of discussion (enhanced levels of advance filing of bills of entry prior to the arrival of vessels, take-up pre-arrival risk processing, enhanced facilitation levels by straightening risk management and onsite post clearance audit, real time seamless online exchange of information). The development of professionalism and responsibility amongst customs officers was also of high interest to Members who learnt about the role of the NACEN (National Academy of Customs Excise & Narcotics) e-learning trainings for customs officers in the field of Customs, Central Excise, Service Tax, Drug Laws, Anti-Money laundering, Weapons of Mass Destruction, Fake Indian Currency Notes, Ozone Depleting Substance (ODS), IPRs etc. Further inquiries by Members covered the management of port controls, customs enforcement of Intellectually Property rights (IPRs), combating counterfeit and conformity to service delivery standards. (3) Meeting with EU Trade Counsellors and representatives of the EU businesses. The Director of the Council of EU Chambers of Commerce in India, Renu Shome, explained that since its set up in 1992, the Chamber has become an important platform of 800 members for both EU and India with the purpose to promote two-way flows in trade and investment, interact and explore possibilities of exports, imports, joint ventures, distribution partners, technology exchange and trade dialogue. The Trade and Economic section of the EU Delegation to India keeps regular contacts with the EU Trade Counsellors and meets them in Mumbai twice per year for an update on the main economic policy developments. The EU Member States with an active consulate are mainly Belgium, France, Germany, Hungary, Italy, the Netherlands, Poland, Spain, and the United Kingdom. The EU trade counsellors stressed the importance of raising the profile of the EU in India through such EP parliamentary committee visits. The main areas of interest for the European business (i.e. agriculture, water and environment) and the need to improve Indian capability in sectors like food (production of machinery, denomination of origin, etc) were also discussed. Members inquired about: the ways to promote EU in the different Indian states; how EU countries without representation in India could benefit from EU visibility; the barriers for EU business to settle in India, the ways to develop skills and a single market which serves both business and consumers. (4) At the bilateral meeting with the Governor of the State of Maharashtra, C. Vidyasagar Rao, Members exchanged views on current local political developments and challenges for the Maharashtra State (including cleanliness and environmental protection). “Clean India” was mentioned as Indian project where European companies could offer expertise. Members learnt that Maharashtra is the wealthiest and one of the most developed states in India, contributing 25% of the country's industrial output. It has over 112 million inhabitants and its capital, Mumbai, has a population of approximately 18 million. The state has a large, multi- modal transportation system with the largest road network in India. Members inquired about women in business, gender balance in higher education, equivalence of curricula amongst the Indian states. They learnt that Maharashtra schools are run by the state government or by private organisations, including religious institutions and that Maharashtra has 24 universities with a turnout of 160,000 graduates every year. The ongoing trade agreement negotiations CM\1119991EN.docx 3/9 PE601.155v01-00 EN between India and EU were also discussed. The main message from the Governor to the EU was: “Come to invest here, there is manpower and skills”. (5) At the informal reception organised by András Halász, Hungarian Commercial Counsellor, in his private house, no extensive presentation was given, however Members had the chance to liaise individually with him and the attending Belgian and German Commercial Counsellors on EU business in India. Wednesday, 22 February 2017 (Mumbai) (6) Members visited the Consumer Guidance Society (CGSI), and held a vivid exchange with Prof. N.M. Rajadhyaksha, CGSI Chairman, on safe products, consumers’ rights, ways to empower consumers and offer them guidance on how to obtain redress in India. Prof. Rajadhyaksha explained that the CGSI is the oldest consumers’ association in the country and was founded in1966. The Maharashtra State Government has entrusted CGSI to establish and manage the