Hon'ble Textiles Secretary Announces: 200 Export Promotion Programmes For 44 Craft Stations

Honble Textiles Secretary Announces
200 Export Promotion Programmes for 44 Craft Stations
Pictures Awaited from EPCH
Private Standards for garments, footwear and furniture sectors EPCH at Atlanta Craft & Home Furnishings Market Consumexpo, Moscow IMM Cologne
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CRAFTCIL January 2011
Chairmans Message
Dear Fellow Exporters, I take pleasure in sharing that EPCH has once again initiated an extensive exercise to reach out to several craft clusters and offer training through a series of programmes titled, "Awareness of International Standards and Need for Quality Compliance in Major Handicraft Clusters of India". In the past we have successfully reached out to craft pockets in the Northern and Central Regions. We have also conducted export promotion activities in the Southern and Eastern Regions. This time, your Council has charted out 200 programmes for 44 craft stations with special concentration on potential handicraft clusters. I would like to thank the Ministry of Textiles and the O/o DC (Handicrafts) for their immense support & guidance in this regard. I am sure, the new Budget is anxiously awaited by all. Here, I wish to inform that an EPCH delegation has met the Hon'ble Finance Minister and presented a pre-budget memorandum, with suggestions for the betterment of our sector. Exemption from Service Tax is among our earnest requests. I hope our industry is able to attract the attention of all concerned at the highest level and is granted relief in the forthcoming budget. As competition intensifies in the global market, there is ever increasing pressure on exporters to adhere to numerous standards set by target export destinations. This issue carries a feature on international standards, certification, ethical trading initiatives, etc. relevant to various sectors. You must be gearing up for the two back-to-back shows i.e. Indian Handicrafts & Gifts Fair at New Delhi and Indian Furniture & Accessories Show at Jodhpur. I urge all the members to put up a great display at the show and I hope and wish that the two shows would bring in a lot of business to you and also add to overall exports of the handicrafts sector. The Council on its part is leaving no stone unturned in its endeavor to promote the show among overseas buyers. As always, your suggestions and views are important to us, so do write in to me at chairman@epch.com.
(Raj Kumar Malhotra) Chairman, EPCH
CRAFTCIL January 2009 CRAFTCIL August 2011
CRAFTCIL
Editor Rakesh Kumar
Executive Director, EPCH Printed & Published by Rakesh Kumar on behalf of
Vol. No. V, Issue No. 8 (January 2011)
Inside this issue...

Focus ............................................................................. 5 Private Standards ....................................................... 10 Forthcoming Events ....................................................... 22 Business Opportunities .................................................. 22 Impex ............................................................................ 23 News Briefs ...................................................................... 26 Events in India ......................................................... 29 Strategies .................................................................... 30 Events Overseas ................................................................... 33 Trends................................................................................. 36
Export Promotion Council for Handicrafts

Published at EPCH House, Pocket 6&7, Sector C, LSC, Vasant Kunj, New Delhi - 70 Tel: 26135256; Fax: 26135518/19 E-mail: epch@vsnl.com; URL: www.epch.in Compilation & Presentation: EPB* Production: Chapakhana.com Advertising: Shreya Comnet Tel: +91 11 22246094, 64631211 Email: mail@epbureau.com
*Establishments Promotion Bureau
CRAFTCIL is an in-house journal of the Export Promotion Council for Handicrafts (EPCH). The contents of CRAFTCIL are collated for the benefit of its members and the views expressed may not necessarily be those of the Council or the Publishing Agency. Material appearing in CRAFTCIL cannot be reproduced without the prior permission of EPCH in writing.
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EPCH initiates
Export Promotion Drive in Craft Clusters

Honble Secretary, Textiles announces 200 programmes for 44 stations
Firsts in the series conducted in Jodhpur, Sitapur, Kolkata and Moradabad
Having included and guided clusters in various regions like the North, East, South and Central region towards export promotion, with skill, design and product development programmes, the Council this time brings into its focus purview, the North Western and South Western Regions in India. EPCH has once again initiated an extensive exercise to reach out to several craft clusters and offer training through a programme titled, Awareness of International Standards and Need for Quality Compliance in Major Mrs. Rita Menon, Secretary, Textiles addresses the gathering at the Symposium Handicraft Clusters of India . The awareness programmes are being conducted with the active support under the aegis of O/o DC (Handicrafts), Ministry of Textiles, Govt. of India. The objectives of the programme can be enumerated as: To encourage entrepreneurs to export handicraft products. To create awareness among entrepreneur on govt. policies, procedures and schemes. To create awareness about export procedure/ documentation among young entrepreneurs/ craft clusters. To create manpower for export marketing and awareness of exports of cottage sector produce. To create a platform for marketing of the cottage sector / entrepreneur / exporters to withstand the fierce & competitive international market.
Mrs. Rita Menon, Secretary, Textiles seen with ViceChairman, EPCH, Mr. Lekhraj Maheshwari; Mr. Nirmal Bhandari, COA memberEPCH and President, Jodhpur Handicrafts Exporters Association (JHEA); Mr. Rakesh Kumar, ED, EPCH and eminent industry members from Jodhpur
Mrs. Rita Menon, Secretary, Textiles, during a visit to handicrat manufacturing unit
The audience at the Symposium
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Glimpses of the Workshop on Export Marketing Procedure & Documentation and Design Development held on 21st and 22nd January, 2011 at Common Facility Centre (CFC) Jodhpur
Secretary, Textiles, Mrs. Rita Menon chairs Symposium

To mark the beginning of this exercise, EPCH organised an Symposium on the evening of 22nd January, 2011 at Jodhpur's Hotel Park Plaza. Hon'ble Secretary, Textiles, Mrs. Rita Menon chaired the function and officially initiated the series of 200 specialised programmes in 44 craft stations. She was welcomed by Mr. Nirmal Bhandari, COA member-EPCH and President, Jodhpur Handicrafts Exporters Association (JHEA), Mr. Bharat Dinesh, General Secretary, JHEA, Mr. Rakesh Kumar, Executive Director, EPCH, Mr. K K Goel, ED, CWDB, Jodhpur and leading exporters from the region. Also present were senior officials from the DGFT, Customs, WWF and National Awardee Master crafts persons from Jodhpur. Another objective of this event was to discuss and recommend measures to formulate a road map for
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future promotion of handicraft exports from Rajasthan. In her address, Mrs. Menon spoke at large to the exporting community, on various important steps integral for export promotion and aggressive marketing of handicrafts. Mr. Nirmal Bhandari gave credit to EPCH for its contribution in increasing exports from Jodhpur, talking in particular about the Indian Furniture & Accessories Show (IFAS), initiated by the Council and instrumental in substantial export orders from this region. On behalf of the exporters of the region, Mr. Bhandari gave suggestions for the sectors improvement. Mr. Rakesh Kumar spoke of the future plans of EPCH, aimed at the holistic development of the industry. Stressing on overall development, he spoke of important aspects like product innovation & development, technology upgradation, use of
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Glimpses of the programme on 23rd January, 2011 at Jodhpur
Common Facility Centres, training programmes, etc. undertaken by the Council.
Programmes commence in Jodhpur

EPCH initiated its series of highly informative and interactive programmes across handicraft production clusters in the Central, Eastern, North Western and South Western Regions of India. The first in the series were conducted in the woodcraft hub of Jodhpur in Rajasthan. Titled, 'Workshop on Export Marketing, Procedure & Documentation and Design Development' and 'Training Programme on Awareness of International Standards and need for Quality Compliances', these were held from 21st to 24th January, 2011, in association with the Jodhpur Handicrafts Exporters Association (JHEA).
merchandising, he elaborated on aspects like, putting a suitable price to a product that goes well with its look & utility, and is in accordance to market trends. He also touched upon methods for effective product launching. On 22nd January, there were three sessions-one technical and two on design. Mr. Madanlal, Professor, IIFT, made a presentation on Export Marketing - Procedure, Documentation and Payment Terms. He also spoke on understanding and meeting market trends & demands. Dr. Abhinav Kant, Consultant, BCDI and Incharge, offered his guidance on need for upgradation in manufacturing technology & innovations. This was followed by the design sessions conducted by Ms. Amla, designer from NCDPD. She detailed on : need for innovative design trends with a slide show of existing products in demand in the European markets; value additions required for the forthcoming season; and product innovation with possibilities/ limitations in existing product categories. She also made an illustrative presentation on design trends & colour forecast.
Workshop on Export Marketing Procedure & Documentation and Design Development

This was conducted on 21st and 22nd January, 2011, at the Common Facility Centre, Jodhpur. On 21st January, there was a Technical Session, chaired by senior industry consultant, Mr. Mohd. Iqbal Perwaiz, who spoke on product marketing, pricing & merchandising. He guided the audience on how target markets can be selected as per ones own production capacity/capability, how products can be tuned to suit particular consumer segments as well as the need to bring in required changes as per market demands. While explaining on pricing &
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Training Programme on Awareness of International Standards and need for Quality Compliances
This was conducted on 23rd and 24th January, 2011, at the Common Facility Centre, Jodhpur. On 23rd January, the Technical Session on Quality Compliances, Product Quality and Upgradation of Technical Skills-Practical Demonstration was conducted by Mr. Prithvi Singh and his team from Minechem Pvt. Ltd. On 24th January, there were two Technical Sessions. The first included Practical Demonstration on New Finishes as well as Qualities of Raw Materials and their availability, presented by Mr. Kartik Mishra from Plantagchemie, Germany. Plantagchemie is a manufacturer/supplier of lacquers for the furniture industry. This technical session was followed by the last session of the programme based on Need for Upgradation in Manufacturing Technologies and Innovations, presented by woodware machinery specialists, Leitz Tooling Systems/HBR Consultants, Bangalore.
Seen on the dais (LtoR) Mr. Pawan Aggarwal, Manager, District Industrial Center; Mr. Sanjay Kumar, District Magistrate; Mr. Jitin Prasad, Union Minister of State for Road Transport & Highways and MP from Dhaurahra (UP) and Mr. Rakesh Kumar, ED, EPCH Mr. R K Srivastav, ED, NCDPD addressing the gathering at Sitapur
Workshop cum Training Programme on Export Marketing Procedure, Management and Packaging in Sitapur, Uttar Pradesh
In Sitapur, a Workshop cum Training Programme on Packaging Export Marketing Procedure and Management was organised on 29th January, 2011, at Purv Madhyamik School, Nabi Nagar, Hargaon, Sitapur District. The workshop cum training programme was graced by Mr. Jitin Prasad, Honorable Minister of Road Transport & Highway and Member of Parliament, as the chief guest. He discussed about the need of special efforts to upgrade artisans and craft persons from the region and announced opening of Common Facility Centre & Testing Laboratory at Sitapur by Govt. Mr. Rakesh Kumar, ED, EPCH talked about extending complete support in setting up and functioning of the center and laboratory. Mr. Pawan Aggarwal, General Manager, District Industrial Center, spoke on the schemes of DC (H) and praised the efforts of EPCH for the betterment of the sector. Mr. R K Srivastava, ED, NCDPD emphasised on the need for a new design
8 CRAFTCIL January 2011 The audience at the Sitapur Workshop cum Training Programme
A display of products by weavers, exporters and artisans from Sitapur
development centre in Sitapur. Mr. Sanjay Kumar, District Magistrate, Sitapur, addressed the gathering and appreciated the efforts of EPCH. About 150 weavers, exporters and artisans attended the programme.
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Workshop on Export Marketing Procedure & Documentation and Design Development in Kolkata, West Bengal
In Kolkata, the Workshop on Export Marketing Procedure & Documentation and Design Development, was organised on 7th and 8th February, 2011, at the Councils Kolkota office in Kalighat. It had four sessions with Mr. A K Hota, Handicrafts Promotion Officer, O/o Development Commissioner (Handicrafts) briefing the audience on schemes of the DC(H) and Mr. Arijit Dutt, Asstt. General Manager, SIDBI, speaking on schemes of SIDBI. Ms. Sanjukta Roy, Designer from Pearly Academy elaborated on social, design and quality compliances. This Kolkota programme had 48 attendees.
Mr. A K Hota, Handicrafts Promotion Officer, O/o Development Commissioner (Handicrafts) briefing the audience
Awareness cum Training Programme in Moradabad

In Moradabad, an Awareness programme on handicrafts product quality and training programme for the artisans and exporters was organised on 9th and 10th February, 2011 at the EPCH Office, Budhi Vihar, Moradabad. Member exporters were given information on how the quality of products exported from Moradabad can be improved and made better. Artisans were given training on design development and innovation. Also various Govt. schemes benefiting both the artisans and member exporters were discussed. Mr. Satendra Arya, Lecturer, Teerthankar, Mahaveer Institute of Management & Technology, said reasonably low priced and beautiful material is given first preference in international market. So more light weighed products should be made which can also be reasonably low priced. Mr. Paritosh Sharma, Associate Professor, Teerthankar, Mahaveer Institute of Management & Technology motivated the artisans to move forward and educated them about the registration procedures. Mr. Anoop Shankdhar, Vice Chairman, EPCH and Mr. K L Katyal, COA Member, EPCH distributed certificates to artisans taking part in the training programme and assured them of future assistance. Mr. G P Singh, Manager, Punjab National Bank educated the audience on the various schemes sponsored by the bank for micro, small and medium enterprises. Mr. Sharad Saxena, Addl. Director, DC (H) Bareilly, offered information on development of handicrafts and marketing schemes. Lecturer Bosky Aggarwal and Professor Vaishali Dhingra spoke on scaling up the quality of products. This workshop had 30 to 40 attendees.
Ms. Sanjukta Roy, Designer, Pearly Academy elaborating on design and quality compliances
Mr. Arijit Dutt, Asstt. General Manager, SIDBI, explaining the schemes of SIDBI
Observations
A glimpse of the audience at the Kolkata Workshop
Among various programmes, there was training on latest machines, their application & usage. The relevance & importance of machine tools with emphasis on new finishes was explained. The growing significance of compliance as well as international standards & practices were also shared by the presenters.
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Symposium on Export Marketing of Handicrafts of Andhra Pradesh in Hyderabad
A Symposium on Export Marketing of Handicrafts of Andhra Pradesh was organised in Hyderabad on 20th January, 2011. Mr. K L Ramesh, Convenor Southern Region, EPCH and leading exporters from the industry,-Mr. Tulsi Rao, Mr. K R Nath and Mr. Srinivas from O/O of DC (H) talked to the attendees, on implementing innovative marketing strategies to export handicrafts from Andhra Pradesh.
Mr. K L Ramesh, Convenor Southern Region, EPCH, addresses the exporters in Hyderabad
An EPCH official coordinates the programme
Free Health Check-up Camp in Saharanpur

supported by EPCH and SWCMA, Saharanpur
EPCH and Saharanpur Wood Carving Manufacturers Association(SWCMA) organised a free health check-up camp on 19th December, 1210, inSaharanpur. Conducted by Shri Guru Ram Rai Medical College and Mahant Indresh Hospital (Dehradun), this was put up exclusively for personnel associated with the wood carving industry in Saharanpur. Sheik Faizan Ahmed, EPCHs ConvenorCentral Region, presided over the camp, where a team of 35 doctors treated around 945 patients with free medicines. 90% of the patients were crafts men, artisans, skilled and semi-skilled labourers. Treatments were given on various aspects of health like general medicine as well as specialised areas like eye, nose, ear, throat, skin, pediatrics, womens health, dental disorders, bone health, etc. After the camp, the doctors were presented with mementos.
Sheik Faizan Ahmed, EPCHs ConvenorCentral Region, seen with the team of doctors and members from EPCH & SWCMA
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International Standards
Social, safety and environmental issues required by brand producers and retailers when they source their products.
Global brand producers and retailers increasingly require their suppliers from developing countries to comply with certain social, environmental and safety norms. These norms are increasingly referred to as 'private standards'. Compliance should, of course, not be a major problem for developing country producers when national laws and regulations already incorporate these standards. However, private standards imposed by producers of global brands and retailers may also go beyond national and local laws, and/or contain further conditions related, for example, to health and safety issues. A proactive strategy on the part of local manufacturers will make it easier for them to cope with such standards and will also lead to significant benefits, including competitive advantages, improved efficiency and ultimately, more exporting opportunities.
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Strategies
A buyer often requires suppliers to comply with one or more additional private standards on social and environmental issues in order to ensure its own reputation as a globally responsible brand and to avoid any potential negative publicity. Faced with this situation, a supplier can react in one of two ways - by adopting either a reactive or a proactive approach. The reactive approach implies that the supplier will comply with a new set of buyer demands each time it enters into a new business relationship. The proactive approach implies that suppliers adopt a more ambitious trajectory. The growing importance and influence of private standards has some clear causes. Consumers in developed economies, as well as civil society organisations in those parts of the world, are showing growing concerns about the social and environmental conditions prevailing in countries participating in the supply chains of products that are sold into their markets. Nowadays, the proliferation of private standards which originated in Europe and the US is increasingly spreading to brands and retailers in the Asia-Pacific and Latin American regions. It will probably spread even further around the globe as markets become more developed.
regard to environmental and social performance criteria established in a standard. For example, the Oeko-Tex label stands for skin-friendly clothing or textiles. Product labelling often also involves certification of a company's working methods. When it comes to the content of private standards, some focus more on labour issues while others are mainly concerned with environmental and chemical issues. Again, this is not a 'black and white' divide. For example, while the Business Social Compliance Initiative (BSCI) code of conduct is mainly concerned with labour conditions in the supply chain, it also lays down environmental requirements. Even when the focus of two private standards is the same (e.g. labour issues), and the elements they include are also comparable (e.g. child labour, freedom of association), the stringency of the requirements may still vary with the individual standard. Some requirements may basically entail compliance with national laws, while others go beyond the expectations of national governments. While some requirements are rather absolute, meaning that a company/supplier has to comply with certain requirements in order to start or continue a business relationship, other requirements stress the need to make progress on a certain issue within a specific period of time.
Types of Standards
Suppliers and other exporting companies are requested to adhere to the requirements outlined in the buyers code of conduct. As a result, compliance is often a prerequisite for initiating and/or continuing a business relationship with such a global company. A certificate can also be issued on the basis of a private standard, such as the Forest Stewardship Council (FSC) and Social Accountability International standards denoting that the auditing process has been successfully completed against the requirements in the standard. Certification can be undertaken for products as well as for management systems. Although a certificate is sometimes requested by a buyer, the certification process is often initiated by suppliers in order to differentiate themselves in the market. Products can also be labelled for the consumer in order to differentiate them with
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IKEAs IWAY Standard

IKEA, the largest home furniture retailer in the world, has formulated formal social and environmental requirements for its suppliers in the IWAY standard, which is applicable to all external suppliers and service providers. The IWAY code has six initial, basic requirements which are absolute musts before a business relationship can be formalised. They relate to the prevention of child labour; forced and bonded labour; severe environmental pollution; severe safety hazards; keeping records on working hours and wages; and providing workers with accident insurance. IKEA includes social and environmental requirements in its basic contract with suppliers, much in the same way that conditions like agreements on delivery volumes and timing are part of the contract. Suppliers are thus fully aware of the buyer's requirements at the moment the contract is signed. The costs of compliance are to be borne entirely by the supplier. The obvious benefit of complying with IKEA's code is that the supplier gains access to a customer who buys in large volume. Other benefits from compliance with the IWAY standard are sustaining the supplier's work force, better preparedness to comply with future requirements of other new buyers, increased competitiveness, savings (e.g. energy/waste), inventory improvement, and increased efficiency. Next to the social and environmental requirements, IKEA has high quality and delivery-security demands. More and more buyers are introducing initiatives similar to the IWAY standard.
Governance
Private standards are either developed on a cross-sectoral basis or are more precisely targeted at a specific sector. Furthermore, various 'stakeholders' (i.e. actors with a 'stake' in the social and/or environmental problems at hand) may be involved in the development and governance of the standard. Some are company specific, while others, such as the Business Social Compliance Initiative (BSCI), are initiated by a group of companies, and yet others have been developed in cooperation between companies, non-governmental organisations, trade unions and/or governments. Some standard owners (the entity who writes the standard) also get involved in the accreditation of third parties to certify the standard or they themselves may have a subsidiary company which certifies the standard.
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The Forest Stewardship Council (FSC)
Founded in 1993, the FSC is a non-profit initiative for responsible forest management, developed in partnership with industry, social and environmental groups. The Council developed the first large certification scheme for sustainable forest management and aims to improve social and environmental practices in forest management worldwide. As of 1 January 2010, FSC-certified forests covered 120 million hectares worldwide (3% of the total global forest area)10. The FSC does not, itself, certify forest managers and companies, rather it accredits certification bodies to do so. The certification involves product labelling, making it possible for consumers, as well as buyers, to recognise FSC-products, demonstrating that they have been produced in a responsible manner. The system provides for two types of certification: forest management certification, which ensures that a forest area or plantation is managed to high standards covering social, environmental and economic issues; and chain of custody certification, which traces the wood from those forests through all stages of processing and distribution. The FSC forest management standard is based on ten principles. Wood and paper processing companies can be required by their buyers to use inputs that are FSC certified. This means that a supplier needs to obtain the FSC Chain of Custody certificate (CoC). This so-called CoC certification refers to the path taken by raw material from being harvested from an FSC-certified source through processing, manufacturing, and distribution until it is a final product ready for sale to the end consumer. Examples of the latter are the FSC and Social Accountability International (SAI). They originally established accreditation departments to ensure the governance of their schemes, and these have now become independent, not-for-profit companies. In general, initiatives with involvement of civil society carry more customer recognition and public support.
Application
Another important aspect of private standards concerns the scope of application: some apply to business processes at the production site (e.g. SA 8000), while others also include requirements related to the products themselves (e.g. OekoTex). Private standards that apply to a production site in its entirety, such as SA 8000, include requirements on business practices, such as health and safety requirements for workers and living wages. Where the standard involves certification, it is the company that becomes certified, not a specific product. When complying with this type of standard, either all business processes are certified, or none. Private standards that include product requirements, such as the absence of certain hazardous materials, often involve labelling of the product, by which it is differentiated from other products in its product group. A company can choose to make only products according to this standard but, in principle, could also produce according to this standard and, at the same time, maintain regular product lines as well (such as producing 'regular' t-shirts and 'organic' t-shirts). The application of private standards to products or production sites is not a clear cut issue; it is more of a sliding scale. For example, while the Oeko-Tex standard proposes labelling textile products in accordance with its requirements, it also offers certification of production sites.
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Furthermore, compliance with product requirements implies that changes in production processes have been made and this, in turn, can have an impact on corporate governance and other business processes. For example, the FSC chain of custody certification places high demands on the traceability of the certified wood and involves separate production lines and trained personnel. Among the private standards selected for this feature, none solely applies to the product. Instead, they either apply to the production site, or include a combination of product and production site requirements. This suggests that most private standards that lay down social and environmental requirements will also include production site requirements.
The Oeko Tex Certificate

The Oeko-Tex certificate is limited to companies in the textile and clothing industry and gives proof of the human and ecological safety of textiles. The tests for harmful substances are based on a test catalogue which includes the list of mandatory tests according to Oeko-Tex and the limit values of substances used in the production of textiles. When the Oeko-Tex certificate is issued by the relevant institute or certifying body, it confirms that the requirements of the Oeko-Tex Standard 100 and of a common product class have been successfully tested. Certification involves extensive laboratory tests to prove that all components, including accessories, comply with the specified test criteria without exception. The certificate issued is valid for 12 months and the certified manufacturer is then entitled to mark successfully tested products or article groups with the Oeko-Tex label and is also permitted to use other forms of advertising relating to the standard. The certification process starts with an application in writing from a manufacturer to one of the authorised testing institutes. The testing and certification of textile products at all stages of processing is done by independent bodies located exclusively in the member institutes in Europe and Japan so as to ensure a consistently high level of testing. The tests, as well as the certification system, are based on three principles, namely: Appropriateness, which refers to the potential of harmful substances and is based on the principle that the more textile comes into contact with the skin, the higher the human ecological requirement will be. Modular principles, which make it possible to certify textile products at all stages of the processing chain. Moreover, duplicate tests can be avoided by the use of certified source materials. Comprehensive security, which means that textile products may only be certified if all components meet the requirements of the product class.
Conformity Assessment
A standard can have no impact in terms of market access if compliance is not required, verified and communicated. In basic terms, conformity assessment embraces those activities which determine whether the requirements of the standard are met. The most common examples include testing, auditing, certification and suppliers' declarations of conformity. Depending on the application of the standard, the conformity assessments are either related to the product and/or the production site. Conformity assessments of the social and environmental aspects of products require procedures that are followed in the whole chain of custody - the channel through which products are distributed from their origin to their end use. Given the growing scope and complexity of products that are covered by private standards, such as furniture produced from sustainably managed forest, or bio-textiles from organic cotton, all actors in the value chain face increasing conformity assessment costs. In many cases, brands and retailers which require their suppliers to comply with certain conditions monitor this compliance by means of audits. These audits are either conducted by the supplier itself (internal audit), the brand which owns the standard, or by an external party (consultants, independent body or accredited
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parties). In general, it is argued that independent and third party accredited audit systems instil greater confidence that the standards are being applied consistently across suppliers, thus creating a level playing field. An auditor assessment of a company's social and ecological performance generally involves: Physical observation of all the departments and machinery at the production site Verification of documents (e.g. payslips, birth certificates) Interviews with company employees at all levels After data collection, the auditors prepare a report which incorporates the audit findings and possibly a corrective and preventive action plan. Both the auditor and the production site manager discuss the corrective actions and agree on the steps required to ensure adherence to the requirements, including a timeframe for implementation. Exporting companies sometimes show concern that audits will divert management time and resources, disrupt workflow, and/or challenge planning processes. Although there may be disadvantages involved with buyer audits, successful social audits bring significant benefits as well, such as improvements in the production process and increased profitability through exporting large volumes to globally operating brands and retailers with significant market shares. The costs of auditing against private standards can either be borne by the supplier, the buyer, or both and they vary according to the particular standard. As a general rule, audits by buyers against their codes of conduct are covered by the buyer (e.g. Nike Code of Conduct), while costs for certification are mostly covered by the supplier (e.g. FSC). However, there are exceptions to this rule.
known and analysed type of private standard, which may be attributable to the fact that each individual code has a limited scope of application namely, it is a pact between the buyer company and its supply chain. Nevertheless, all these buyer codes combined have an enormous outreach, which certainly justifies in-depth analysis. Some common denominators in buyers codes include : Child Labour Codes cite Minimum Age Convention of the International Labour Organization (ILO 138) and UN Convention on Rights of the Child. Minimum working age of 15 - or 14 for developing countries not included in article 2.4 of ILO convention 138 even when national provisions state younger age. Compliance with any local or national legislation that stipulates a higher age than 15. Documentation confirming date of birth of workers Forced Labour No forced, prison, bonded or involuntary labour. No taking away of employees identification papers or passport. Employee should be free to leave. Non-Discriminatory No discrimination in recruitment and employment practices on the grounds of race, religion, belief, gender, ethnic background, disability, political affiliation, national origin, sexual orientation, material status. Recruitment and employment practices should refer to hiring, compensation, access to training, benefits, promotion, termination and retirement. Wages Must be at least equivalent to or higher than minimum wage laid down by local or national legislation. Must be
Buyers Code of Conduct (CoC)

These codes comprise the largest group of private standards identified through the exporters surveys and they are also the fastest growing group of standards, as more and more individual companies develop their own codes of conduct. However, they are also the least well
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Social Accountability Standards
In 1997, Social Accountability International (SAI) started to develop a cross-sectoral standard for auditing and certifying corporate responsibility known as SA 8000. This standard focuses on the social performance of a company and, in particular, of manufacturers and suppliers. The SA 8000 is continuously developed and revised in close cooperation with companies, consumer groups, non-governmental organisations, trade unions, governmental agencies and certification bodies. It includes principles on Child Labour, Forced Labour, Health and Safety, Freedom of Association and the Right to Collective Bargaining, Discrimination, Discipline, Working Hours, Compensation, and Management Systems. These principles are based on the core ILO Conventions, the Universal Declaration on Human Rights and the most relevant Conventions of the United Nations. Should suppliers be obliged or wish to become SA 8000 certified, they must assess their practices and policies against the requirements of the standard. The standard is verifiable and the verification process is evidence-based, which means that the burden of proof is on the supplier. As a result, suppliers should maintain appropriate records and ensure access to their premises and to reasonable information required by the auditor in order to demonstrate conformance to the requirements. In addition, the supplier should pledge to make reasonable efforts to ensure that the requirements of this standard are being met by its own suppliers and subcontractors within its sphere of control and influence. When a supplier wishes to seek SA 8000 certification, the process starts with an application to an auditing firm or certification body accredited by the Social Accountability Accreditation Services (SAAS). These are the only organizations entitled to assess compliance with the standard and, if appropriate, to issue an SA 8000 certificate. The SAAS recommends contacting at least three such auditing firms to compare the cost of certification services. The fee is determined by each individual auditor and varies according to the size, scope and location of the factory, and the number of days the auditor needs to conduct the audit. The fee typically ranges between US$500 and US$1,500 per day.
An Indian survey shows that the private standard most often referred to is the Social Accountability 8000. Around 44% of the suppliers were SA8000 certified and this percentage is expected to rise within the next two years up to almost 70%.
at least equivalent to or higher than the industry benchmark wage. Overtime must be compensated. No deductions from wages on disciplinary grounds. Working Hours Normal working week should not exceed 48 hours. Overtime should be on a voluntary basis and should not exceed 12 hours in any single week. Total working week should not exceed 60 hours. Where the provisions of national or other applicable law improve on these conditions, then the latter prevails. Some codes also stipulate at least one days rest in any seven day period. Freedom of Association Freedom for employees to join or organise a workers association and to engage in collective bargaining. No disciplinary action is to be taken if employees join or organise an association. Some codes also stipulate that, even where freedom of association is not permitted under national legislation, the employer should not prevent its workers from organising or joining an association. Health & Safety Compliance with all applicable laws and regulations on health and safety. Employer should provide a safe and healthy workplace. Employer should take pro-active measures to prevent accidents and injuries. Some codes stipulate specific measures, e.g. emergency exits, firefighting equipment, water, sanitation, lighting, ventilation, first aid kits and safety training.
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Harassment Verbal, sexual, physical, or psychological harassment is not permitted. The respect and dignity of employees must be ensured. Contract Labour Some codes stipulate that employees must be issued with a written contract. Housing Some codes include requirements on housing facilities for employees, which may include the following: respect of applicable legal requirements on dormitories, facilities and living space; fire safety; and segregated showers and toilets for men and women. Environment Compliance with all applicable laws and regulations on environmental matters. Some buyer codes of conduct refer to a separate policy document on environmental matters. Include provisions on pollution (air and water), limited toxic substances, hazardous waste. Efficient and responsible use of natural resources.
Ethical Trading Initiative

The Ethical Trading Initiative (ETI) is an alliance of companies, non-governmental organizations (NGOs) and trade unions aimed at improving working conditions in global supply chains. It is mainly focused on the UK market but is open to companies in other countries. Participating companies commit themselves to the ETIs Base Code, which is based on ILO conventions, and to its implementation by signing up to ETIs Principles of Implementation. Member companies report annually on their efforts and the results they are achieving at farm or factory level. Each year, the ETI Secretariat, together with representatives from its trade union and NGO membership, conducts random validation visits to a minimum of 20% of its reporting members. The purpose of these visits is to check that the companys management processes and systems for collecting data for its annual report are consistent and reliable. The visits also help build dialogue with member companies about the progress they are making as well as any problems that arise. Once company annual reports have been reviewed by the ETI Board, the Secretariat provides detailed feedback to each company, identifying areas where progress has been made and those where further action is required. If member companies do not make sufficient progress, or fail to honour their membership obligations, ETI terminates their membership.
Similarities & Differences in Buyers CoC

In view of the proliferation of buyer codes, it is certainly advisable that exporting companies come to terms with the content of these codes, which provide insights into the buyer requirements with which they are expected to comply. Buyer codes show great similarity in the aspects they address and there is also a clear convergence in the requirements they lay down. Nevertheless, the codes do differ in some respects. Examples of additional requirements are, for example, related to maternity leave, a free meal for workers every day, or ventilation systems in production areas. Furthermore, some buyers may be more demanding than others on specific points. For example, while the one company may refer only to national legislation, others may demand compliance with stricter international norms. In some instances, buyer requirements may even be conflicting. For example, conflicting requirements with regard to the demarcation of emergency exits have been documented, with one buyer demanding green demarcation and the other yellow. Given these differences, a supplier entering into a new business relationship may incur additional compliance costs even though it already complies with one or more other codes. In addition to monitoring adherence to their own code, some buyers may join a multistakeholder initiative that conducts additional monitoring.
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These initiatives involve multiple actors with a stake in the social and/or environmental problems in question, such as civil society organizations, trade unions, and/or governmental authorities, alongside business actors. Multistakeholder initiatives provide independent verification on compliance with the social and/or environmental requirements laid down in codes of conduct. Examples of these initiatives are the Ethical Trading Initiative (ETI) and the Fair Labor Association (FLA). When a buyer is a member of such an initiative, its suppliers may face two different audits: one by the buyer, and one by the multistakeholder initiative. For example, since Adidas and Nike are members of the FLA, their suppliers are audited by FLA, in addition to the buyers own audits. Such audits by multistakeholder initiatives are usually carried out unannounced.
Fair Labor Association

Incorporated in 1999, the Fair Labor Association (FLA) is a collaborative effort of socially responsible companies, colleges and universities, and civil society organisations to improve working conditions in factories around the world. The FLA has developed a Workplace Code of Conduct, based on ILO standards, and created a practical monitoring, remediation and verification process to achieve those standards. Companies that join the Association commit to establishing internal systems for monitoring workplace conditions and maintaining code standards, as part of a rigorous system of Independent External Monitoring (IEM) and public reporting on the conditions in their supplier factories. The FLA accredits independent thirdparty monitors and engages them to conduct unannounced audits annually of a group of randomly selected factories that supply products to FLA-affiliated brands. To ensure transparency, the results of the IEM audits are published on the FLA web site and in the FLA Annual Public Report. The FLA is the only labour rights initiative to publish the results of its systematic monitoring efforts. The Fair Labor Association also responds to workplace labour violations through its Third Party Complaint mechanism. Anyone a worker, advocate, company, or individual can contact the Fair Labor Association to report code violations at a factory supplying products to an affiliated company. Complaints are kept confidential and rigorously investigated. When violations are found, the FLA publicly reports them and works with all stakeholders to find sustainable solutions. The FLA requires that companies work with the factories to ensure that violations of the Code are corrected through the development and implementation of a remediation plan. FLA reports on remediation efforts and, in addition, conducts verification audits to confirm ongoing progress in a sample of audited factories.
Strategies for Developing Country Suppliers

When exporting to global markets, suppliers in developing countries will sooner or later be required to comply with private standards. Faced with this situation, exporting companies can respond in one of two ways: by adopting a reactive strategy or a proactive strategy, with the latter ultimately enhancing the exporters competitive advantage in the market place. However, before considering these strategies, exporting companies need to meet some basic qualifications that will be determining factors in setting up a business relationship with global brands and retailers. Irrespective of their location in the value chain, developing country producers will, first and foremost, need to fulfil a set of basic qualifications in order to trade. These are: sufficient scale ( i.e. ability to deliver orders in reqd. volumes); competitive price; good quality; consistency and reliability; ability to meet the target markets mandatory technical regulations and SPS measures including health and safety regulations (i.e. to pass customs inspections and achieve premarket product approval if applicable). In terms of social, environmental and safety issues, all companies are called upon to respect the laws that
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have, in turn, enabled them to attract new clients. Furthermore, many companies indicated that their efforts have boosted employee morale, with subsequent rises in productivity. When first confronted with private standards, producers in developing countries may face dilemmas or tradeoffs between continuing their business as usual and their buyers requirements. A major problem encountered by suppliers is the trade off between buyer demands in terms of product prices and delivery times, on the one hand, and demands in terms of labour conditions, on the other. For example, many buyer codes of conduct prescribe a maximum number of working hours per week, per employee in relation to labour rights and norms. Yet, if buyer demands in terms of production time and volume remain high, suppliers may face a trade off between respecting norms on maximumworking hours and the companys productivity level. Employees may be required to be more productive in less time and, unsurprisingly, this is not always a welcome development for those employees.
apply to them. Clearly, many producers in developing countries have not yet encountered private standards. These companies are often found further down the value chain (e.g. subcontractors of exporting companies) and might be selling through wholesalers or distributors, or they may be producing for local, regional or other markets that are less demanding in terms of social and environmental production conditions. However, even a company that has not yet been confronted with private standards can already meet a large portion of compliance criteria without being externally audited or certified.
Five things you should start doing when faced with a private standard
1. Ensure you have copies of all relevant local laws and regulations that apply to your sector (incl. health and safety, environmental, and labour regulations) 2. Study the standard and identify the additional requirements 3. Make an internal audit list 4. If you do not have one, start a basic documentation system including as a minimum: copy of all worker IDs record of hours worked by each employee record of salary earned by each worker 5. Designate a staff member to be trained and to be responsible for achieving and maintaining compliance with laws and regulations
Getting Involved
Private standards involve both costs and benefits. Most of the costs should more properly be looked on as investments since, in the long run, they can result in higher returns. These investments do not only create export opportunities because brands and retailers require compliance, they will often also contribute to enhancing the companys competitiveness and can make operations more efficient. For example, improved health and safety measures might result in a decrease in absenteeism. Virtually all the companies interviewed for this study indicated that their competitiveness has improved as a result of efforts to improve social and environmental conditions at their production sites since these changes
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Another common complaint is that the norms imposed by the predominantly western buyers may not naturally match the local culture. For example, one of the companies in this survey indicated that its buyers pose restrictions on using temporary contract labour although, in reality, its (mostly female) workers tend to prefer temporary, instead of permanent, work contracts and wish to work on a piece rate basis. When private standards pose requirements that go beyond national law, compliance may require unforeseen investment, as well as knowledge and experience the company does not yet possess. In all cases, establishment of a management and documentation system to comply with a buyers standards starts with five basic steps.Companies are advised to monitor the costs, investments and benefits attached to private standards from the moment they start implementing the social and environmental requirements, as this will create a record of the resulting benefits measured against the costs incurred. The fundamental rationale for exporting companies from developing countries who need to comply with social and/or
environmental buyer requirements is simple. Basically, they have to accept that private standards and buyers codes of conduct are not going to go away and, if they wish to start or continue a business relationship with these buyers, they will need to comply with their codes of conduct. To put it differently either suppliers comply with their (potential) buyers requirements within an agreed timeframe or their contract will not materialise or will terminate after a certain time. This reality can be tackled in either a reactive or proactive manner. The latter course is recommended since the proactive strategy will bring with it competitive advantages in the long run.
Information derived from a research report by CBI, Netherlands
orthcoming events
Forthcoming International Fairs & Exhibitions

Events having EPCHs Participation
APRIL 2011
Hong Kong International Home Textiles Fair & Hong Kong Houseware Show
April 20-23, 2011; Hong Kong Products: Bedroom Textiles, Table/Kitchen Textiles, Interior & Decor Textiles, Carpet & Floor Coverings, Bathroom Textiles, Baby Textiles, etc.
Other Events
MARCH 2011
Gifts Expo
March 21-24, 2011; Moscow, Russia Products: Gifts and Souvenirs, Handicrafts, Leather Items, Decorative Ceramics, Glasses, Porcelain, Metalware, etc. Venue: Manezh Exhibition Complex Organiser: Gifts Expo Ltd., Russia Tel: +7 (495) 775-25-32; Fax: + 7 (499) 126-01-60 Email: expo@gifts-expo.com; Website: www.gifts-expo.com
HKTDC Hong Kong Gifts & Premium

April 27-30, 2011; Hong Kong Products: Fashion Jewellery & Accessories, Pictures & Photo Frames, General Gift Items, etc. Venue: HK Convention and Exhibition Centre Organisers for both events: HKTDC and Hong Kong Exporters Association, Hong Kong Tel: (852) 1830 668, (852) 2240 4583 Fax: (852) 2824 0026; Email: exhibitions@hktdc.org Website: www.hktdc.com
Gifts Exhibition Kuwait 2011

March 31 - April 09, 2011; Kuwait Products: Jewelry, Decoration, Home & Office Design, Furniture, Lighting, Handicrafts Venue: Kuwait International Fairs Grounds Organiser: KIF (Kuwait International Fair), Kuwait Tel: +965 538 7100; Fax: +965 539 3872 Email: info@kif.net; Website: www.kif.net
Business Opportunities
ABBARA TRADING CO. Csomagolo Kft., Damjanich Janos u. 7/a, Veszprem, HUNGARY Contact : Sukanda Jaya; E-mail : spl@writeme.com Interest: Looking for suppliers on regular basis to supply work of arts and c rafts, decorative and gifts, fashion jewellery and embellished ladies clothing. CNCL SARL 11 rue de la gare 65140 RABASTENS, FRANCE Contact : Faroud Lionel; Telephone : 33 562 966 270 Fax : 33 562 966 202; E-mail : sarl.cncl@orange.fr Interest: Looking for new suppliers porcelain, ceramic, textiles and wooden items. AGENT IN CANADA Contact : Renita Fernandez; Telephone : 416-823-5507; E-mail : renita.lic@hotmal.com Interest: NRI from Canada, keen to promote Indian handicrafts in Canada. Looking for information on suppliers. ABBARA TRADING CO. Csomagol Kft., Damjanich Jnos u. 7/a, Veszprm, HUNGARY Contact : Sukanda Jaya; E-mail : spl@writeme.com Interest: work of art & crafts, decorative & gifts, fashion jewelry &
ladies clothing, party wear & casual wears in cotton, silk & rayon fabric in good prints, embroidery & patch work (Hand work is preferred). 22 CRAFTCIL January 2011
MAY 2011
Furnidex Arabia 2011
May 08-11, 2011; Jeddah, Saudi Arabia Products: Decoration, Home & Office Design, Furniture, Lighting Venue: Intl. Exhibition & Convention Centre Organiser: Al Harithy Company for Exhibitions Ltd, London, UK Tel: +44 (0)20 7223 3431; Fax: +44 (0)20 7228 4229 Email: international@acexpos.com Website: http://www.acexpos.com
Global Interiors Home Collection Show

March 13-17, 2011; New York, USA Products: Textiles, Home Furnishings and Decoratives Venue: 295 Fifth Avenue, 230 Fifth Avenue and 7 West 34th Street Organiser: Home Textiles Today Tel.: +(203) 329-9553, +(646) 805-0226 Email: jvcarena@gmail.com Website: wshoulberg@hometextilestoday.com
mpex
This column is compiled by Consultant [EXIM Policy] of EPCH. It contains recent Public Notices, Notifications and Circulars of DGFT, CBEC and Department of Revenue. If a handicraft exporter has question[s] to ask on Foreign Trade Policy, he/she may please write / e-mail to EPCH at policy@epch.com
Impex # 1
EPCH succeeds in getting Custom Circular issued to remove custom classification disputes in customs in export of handicrafts
Classification of many items sought to be exported as handicrafts becomes quite a difficult problem in customs in as much as certain objective and subjective. Characteristics of handicrafts have to be satisfied for the item to be categorised as handicrafts. While serious differences of difference do not normally arise on account of objectives, the subjective may remain unreconciled. In fact in any export group, the problem of classification is not as evident and typical as incase of handicrafts. It was brought to the notice of EPCH that Moradabad custom was asking for the certificate of EPCH/D.C (H) for each and every consignment of artware and handicrafts to the effect that these items being exported were handicrafts only. Consignments not having such certificates were necessarily examined. Further at some field formations, certification by EPCH/ D.C (H) invoices were not accepted. Certification only on the body of the shipping bill was insisted, etc. Since the practice of the custom as detailed above was not only hampering export of handicrafts but causing harassment and losses to them, the seriousness of the issue was brought to the notice of Department of Revenue by EPCH. Recognising the seriousness of the issue, the Department of Revenue has issued a custom circular No D/2011-Custom, dt 18-11-2011 containing the clarification that custom should not ask certificate from EPCH/D.C (H) for all consignment as a routine but only in cases of doubt. There are many other useful clarifications in the custom circular referred to above. Handicrafts exporters may please study the circular and insist upon the custom to go by the instructions in the circular. Copy of Custom Circular No. 7 dt. 18-11-2011 referred to above is reproduced below: Export of handicrafts and artware items under Drawback Scheme - reg. I am directed to invite your attention to the Board circular No.03/2010-Cus dated 12.02.2010 regarding classification of handicraft and artware items in the Drawback Schedule. The circular clarified that the assessing authorities should normally accept certificates issued by the Development Commissioner (Handicrafts) / EPCH certifying the goods as artware/ handicrafts. A decision to reject a certificate issued by the Development Commissioner (Handicrafts)/ EPCH should be taken only with approval of the Commissioner of Customs / Central Excise and after discussions with the certificate issuing authority. Exports should not, in the mean time, be held up. The circular also clarified that consignments of artware and handicrafts should be classified in the Drawback Schedule in accordance with condition (3) of the Drawback Schedule which provides that all artware or handicraft items shall be classified under the heading of artware or handicrafts (of constituent material) as mentioned in the relevant chapters of the Drawback Schedule irrespective of their classification under the HSN. 2. It has been reported by Moradabad Handicrafts Exporters Association and Export Promotion Council for handicrafts (EPCH) that following issue of this circular, certificate from EPCH / Development Commissioner (Handicrafts) is being asked for each and every consignment of artware and handicrafts. Consignments not having such certificates are necessarily examined. Further, at some field formations certification by EPCH / Development Commissioner (Handicrafts) on invoices is not accepted. Certification only on the body of the shipping bill is insisted citing the Board circular No. 56/99-Cus dated 26.08.1999. 3. It has also been represented that lamps/lanterns predominantly made of glass are not considered as handicrafts and exporters are not allowed to use the word 'handicraft' in the description while filing shipping bills for these items even when certificates of Development Commissioner (Handicrafts) certifying these goods as handicraft are submitted. As a result, exporters are deprived of the benefit of FPS which is available only on artware/handicrafts. Further, at some field formations, in case of artware or handicraft item made of more than one constituent material, drawback is either allowed on constituent materials separately or is allowed only on one of the constituent materials.
impex
4. The matter has been examined. It is hereby clarified that certificate from EPCH/ Development Commissioner (Handicrafts) should not be asked for all consignments of Handicrafts/artware as a routine but only in cases of doubt. Certification of EPCH/ Development Commissioner (Handicrafts) on invoices may be accepted notwithstanding anything contained in the Board circular No. 56/99-Cus dated 26.08.1999. Certification on photographs may also be accepted and the exporter, if required, may use the certified photograph for subsequent export consignments of that product. Further, every consignment which does not have Development Commissioner (Handicrafts)/EPCH certificate, need not be examined. The Board's circular No.6/2002-Cus dated 23.01.2002 which prescribes examination norms for exports under drawback and other EP schemes should be applied to artware/handicraft consignments also. Normally, packages/shipments selected by the EDI system for examination only should be examined unless there is some intelligence suggesting fraud/misuse. If there is a doubt on such examination about the goods being artware/handicraft, certificate from Development Commissioner (Handicrafts)/ EPCH may be asked for. As clarified by the Board vide circular No. 3/2010-Cus dated 12.02.2010, certificates issued by EPCH/Development Commissioner (Handicrafts) should normally be accepted and a decision to reject them should be taken only with approval of the Commissioner and after discussions with the certificate issuing authority. Exports should not, in the mean time, be held up. 5. It is also advised that as clarified by the Board vide Circular No.3/2010-Cus and as provided in condition (3) of the Drawback Schedule Notification No.84/2010-Cus (N.T.) dated 17.09.2010, alignment of Drawback Schedule with the customs tariff is not applicable to artware / handicraft items. If the export items such as lamps/lanterns are artware/ handicraft items, they should be classified as artware/ handicrafts in the specific headings provided for artware/handicraft items of iron, glass, brass, iron and steel etc. in various chapters of the Drawback Schedule irrespective of their classification in the Customs Tariff / HSN and irrespective of whether there are other headings, covering those products more specifically, in the Drawback Schedule elsewhere. Further, as clarified by the Board vide circular No. 3/2010-Cus dated 12.02.2010, artware or handicraft article made of more than one constituent material should be classified as if it is made of that constituent material which predominates in it by weight. Once classification of such article in a heading/sub- heading of the drawback schedule has been determined, then the drawback rate and cap prescribed against that heading/sub-heading should be applied to the whole article irrespective of the value or weight of different constituents. 6. A suitable public notice for information of the Trade and Standing Order for guidance of the assessing officers and for strict adherence may be issued. Difficulties faced, if any, in implementation of the circular may please be brought to the notice of the Board at an early date.
Impex # 2
Frequently Asked Questions
: Banks deduct certain commissions from the export remittance in lieu of service provided by them. The service tax authorities are not allowing refund on such deduction. Refund should be allowed on the gross earnings.
Ans : Refund is admissible on the gross amount received for exports. Deductions made by the bank from export remittance, in lieu of the services provided by the bank, should not be deducted while granting refund, you may approach the service tax authorities accordingly. Q : Are service tax refunds admissible for the quarter April-June 2007 as it was announced in the Foreign Trade Policy from 1.4.2007?
Ans : Service tax Notification No. 41/2001 exempts service tax on specified taxable service used for export of goods. This exemption is operated through a refund mechanism. Being prospective in nature, refund could only be sanctioned on taxable services provided on or after the date they are notified in the said notification, i.e., 6.10.2011. Q : What is the policy and limit up to which samples can be imported without payment of custom duty?
Ans : Duty free import of samples up to Rs. 300,000 is permitted for all exporters as per terms and conditions of Customs Notification No 154 dated 13-07-94 as amended from time to time.
impex
Q : We have taken a zero duty EPCG authorization in the current year. Are we eligible to obtain SHIS in the same year? If not can we claim it during 2011-12?
Ans : The Handbook of Procedure Vol 1 (RE 2010) has made it clear by providing in paragraph 3.10.3 to the effect that Status Holder Incentive Scrips (SHIS) will not be issued in the year in which Zero Duty EPCG authorization has been issued. Moreover, SHIS Scrips, which are not issued in a particular year for the reason that Zero Duty EPCG authorization has been issued in that year, shall not be issued in subsequent years also. Q : We want to convert a shipment erroneously made under advance Authorisation in November 2010 to DEPB. What are the conditions for such change?
Ans : Conversion in such cases is permitted provided the following conditions are met: a) The request for conversation is made within three months from the date of the Let Export Order. b) On the basis of available documents the fact of use of inputs is satisfactory proved in the resultant export product. c) The examination report and other endorsements made on the shipping bill/export documents prove the fact of export and the export product is clearly covered under relevant SION and or DEPB Schedule. d) On the basis of S/Bill/export documents, the exporter has fulfilled all conditions of the DEPB Scheme. e) The exporter has not availed benefit of DEPB and no fraud/misdeclaration/manipulated initiated against him in respect of such exports.
ATTENTION EXPORTERS
Port related and other charges received from Jawaharlal Nehru Port Trust dt. 03.02.2011
Container related charges for ICD stuff containers at all three terminals of Jawaharlal Nehru Port Trust received from JNPT, to Northern India Shippers Association (NISA) vide reference No. JNP/FIN/CT-R/2011/ 1378 dt. 10.01.2011 communicated by Shri K. V. Rajan, Senior Manager (Finance) as reproduced below for the information of all concerned members: Port Related Charges Per TEU (In Rs.) (Loaded) Terminal From Ship to Container Yard & Vice Versa Foreign JNPT NSICT GTI 2210 2699.84 2761.20 Coastal 1326 1619.90 1656.90 From Container Yard to Railway Flat & Vice Versa Foreign 1105 1349.92 1380.60 Coastal 1105 1349.92 1380.60 Foreign 3315 4050 4142 Total
Coastal 2431 2970 3038
In addition to above, JN Port is collecting Containers Rail Operation charges amounting Rs. 400/- for 20" containers and Rs. 800/- for 40" containers. Scale of Rates for JNPT/NSICT & GITI is available at Site: www.tariffauthoroty.gov.in.
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ews briefs
Vintage shimmer and shine
trends from 1960s dominant
Assam to get countrys first Bamboo Park

to be comissioned within 2 years
Bamboo-based industry in Assam and North-East is up for a major transformation as Assam will soon have the country's first and a state-of-the-art Bamboo Technology Park to boost bamboo cultivation in the state and the region. The foundation stone of the Park was recently laid by Assam's Industry Minister, Mr. Pradyut Bordoloi. The Park, which is being constructed at an estimated cost of Rs 63 crore, is expected to attract at least Rs 200 crore investment in future. When completed, it would generate direct employment for at least 2,000 people. The Park, which would be commissioned within 2 years, would be an environmentfriendly complex spread over a sprawling area of 60 bighas of developed land. Among other facilities, the Park will have a state-of-the-art common facilities centre, effluent treatment plant, dedicated power supply, research and development centre and an artisan training centre. Around 24 industrial units are expected to come up in the Park and would manufacture bamboo based products like furniture, handicrafts, incense sticks, flooring, textile, bamboo shoot and so on. Worldwide, bamboo is fast becoming a viable substitute of wood in industrial applications due to the environmental hazards associated with tree felling. As a matter of fact, a number of bamboo-based manufacturing units have sprung up in the North Eastern Region in past few years; creating employment opportunities for the locals. These units have not only sustained, but have also been quite successful and are profit making, testifying the point that there lies enormous opportunity in setting up bamboo-based industry in North-East. The North-East is recognised as one of the largest reserves of bamboo in India and is home to more than two-thirds of the bamboo stock of the country. About 89 bamboo species out of 126 recorded in India grow naturally in the different forest types of this region or are cultivated across its tropical and sub-tropical belts. Source : Business Standard
One of this year's big home decor trends is vintage shimmer and shine from the 1960s. From glossy flooring, sequined pillows and rich satin fabrics, here are a few glittering trends to look out for this year : Shiny Floors - The luxe look of silk/wool area rugs add rich colour and sheen to the floor. Deep colours of charcoal grey and chocolate brown are popular colours right now. Look for deep purple, greens or pink colours landing on our floors soon. Leather flooring add sheen and texture. Made of recycled leather, they add a sense of penthouse sophistication. Sequin and beads - Although sequins may feel scratchy, no one will argue that their glitter and shine doesn't add a sense of party-glamour to a room. A decorative sequined pillow, beaded lampshade or a drapery panel dotted with a few shiny bobbles will add whimsy and celebration to a room. Sari fabrics from India are in. Satiny Fabrics - The soft sheen of leather is coming back, and this time around leather will be in a plethora of colours. Mainly inspired by 1960s style, the simple furniture shapes with fashionable coloured leather will help make a statement in the living and family room. Leather not your style? Consider a traditional styled, button-tufted sofa upholstered in a thick satin fabric. Upholstering a wall in faux leather or satin gives a luxurious hotel look to a bedroom. Glossy furnishings -Small spaces take well to supergloss/shiny surfaces as they help to reflect light and look airier than heavy wood. Kitchen cabinets in eyepopping colours are in. Heavy-looking coffee tables or dressers can be topped with thick glass to help create reflective surfaces and lighten the overall look.
news briefs
Household furniture market
to flourish in Saudi Arabia
The household furniture market in Saudi Arabia is expected to grow at a CAGR of around 9.2% during 2011-2013, says RNCOS in its latest research report. Saudi Arabian furniture industry has emerged as a fast growing and highly untapped industry during the past few years. With the entry of a number of real estate developers and increasing demand for residential property, the housing industry has witnessed tremendous growth in the past. This has infused growth in the household furniture market of Saudi Arabia. According to the research report "Saudi Arabia Furniture Market Analysis", various emerging trends in this product category will lead to a CAGR growth of around 9.2% during 2011-2013. The research has also identified the main product categories, which are leading the household furniture market in the Kingdom. Some alternative materials are used in view of environmental concerns to reduce the consumption of wood. The office furniture segment has also witnessed growth during the past few years with country's trail to diversify its GDP in non-oil sectors. Further growth in this segment will be led by various economic cities development along with MNC's business expansion in various regions of the Kingdom. At present, furniture production is skewed towards household segment and office furniture's account for a low but growing share. The futuristic trend in furniture production is very much balanced. Various economic cities construction in the Kingdom will constitute Million's Sq m of commercial and residential space in future. RNCOS (rncos.com) specialises in Industry intelligence and creative solutions for contemporary business segments. Chairman, EPCH, Mr. Raj K Malhotra, led an EPCH delegation for an interactive consultation with the Finance Minister, to discuss issues required to be addressed in the forthcoming Union Budget 2011-12. Issues like Service Tax for participation in Business Exhibitions in India and overseas; waiving of Service Tax on membership fee of the Council; exemption from Income Tax under 10BA for all handicrafts items and continuation of subvention of interest were strongly represented. The points raised were well received during the discussions and EPCH hopes that the handicrafts sector will certainly attract the attention of all concerned at the highest level and will be able to garner benefit in the forthcoming budget. EPCHs Pre-Budget Proposals for the year 2011-2012 (a) Adding the name of EPCH in Service Tax Notification no. 43/2007-Service Tax dated. 29.11.2007 and also extend exemption beyond 31st March 2009. The Ministry of Finance issued an exemption notification wherein ten EPCs have been allowed to provide the relief to their member exporters for participation in business exhibition. The Export Promotion Council of Handicrafts has not been included in spite of repeated requests in the matter and is finally pending with the Department of Revenue F.332/34/2008-TRU dt.24.10.2008. Exemption on Service Tax paid by exporters while participating in intl. shows. The members of the Council while participating in International shows have to pay service tax on the participation charges when they pay in Indian rupees to the Council. However, if the space in the same fair is booked by exporters directly, it is not required to pay the tax when he remits fees in foreign currency such as US$/ GBP / Euro, etc. The service tax in such cases prove as an extra burden to the exporters, thereby making it difficult for the Council to generate participation. (b) Waiving of Service tax on Membership fee of the Council. In the Budget for 2009 announced on 06.07.2009, exemption has been provided for payment of service tax on the annual membership fee of Export Promotion Councils till 31.03.2010. It is requested that this exemption should be made permanent. (c) Exemption from Income Tax under 10BA The decline in handicrafts exports has been arrested in 2009-10 but in order to sustain the growth and achieve the export target the benefit under section 10BA Income Tax Act (earlier available for wooden handicrafts till 31.03.2009) to be extended and made available on all handicraft items. (d) Continuation of subvention of interest of two per cent beyond 31.03.2011 With effect from 01.07.2010 rupees export credit interest rates will be charged by the banks with reference to base rates. As per RBI directive no bank is allowed to charge less than its base rate. Only few banks have base rate of 8%. All others have base rates above 8%. It means the export credit shall not be available at 7% on export as is available to agriculture inspite of the fact that export too is a priority sector like agriculture. In view of this it is desirable that the interest rate subvention of 2% due to expire on 31.03.2011 is continued beyond 31.03.2011.
EPCH meets Honble Finance Minister

pre-budget consultations well recieved
news briefs
Government scheme for Goa artisans
training programmes to be conducted
With the aim of generating self-employment, the Goa state government has formulated a scheme under which three different types of handicrafts training programmes will be conducted in order to prepare various handicrafts and allied items, their design development and use of the latest technology in making them. Under the scheme, Goa Handicrafts, Rural and Small Scale Industries Development Corporation Ltd (GHRSSIDC) is to conduct training programmes, design development workshops, seminars, demonstrations, etc for artisans, youth, members of self-help groups etc, consisting of a batch of 20 to 30 candidates each all over Goa. This is expected to offer opportunities especially to rural youth and women to get exposure to the new products of rural, small scale handloom, khadi, textile, village utility items/cottage industries items, in addition to traditional handicrafts items. Experts from within and outside Goa will provide the training and assistance will be obtained from government polytechnics, state directorate of craftsmen training, reputed national design and industrial training institutes etc. Each training programme will be made comprehensive and focused so as to enable various learner groups to acquire skills, which can withstand the rigorous demands of the market for quality parameters. The GHRSSIDC will also organize specialized training programmes aimed at improving the skills of existing artisans by getting specialized trainers/subject matter specialists from reputed design institutes, school of art, etc. The GHRSSIDC will lay emphasis on drawing up training programmes for native Goan handicrafts like brassware, coconut shell crafts, terracotta, Azulejos tiles and also the languishing native crafts of the state.
TUFS to resume
Govt. gears up to boost textile units
In a major development for the textile sector, the Union Textiles Minister,Thiru Dayanidhi Maran, announced that all applications for subsidies under the Technology Upgradation Fund Scheme (TUFS) up to June 30 have been processed and the amounts would be credited to the bank accounts of the beneficiaries. In all, 12,514 applications have been cleared and the subsidy amount totalled Rs. 2,546 crore. This is the largest amount ever released under the scheme in a single tranche. Noting that the President gave her assent for the Finance Bill, which provided for an allocation of Rs. 3,140 crore to wipe out the pending applications as also to provide for new applications during the current financial year on July 31 only, a visibly proud Minister said, within six days, my team of officers have been able to process all applications filed before June 30 and work out the mechanism for crediting the amounts in the accounts of the beneficiaries in a record period of three days . Thiru Maran said,the Govt. is fully geared to help the textile sector. I am sure the Finance Minister will provide more funds for the Scheme if there was a need He also announced the constitution of . a 41-member working group headed by Textiles Secretary, Ms. Rita Menon to formulate a National Fibre Policy. The panel has representatives from the Govt., the trade and the user industry. It will submit its report within three months. The policy would be unveiled before the end of the year, he said. At the time of assumption of office itself, Mr. Maran had announced a plan to set up the committee. Its main agenda would be to examine how to promote use of fibres equitably as to ensure a balanced growth of the entire textiles chain keeping in view the future trends and the present consumption pattern both for domestic and export markets.
vents in india
Tex Trends India 2011, 2-4 February, 2011

Select showcase by EPCH member exporters
The maiden edition of Tex Trends India 2011 ran a successful course from 2-4 February, 2011, at Pragati Maidan, New Delhi. An initiative by the Ministry of Textiles in association with 11 Export Promotion Councils, this exposition featured AEPC (as the lead Council), EPCH, SRTEPC, PDEXCIL, TEXPROCIL, WWEPC, National Jute Board, CEPC, HEPC, WWEPC and Indian Silk EPC. The exhibition, spread over 50,000 sq. mts. covering almost 800 stalls not only showcased garments and accessories but also a wide range of products like home furnishings, handlooms, textiles, jute and carpets. This was inaugurated by Hon'ble Minister of Finance, Mr. Pranab Mukerjee in the presence of Union Minister for Textiles, Thiru. Dayanidhi Maran; Minister of State for Textiles, Mrs. Panabaka Lakshmi; Secretary, Textiles, Mrs. Rita Menon; DC (Handicrafts), Mr. S S Gupta; immediate past President- FIEO, Mr. A Sakthivel and chairmen of various Export Promotion Councils. EPCH put up a select showcase of North Eastern crafts at an exclusive Theme Pavilion as well as a special staging of IFJAS-its sector specific show on fashion jewellery & accessories. A total of 116 member exporters participated in this show.
Hon'ble Minister of Finance, Mr. Pranab Mukerjee being greeted by Union Minister for Textiles, Thiru. Dayanidhi Maran, at the Tex Trends India 2011 inauguration ceremony
Above: Union Minister for Textiles, Thiru. Dayanidhi Maran; Minister of State for Textiles, Mrs. Panabaka Lakshmi; Secretary, Textiles, Mrs. Rita Menon and other dignitaries at the EPCHs display area with Chairman, EPCH, Mr. Raj K Malhotra and ED, EPCH, Mr. Rakesh Kumar. Below: The dignitaries at the North-East Theme Pavilion
At the fair grounds: DC (Handicrafts), Mr. S S Gupta; Chairman, EPCH, Mr. Raj K Malhotra ; ED, NCDPD, Mr. R K Srivastav; Mr. Saurabh Chandra, Addl. Secretary & FA, Ministry of Textiles and ED, EPCH, Mr. Rakesh Kumar CRAFTCIL January 2011 29
trategies
Trade Show Success
planning & executing a successful participation

Effective exhibiting can contribute substantially to revenue generation. It takes thoughtful planning, focused implementation and timely follow-up to fully realise your sales potential from your event strategy. Trade Show mistakes can significantly impact results. in and around their booth area. Without proper training, some staffers may not realise how inadvertent actions and appearances can impact an organisation's reputation and sales effectiveness at a show.Your trade show results are directly tied to the effectiveness of the people who work your booth. They are a direct reflection of your company and its quality, culture and service. Be sure they are fully trained on objectives of each show as well as: The specific sales message that must be consistently delivered Which high-opportunity prospects/customers will be at the event How to perform effective product demonstrations How to engage booth visitors and collect lead information What materials to give visitors and how you want it done Collecting inconsistent or incomplete lead information Your booth staff must be well trained on how to quickly and consistently assess, through two-way dialogue, visitors' interests, needs, buying power and decision-making ability. This is essential to determining if your product is a good fit and if a booth visitor is a "low," "medium" or "high" opportunity prospect. As a result, a lead tracking system based on your product or service must be in place for collecting, tracking and followingup on all leads with an appropriate action plan.
Planning the participation :

Failing to craft a plan with quantifiable objectives To ensure success, you must have a detailed event plan that covers: Pre-show initiatives; Activities during the event; and Post-show follow-up. Essential to your plan are specific objectives that describe what you want to accomplish such as leads generated, sales completed, incremental revenue from current customers, etc. Neglecting to develop a detailed budget As part of your planning process, you need to make sure you have a handle on all your projected expenses and forecasted revenue so you can determine a returnon-investment for each show you attend. Limiting time to produce promotional items Waiting to the last minute to have your exhibit booth and other items developed is one of the biggest trade show mistakes you can make. Your image and effectiveness is at stake when you do not allow enough time to produce everything you need for your exhibit. When things are rushed, mistakes are easily made and corners are sometimes cut. In addition, you may incur significant rush and overtime charges, which can erode your profit. Not training booth staff It may seem like common sense, but it is not unusual to see staff at trade show exhibit displays potentially hindering exhibiting success through their behaviour
strategies
At the show :
Focused Approach Train your trade show sales team to have a needs-focused approach. By engaging attendees in conversation, questioning and listening more than talking, and truly focusing on solving the attendee's problems, you are far more likely to make a sale the attendee is satisfied with. The key to this is five questions, the Familiar Five that should be part of every trade show sales conversation: What: What exactly does the attendee need? Perhaps the product works perfectly, but it's too expensive. You need this answer before you can move on to any other questions. Why: Why would your company be the best suited to meet the attendees' needs? If they mention constant technical difficulty, do you offer 24 hour support? Who: Relationships are key to business. Arm your trade show sales team with some corporate history, along with selling points that illustrate how things have changed in the interim. When: When your trade show sales team says something, attendees want to know they can count on that as fact. Clients want to know you have a track record and that you'll maintain it when they remain with you. How: How your company conducts itself is becoming a much more important factor to many of today's decision makers. Consumers want to avoid being tainted by association with any scandal-ridden firms. Body Language Now, admittedly, it can be difficult to fit all of the above into the thirty seconds you have with the average attendee. The temptation is to talk faster, attempting to cram in as much information as you can. But don't. Your job is to get them talking and once an attendee starts talking, they are far more likely to spend some additional time at your exhibit. Body language also plays a role in how your trade show sales team is perceived. There are five key things to remember. Keep your distance: Crowding can be intimidating, especially if the staff is of large stature and the attendee is smaller. A good rule of thumb is to keep at least one arm's length between the two of you. Keep your arms down: Some trade show sales staffers, especially the flamboyant, dramatic types, have a tendency to talk with their hands. This works fine in a social situation, but can be unnerving or distracting when you're trying to do business. Keep things open: Very skittish or shy types may subconsciously feel 'trapped' if you position yourself between them and the way out of your exhibit. You don't have to be an Old West Cowboy with this there's no need to always stand with your back to the wall but be aware of spatial issues and attempt to keep things open and comfortable. Keep an eye: On the way the conversation is going. If you have the slightest suspicion that an attendee is uncomfortable, or just doesn't like you, hand them off to another staffer. Sometimes personalities just don't click, and it's better to step out gracefully than attempt to blunder through the encounter. Keep an ear: Open for what the attendee is saying. People can tell when you're really listening and when you're going through the motions. A million subtle physical cues give it away. Don't try to 'phone in' your interest. Pay attention!
Post Show Evaluations :

The close of the tradeshow doesn't mean the work is over. Focused, aggressive follow up is how the sales are made, but follow up is where many tradeshow exhibitors fall short. Timing is critical. Don't let a hot prospect become a cold lead because too much time has passed before you've made contact. Your post-show strategy should be fairly simple: call the most serious prospects within two days. Then follow up with all your leads within five business days, either by email or phone. The longer you take to make contact with the customer, the more chance there is of another exhibitor getting their business. What about the contacts that aren't considered good prospect or leads? Email all attendees who provided their contact information. Thank them for stopping by your booth and repeat the message, sales point or offer you were promoting at the show.
strategies
Not all leads are created equal. Prioritise your leads. Which need specific information and which need more general information such as a fact sheet? Hot leads need an immediate follow up-the next day-with either a phone call or email. This is the time to provide the quote they asked for, or to answers questions, the real reason for your follow up. If you were asked to provide information to someone who has decision-making authority, do so the next day. Waiting too long or not doing lead follow-up Ignoring your trade show leads once you return from your event is like leaving money on the table. Within a day (preferably) and a week at the most, you need to follow-up with a phone call, sales packet, personal letter and/ or hand-written note to turn 'warm" leads into "hot leads and eventually into buying customers. Make sure you have detailed your follow-up strategy in your initial trade show plan and have everything you need for immediate implementation upon your return. Failing to complete a show evaluation To ensure you hedge against any trade show mistakes in the future, always complete a show evaluation that includes quantifiable measures such as goal attainment, budget/ expense reconciliation, and a return-oninvestment calculation. In addition, discuss qualitative factors with your booth staff that may impact how and where you exhibit in the future. Prospect your "Turn Downs" Obviously not all your leads will be interested in buying your product or service. This doesn't mean that warm or even cold leads should be ignored. Give them an alternative to purchase and offer a way to keep in touch. This can include putting them on your newsletter mailing list, inviting them to participate in webcasts, or sending them articles or whitepapers about your industry. The goal is to cultivate these leads and keep actively engaged with your company until they are ready to purchase. Evaluate your performance One of the most important post show activities is to evaluate your performance to help you plan future events.
Inputs : Trade Show Advisor
Advertise in CRAFTCIL
Reach out to the Home, Fashion & Lifestyle Products Industry
Size / Position No of Insertions Discount Offered Back Cover Inside Front Cover Inside Back Cover Full Page Colour Full Page B&W Half Page Colour Half Page B&W Display Box Colour Display Box B&W Gatefold on cover* Rates per insertion in Rupees (1-2) None 50,000 40,000 35,000 25,000 20,000 15,000 12,000 7,000 5,000 80,000 (3-5) 7.5% 46,250 37,000 32,375 23,125 18,500 13,875 11,100 6,475 4,625 74,000 (6-8) 15% 42,500 34,000 29,750 21,250 17,000 12,750 10,200 5,950 4,250 68,000 (9-12) 20% 40,000 32,000 28,000 20,000 16,000 12,000 9,600 5,600 4,000 64,000
* Every gatefold insertion would attract Rs 20,000 extra production charge. PS: Rates are effective January, 2011 and are subject to change. CRAFTCIL is the monthly official publication of the Export Promotion Council for Handicrafts (EPCH) reaching all its members (7000+) besides other recipients and subscribers.
For bookings / queries contact: SHREYA COMNET Tel.: +91 11 22246094, 64631211; Email : mail@epbureau.com
Advertisement remittance in advance favouring Shreya Comnet Delhi (HDFC A/c with Mayur Vihar Phase II, Delhi 91 branch CA No-02932560000061)
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vents overseas
EPCH at Atlanta Gift & Home Furnishings Market

14-18 January; Atlanta; USA
Atlanta Gift & Home Furnishings Market 2011, one of the premier events for wholesale gifts and home furnishing companies, brings together over 50 states of host country-USA and over 90 countries from across the world. Prime visitors include importers, exporters and representations from children's stores, gift & toy shops, department stores, florists and gardeners, etc. This market is also attended by half a million attendees, engaged in buying gifts and home furnishings. This edition was in full swing, attendance was high and the mood was very upbeat. This was hosted by Americas Mart Atlanta. According to a release from the market center, attendance gains approached the double-digit mark. At the market's closing bell, reviews were strong and getting stronger as exhibitors tallied sales and retailers departed with good orders placed and optimism running high for 2011. This January marked the debut of several new categories and events, including HD Home, Birding & Backyard Nature, Global Designs and design-drive Home presentations. The spectrum of exhibitors included specialists in garments, furniture, tabletop, linen & textiles, carpets, rugs & other floor coverings, decorative accessories, stationery and many others. The EPCH team was led by Mr. Arvind Vadera, COA Member-EPCH, who coordinated members' participation in the event and actively represented & motivated them. It had 5 National Award winning master crafts persons, 1 entrepreneur deputed by O/o DC (Handicrafts) and 2 Govt. organisations-ARTFED & PSIEC. In addition to the exhibition of Indian handicrafts, EPCH arranged for the live demonstration of craft making by the National Award winning crafts persons. The visitors appreciated the unique craftsmanship and even tried their hands at craft making. The Council put up the India Pavilion in an area of 800 sq. ft. EPCH also prepared a brochure for awareness and brand image promotion of Indian traditional handicrafts.
Sampling display products by Master crafts persons at the India Pavilion
A buyer stands next to the EPCHs promotional booth
Promotion of IFAS 2011, Jodhpur at the show CRAFTCIL January 2011 33
events overseas
Indian crafts skills entice Russian connoisseurs

17-20 January; Consumexpo; Moscow, Russia
The 23rd edition of Moscows acclaimed Consumexpo was organised at Expocentre Fair grounds from 17th 20th January, 2011. This UFI event takes place under the auspices of the Russian Chamber of Commerce and Industry and the Moscow Government. EPCH participated with a team of 6 master crafts persons and 1 entrepreneur, all showcasing various categories of crafts like, chickan embroidery, kanni shawls, straw picture making, thewa art, kota saree, coconut shell carving, etc. A display of products by master crafts persons was also made and a live demonstration of their skills also took place during the event. The India Pavilion was visited by Mr. Gulab Singh Mehra, Second Secretary, Indian Embassy, Moscow. He interacted with participants and informed them about consumers choice in Russia. He advised them to adopt designs accordingly for competing in the market. As per feedback, enquiries in large numbers were registered besides good export orders. Being one of the largest and prestigious exhibitions in Eastern Europe, Consumexpo attracts manufacturers, importers and exporters of garments, leather products, antiques, kitchenware, home electronics/ appliances, bathroom items, furniture, general gifts, personal accessories, home repair items, home decoration, leisure items, sports & health items. This edition gathered participation of over 500 companies from 21 countries like, Austria, Bangladesh, Belarus, Belgium, China, Czech Republic, Denmark, France, Germany, Great Britain, Hungary, India, Italy, Japan, Latvia, Netherlands, Poland, Portugal, Russia, Serbia, Spain, Turkey and Vietnam. Italy and Bangladesh showcased their national expositions. The exhibition spans an area of over 10, 000 sqm.
A view of the Indian Stand at Consumexpo
Live demonstrations of traditional Indian crafts by national awardee Master crafts persons at Consumexpo, Russia
The Homestyle Salon and Forum Pavilion display a wide range of household products. Souvenirs and gifts are exhibited within the Gifts and Souvenirs Salon. The Footwear, Leather Haberdashery, Clothing and Accessories Salon is located in a separate pavilion. This year they launched a new Business Development and Ready Solutions thematic section. New products and innovation technology were demonstrated by many companies here.
events overseas
EPCH promotes IFAS at international furniture show

18-23 January; IMM Cologne; Germany
Cologne - an increase of 38 percent over the previous edition. In order to generate awareness about the show and encourage buyers to visit the Indian Furniture & Accessories Show, a promotional booth of 12.5 m was taken by EPCH at IMM Cologne show in Hall No. 2.2. A lot of visitors turned up at the booth and enquired about the show and the special promotional scheme launched by the Council for the overseas buyers. Apart from one-to-one meetings with the furniture exhibitors of the show, a series of meetings were also held with trade associations representatives present at the show to discuss the possibility of future association with the Indian Furniture & Accessories Show, 2011.
A buyer gathers information on EPCHs IFAS from the Councils booth
The Council participated in IMM Cologne, Germany in its endeavor to promote its forthcoming product specific fairIndian Furniture & Accessories Show, to be held at Jodhpur from 6 - 8 March, 2011. The once in a year IMM Cologne is organised by Koelnmesse gmbH, Cologne. Koelnmesse stages around 70 international trade fairs and more than 2000 conferences, making it the largest trade fair company that operates its own site. The exhibition center is the fourth largest in the world with 284,000 m of exhibition space in 11 connected trade fair halls with 100,000 m adjacent outdoor space. The City of Cologne is Germany's fourth largest city and a hub of the European transport network. It generates 40% of Europe's entire GDP. In the furniture industry it is said, traditionally, the new furniture and design year starts with IMM Cologne. Also in 2011, at the first interior design exhibition of the year, IMM Cologne showcased trends for the coming months. Through inspired presentations, the exhibition halls became transformed experience of future furniture. The show is also known as The International Furnishing Show. This edition had 1213 companies from 48 countries which included 521 exhibitors and 32 additionally represented companies from Germany as well as 614 exhibitors and 46 companies from abroad. Foreign companies made up for about 54 percent of exhibitors. The events drew around 138,000 visitors to
rends
Emotional Austerity, Surprising Empathy, Re-Balancing and Transforming Perspectives Interior Trends for 2011 from IMM Cologne
Emotional Austerity
As bittersweet as dark chocolate
Austere beauties: The elegant ambiance is defined by clear and unostentatious aesthetics. And yet despite their severity, the forms and lines are anything but cold. Instead they betray the passion of their makers and owners for details and quality. In their search for the essence of things, the designers encounter classic and established forms that are equipped with new functions and produced with high-tech. This playful mixing with new technologies and the piecing together of old and new details are symptomatic of a desire to dismantle and rearrange that finds particularly strong expression in this trend: The cards are being reshuffled. With filigree forms and soft colours, these austere beauties appeal to both our heads and our hearts. They are joined by pretty but modest basic forms with boxy or rounded contours. The colours and materials are dominated by nature: wood, leather, felt and plant fibres are complemented by technical fabrics; an earthy olive hue dominates over lush and pale shades of green and is joined by powder shades from ros to brown.
Surprising Empathy
A surprisingly warm welcome
Shedding ballast: Who says the future isn't sensual? New forms and new materials are teaching us a new way of seeing things. What looks light turns out to be heavy and resilient, what seems heavy and solid captivates us with its lightness. This applies to both forms and materials. Volumes appear airy or are reduced to their outline, while honeycombed and woven structures add depth to two-dimensional surfaces. Light and flowing materials form a contrast with their cold and heavy counterparts. On the whole, the aesthetics are defined by angular and folded structures. The dominant colour is a cold grey, accompanied by ash grey and black and brightened up with vibrant dashes of citrus yellow and mandarin orange. A light taupe mediates between grey and white and adds a little softness to the colour scale.
trends
Re-Balancing
Reconfiguring the world
Furniture that thinks outside the box: Perhaps surprisingly, it is in the generally so tranquil world of harmony-seeking family-minded consumers that the box is becoming the epitome of universal furniture, a symbol of the search for personal, meaningful pieces populated by truly practical things - icons of everyday life. What doesn't fit is made to fit, and wherever people are content with their own company, the furniture ought to be unpretentious too. Even angular and simple individual structures can be fashioned into rounded and astonishingly comfortable opportunities for retreat - soft padding or sheepskins emanate a sense of luxury. The preference is for natural materials. The surface textures are knitted or woven, occasionally even hand-spun. A warm rhubarb-red radiates positive energy and warmth and is combined with creamy-white, corn-yellow and tan shades ranging from light brown all the way to terracotta.
Transforming Perspectives
Simple forms for complex things
Material as an experiment: As in performance art, this Interior Trend (unlike "Emotional Austerity") is not so much interested in a long-term relationship as it is in a snapshot, in a response to the nature cult, the hype surrounding cult objects or "green design". The protagonists try to convey their newly gained insights with the aid of archaic forms, simple solutions and it-products taken to clich-like extremes. A great deal of importance is attached to material finishes, to polished or matt surfaces. The experimental workshop of "Transforming Perspectives" prefers to work with foamed metals, composite mineral materials, glass and metal fabrics. A dark plum-blue provides the dominant background for both an artificial lavender shade and a dove-grey with a violet shimmer. Important features are emphasised in a caramel shade with a metallic-glow.
trends
Luster, Brights and Whites
Luster
The Luster trend is all about adding gloss and shine to everyday designs using bold reflective materials and glossy brass and chromes. Umbra products that fall under the category of Luster include Fairest Mirrors - thick unframed wall mirrors in the shape of old fashioned hand held devices.
Brights
Bringing color to everyday previously unnoticed objects is the main theme in the Brights trend. Previously average and functional household objects such as stools or photo boxes are transformed with either solid blocks of blue or streaks of radiant pinks, oranges and yellows.
Animate
Structure
Inspired by architecture, this trend is primarily about scale - how household objects such as Umbra's stackable fishbowl can be increased in size and retain their functionality, or how largescale objects such as London landmark Big Ben can be scaled down and reimagined as wall clocks while retaining their architectural silhouette.
This trend is based upon the idea of bringing life to design through the inclusion of animal motifs. However in this trend the "cuteness" of the animals in question is contrasted by their functionality and the material in which they are made - namely chrome or soft plastics.
Organic
This trend is similar to the "Transforming perspectives" movement identified by IMM Cologne; with both these tendencies the emphasis is on freeflowing forms that create a sense of natural organic design.
Whites
The Whites trend is characterized by solid, deep wall designs that literally stand out from the wall and draw the eye through the use of white on colored backgrounds. The trend also includes household objects such as soap dispensers comprising blocks of white and chrome.
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Hon'ble Textiles Secretary Announces: 200 Export Promotion Programmes For 44 Craft Stations

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Hon'ble Textiles Secretary Announces: 200 Export Promotion Programmes For 44 Craft Stations

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Honble Textiles Secretary Announces

200 Export Promotion Programmes for 44 Craft Stations

Pictures Awaited from EPCH

CRAFTCIL January 2011

(Raj Kumar Malhotra) Chairman, EPCH

CRAFTCIL January 2009 CRAFTCIL August 2011

Vol. No. V, Issue No. 8 (January 2011)

Inside this issue...

Export Promotion Council for Handicrafts

CRAFTCIL January 2011

Export Promotion Drive in Craft Clusters

The audience at the Symposium

CRAFTCIL January 2011

Secretary, Textiles, Mrs. Rita Menon chairs Symposium

Glimpses of the programme on 23rd January, 2011 at Jodhpur

Common Facility Centres, training programmes, etc. undertaken by the Council.

Programmes commence in Jodhpur

Workshop on Export Marketing Procedure & Documentation and Design Development

A display of products by weavers, exporters and artisans from Sitapur

Awareness cum Training Programme in Moradabad

An EPCH official coordinates the programme

Free Health Check-up Camp in Saharanpur

CRAFTCIL January 2011

IKEAs IWAY Standard

CRAFTCIL January 2011

The Oeko Tex Certificate

Buyers Code of Conduct (CoC)

Ethical Trading Initiative

Similarities & Differences in Buyers CoC

CRAFTCIL January 2011

Fair Labor Association

Strategies for Developing Country Suppliers

Forthcoming International Fairs & Exhibitions

HKTDC Hong Kong Gifts & Premium

Gifts Exhibition Kuwait 2011

Global Interiors Home Collection Show

Frequently Asked Questions

Coastal 2431 2970 3038

CRAFTCIL January 2011

Assam to get countrys first Bamboo Park

EPCH meets Honble Finance Minister

Tex Trends India 2011, 2-4 February, 2011

Trade Show Success

planning & executing a successful participation

Planning the participation :

Post Show Evaluations :

CRAFTCIL January 2011

EPCH at Atlanta Gift & Home Furnishings Market

A buyer stands next to the EPCHs promotional booth

Promotion of IFAS 2011, Jodhpur at the show CRAFTCIL January 2011 33

Indian crafts skills entice Russian connoisseurs

A view of the Indian Stand at Consumexpo

EPCH promotes IFAS at international furniture show

A buyer gathers information on EPCHs IFAS from the Councils booth

Luster, Brights and Whites

CRAFTCIL January 2011

CRAFTCIL January 2011

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