Export Promotion Council for Handicrafts

Transcription

1 Export Promotion Council for Handicrafts EPCH HOUSE, POCKET 6 & 7, SECTOR 'C', LOCAL SHOPPING CENTRE, VASANT KUNJ, NEW DELHI Tel: focusregion@epch.com Fax: , web : REPORT ON AWARENESS SEMINAR ON E-COMMERCE LED EXPORT: CHALLENGES AND OPPORTUNITIES AND VRIKSH: TIMBER LEGALITY ASSESSMENT AND VERIFICATION SCHEME ON 4 th JULY, 2015, AT THE CONFERENCE HALL, 3RD FLOOR, RAJIV GANDHI HANDICRAFT BHAVAN, BABA KHARAK SINGH MARG, CONNAUGHT PLACE, NEW DELHI The Export Promotion Council for Handicrafts regularly conducts seminars for its member exporters to educate them on new and emerging issues related to exports and how to maximize the same. On 4 th July, the Council organised a seminar on two very important issues. First, E-Commerce Led Export: Challenges and Opportunities and secondly, VRIKSH: Timber Legality Assessment and Verification Scheme, at the Rajiv Gandhi Handicrafts Bhavan, Baba Kharak Singh Marg, Connaught Place, New Delhi. Mr. Ankur from SCS global delivering lecture in the Seminar

2 Prof. Wali talking on Ecommerce

3 The seminar was attended by more than 40 delegates from different export houses. The seminar was presided over Mr. Rajesh Rawat (Deputy Director, EPCH) and the guest speaker for the event on the first topic was Mr. Ankur Nautiyal from SCS Global Greater Noida. Mr. Nautiyal, discussed about the importance of using legally procured timbers for the goods manufactured and exported to the various countries, mainly to European countries. He also focused on the various criteria s imposed by European nations on its import of wooden and wood based products. VRIKSH certification is a standard norm which has been designed to allow companies to avoid trading in illegally harvested wood. Compliance with the standard allow companies to demonstrate that they are implementing best efforts to avoid the trade in illegally harvested timber, in support of the international forest law enforcement governance and trade (FLEGT) program, the European union Timber Regulations (EUTR), the US Lacey Act amendment 2008, The Illegal logging Prohibition act 2012 and other such global timber legality verification programs. It allow companies to start implementing their own responsible sourcing policies. The role of EPCH and SCS global on the issuance of VRIKSH certificate was also informed to the exporters present in the seminar. The detail procedures to apply for the VRIKSH certificate were also discussed in the seminar. The speaker for the second topic was Dr. O. P. Wali of prestigious Indian Institute of Foreign Trade, New Delhi. Prof. Wali discussed about the growing importance of e-commerce sector in promoting domestic as well as international trade. Generally, E-commerce does have impact on international trade, which affects the output of product, prices of product, profits of enterprise, imports and exports of merchandise trade, and the total global merchandise trade, etc.. With the development of E-commerce, the change of the quantity of product sold in own country and foreign country, Imports of merchandise trade and exports of merchandise trade are determined by the extent of impact of E-commerce on different marketplace; the total output of product increase substantially; the sum of Imports of merchandise trade and exports of merchandise trade has three different situation; and the profits of enterprise decrease gradually in the beginning and grow rapid after a certain stage of E-commerce s development. E-commerce can increase export through various ways: reducing the transaction cost, improving the trade quality and efficiency, increasing trade opportunities and providing access to the world market at a very low cost.

4 Questions put up by the audience Q: How to apply for the VRIKSH? A: Any exporter can download the application form from the EPCH website and apply accordingly. All the details about the VRIKSH scheme are given in a separate and dedicated website. The web link for the same is given in the EPCH website. Q: How the certificate is provided? A detailed audit is done by SCS global on behalf of EPCH and the applicant fulfilling all the required criteria is certified by EPCH. Q: How should merchants promote their ecommerce sites? There are lot of ways this can be done, but for any business there are two no-brainers. The first is to promote the site to all existing customers - if they don t know that you sell online, they will go elsewhere. If they use your site and like it, they will probably tell their friends. So "Order online at" and your web address should be on every piece of literature and advertising that a company produces. The second is to register with search engines. It may take a little time, but it's often free and can produce good results. Just remember that your site will register more effectively if the pages are generated in HTML, rather than being dynamically generated from a database. In our customer's experience this can affect traffic to your site by around 50%. Q: Is ecommerce profitable? Absolutely yes! Selling online can be done on a small or large budget equally successfully and we have users to prove it. As with all business expansion do your researches, get advice from trusted sources, decide what you can afford to spend to test the waters and then jump. We welcome suggestions and feedback to make this initiative more productive. Do write to us at: focusregion@epch.com.

5 Digital Platforms for Handicraft Traders O.P.WALI IIFT

6 How can internet help handicraft ventures? Reach out to the market Understand your market & marketplace Get the potential customers to your site

7 Understanding E-commerce Platforms How many have used a digital platform? Which platform? What is TRUSTPASS? How many have got leads? How many could convert lead?

8 Reach out to the market Does it work through digital media? Do customers buy handicraft online? Does it make commercial sense? Is it mandatory to be online? Can we make profits and what is the scope? Can we afford it? What capabilities and competencies? Where do we start & how to proceed from there? What are the risks?

9 Understand your market & marketplace What is there to understand from web engagement? How can we do it or can somebody do it for us?

10 Get the potential customers to your site How can we bring traffic to our site? How can we convert traffic into customers? How do balance it with our offline traditional approach? What are the risks and precautions?

11 Q & A

12 VRIKSH India's Unique Timber legality Assessment and Verification Scheme specifically designed for Handicrafts Industry and its raw material supply chain Scientific Certification SCS Global Systems Services 1

13 Purpose of the Presentation What is the requirement of VRIKSH Why VRIKSH was made Development Process Of VRIKSH Scientific Certification SCS Global Systems Services 2

14 What is the Requirement Responsible Trade Demand Side Supply Side Obligations fulfilled by putting Regulations. Lacey Act FLEGT (EUTR) Saint Petersburg Declaration for Russia Australian Legality Act Voluntary requirement from big retailers Walmart, Target, BMQ, Home Depot, IKEA. Scientific Certification SCS Global Systems Services 3

15 Due Diligence/ Due Care Scientific Certification SCS Global Systems Services 4

16 Why VRIKSH(Impact of International Regulation Buyers are losing confidence on Indian wood fiber - no current full proof internationally acceptable mechanism to prove and validate the legality of wood. Lack of an acceptable standard system puts a question mark in the international market on the wood origin, authenticity of documentation and validity and veracity of timber legality documents presently in acceptance. Handicraft industry first to feel the heat. Scientific Certification SCS Global Systems Services 5

17 Traceability of Wood Sources Complexity of supply chain Handicraft Industry Issues Compliance with regulations Market Access & Risk Management Scientific Certification SCS Global Systems Services 6

18 Contd Presently no approved mechanisms FSC/PEFC certification may help in cases of certified wood, but cannot comprehensively establish timber legality for EUTR/Lacey Act requirements for handicrafts industry. Need for a timber legality assessment scheme to address these concerns of industry, artisans, buyers and international market Need for quick action before India s competitive advantage is lost out. Scientific Certification SCS Global Systems Services 7

19 Export Promotion Council for Handicrafts (EPCH) Initiative to combat EUTR/other legislation and help the SMEs in handicraft industry/exports EPCH decided to initiate VRIKSH to promote the responsible and legal use of wood in the handicrafts and home décor industry, keeping in mind our social and environmental obligations as well. To provide a viable solution to help the handicrafts exporters and maintain their source of livelihood, through standard development and verification program to effectively deal with international timber regulation requirements. Scientific Certification SCS Global Systems Services 8

20 VRIKSH Development Process Based on ISO guide 59, ISO guide Stakeholder Consultation Review Standards Pilot Testing in Jodhpur, Jaipur & Saharanpur 2nd Review post pilot testing Scientific Certification SCS Global Systems Services 9

21 STANDARD FEATURES Part 1: Quality System Requirements Organization policy Procedures Training Records Complaints Mechanism Scientific Certification SCS Global Systems Services 10

22 Part 2: Legality Compliance Principle 1: Legitimate body Principle 2: Necessary Authorization Principle 3: Payment of all associated taxes, royalties or fees Principle 4: Compliance with all local and national laws and regulations Principle 5: Compliance with all environmental and social laws Principle 6: Viable identification and classification system for trees Principle 7: Classification of all timber products upon purchase and receipt. Principle 8: Traceability Principle 9: Up to date records of all input and output quantities Scientific Certification SCS Global Systems Services 11

23 Part 3: Raw Material Supply And Production Supplier identification Supplier Documentation Volume control Conversion Factor Material Balances Batch Accounting Outsourcing Maintaining Traceability and Paper Trails Records Invoicing Preclusion of Subcontracting Scientific Certification SCS Global Systems Services 12

24 PART 4: Sale of VRIKSH Legally Verified Wood Supplying Part 5: Risk Assessment And Mitigation Program Risk Assessment Determination of Risk Verification program for wood supplies from sources with unspecified risk Requirements for organization verification program Scientific Certification SCS Global Systems Services 13

25 VRIKSH Logo On-product (certified product as well as on their labels and packaging, e.g. furniture, plywood, MDF etc.) Off-product (promotional items, e.g. brochures, catalogues, advertising promotions, web pages, etc.) Scientific Certification SCS Global Systems Services 14

26 Well Documented Process Buyers Benefits Compliance with EUTR/ Lacey Act One-Stop Solution for Legal Material Scientific Certification SCS Global Systems Services 15

27 Reduction in Risk for Investors Heavy Market for verified wood products worldwide Buyers Benefits International Recognition World wide presence through web based registry Scientific Certification SCS Global Systems Services 16

28 Why SCS is Involved? Trusted leader in third-party environmental, sustainability and food quality certification, auditing, testing and standards development Partner with companies, government agencies and stakeholders worldwide to identify and drive practices, policies and processes that advance the goals of sustainable development and give innovators a competitive advantage Playing a leading role in driving the development of national and international leadership standards to create a framework for continuous improvement Neutral Third Party Scientific Certification SCS Global Systems Services 17

29 Thank you III Floor, Plot no. B4 Urb Tech Matrix Tower, Sector 132, Noida Tel: Scientific Certification SCS Global Systems Services 18