export promotion council for handicrafts

Export Promotion Council for Handicrafts

EPCH HOUSE, POCKET 6 & 7, SECTOR 'C', LOCAL SHOPPING CENTRE, VASANT KUNJ, NEW DELHI-110070

Tel: 91-11-26135256 Email :[email protected] Fax: 91-11-26135518,26135519 web : www.epch.in

REPORT ON AWARENESS SEMINAR ON “E-COMMERCE LED EXPORT:

CHALLENGES AND OPPORTUNITIES AND VRIKSH: TIMBER LEGALITY ASSESSMENT AND VERIFICATION SCHEME” ON 4th 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 4th 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

mailto:[email protected]

http://www.epch.in/

Prof. Wali talking on Ecommerce

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.

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: [email protected].

mailto:[email protected]

Digital Platforms for Handicraft Traders

O.P.WALI

IIFT

How can internet help handicraft ventures?

Reach out to the market

Understand your market & marketplace

Get the potential customers to your site

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?

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?

Understand your market & marketplace

What is there to understand from web engagement?

How can we do it or can somebody do it for us?

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?

© Scientific Certification Systems | 1 © SCS Global Services | 1

“VRIKSH” India's Unique Timber legality Assessment and Verification Scheme specifically designed for

Handicrafts Industry and its raw material supply chain


Purpose of the Presentation

What is the requirement of VRIKSH

Why VRIKSH was made

Development Process Of VRIKSH


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.


Due Diligence/ Due Care


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.


Handicraft Industry Issues

Traceability of Wood Sources

Compliance with

regulations

Market Access & Risk Management

Complexity of supply chain


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.


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.


VRIKSH Development Process

Based on ISO guide 59, ISO guide 17065

Stakeholder Consultation

Review Standards

Pilot Testing in Jodhpur, Jaipur & Saharanpur

2nd Review post pilot testing


Part 1: Quality System Requirements

Organization policy

Procedures

Training

Records

Complaints Mechanism

STANDARD FEATURES


Part 2: Legality Compliance

Principle 9: Up to date records of all input and output quantities

Principle 8: Traceability

Principle 7: Classification of all timber products upon purchase and receipt.

Principle 6: Viable identification and classification system for trees

Principle 5: Compliance with all environmental and social laws

Principle 4: Compliance with all local and national laws and regulations

Principle 3: Payment of all associated taxes, royalties or fees

Principle 2: Necessary Authorization

Principle 1: Legitimate body


Part 3: Raw Material Supply And Production

Preclusion of Subcontracting

Invoicing

Records

Maintaining Traceability and Paper Trails

Outsourcing

Batch Accounting

Material Balances

Conversion Factor

Volume control

Supplier Documentation

Supplier identification


PART 4: Sale of “VRIKSH” Legally Verified Wood Supplying

Risk Assessment

Determination of Risk

Verification program for wood supplies from sources with unspecified risk

Requirements for organization verification program

Part 5: Risk Assessment And Mitigation Program


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.)


Buyers’ Benefits

Well Documented Process

Compliance with EUTR/ Lacey Act

One-Stop Solution for Legal Material


Buyers’ Benefits

Reduction in Risk for Investors

Heavy Market for verified wood products worldwide

International Recognition

World wide presence through web based registry


Why SCS is Involved ?

Neutral Third Party

Playing a leading role in driving the development of national and international leadership standards to create a framework for continuous improvement

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

Trusted leader in third-party environmental, sustainability and food quality certification, auditing, testing and standards development


Thank you

III Floor, Plot no. B4 Urb Tech Matrix Tower, Sector 132, Noida - 201308 Tel: 0120 - 6500169

export promotion council for handicrafts

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