COUNCIL FOR LEATHER EXPORTS

(Fairs Section)

Note to Executive Director11 May 2017

Sub: CLE participation in Busan International Shoe Show, Nov 2-4, 2017 under Self-Financing Basis

As a part of Export Promotion effort for the year 2017-18 and considering the positive feedback received from the member participants in the last edition of Busan International Shoe Show, Council has proposed to organize member-participation in the Busan International Shoe Show, South Korea, Nov 2017 on self-financing basis, without any MDA /MAIS Grant. The March 17 edition of BISS 2016 saw better results, and it may be appropriate for CLE to facilitate member participation in this event, by organizing a Group Pavilion in order to peneterate the South Korean market.

The Cost details for our participation in BISSNov 2017 are as below:

Built-up booth cost @ 1100 per sq.mt for taking up, minimum space of 90 sq.mt (9 sq.mt space for 10 companies)

Accessories US $ 80(1 table & 4 chairs).

Interpreter charges @ US $ 150per Day for one Interpreter, with the total cost for 3 days being US $ 450

Additional Accessories (12 shelves @ USD 30 per shleves for 10 booths) is USD 3600

Water arrangements cost to USD 100

Publicity and courier chargesRs.25,000/- and Rs.15,000/- respectively.

The total common cost for 90 sq.mt is Rs.12.59 lakhs which works out to Rs.13998 per sq.mt. Participation Fee fixed for 9 sq.mt stand was Rs.1,26,000/-. The increase in Participation Fee is mainly due to INR rate fluctuation as compared to the previous year.

On basis of above costs the Budget for the CLE Participation in this event with 10 member-companies has been drawn up and Participation Fee fixed at Rs 1,26,000 for a 9 sq m stand, with surplus to CLE at Rs.175. However, the cost includes an amount of Rs. 2.95 Lakhs of which Rs 1.43 Lakhs is towards Cost of the 6 sq m CLE Stand and Rs. 1.52 Lakhs is towards deputation of the CLE Representative. Hence although if the CLE presence is dispensed with the Cost to Participant would come down by Rs 30,000 approx, it is submitted that for CLE Branding and India Country Image it is advisable to have a CLE Booth and Representative.

Submitted for ED’s kind approval for the following

a)Fixing of participation fee of Rs.1,26,000/- for 9 sq.mt stand

b)Enclosed Draft circular for issue.

Surya GayathriDD-FairsED

EPO, Fairs

No: CLE/EXH/BISS/Nov/2017 May 11, 2017

To

All Members of the Council

Dear Member,

Sub:Inviting Member Participation in the BISS 2017 – Busan International Shoe Show - (NOVEMBER 2-4, 2017).

About the South Korea Market

South Koreais a potential market for leather & leather products. South Korea'simport of leather & leather products increased from US$ 2211.28 million in 2010 to US $ 3958.18 million in 2014, growing at a CAGR of 15.67%.

India’s export of leather & leather products toSouth Koreahas increased from US$ 29.04 million in 2010-11 to US $ 82.38 million in 2015-16 growing at a CAGR of 23.19%.

Source : DGCI & S

Indo-Korea CEPA: India and Korea have entered into a preferential Indo-Korea free Trade agreement named Comprehensive Economic Partnership Agreement (CEPA)as per which India can avail concessional Import duties for range of products including Footwear.The agreement will ease restrictions on foreign direct investments. Companies can own up to 65% of a company in the other country. The Korea Institute for International Economic Policy believes the agreement will increase trade between the two countries by $3.3 billion.

Hence, there is scope for further enhancingIndia’s export of leather and leather products toSouth Korea andalso for establishing business relationship with the Korean companies in the field of Joint Ventures, Technical Collaboration etc. in the coming years.

About the Busan International Shoe Show (BISS) , Nov 2-4, 2017

To achieve the above, the Council is planning to participate in the BISS 2017 (Busan International Shoe Show) for the first time. BISS (Busan International Shoe Show) is “only one” International Shoe Trade Show in Korea and Busan is also called the Shoe city in Korea. Shoe Industry was traditionally the “symbol” of Busan since 1931 and enjoyed peak time with shoe exports totaling $4.30 billion in 1990, as a shoe export hub. Busan will also play an important role in core shoe materials/components, R&D, Footwear standardizations systems, footwear manpower, training and global footwear networking project sectors in the years to come.

In the last edition of the fair, there were about 260 exhibitors has taken 680 booths in which 650 booths were taken by the domestic companies and 30 booths were taken by the overseas companies

Display Products : Footwear and Leather :

Venue: BEXCO (Busan Exhibition & Convention Center) :

Organized by : BusanMetropolitanCityManaged by: FootwearIndustrialPromotionCenter.

Council’s Participation in the Busan International Shoe Show, BISS (November 2-4, 2017)

Considering the market opportunities in South Korea, the Council is proposing to organize Group Participation of at least 10-12 Members in the upcoming 2017 edition of the BISS fair to be held during November 2-4, 2017;It may kindly be noted that the Council will participate in the Fair subject to the enlistment of at least 10 Companies.

Tentative Participation Fee: Tentative participation Cost works out toRs.1,26,000/- for a minimum-sized 9 sq mt booth. The Built-Up Stand includes Carpet, Table, Chairs, spot lights, electric power supply and electric outlet, shelves / wire mesh, fascia, Common Interpreter & Water bottles.

NO Assistance to Exporters under MDA /MAI Scheme :

Member companies may kindly note that there will be no MDA/MAI Grant for participation by the CLE member companies in this event.

Interested Members are requested to kindly send the duly filled-in Application Form (attached) along with the Participation Charges of Rs.1,26,000/- by Cheque/DD drawn in favor of Council for Leather Exports. This may be sent to either Council’s Head Office in Chennai or Regional Offices at Delhi, Kanpur, Mumbai, Kolkata & Agra on or before 31stJune2017.

It may be also be noted that participants will have to arrange the Visa to Republic of Korea on their own. However, CLE will arrange for the Invitation Letter from the Fair Organizer, to facilitate obtaining of visas by participants. Kindly note that non-issuance of Visa will not be considered as a valid ground for withdrawal subsequent to confirmation of participation. Hence, withdrawal from participation after confirmation will not be allowed.

With best wishes,

Yours sincerely,

R.Ramesh Kumar, I.A.S

Executive Director