CAPEXIL – Functions, Application for Membership, Documents & Full Form

Updated: 22-09-2020 09:29:06 AM

The Chemical & Allied Products Export Promotion Council (CAPEXIL) was set up by the Ministry of Commerce, Government of India in 1958 to promote the export of chemicals and various associated products from India. The chemical and allied products industry constitutes all the facilities and companies that produce chemicals. The chemicals industry is one of the foundations of modern life owing to a variety of chemicals that have indispensable for day-to-day living.

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In India, the chemical industry is expansive, constituting the manufacture of more than 80,000 types of chemical products. India happens to be the 3rd largest chemicals producer in Asia and the variety of chemical products manufactured in India can be classified as basic chemicals, specialty use chemical and agricultural chemicals.

CAPEXIL has more than 3500 members across India and is a promoter of thousands of different kinds of chemical products. Like other export promotion councils, CAPEXIL provides assistance to exporters and also engages in a variety of promotional activities, such as sending trade delegates to developed and developing markets across the world, setting up exhibitions and fairs to showcase Indian chemical exports. More than 4000 members are part of CAPEXIL across India across 14 broad product categories.

Service Categories served by CAPEXIL for exporters

• Market Development Assistance (MDA)
• Visa Recommendations
• Export Returns Filings & MSME
• Trade Leads
• Enquiries
• Exporter’s Helpdesk

Key Functions of CAPEXIL

CAPEXIL is the primary chemicals and allied products promotion council in India that provides a range of services to importers and exporters. It functions as an interface amongst the government and the members of the CAPEXIL towards education in trade and policy. Moreover, through its promotional activities and its role as a mediator between national and international markets, CAPEXIL is geared towards assisting the Indian chemical industry to increase exporting activities and gain international recognition. The main functions of CAPEXIL are as follows:

• Information Portal: CAPEXIL functions as a central gateway for information for both exporters and importers
• Interface: The Chemical and Allied Products Export Promotion Council functions as an interface between government bodies and members of CAPEXIL regarding trade and policies with regards to the export of chemical products
• Inquiries: The council is also the central administrative and regulatory body for trade enquiries related to chemicals and associated products
• National Events: CAPEXIL organizes several national workshops, seminars and trade meets in India for chemical manufacturers and traders
• Market Analysis: The council also prepares and publishes reports concerning the market analysis of the chemicals industry in India and exports
• International Trade: CAPEXIL produces analytical reports of international trade with regards to the chemical industry sector
• Grants: CAPEXIL distributes grants to several manufacturers and entrepreneurs in the chemical industry
• Training: The council conducts various training programmes on global trade for manufacturers and entrepreneurs in the chemical industry sector

Eligibility for Membership

Membership into the council can be in any of the two categories i.e. associate members or ordinary members.

1. Associate Members: For associate membership, an individual or person should have received the import-export code number from office of the director general of foreign trade, Government of India.
2. Ordinary Members: Any person satisfying the following criteria is eligible for ordinary membership within the council:

– The said person or entity that he/she should have been an associate member for a period of at least 3 years

– He/she or the entity represented by him/her should have had an average export performance of at least Rs.10 lakh in the case of small-scale industries and at least Rs. 25 lakh in the case of any other kind of set-up

Application for Membership

An application for membership into the council as either an associate or ordinary member must be made according to the form contained in Schedule 1 of the Memorandum of Association of CAPEXIL registered under the Companies Act, 1956.

In any case where the form is not available, the application for membership can be made in the form of an ordinary letter.

In either case, the form must necessarily contain the following:

1. All relevant facts indicating membership eligibility.
2. Relevant data clarifying whether applicant is an individual, company, firm or cooperative society.
3. Membership category being applied for.

Documents Required

Any applicant applying for a membership into CAPEXIL must submit the following documents irrespective of the kind of membership being applied for:

1. Relevant certificate of financial stability to be acquired from the applicant’s bankers.
2. A cheque towards the Council for the payment of the entrance and annual fees.

After the submission of documents, the membership applicant must wait for a period of at least 3 months for the decision regarding his/her membership, that shall be final. This decision is communicated to the applicant by the secretary. In the case that membership has been accepted by the deciding committee, the membership will commence at the beginning of the financial year when the application was submitted.

Features and Benefits

For manufacturers and traders in the chemical and allied products industry, membership into CAPEXIL offers a variety of benefits owing to the broad scope of CAPEXIL’s activities towards enhancing industry standards and enabling the import of chemical products in India, globally. These activities ultimately promote the growth of the Indian economy as such and have led to the creation of thousands of new jobs.

The broad range of products endorsed by CAPEXIL include the following:

1. Animal by products – Animal Glue, Bone grist, Bone/horn (whole or part) buttons, blanks, Crushed & degreased bones incl. bone chips, Horn meal and hoof meal, etc.
2. Rubber tyres and tubes in automobile industry
3. Print and publishing products
4. Minerals
5. Cement
6. Glassware
7. Stone, granite and marble products
8. Explosives
9. Gelatine
10.  Paints
11.  Paper-related products
12.  Plywood and timber-related products
13.  Processed minerals
14.  Variety of rubber products

Overall, CAPEXIL has engaged in a variety of promotional activities and has become an indispensable component of the chemical industry in India. It has helped in the promotion of the Indian chemical industry worldwide and moreover has also provided urgent financial assistance to its members through schemes such as the Market Development Assistance (MDA) scheme and the Market Access Initiative Scheme (MAI) for international participation and the various trade confluences. For those who are seeking to foray into the chemicals industry there are a variety of business loans that are available to SMEs, MSMEs and large enterprises.

Frequently Asked Questions (FAQs)

Ques. What does CAPEXIL do?

Ans. CAPEXIL is the central body governing the regulations and providing guidelines for the export of chemicals and associated products, the promotion of these activities and of the Indian chemical industry through a variety of fairs and exhibitions.

Ques. How can I pay my entrance and annual fees?

You can pay your entrance and annual fees through credit/debit card, net banking or by issuing a cheque, demand draft or RTGS.

Ques. Is CAPEXIL ISO certified?

Ans. Yes, CAPEXIL is an ISO 9001: 2000 certified organization.

Ques. Who is the sponsor of CAPEXIL?

Ans. CAPEXIL is sponsored by Ministry of Commerce and Industry, Government of India.

Ques. Where are the headquarters and regional offices of CAPEXIL located?

Ans. Headquarter of CAPEXIL is located at Kolkata and the regional offices at New Delhi, Mumbai, Kolkata and Chennai.