India is the largest country in the subcontinent of South Asia, with many domestic ports, including 12 major ports, including Mumbai, Calcutta, Chennai (formerly known as Madras), Cochin, Goa, etc., which bear 3/4 of the freight volume. Among them, Mumbai Port is the largest port and ranks 18th in the world in terms of shipping capacity.

China's sea freight to Kolkata Port in India requires transshipment through other ports, including Colombo/Vishakapatnam/Krishnapatnam/Port Klang/Singapore.

In the middle of January 2023, according to an Indian government official, the Central indirect tax and Customs Commission (CBIC) of India has informed the Ministry of Commerce that it has seized some goods related to low invoicing imported from China. The Ministry of Commerce has reported to the Ministry of Taxation the issue of low invoicing for imported goods from China. The official stated that although action is being taken on the identified cases, CBIC has also added risk analysis for certain goods. (Warning! Indian Customs has seized goods from China and is suspected of issuing low invoices! Please note for shipment

What precautions should be taken when shipping to India?

01

documents required

India's maritime import and export involves the following documentary information:

(1) Signed invoice

(2) Packing list

(3) Ocean bill of lading or bill of lading/air waybill

(4) Completed GATT declaration form

(5) Declaration form of importer or its customs agent

(6) Approval (provided when needed)

(7) Letter of Credit/Bank Draft (to be provided upon request)

(8) Insurance documents

(9) Import License

(10) Industry license (provided when required)

(11) Laboratory report (provided when the goods are chemicals)

(12) Temporary tax exemption order

(13) Original Certificate of Duty Exemption Rights (DEEC)/Certificate of Tax Refund and Reduction Rights (DEPB)

(14) Catalogue, detailed technical specifications, relevant literature materials (provided when the goods are mechanical equipment, mechanical equipment components or chemicals)

(15) Single price of mechanical equipment components

(16) Certificate of origin (provided when preferential tariff rate is applicable)

(17) No commission statement

02

Supplementary requirements for documents

The General Administration of Customs of India has issued Announcement No. 33/2018, which stipulates that starting from April 1, 2018, importers must ensure that their exporters are notified of the following basic details abroad in order to include them in booking such goods:

(1) Importer's Import and Export Code (IEC)

(2) Consumption tax importer ID number number (GSTIN)

(3) The official email ID of the importer (for communication between shipping routes and customs)

This notice is issued due to the consignment of hazardous waste, other waste or restricted items imported under the name of certain importers and not yet cleared. Therefore, it is necessary to record the basic information of the importer on the bill of lading so that this detailed information can be used to determine DPD stacking and various other purposes.

03

Tariff policy

Starting from July 1, 2017, India will consolidate its various local service taxes into Goods and Services Tax (GST), which will also replace the previously announced 15% Indian service tax. The charging standard for GST will be 18% of the import and export service fees in India, including local fees such as port loading and unloading fees and inland transportation fees.

On September 26, 2018, the Indian government suddenly announced an increase in import tariffs on 19 "non essential goods" to reduce the expanding current account deficit. This tariff adjustment has raised tariffs on imported goods such as air conditioners, refrigerators, washing machines, shoes, speakers, jewelry, some plastic products, luggage, and aviation turbine fuel.

The Ministry of Finance of India has notified that import tariffs on 17 goods will be increased starting from October 12, 2018. These 17 products include smartwatches, telecommunications equipment, etc. The notice shows that the tariffs on smartwatches and telecommunications equipment have increased from the current 10% to 20%.

04

Customs regulations

Firstly, all goods transferred to inland freight stations in India must be transported by the shipping company throughout the entire journey, and the final destination column on the bill of lading and manifest must be filled in as the inland point. Otherwise, the container must be unloaded at the port or a high fee for changing the manifest must be paid before it can be transported inland.

Secondly, after the goods arrive at the port, they can be stored in the customs warehouse for 30 days. After 30 days, customs will issue a notice of pick-up to the importer. If the importer is unable to pick up the goods on time due to certain reasons, they can apply for an extension to the customs as needed. If the Indian buyer does not apply for an extension, the exporter's goods will be auctioned off after 30 days of customs storage.

05

Customs clearance

After unloading (usually within 3 days), the importer or its agent must first fill out the "Bill of Entry" in quadruplicate. The first and second copies are retained by the customs, the third copy is retained by the importer, and the fourth copy is retained by the bank where the importer pays the taxes. Otherwise, high detention fees must be paid to the port authority or airport authorities.

If the goods are declared through the Electronic data interchange (EDI) system, it is not necessary to fill in the paper Import Declaration Form, but it is necessary to enter the detailed information required by the customs to process the goods clearance application in the computer system, and the EDI system will automatically generate the Import Declaration Form.

(1) Bill of Lading

POD refers to goods from India, and both the consignee and the notifying party must be from within India, with detailed name, address, phone number, and fax number. The description of the goods must be complete and accurate; It is not allowed to display the free time clause on the bill of lading;

When DTHC and inland freight need to be borne by the consignee, it is necessary to display "DTHC and IHI charges from A to B on the consignee's account" in the cargo description. If transshipment is required, an in transit to clause needs to be added, such as CIF Kolkata India in transit to Nepal

(2) According to the product HS CODE query, determine whether to apply for FORM B Asia Pacific certificate or general certificate of origin. FORM B customs clearance can enjoy a tariff reduction of 5% -100%.

(3) The invoice date should be consistent, and the shipment date should also be consistent with the bill of lading.

(4) All imports from India are required to submit the following complete set of import documents: import license, customs declaration, entry list, commercial invoice, certificate of origin, packing list and shipping list. The above documents need to be in triplicate

(5) Packaging and labeling

Indian ports are generally located in tropical regions, and extreme heat and humidity can cause damage to goods. Therefore, the goods to be shipped need to be packaged in waterproof packaging and shipped in galvanized or tinplate boxes, without the use of packaging materials such as waterproof tarpaulins.

The label should be written in English, and the explanatory text indicating the country of origin should be as prominent as other English words written on the container or label.

06

Auction regulations

Indian Customs Auction Regulations:

(1) After the goods arrive at the port, they can be stored in the customs warehouse for 30 days.

(2) After 30 days, the customs will issue a notice of pick-up to the importer. If the importer is unable to pick up the goods on time due to certain reasons, they can apply for an extension to the customs according to their own needs.

(3) If the importer fails to declare and pick up the goods on time within the extended period of time, the customs will once again (and for the last time) issue a notice urging the importer to pick up the goods.

(4) If the importer fails to pick up the goods within the specified time after receiving the second notice from the customs, and does not make any explanation or apply for an extension, the customs will auction the relevant goods.

When the goods arrive at an Indian port, IGM (Cargo Manifest Declaration) needs to be made 3 days in advance. Once the importer's code (IEC number) is indicated, the ownership of the goods has been transferred to the importer; At this point, regardless of the shipper, freight forwarder, or shipping company, they cannot control the ownership of the goods. Under FOB or CIF conditions, regardless of whether the bill of lading is "TO ORDER OF SHIPPER" or not, regardless of whether the bill of lading is in your hands, whether it is L/C, D/P, or T/T, Indian importers can not return the goods and wait for customs auction to obtain the goods at a low price.

07

Return regulations

According to Indian customs regulations, exporters are required to provide the original importer with a certificate of abandonment of the goods, relevant delivery documents, and a letter or telegram requesting a return from the exporter. They must entrust a shipping agent to handle the return procedures after paying reasonable fees such as port storage fees and agency fees.

If the importer is unwilling to provide the exporter with proof of non delivery, the exporter may entrust the shipping agent to directly request a return of the goods to the relevant port customs in India and complete the relevant procedures by presenting a letter or telegram from the importer refusing to pay or pick up the goods, or a letter or telegram from the bank or shipping agent providing the importer's non payment redemption order, relevant delivery documents, and a letter or telegram from the seller requesting the goods to be returned.

Reprinted from: Foreign Trade Document Center