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Collection: customs clearance, return, auction! India's Pit Avoidance Guide!

Jul 24,2023

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

 

China's shipping to Kolkata Port in India needs to transit through other ports, including Colombo/Visakhapatnam/Krishna Patnam/Port of Klang/Singapore.

In mid-January 2023, according to an Indian government official, India's Central Board of Indirect Taxes and Customs (CBIC) had informed the Ministry of Commerce,A number of goods related to underinvoiced imports from China have been seized.The Ministry of Commerce has reported to the Ministry of Taxation the problem of underinvoicing of imports from China. The official said that while action was being taken on identified cases, the CBIC had also increased risk analysis for certain shipments. 

 

 
What do you need to pay attention to when shipping to India?
 

 

 

01
documentary requirements

 

India's maritime import and export, involving the following documents:
(1) Signed invoice
(2) Packing list
(3) Sea bill of lading or bill of lading/air waybill.
(4) Completed GATT declaration form
(5) Declaration form of the importer or his customs agent
(6) Approval (when required)
(7) Letter of credit/bank draft (available when required)
(8) Insurance documents
(9) Import license
(10) Industry license (to be provided when required)
(11) Test report (provided when the goods are chemicals)
(12) Provisional Tax Exemption Order
(13) Certificate of Right to Duty Exemption (DEEC)/Certificate of Right to Tax Refund (DEPB) Original
(14) Catalogue, detailed technical specifications and relevant literature (provided when the goods are mechanical equipment, mechanical equipment parts or chemicals)
(15) Individual price of mechanical equipment parts
(16) Certificate of origin (provided when preferential tariff rates apply)

(17) No Commission Statement

 

 

 

02
Supplementary requirements for documents

 

The Indian Customs Authority has issued Proclamation No. 33/2018, which stipulates that from 1 April 2018, importers must ensure that the following basic details are notified to their exporters abroad in order to include these details in the booking of such goods:

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

(2) GST Importer ID Number (GSTIN)

(3) The importer's official email ID (used for shipping lines and customs communications)

The notification is issued when it has not been removed due to consignment sales of hazardous waste, other waste or restricted items imported in the name of certain importers. Therefore, the basic information of the importer must be recorded on the bill of lading so that this detailed information can be used to determine DPD stacking and other various purposes.

 

 

03
tariff policy

 

From 1 July 2017, India will consolidate its various local service taxes into the Goods and Services Tax (GST), which will also replace the previously announced 15% Indian service tax. GST will be charged at 18% of the cost of import and export services in India, including local costs such as terminal handling costs and inland transportation costs.
On September 26, 2018, the Indian government suddenly announced an increase in import tariffs on 19 "non-essential goods" to reduce the widening current account deficit. The tariff adjustment increases tariffs on imported goods such as air conditioners, refrigerators, washing machines, footwear, speakers, jewelry, some plastic products, luggage and aviation turbine fuel.
The Ministry of Finance of India has notified the increase of import tariffs on 17 commodities from October 12, 2018. These 17 commodities include smart watches, telecommunications equipment and so on. Tariffs on smartwatches and telecommunications equipment have been raised to 20 percent from the current 10 percent, the notice said.

 

 

 

04
Customs regulations

 

First of all, all goods transferred to the inland freight terminal in India must be transported by the shipping company, and the final destination of the bill of lading and manifest must be filled in as the inland point. Otherwise, the container must be picked at the port or a high change of manifest fee must be paid before it can be transported inland.
Secondly, the goods can be stored in the customs warehouse for 30 days after they arrive at the port. After 30 days, the customs will issue a pick-up notice to the importer. If the importer is unable to pick up the goods on time for some reason, he may apply to the customs for an extension as needed. If the Indian buyer does not apply for an extension, the exporter's goods will be auctioned after 30 days of storage at customs.

 

 

 

05
Customs clearance

 

After unloading (usually within 3 days), the importer or his agent must fill out the Import Declaration (Bill of Entry) in quadruplicate. The first and second copies are retained by the customs, the third by the importer and the fourth by the bank where the importer pays the tax. Otherwise, a high demurrage fee is payable to the port authority or airport authority.
If the goods are declared through the Electronic Data Interchange (EDI) system, there is no need to fill in the paper Import Declaration, but the detailed information required by the customs to process the application for customs clearance of the goods needs to be entered in the computer system, and the EDI system automatically generates the Import Declaration.

(1) Bill of Lading
POD is Indian goods, the consignee and the notifying party must be in India, and have a detailed name, address, telephone, fax. The description of the goods must be complete and accurate; the free time clause is not allowed to be displayed on the bill of lading;
When DTHC and inland freight need to be borne by the consignee, "DTHC and IHI charges from A to B on the consignee's account needs to be displayed at the cargo description. if transshipment is required, in transit to clause needs to be added, for example, CIF Kolkata India in transit to Nepal
(2)According to the product HS CODE inquiry to determine whether to apply for FORM B Asia Pacific certificate or general certificate of origin, FORM B can enjoy a 5%-100% tariff reduction during customs clearance.
(3)The invoice date should be consistent, and the shipping date should be consistent with the bill of lading.
(4)All imports into India are required to submit the following full set of import documents: import licence, customs declaration, customs entry, commercial invoice, certificate of origin, packing list and shipping bill. The above documents are required in triplicate
(5)Packaging and Labeling
Indian ports are generally located in tropical areas, where extreme heat and humidity can cause damage to cargo. Therefore, shipments need to be waterproofed and packed in galvanized or tinplate shipping boxes without the use of packaging such as tarpaulis.
The label should be written in English, and the description of the country of origin should be as eye-catching as other English words written on the container or label.

 

 

 

06
Auction Regulations

 

Indian Customs Auction Regulations:
(1)The goods can be stored in the customs warehouse for 30 days after arrival.
(2)Customs will issue a pick-up notice to the importer after 30 days. If the importer is unable to pick up the goods on time for some reason, he may apply to the customs for an extension according to his own needs.
(3)If the importer fails to clear the goods on time within the extended period of time, the customs will again (and for the last time) issue a reminder to the importer to take delivery of the goods.
(4)If the importer, after receiving the second notice from the customs, still does not take delivery of the goods within the prescribed time, does not make any explanation and applies for an extension, the customs will auction the relevant goods.

When the goods arrive at the Indian port, IGM (cargo manifest declaration) needs to be carried out 3 days in advance. Once the importer code (IEC number) is indicated, the right of goods has been transferred to the importer. At this time, no matter the owner, freight forwarder or shipping company can control the right of goods, no matter under FOB or CIF conditions, whether it is "TO ORDER OF bill of lading" (indicating bill of SHIPPER), whether the bill of lading is in your hand or not, whether it is L/C,D/P or T/T, Indian importers can not return the goods and wait for the customs auction to obtain the goods at a low price.

 

 

 

07
Return Provisions

 

The Indian Customs stipulates that the exporter shall, on the basis of the certificate of abandonment of the goods provided by the original importer, the relevant certificate of delivery and the exporter's request for return of the goods, entrust the shipping agent to handle the return procedures after paying the port storage fee, agency fee and other reasonable fees.
If the importer is unwilling to issue a certificate of non-delivery to the exporter, the exporter may entrust the ship's agent to directly submit a return request to the relevant port customs of India and go through the relevant formalities by virtue of the importer's refusal to pay or take delivery of the goods or the importer's non-payment ransom letter provided by the bank or ship's agent, the relevant delivery certificate and the seller's request to return the goods.
 

Source: Maritime Network

 

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