Summary of shipping considerations for exporting to India.

 

India is the largest country in the South Asian subcontinent, with numerous domestic ports and 12 major ports, including Mumbai, Calcutta, Chennai (formerly known as Madras), Cochin, Goa, etc., which are responsible for 3/4 of the cargo volume. Among them, the port of Mumbai is the largest, with the 18th largest maritime transportation capacity in the world.

China's shipping to the port of Calcutta, India, needs to transit through other ports, including Colombo, Visakhapatnam, Krishnapatnam, Port Klang, Singapore, and other ports.

India has frequently seized under-invoiced goods in recent years. 2023 In mid-January, according to an Indian government official, India's Central Board of Indirect Taxes and Customs (CBIC) informed the Ministry of Commerce (MoC) that it had seized a number of goods related to under-invoiced imports from China. The commerce ministry has reported the issue of under-invoicing of imports from China to the revenue ministry. While action is being taken on the identified cases, CBIC has also increased its risk analysis on certain goods, the official said.

 

So what do you need to be aware of when shipping to India?

 

 

Import and export by sea from India involve the following documentary information:
(1) signed invoice;

(2) packing list;

(3) sea waybill or bill of lading or air waybill
(4) Completed GATT declaration form;

(5) Declaration of the importer or his customs agent;

(6) Approvals (if required)
(7) Letter of Credit/Bank Draft (if required)
(8) Insurance documents
(9) Import license;

(10) Industry license (provided when required)
(11) Laboratory report (provided when the goods are chemicals)
(12) Temporary Duty Exemption Order
(13) Original Duty Exemption Entitlement Certificate (DEEC)/Duty Drawback and Reduction Entitlement Certificate (DEPB)
(14) Catalogs, detailed technical specifications, relevant literature (provided when the goods are machinery and equipment, machinery and equipment parts, or chemicals)
(15) Individual price of machinery and equipment parts
(16) Certificate of origin (provided when preferential tariff rates apply)
(17) Declaration of No Commission

 

 

The Directorate General of Customs, India, has issued Notification No. 33/2018, which states that with effect from April 1, 2018, importers must ensure that the following essential details are notified to their exporters abroad for inclusion in the booking of such goods:

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

(2) GST Importer Identification Number (GSTIN)

(3) The importer's official e-mail ID (for shipping lines and customs communication)

This notification is issued due to the consignment of hazardous waste, other waste, or restricted items imported in the name of certain importers and still not cleared. It is therefore important to record the basic information of the importer on the bill of lading so that these details can be used for determining DPD stacking and various other purposes.

 

 

Effective July 1, 2017, India will consolidate its various local service taxes into a Goods and Services Tax (GST), which will also replace the previously announced 15% Indian service tax. The GST rate will be 18% of the cost of importing and exporting Indian services, including local costs such as terminal handling charges and inland transportation costs.

On September 26, 2018, the Indian government abruptly announced an increase in import tariffs on 19 "non-essential goods" to reduce the widening current account deficit. The tariff adjustments raised duties on imports of air conditioners, refrigerators, washing machines, footwear, speakers, jewelry, some plastic products, luggage, and aviation turbine fuel.

India's finance ministry has notified an increase in import duties on 17 items from October 12, 2018 onwards. The 17 items include smartwatches, telecom equipment, and others. The notification shows that the customs duty on smartwatches and telecom equipment has been increased to 20% from the current 10%.

 

 

First of all, all the goods transferred to the inland freight station in India must be transported by the shipping company, and the final destination column of the bill of lading and manifest must be filled in as the inland point. Otherwise, you have to empty the container at the port or pay the high fee for changing the manifest before transshipment to the mainland.

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 pick-up notice to the importer. If the importer is unable to pick up the goods on time due to some reasons, he can apply for an extension to the customs as needed. If the Indian buyer does not make an extension application, the exporter's goods will be auctioned after 30 days of storage in customs.

 

 

After unloading (generally within 3 days), the importer or his agent must first fill out the "import declaration" (Bill of Entry) in quadruplicate. The first and second copies are retained by Customs, the third by the importer, and the fourth by the bank where the importer pays the duty. Otherwise, high demurrage charges will have to be paid to the port or airport authorities.

If the goods are declared through the Electronic Data Interchange (EDI) system, there is no need to fill out a paper Import Declaration, but the detailed information required by Customs to process the application for clearance of the goods has to be entered in the computerized system, and the EDI system will automatically generate the Import Declaration.

(1) Bill of Lading
POD is for goods in India; both the consignee and the notifying party must be in India with a detailed name, address, telephone number, and fax. The description of goods must be complete and accurate; a free time clause is not allowed to be shown on the bill of lading.
When DTHC and IHI charges need to be borne by the consignee, it is necessary to show "DTHC and IHI charges from A to B on the consignee's account, such as the need for transshipment, need to be added to in transit terms, such as CIF Kolkata India in transit to Nepal.

 

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

 

(3) The invoice date should be consistent, and the shipment 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 license, customs declaration, customs entry form, commercial invoice, certificate of origin, packing list, and shipping documents. The above documents are required in triplicate.
 

(5) Packaging and labeling
India's ports are generally located in tropical areas; heat and humidity may cause damage to the goods. Therefore, the shipment of goods needs to use waterproof packaging and galvanized or tinplate shipping boxes; do not use tarpaulins or other packaging.
Labels should be written in English, and the description of the country of origin should be as prominent as other English words written on the container or label.

 

 

Indian Customs Auction Regulations:

(1) Goods may be stored in the customs warehouse for 30 days after arrival.

(2) After 30 days, Customs will issue a notice to the importer to take delivery of the goods. If the importer is unable to take delivery of the goods on time for any reason, he may apply to Customs for an extension of time according to his needs.

(3) If the importer still fails to make a customs declaration for the delivery of goods on time within the extended period of time, the Customs will again (and for the last time) issue a notice to the importer to urge the delivery of goods.

(4) If the importer, after receiving the second notice from Customs, still fails to take delivery of the goods within the stipulated time and does not give any explanation or apply for an extension, Customs will auction the goods concerned.

Cargo arrives at the port of India 3 days in advance of the IGM (cargo manifest declaration), and once the importer code (IEC number) has been received, the right of goods has been transferred to the importer. At this time, regardless of the owner of the goods, freight forwarders or shipping companies have no control over the right of goods, regardless of the conditions of FOB or CIF, regardless of the bill of lading, whether the "TO ORDER OF SHIPPER" (bill of lading), whether the bill of lading is in your hands, whether L/C, D/P, or T/T, Indian importers cannot return shipments and wait for the customs auction and the low price of the goods.

 

 

According to Indian Customs regulations, exporters need to rely on the original importer to provide proof of abandonment of the goods, the relevant bills of lading, and the exporter's request for the return of letters and telegrams commissioned by the shipping agent in the payment of port storage fees, agency fees, and other reasonable expenses for the return of formalities.

If the importer is not willing to give, the exporter does not want the goods issued documents. The exporter can be based on the importer's refusal to pay or take delivery of the letters and telegrams, or by the bank or shipping agent to provide that the importer does not pay the redemption of the letter and telegrams, the relevant proof of lading, and the seller's request for return of the goods to the letter and telegram to entrust the shipping agent directly to the customs of the relevant Indian ports to make a request for the return of the goods and the relevant formalities.