Textile Owner'S Attention: India Customs Suspended The Clearance Of China'S Goods.

According to official data released by India, India's imports from China mainly include watches, electrical appliances, furniture, toys, watches and clocks, musical equipment, sports goods, mattresses, plastic products and steel products. The proportion of imports from China reaches 14% of the total value of India's imports. From April 2019 to 2020 February, India's total import from China has reached 15 billion 500 million. Yuan.

Recently, India's foreign trade industry has widely spread one thing. That is the port of Chennai, India, which stopped customs clearance of all goods from China. In June 22nd, it began to inspect all the goods from China (100% random checks before that). This move is considered to be the restriction of the India government on all goods from China to the West Coast ports. The port of Chennai is an important port for telecommunications components and equipment. Many Chinese companies import goods from the port and then enter the India market.

The Chinese export personnel should also make preparations in advance. The proposal for undelivered goods should be postponed for delivery first, so as to avoid unnecessary losses, and keep in good contact with customs clearance agents ahead of schedule when the goods have not arrived. If necessary, adjust the unloading port.

India government finance minister Nimara Siharaman (Nirmala Sitharaman) announced in its 2020-21 year government budget that the import tariffs of furniture, footwear, household appliances, mobile phone parts and toys and other products should be increased, and further revised the Section 28DA on anti dumping sales and related measures to restrict imports.

Attention should be paid to India customers or foreign businessmen who plan to enter the India market this year.

01 tariff increases

The India government has listed new taxes, which is in line with Prime Minister Narendra Modi's "India manufacturing" plan aimed at promoting domestic industrial development.

Products that specifically raise import tariffs include:

Footwear tariff increased from 25% to 35%;

The duty on toys increased from 20% to 60%.

Seats, lamps and mattresses and other furniture will be raised from 20% to 25%.

Tariffs on fixed items such as fans, food grinder / stirrer, razor, water heater, oven, toaster, coffee maker, heater and iron, as well as document cabinet and paper tray, increased from 10% to 20%.

Tariffs on commercial refrigerators increased from 7.5% to 15%.

The tariff on refrigerators and air conditioners increased from 10% to 12.5%.

Tariffs on railway transport fans increased from 7.5% to 10%.

The duty of welding and plasma cutting machine increased from 7.5% to 10%.

In terms of electric vehicles, the tariff on imported fully built electric buses and electric trucks increased from 25% to 40%. The tariffs on semi manufactured goods from buses, trucks and two wheeled vehicles increased from 15% to 25%, and the tariffs on passenger cars and tricycles increased from 15% to 30%. The import packages of all electric vehicles (parts and components imported into India were re assembled), and customs duties increased from 10% to 15%.

The duty of shell walnut will increase from 30% to 100%.

02 anti dumping overweight

The India government has further revised the relevant provisions on anti-dumping and defense measures in the Section 28DA to restrict imports.

For example, if a product has been imposed anti-dumping duties, the importer will import it in a semi-finished way. If the added value does not reach 35% of the total manufacturing cost, it will be regarded as a violation of the regulations, and the added value calculation method will not include technical cost, such as patent right, copyright, commercial standard, commission and so on.

If imported products come from more than 1 countries and are subject to anti-dumping investigations simultaneously, the government of India will merge to calculate the impact on domestic industry, but the premise is that the dumping margin of the surveyed countries is over 2% of the export price, and the export volume exceeds 3%.

In the budget book, it is also said that when evaluating anti-dumping duties, the competitiveness of imported products will be considered, and the competition between imported products and domestic similar products will be considered.

At present, the number of anti-dumping investigations against China in India is second only to the United States, ranking the world's largest. In emerging economies, India's number of anti-dumping investigations against China ranked first, far exceeding that of Brazil, Vietnam and other countries.

03 certification of origin certificate is more stringent.

In 2020, the government budget of India added 1 new chapters in the tax law, setting more stringent rules for the inspection of origin of FTA. In his budget speech, Minister Sitharaman said that the government of India will review the rules of origin of the FTA in the coming months, especially for sensitive products, so as to ensure that FTA is consistent with the policies of the India government.

India's economy has been on the decline for the past year, and the public has placed their hopes on 2020. However, after the announcement of the budget for the 2020 to 2021 fiscal year, many India economists believe that the budget proposes only modest increases in government spending and a slight reduction in personal taxes. It is difficult to extricate India's economy from the worst recession in ten years.

On the other hand, more than 35% of India's foreign trade deficit comes from China, and there is a growing trend. In November last year, India announced that it would not join the regional comprehensive economic partnership agreement (RCEP), which was negotiated by the 15 countries, because it was concerned about market access and worried that if cheap Chinese made goods flooded India, India's domestic industry would be hit hard.

It is conceivable that the India government will continue to compress the space of China's imports this year. Please pay attention to market risk when exporting to India!

Source: focus on India and focus horizons