In India, nearly 9.4 million people have been infected and more than 136,000 people have died during the COVID-19 epidemic. This has also made the country the second most severely affected country by the COVID-19 epidemic in the world, following the United States. Moreover, since the northern hemisphere entered autumn and winter, India’s capital New Delhi has seen a significant rebound in the epidemic.
But at this critical moment of the epidemic, Press Trust of India news, according to the Central Trade Unions of India, the country’s Kerala, Pondicherry, Odisha, Assam and Tetra Langana State has recently experienced a complete shutdown, and normal life in many other states has also been partially affected, as more than 250 million workers have participated in a nationwide strike.
However, a few days ago, India announced a ban on Chinese apps, which affected the normal local operations of these app manufacturers. Now here it comes again… According to a recent Reuters report, India will start with the quality inspection standards of imported goods and strictly control electronic products from China.
In fact, India’s current “card” at the customs will strictly control the testing of electronic products imported from China, and the Bureau of Indian Standards (BIS) is responsible for controlling imported electronic products. Previously, if these imported electronic products had to clear customs, the approval time was extended several times from 15 days to more than two months or more. Companies including Hikvision, Wistron, Xiaomi, Compal and other companies were seriously affected.
In August this year, sources revealed that India is planning to improve the quality standards of imported goods, implement import volume restrictions, enforce strict information disclosure guidelines, and impose restrictions on goods from many Asian countries at commodity ports. Products undergo more frequent inspections. The Indian government in New Delhi is considering measures to prevent trading partners, mainly in Southeast Asia, from reshipping very low value-added Chinese imports to India, two anonymous government sources said. It is reported that India is also worried about the influx of large amounts of goods from South Korea. The main targets of these measures are the import of electronic components for laptops and mobile phones, air conditioners, televisions, basic metals, furniture, leather goods, toys, textiles and rubber products.
On June 19 this year, foreign media reported that India plans to set higher trade barriers on about 300 products and increase import tariffs in an attempt to form tariff protection for Indian domestic companies (India plans to Increase tariffs on 300 imported goods from China!). The following week, it was reported that Indian customs inspected 100% of Chinese goods and suspended customs clearance. Products from Apple, Ford, Cisco, Dell, and electronic components from Foxconn were all affected. According to analysis, although India’s move has not been officially documented, it has already set the stage for the global supply chain. bring a certain degree of impact.
In fact, India had already raised import tariffs on electronic products, toys, furniture and other goods in February this year. At that time, this decision attracted widespread criticism, saying that it was targeting foreign companies. protectionist measures. At that time, IKEA from Sweden said it was disappointed with India’s move to adopt higher tariffs.
Based on the current situation, we have compiled foreign trade settlement risks and risk prevention suggestions for exporting to India. Foreign trade and freight forwarding friends who have business in India must read it carefully and tell each other to avoid falling into the pit:
Risk of foreign trade settlement with India
China’s exports to India are far greater than its imports from India. In recent years, the Indian government has continuously conducted anti-dumping investigations on foreign goods exported to India in the name of anti-dumping. India’s customs policies and the bad behavior of some businessmen have brought settlement risks to Chinese exporters.
The following issues need to be paid attention to when trading in India:
1. Indian law allows the importer to not take delivery of the goods without payment. After the goods arrive at the destination, if the importer does not pay and does not take delivery of the goods or Returns due to quality issues are allowed.
2. It is difficult to return goods in India. Indian Customs will auction the goods after the stack-free period. The original buyer has the first right to purchase the goods, and the exporter requires a written certificate from the buyer to return the goods. When requesting a return shipment to the Indian port customs, the original buyer often lowers the price significantly to obtain the goods.
3. India requires that the cargo manifest must be declared 3 days in advance before the goods arrive at the Indian port, and the import and export registration number (IEC CODE) must be indicated. Otherwise, a fine will be levied by the customs and directly affect the normal shipment of the goods. Release.
4. Be careful of unscrupulous Indian businessmen, who trade in D/P and D/A methods. After the goods arrive, they will not redeem the order for various reasons, and use this to blackmail export companies, and unreasonably force Chinese companies to repeatedly Reduce prices and change the payment method to D/A to achieve the purpose of purchasing goods at extremely low prices or even completely misappropriating the goods. If the exporter resells the goods, he will also need to bear the resulting station fees, demurrage fees, detention fees, Indian customs fines and other fees, which will bring high losses to the exporter. The worst result is that the auction will be held up in Hong Kong, and both money and goods will be lost.
5. Be wary of letters of credit issued by Indian banks. The terms of letters of credit in India are relatively complex. The documents require a lot of details and may require multiple inspection certificates (there are soft clauses that require signatures from both parties). Annex clauses often require the display of IE related to import licenses.C number ORL number, etc.
Which payment methods are more risky in China-India trade?
1. In China-India trade, the use of D/A or D/P payment methods is risky, because these two payment methods belong to commercial credit, and India’s domestic credit system has not yet been completed, and there are many problems. Large loopholes, therefore, we must maintain a sense of risk prevention in Sino-Indian trade, and use payment trade methods with high credibility as much as possible.
As the current financial crisis continues to spread, the forward risk of L/C is relatively high. Even if it is bank credit, Indian customers may not pay the redemption order when it is due. In order to ensure that your company can collect foreign exchange safely, it is recommended not to use L/C forward payment method as much as possible.
2. Customers who use L/C payment method in Sino-Indian trade may still refuse to pay for the goods! When doing business in India, even under the conditions of sight letter of credit, the other party may still refuse to pay for the goods. The main technical reasons are It is the local issuing bank that requires the importer to confirm the letter of credit, but unscrupulous merchants often refuse to pay the goods on the grounds that the letter of credit has soft terms and does not accept the letter of credit.
Feasibility of complying with terms of the DC (this clause is often used by importers)
How to control risks in China-India trade?
1. For trade with India, the trade practice of using sight letters of credit as the main method of payment should be adhered to, and settlement through collection should be avoided as much as possible.
It is necessary to carefully review the letter of credit, and if there are soft or unclear terms, try to modify the letter of credit; at the same time, we must strictly implement the terms of the letter of credit, strive to comply with the presentation of documents, and do not give some unscrupulous people the opportunity to Take advantage of the opportunity.
Special attention should be paid to trade with Indian leather bag companies in Hong Kong and Singapore. Pay attention to the basic situation and credit of the middleman, and make sure it is done in the contract and letter of credit. Very rigorous design and regulations.
In addition, once the exporter needs to go through the return procedures, he should pay attention to completing the relevant procedures in a timely manner within the storage time of the port customs warehouse specified by the Indian Customs.
Indian Customs regulations: 30 days after the goods arrive at the port, the customs will issue a pick-up notice to the importer. If the importer cannot pick up the goods on time for some reason, he can apply to the customs for an extension according to his own needs;
If the importer still fails to declare and pick up the goods on time within the extended period, the customs will issue another (and final) notice to the importer urging him to pick up the goods;
If the importer fails to declare and pick up the goods on time, After receiving the second notification from the customs, if you still do not pick up the goods within the specified time, do not make any explanation or apply for an extension, the customs will auction the relevant goods. If this happens, the exporter may lose both money and goods.
2. Use legal and reasonable methods to strengthen the control of cargo rights
In international trade, how to effectively control risks has always been a concern for both parties to the transaction. . For shippers, the most effective way is to control the rights to goods in a legal and reasonable manner, especially in areas with high trade risks.
Warning: Regardless of FOB or CIF conditions, regardless of whether the bill of lading is “TO ORDER OF SHIPPER” (instruction bill of lading), whether the bill of lading is in your hand or not, India can declare the import without payment and with technical legality. As long as the name of the Indian customer is displayed on the BILL OF ENTRY (import declaration manifest) and IGM (import cargo manifest), you have lost the right to the goods, regardless of whether the bill of lading is in your hand.
If the goods are detained by the customs because the Indian company refuses to pay, under normal circumstances, it is of little use for our domestic companies to contact the Indian customs directly, because the Indian customs can only obtain a written explanation of the abandonment of the goods from the Indian importer and verify it. The goods will only be allowed to be returned if the payment for the goods has not been paid.
The key problem lies with the importer. Without his abandonment instructions, customs will not allow returns. </p
