What should be paid attention to when shipping from China to India?

India is the largest country in the South Asian subcontinent, with many domestic ports, including 12 major ports. With the increasingly close trade between China and India, the demand for shipping from China to India is also increasing, so what should be paid attention to when shipping from China to India? Let’s take a look together.

commercial container ship from China

1. Document requirements

Shipping from China to India involves the following documents:

(1) Signed invoice

(2) Packing list

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

(4) The completed GATT Declaration Form

(5) Declaration form of the importer or its customs agent

(6) Approval document (provided when needed)

(7) Letter of credit/bank draft (provide when required)

(8) Insurance documents

(9) Import license

(10) Industry license (provide when required)

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

(12) Temporary Tax Exemption Order

(13) Duty Exemption Entitlement Certificate (DEEC) / Duty Refund and Tax Reduction Entitlement Certificate (DEPB) original

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

(15) Single price of mechanical equipment parts

(16) Certificate of Origin (provided when preferential tariff rates apply)

(17) No commission statement

 China Freight Forwarder

 

2. Tariff Policy

From July 1, 2017, India will integrate its various local service taxes into Goods and Services Tax (GST), which will also replace the previously announced 15% Indian service tax (Indian service tax). The GST charge standard will be 18% of the service charge for import and export to India, including local charges such as terminal loading and unloading charges, inland transportation charges, etc.

On September 26, 2018, the Indian government suddenly announced an increase in import tariffs on 19 “non-essential goods” in order to reduce the ever-expanding current account deficit.

On October 12, 2018, the Ministry of Finance of India notified the increase of import tariffs on 17 commodities, among which the tariffs on smart watches and telecommunications equipment were increased from 10% to 20%.

 Sea Freight service from China

 

3. Customs regulations

First of all, all goods transferred to the Indian inland freight station 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 must unpack the container at the port or pay a high fee for changing the manifest before transshipment to the inland.

Secondly, after the goods shipped from China to India arrive at the port, they can be stored in the customs warehouse for 30 days. After 30 days, 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 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 after 30 days of customs storage.

 Sea Freight Service from China

4. Customs clearance

After unloading (usually within 3 days), the importer or his agent must first fill in 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 taxes. Otherwise, exorbitant detention fees must be paid 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 Form”, 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 will automatically generate the “Import Declaration Form”. Customs Declaration”.

(1) Bill of lading: POD is for goods in India, the consignee and the notifying party must be in India, and have detailed names, addresses, telephone numbers, and faxes. 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 the DTHC and inland freight needs to be borne by the consignee, “DTHC and IHI charges from A to B on the consignee’s account” needs to be displayed on the cargo description. If transshipment is required, the in transit to clause needs to be added, such as CIF Kolkata India in transit to Nepal.

(2) Determine whether to apply for the FORM B Asia-Pacific certificate or the general certificate of origin according to the product HS CODE query, and you can enjoy a 5%-100% reduction or exemption of tariffs during customs clearance for FORM B.

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

(4) All imports in India need to submit the following full set of import documents: import license, customs declaration, entry form, commercial invoice, certificate of origin, packing list and waybill. All the above documents need to be in triplicate.

(5) Packaging and labeling: The goods to be shipped must be packed in waterproof packaging, and galvanized or tinplate shipping boxes should be used, and tarpaulins and other packaging materials should not be used.

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

 container ship from China

 

5. Return policy

According to Indian Customs regulations, the exporter needs to provide the certificate of abandonment of the goods provided by the original importer, the relevant delivery certificate, and the exporter’s request for return.

If the importer is unwilling to issue a certificate to the exporter that he does not want the goods, the exporter can rely on the letter or telegram of the importer’s refusal to pay/take delivery or the letter or telegram of the importer’s non-payment redemption provided by the bank/shipping agent, the relevant delivery certificate and the seller’s requirements The entrusted ship agent shall directly submit the return request to the relevant port customs in India and go through the relevant procedures.

China's containers in port

Shipping from China to India is generally a direct route, and it will arrive at the Indian port in about 20-30 days after sailing. Sea freight can carry oversized and overweight cargo, but it is also necessary to identify whether the consignment is prohibited. Shipping has certain risks and complexity. Shenzhen Focus Global Logistics Co., Ltd. has 22 years of experience in international freight forwarding, and maintains close and friendly cooperative relations with many well-known shipping companies to provide customers with the best cost-effective Cross-border logistics and transportation solutions protect the interests of customers, and have an industry-leading advantage in China’s export shipping services. If you have business needs, please feel free to contact us – TEL: 0755-29303225, E-mail: info@view-scm.com, looking forward to cooperating with you!


Post time: Apr-12-2023