Ekport - More Exports to India

A.I based Export Distribution Channel for Exporters to do More Exports.

Everybody Knows

Is it a good idea to import Korean USB Flash Drives and sell in India?
Absolutely! South Korea is a country that produces the bulk of the world's memory chips. Since it is a well established industry in South Korea, the product quality and innovation is amongst the best that you can ask for. India is a consumer electronics driven market, India imported $306 Million memory chips across Dynamic (DDR Ram) and Static (SRAM) between April 2018 to Mar 2019 from South Korea. This almost 1800% increase from the last year (Apr 2017 to Mar 2018).
Often many B2C online retailers in India, buy innovative and high quality memory products like biometric USB flash drive - for securing data in USB Flash drives - which is a current novelty in India. Buying innovative South Korean products increases the chances of selling fast and with a profit, often leveraging various online ecommerce platforms like Flipkart and Amazon.
Q. I want to import cosmetic products from South Korea and would like to know the tariffs/duties applied on it?
All duties and tariffs that are applicable on the products are as of January 2019. HS Code 330499 (Beauty Products)- Basic Custom Duty (BCD) is 20%. Indirect tax, known as Goods & Services Tax (GST) will be levied in a similar way as it is applicable for all other domestic goods in India. Current applicable GST rate is 18% of (AV+BCD+SCD) where AV= Assessed Value, BCD= Basic Customs Duty and SCD= Special Customs Duty. I have done an illustration below so that it is easy for an importer to understand how duties and tariffs are calculated:
AV= USD 100,000
BCD 20% of AV = USD 20,000
SCD 10% of BCD = USD 2,000
GST = 18% (AV+BCD+SCD) 18% of (100,000 + 20,000 + 2,000) = USD 143,960.
Total effective duty applicable for HS Code 330499 is 43.96%
Q: To facilitate international cross border trade, has India taken any steps for improvement?
Not just to improve trade but for overall business efficiency India has taken certain key measures which has made cross border trade seamless. Key measures of improvement were: Introduction of GST (Goods & Services Tax) in 2017 that not only helped to align businesses but also improved cross border trade by eliminating multiple taxes.Electronic updation of documents by traders has reduced paperwork and bureaucracy.Exporters no longer need to seal containers under the supervision of custom officials as before and can apply for self-sealing locks online. Introduction of risk management systems allows exporters to clear low-risk consignments on self- assessment. These measures helped India to improve its ranking in terms of cross border trade.India climbed up by 66 places as compared to 2017 where it was placed at 146, and in 2018 it was placed at 80.
Q: I am an Indian exporter who wants to export products in South Korea and would like to know, does India and South Korea have a trade agreement?
Yes, India and South Korea have a bilateral trade agreement which is still under negotiations known as Comprehensive Economic Partnership Agreement (CEPA) which is to be finalised in early 2019. Under the agreement both countries have agreed to eliminate tariffs on certain items. India has agreed to eliminate/reduce tariffs on 11 items from South Korea export that include fish fillets and marine base oil. On the other hand South Korea has agreed to reduce tariffs for seven fish items including shrimp and 17 other items identified ( mango, corn, jellies and maize) identified under the Early Harvest Package (EHP) signed under CEPA negotiations.
Q. Are there any labelling requirements for food products when imported into India?
In order to import food products from any country an importer must file for a FSSAI (Food Safety and Standards Authority of India) license. India has strict rules and regulations when it comes to imported food, labelling requirements which are mentioned under Food Safety and Standards (Packaging & Labelling) Regulations, 2011 and Food Safety and Standards (Food Import) Regulations, 2017. For further information on packaging, labelling of imported food items visit the Food Safety and Standards Regulations
(https://www.fssai.gov.in/home/fss-legislation/fss-regulations.html)
Q. How can ECGC help Indian exporters?
The Corporation provides assistance/help in the following ways:
Facilitate availability of adequate bank finance for Indian exporters by providing insurance covers at competitive rates.
Protect Indian exporters against unforeseen losses, which may arise due to failure of the buyer to make the payment within a given time period, insolvency of the buyer or political risks.
Cost effective credit insurance covers in the form of factoring and investment insurance covers at competitive rates similar to those available in overseas countries are offered to exporters.
Guidance in export- related activities an assist in recovering bad debts.
Source: https://www.ecgc.in/overview/
International Trade Expert - Sameer Shah
Sameer Shah
Ekport
International Trade Expert   International

International Trade Expert - Dhara Doshi
Dhara Doshi
Ekport
International Trade Expert   International

International Trade Expert - Prajakta Chavan
Prajakta Chavan
AiBrid Importers & Distributors Private Limited
International Trade Expert   International