Sunnyjoint Friendly Reminder: When There Is Economic Turmoil And Tax Reform In India, The Export Risk Will Rise Sharply!

- Oct 25, 2018-

India suddenly raised the tariffs on 17 categories of products again, involving China's main export products!The Indian Ministry of Finance has notified that import tariffs on 17 commodities will be increased from the 12th of this month. These 17 items include smart watches, telecommunications equipment and more. The notice shows that tariffs on smart watches and telecommunications equipment have increased from the current 10% to 20%.

Earlier, the Indian Ministry of Finance had raised tariffs on 19 imported goods. The Indian Ministry of Finance has decided to increase import tariffs on 19 kinds of goods such as washing machines, air conditioners, diamonds and aviation fuels since September 27. Among them, the import duty rate of air conditioners, refrigerators and washing machines increased by 20% from 10%; the aviation fuel import tax rate increased from zero to 5%. The Indian Ministry of Finance said that in the 2017-18 financial year, the 19 imports of India totaled 860 billion rupees.

The two reasons for raising tariffs on imported goods are the same: reducing the current account deficit and preventing further devaluation of the rupee.

The same as the previous one: the goods that have been raised twice in successive tariffs are almost all of China's major exports to India! !

Here, we must pay special attention to the fact that Indian law allows importers not to pay for goods; it is difficult to return goods in India.

Before the goods arrive at the destination port, the destination passengers will be transferred to the consignee's hands after the manifest declaration. The shipping company and the freight forwarder have no right to take out the goods, want to resell or return the goods, and get the authorization of the original buyer. Some junk customers use the Indian customs regulations to deliberately default on the purchase price and wait for the low price to buy at the customs auction.