Can it still be exported to India? ? ?
Among the countries currently most severely affected by the epidemic, the United States, Brazil, and India rank among the top three. India’s recent daily growth rate has even exceeded that of the United States and Brazil. Under such circumstances, the Indian government has been busy taking a series of “blocking” measures against China. Recently, some foreign trade companies have reported that they have been “hurt”.
Case
A textile export company in Shaanxi Province shipped a batch of goods to In India, the payment method is LC at sight. Due to discrepancies in the letter of credit, the two parties negotiated and revised the documents and presented them to the domestic presenting bank on July 1. On the same day, the bank informed that it could not successfully send the order. The reason was that all international express delivery services such as DHL and FedEx had suspended services to India. The policy was until July 5 and the resumption time would be notified separately.
After learning the news, the company was extremely anxious. As the expected arrival date of the goods is approaching, once the arrival documents are not delivered to the buyer, the demurrage costs incurred will need to be borne by the negligent export company, and the buyer’s rejection, refusal to pay and other losses caused by this will be covered by the credit insurance policy. outside.
The company hopes to negotiate with the buyer and the issuing bank to complete the document delivery obligation by faxing a scanned copy of the bill of lading, or sending the document through South Korea, a third country. The buyer informed by email that he has been quarantined at home for 100 days and cannot work normally. The issuing bank is also closed and there is no other way.
After learning about the situation, Sinosure’s Shaanxi Branch actively helped the company with suggestions and suggested that the exporting company actively communicated with the buyer and signed a supplementary agreement to release the bill of lading via telex; Sinosure relied on the existing OA The insurance liability is borne within the limit amount. Once the buyer is unable to clear customs and refuses to accept or resell the goods due to the epidemic, or refuses to pay for the goods after receiving them, he can immediately file a claim with China Sinosure. On July 6, the company finally successfully presented the bill to the bank, and the presenting bank successfully sent the original bill of lading and other negotiation documents.
The experiences of the above companies tell us that recent exports to India need to pay special attention to the local economic situation and policy changes, especially India has also launched a bunch of “extreme” policies.
01 India strictly prevents the “curve” entry of Chinese goods
New Delhi 8 According to reports on March 3, two government sources said that the Indian government is considering taking measures to prevent Southeast Asian trading partners from exporting Chinese goods to India that do not add any added value.
Government officials said that India is planning to improve the quality standards of imported goods, implement import quantity limits, enforce strict information disclosure guidelines, and impose strict regulations on goods from many Asian countries at commodity ports. Products undergo more frequent inspections.
The main targets of these measures are imported basic metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions. .
Reuters pointed out that the broader restrictions are expected to mainly hurt Malaysia, Thailand, Vietnam and Singapore. These countries are all members of ASEAN, and India has signed free trade agreements with ASEAN. trade agreement. India is also worried about an influx of goods from South Korea.
02 India may impose additional tariffs on nearly 20 types of Chinese products
Over the past few months, the Indian government has announced production-related incentives to encourage the manufacturing of electronics, medical equipment and pharmaceutical products, while restricting the import of similar products from China.
According to the “Times of India” report on August 11, the Indian government is considering imposing additional tariffs on nearly 20 products, including laptops, cameras, textiles and aluminum products. At the same time, import licenses will be implemented for some steel products, which is regarded as India’s latest restrictive measure on Chinese imported products. On the other hand, India’s imports from China have increased for two consecutive months since June.
03 India bans the import of 101 weapons, and local arms dealers are confused
In order to vigorously promote the localization of Indian military weapons and equipment, the Indian Ministry of Defense recently announced an unprecedented arms embargo list. In this embargo list, as many as 101 items of weapons and equipment are prohibited from being imported, including assault rifles, sonar, The Indian military relies heavily on imported equipment such as radars, frigates and transport aircraft. But at the same time, India’s local arms dealers were also confused, because many domestically produced weapons and equipment in India were also embargoed.
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Can India get rid of Chinese products?
To what extent can India get rid of Chinese products?
“The Logical Indian” news network quoted a report recently released by India’s Research and Information Systems Research Center for Developing Countries on August 10 as saying that for about 4,000 species from China Imported products including mobile phones, telecommunications equipment, cameras, solar panels, air conditioners and penicillin.327 products including � can find alternative source countries or can be produced in India. The report stated that the value of the above-mentioned “sensitive imported products” accounted for 3/4 of the total products imported from China.
India’s restrictions on Chinese products have hurt many multinational companies. Germany’s “Frankfurter Allgemeine Zeitung” reported on the 11th that Volkswagen India general manager Bo Pare recently criticized India’s lack of ease of doing business in an interview with Indian media and called on the Indian government not to build a “higher wall” against China. Restricting or delaying the import of key components from China is a retrograde measure. Restricting imports will harm India’s domestic competitiveness and will also affect the country’s export prospects.”
In an interview with a reporter from the Global Times on the 11th, Zhao Gancheng, a researcher at the Shanghai Institutes for International Studies, said that China’s exports of IT products to India are large and its market share is also high. Very high. “Whether it is network products or mobile phone terminals, including telecommunications equipment, it is estimated that they will bear the brunt of this round of India’s localization policy.” In addition, China’s mechanical and electrical products, chemical products, APIs, etc. may also be targeted by India. “But it is questionable whether India can achieve self-sufficiency through independent production.”
Analysts said that regardless of whether the cost-effectiveness of imported goods from other countries is comparable to Chinese goods, In the field of APIs alone, India will not be able to get rid of its absolute dependence on China within 3 to 5 years.
Risk tips and suggestions for exporting to India
India has launched a series of measures If you want to “block” trade with China, foreign traders need to be wary of the risks of trade friction. India has always been anxious about “sweeping” products from China after liberalizing market access. Almost ten years ago, India frequently adopted anti-dumping and other measures to prevent Chinese products from entering India.
In 2019, India ranked second in the world in terms of the number of anti-dumping investigations against China after the United States. Recently, India has begun to frequently launch attacks on Chinese exports. The Hindustan Times reported that India believes that at least 100 Chinese products have been found to be dumped, and India will launch anti-dumping actions against them. It is expected that India’s anti-dumping investigations on Chinese goods will become more frequent, further reducing the export space of Chinese products to India.
Public information shows that in the past two weeks, China’s imported goods have been blocked at ports including Mumbai and Chennai in India, resulting in many containers piling up at the port. . In addition, due to recent strict inspections of Chinese goods by Indian Customs, the workload of customs staff has greatly increased, which has also had a certain impact on the customs clearance of imported goods from other countries.
In view of this, we would like to remind foreign trade companies that have recent trade dealings with India, especially those exporting goods to India, to pay attention to the risk control of payment collection and delivery, and to be wary of blocked customs clearance at the destination port. , there is no one to pick up the goods at the destination port, the buyer abandons the goods, refuses to pay and other problems.
Suggestions:
1. If you have an Indian order in hand. Negotiate amicably with the buyer first to ensure smooth customs clearance; confirm in advance in writing with the buyer and shipping company the cost of demurrage and other issues. Try to collect full advance payment or issue a letter of credit; ensure that international express delivery can normally undertake business; consult about purchasing export credit insurance to obtain risk protection.
2. If the business has been shipped, contact the customs clearance freight forwarder in advance, pay close attention to the customs clearance policy of the destination port, and adjust the unloading port if necessary.
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