The Indian Ministry of Finance, Ministry of Taxation, and Customs Commission (CBIC) have confirmed that the sea freight manifest and transfer regulations will take effect from August 1, 2019. The Indian tax authorities and customs have passed new regulation No. 88 of 2018, the "2018 Maritime Cargo Manifests and Transhipment Regulations", which stipulates that the requirements for imported goods to arrive at Indian ports and exported goods to leave Indian ports have changed. The shipping company has issued a notice that if information is not provided in accordance with the new regulations, serious consequences such as inability to load and unload containers or fines may occur, and the cost will be borne by the shipper! The Indian sea freight manifest and new regulations for transshipment will be implemented in more than 10 days, and will take effect soon. Please pay attention to the freight forwarder!
The following are the key requirements of the new regulations: Customers must provide accurate shipping details before the SI cut off time according to the bill of lading replenishment deadline to comply with the new regulations.
Sea Arrival Manifest "SAM" - Applicable to all containers entering India:
The sea arrival manifest (SAM) must be submitted to Indian customs before the ship leaves the last foreign port of call. For example, on the Asia/Indian subcontinent/Middle East route (GALEX) westbound route, Port Klang is the last foreign port of call.
All containers unloaded or transshipped as local imports or retained on board ships at Indian ports.
Mandatory provision of 6-8 digit customs code (HS CODE).
The importer's import and export code (IEC) and the importer's GST ID number (GSTIN) are mandatory
Mandatory provision of permanent account number (PAN) for notifying party (named entity in India)
Sea Departure Manifest "SDM" - applicable to all containers exported to India
The mandatory outbound cargo manifest stipulates that ships must submit an outbound cargo manifest to customs before sailing at the loading port in India.
Applicable to all containers loaded at Indian ports.
After the goods arrive at the destination, in addition to providing the manifest information according to the above requirements, the freight forwarder should also note that if the importer does not make payment and does not pick up the goods, or if a return is required due to quality issues, it is allowed. On the other hand, Indian customs only allow stacking for 30 days. If the importer does not apply for an extension, the goods will be auctioned off or abandoned.
Extended reading:
Goods exported to various ports in India from August 1st must provide value data
According to a new notice from Indian Customs, starting from August 1, 2019, for goods exported to various ports in India, value data must be provided. Please fill in the specific data according to the invoice amount. If there is no value data, it will affect the import customs clearance of goods in India.
At present, the shipping company (ONE) has issued a notice, reminding freight forwarders and shippers to pay attention when exporting to India! To avoid the risk of delayed or auctioned goods due to inability to clear customs! (Attachment at the end of the article: Precautions for exporting to India by sea!)
When it comes to Indian buyers, many foreign trade salespeople who engage in international trade will laugh it off. It's okay not to make money! Because the risk is too high. How to prevent it? Please review the article: How to deal with unscrupulous Indian buyers who "do not pick up goods and want discounts"?
Especially for friends of cross-border e-commerce, Indian customs laws are not only strict but also very pithy. After the seller's goods arrive in the local area, the ownership of the goods is directly transferred to the buyer. Without the buyer's consent, the seller cannot return the shipment. Moreover, if the seller's goods fail to clear customs successfully for more than 3 days, they will be confiscated and auctioned by the local customs, resulting in many sellers' goods being confiscated and their wealth and goods being sold out.
How much do you know about the relevant regulations of Indian customs? Let's take a look together!
★ Precautions for exporting to India by sea! ★
India is the largest country in the South Asian subcontinent, with numerous domestic ports, including 12 main ports, including Mumbai, Kolkata, Chennai (formerly known as Madras), Cochin, Goa, etc., responsible for 3/4 of the freight volume. Among them, Mumbai Port is the largest port and ranks 18th in the world in terms of shipping capacity.
The sea freight from China to the port of Kolkata in India requires transit through other ports, and the voyage takes about 14 to 21 days. Transit ports include ports such as Colombo/Visakapatnam/Krishnaparnam/Port Klang/Singapore.
documents required
India's maritime import and export involves the following documentary information:
(1) Signed invoice
(2) Packing list
(3) Ocean bill of lading or bill of lading/air waybill
(4) Completed GATT declaration form
(5) Declaration form of importer or its customs agent
(6) Approval (provided when needed)
(7) Letter of Credit/Bank Draft (to be provided upon request)
(8) Insurance documents
(9) Import License
(10) Industry license (provided when required)
(11) Laboratory report (provided when the goods are chemicals)
(12) Temporary tax exemption order
(13) Original Certificate of Duty Exemption Rights (DEEC)/Certificate of Tax Refund and Reduction Rights (DEPB)
(14) Catalogue, detailed technical specifications, relevant literature materials (provided when the goods are mechanical equipment, mechanical equipment components or chemicals)
(15) Single price of mechanical equipment components
(16) Certificate of Origin (provided when preferential tariff rates apply)
(17) No commission statement
02 Supplementary Requirements for Documents
The General Administration of Customs of India has issued Announcement No. 33/2018, which stipulates that starting from April 1, 2018, importers must ensure that their exporters are notified of the following basic details abroad in order to include them in booking such goods:
(1) Importer's Import and Export Code (IEC)
(2) Consumption tax importer ID number number (GSTIN)
(3) The official email ID of the importer (for communication between shipping routes and customs)
This notice is issued due to the consignment of hazardous waste, other waste or restricted items imported under the name of certain importers and not yet cleared. Therefore, it is necessary to record the basic information of the importer on the bill of lading so that this detailed information can be used to determine DPD stacking and various other purposes.
03 Tariff Policy
Starting from July 1, 2017, India will consolidate its various local service taxes into Goods and Services Tax (GST), which will also replace the previously announced 15% Indian service tax. The charging standard for GST will be 18% of the import and export service fees in India, including local fees such as port loading and unloading fees and inland transportation fees.
On September 26, 2018, the Indian government suddenly announced an increase in import tariffs on 19 "non essential goods" to reduce the expanding current account deficit. This tariff adjustment has raised tariffs on imported goods such as air conditioners, refrigerators, washing machines, shoes, speakers, jewelry, some plastic products, luggage, and aviation turbine fuel.
The Ministry of Finance of India has notified that import tariffs on 17 goods will be increased starting from October 12, 2018. These 17 products include smartwatches, telecommunications equipment, etc. The notice shows that the tariffs on smartwatches and telecommunications equipment have increased from the current 10% to 20%.
04 Customs regulations
Firstly, all goods transferred to inland freight stations in India must be transported by the shipping company throughout the entire journey, and the final destination column on the bill of lading and manifest must be filled in as the inland point. Otherwise, the container must be unloaded at the port or a high fee for changing the manifest must be paid before it can be transported inland.
Secondly, after the goods arrive at the port, they can be stored in the customs warehouse for 30 days. After 30 days, customs will issue a notice of pick-up to the importer. If the importer is unable to pick up the goods on time due to certain reasons, they 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 off after 30 days of customs storage.
05 Customs clearance
After unloading (usually within 3 days), the importer or its agent must first fill out 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 the taxes. Otherwise, high detention fees must be paid to the port authority or airport authorities.
If the goods are declared through an Electronic Data Interchange (EDI) system, there is no need to fill out a paper Import Declaration Form. However, the detailed information required for customs to process the goods clearance application needs to be entered into the computer system, and the EDI system will automatically generate the Import Declaration Form
1) Bill of Lading
POD refers to goods from India, and both the consignee and the notifying party must be from within India, with detailed name, address, phone number, and fax number. The description of the goods must be complete and accurate; It is not allowed to display the free time clause on the bill of lading;
When DTHC and inland freight need to be borne by the consignee, it is necessary to display "DTHC and IHI charges from A to B on the consignee's account" in the cargo description. If transshipment is required, an in transit to clause needs to be added, such as CIF Kolkata India in transit to Nepal
(2) According to the product HS CODE query, determine whether to apply for FORM B Asia Pacific certificate or general certificate of origin. FORM B customs clearance can enjoy a tariff reduction of 5% -100%.
(3) The invoice date should be consistent, and the shipment date should also be consistent with the bill of lading.
(4) All imports from India require the submission of the following complete set of import documents: import license, customs declaration form, entry form, commercial invoice, certificate of origin, packing list, and waybill. The above documents need to be in triplicate
(5) Packaging and labeling
Indian ports are generally located in tropical regions, and extreme heat and humidity can cause damage to goods. Therefore, the goods to be shipped need to be packaged in waterproof packaging and shipped in galvanized or tinplate boxes, without the use of packaging materials such as waterproof tarpaulins.
The label should be written in English, and the explanatory text indicating the country of origin should be as prominent as other English words written on the container or label.
06 Auction Regulations
Indian Customs Auction Regulations:
(1) After the goods arrive at the port, they can be stored in the customs warehouse for 30 days.
(2) After 30 days, the customs will issue a notice of pick-up to the importer. If the importer is unable to pick up the goods on time due to certain reasons, they can apply for an extension to the customs according to their own needs.
(3) If the importer fails to declare and pick up the goods on time within the extended period of time, the customs will once again (and for the last time) issue a notice urging the importer to pick up the goods.
(4) If the importer fails to pick up the goods within the specified time after receiving the second notice from the customs, and does not make any explanation or apply for an extension, the customs will auction the relevant goods.
When the goods arrive at an Indian port, IGM (Cargo Manifest Declaration) needs to be made 3 days in advance. Once the importer's code (IEC number) is indicated, the ownership of the goods has been transferred to the importer; At this point, regardless of the shipper, freight forwarder, or shipping company, they cannot control the ownership of the goods. Under FOB or CIF conditions, regardless of whether the bill of lading is "TO ORDER OF SHIPPER" or not, regardless of whether the bill of lading is in your hands, whether it is L/C, D/P, or T/T, Indian importers can not return the goods and wait for customs auction to obtain the goods at a low price.
07 Return regulations
According to Indian customs regulations, exporters are required to provide the original importer with a certificate of abandonment of the goods, relevant delivery documents, and a letter or telegram requesting a return from the exporter. They must entrust a shipping agent to handle the return procedures after paying reasonable fees such as port storage fees and agency fees.
If the importer is unwilling to provide the exporter with proof of non delivery, the exporter may entrust the shipping agent to directly request a return of the goods to the relevant port customs in India and complete the relevant procedures by presenting a letter or telegram from the importer refusing to pay or pick up the goods, or a letter or telegram from the bank or shipping agent providing the importer's non payment redemption order, relevant delivery documents, and a letter or telegram from the seller requesting the goods to be returned.
Kind reminder
Indian customs strictly inspect BIS certificates and cover multiple categories. In addition, local customs strictly inspect low declaration, and sellers also need to provide IEC documents and payment vouchers, which are indispensable.
Source: Shipping website, organized and published by the Lianying team, hacked and deleted.
