Textile industrial news

Note to textile owner: Indian customs suspend customs clearance of Chinese goods

——And 100% inspection

According to official data released by India, India's imports from China mainly include watches, electrical appliances, furniture, toys, clocks, musical equipment, sports items, mattresses, plastic products, steel products, etc. the proportion of imports from China has reached 14% of the total imports of India. From April 2019 to February 2020, India's total imports from China have reached 15.5 billion US dollars.

Recently, an event has been widely spread in India's foreign trade industry. That is to say, Chennai port of India stopped customs clearance of all goods from China, and began to inspect 100% of all goods from China on the evening of June 22 (before that, random inspection). The move is seen as a government restriction on all goods from China at the west coast port. Chennai port is an important port for telecommunication components and equipment. Many Chinese companies import goods from this port for customs clearance and then enter the Indian market.

All Chinese export personnel should also be well prepared in advance. For those who have not yet delivered the goods, it is suggested to postpone the delivery to avoid unnecessary losses. For those who have already delivered the goods but have not yet arrived, they should keep good contact with the customs clearance agent in advance. If necessary, they should suggest to adjust the unloading port.

In the budget of 2020-21, Nirmala sitharaman, finance minister of the government of India, announced that the import tariff of furniture, footwear, home appliances, mobile phone parts, toys and other products would be increased, and the anti-dumping and related measures of section 28da would be further amended to restrict the import!

Please pay attention to Indian customers or foreign traders who plan to enter Indian market this year!

01 tariff increase

The Indian government cited new taxes as being in line with Prime Minister Narendra modi's "made in India" plan to promote domestic industrial development.

The specific products for which import tariffs are raised include:

Footwear tariff increased from 25% to 35%;

The tariff on toys has been raised from 20% to 60%;

The tax rate on furniture such as seats, lamps and mattresses will be raised from 20% to 25%;

Tariffs on fans, Food Grinders / mixers, shavers, water heaters, ovens, toasters, coffee makers, heaters and irons, as well as stationary items such as filing cabinets and paper trays, increased from 10% to 20%;

The tariff of commercial refrigerators was increased from 7.5% to 15%;

Tariffs on refrigerators and air-conditioning compressors increased from 10% to 12.5%;

The tariff of railway transportation fan is increased from 7.5% to 10%;

The tariff of welding and plasma cutting machine is increased from 7.5% to 10%;

In terms of electric vehicles, the tariff of imported fully built electric buses and electric trucks is increased from 25% to 40%, the tariff of semi-finished products of buses, trucks and two wheeled vehicles is increased from 15% to 25%, the tariff of passenger cars and three wheeled vehicles is increased from 15% to 30%, and the tariff of imported sets of all electric vehicles (parts and components are imported to India for re assembly) is increased from 10% to 15%;

The tariff on shelled walnuts will be increased from 30% to 100%.

02 anti dumping mark up

The Indian government has also further amended the anti-dumping and defense measures in section 28da to restrict imports.

For example, if an importer imports and assembles a product that has been subject to anti-dumping duties in the form of semi-finished products, if the added value does not reach 35% of the total manufacturing cost, it will still be regarded as a violation of the regulations, and the calculation method of added value will not include the technical cost, such as patent, copyright, trademark, commission, etc.

If the imported products come from more than one different country and are subject to anti-dumping investigation at the same time, the Indian government will combine the calculation of the impact on the domestic industry, provided that the dumping difference of the investigated country exceeds 2% of the export price and the export volume exceeds 3%.

The budget also states that when assessing the imposition of anti-dumping duties, the competitiveness of imported products against each other and the competitiveness of imported products against similar domestic products will be taken into account.

At present, India's anti-dumping investigations against China are second only to the United States, ranking second in the world. In emerging economies, India's anti-dumping investigations against China ranked first, far surpassing Brazil, Vietnam and other countries.

03 stricter verification of certificate of origin

This time, India's 2020 government budget added a new chapter to the tariff law, setting more stringent regulations for the FTA origin inspection. Minister sitharaman said in his budget speech that the Indian government will review the rules of origin of FTA in the coming months, especially for some sensitive products, so as to ensure that the FTA is consistent with the policies of the Indian government.

India's economy has been declining all the way in the past year, and people are pinning their hopes on 2020. However, after the expected budget for the 2020-2021 fiscal year is announced, many Indian economists believe that the budget only proposes moderate increase of government spending and small reduction of personal tax, which is difficult to rescue the Indian economy from the worst recession in a decade.

On the other hand, more than 35% of India's foreign trade deficit comes from China, which has a growing trend. In November last year, India announced that it would not join the regional comprehensive economic partnership agreement (RCEP) negotiated by the 15 countries because of concerns about market access and that if cheap Chinese made goods flooded India, its domestic industries would be hit hard.

It is conceivable that the Indian government will continue to reduce the space for China's imports this year. Please pay attention to the market risk when exporting to India!