Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

India Practically Werner

1,109 views

Published on

  • Be the first to comment

  • Be the first to like this

India Practically Werner

  1. 1. India practically Werner Van der Cruyssen Embassy of Belgium – Customs Attache 206, Jor Bagh Road (2nd floor) New Delhi 110003 Mob: +91 99 58 58 14 90 [email_address]
  2. 2. Overview <ul><li>Introduction </li></ul><ul><li>Customs in India: brief overview </li></ul><ul><li>Legal framework </li></ul><ul><li>International trade with India: lots of opportunities…. </li></ul><ul><li>But it pays to be prudent </li></ul><ul><li>2 Cases </li></ul>
  3. 3. Customs in India <ul><li>Central Board of Customs and Excise </li></ul><ul><ul><li>Part of Ministry of Finance, Revenue department </li></ul></ul><ul><ul><li>General competency for all fiscal matters related to import / export of goods </li></ul></ul><ul><ul><li>Exterior services at major im- / export points headed by (chief) commissioners of customs </li></ul></ul>
  4. 4. Indian customs practically: <ul><li>Mission: perception of import duties & enforcement of non-fiscal measures </li></ul><ul><ul><li>High import duty tariffs relative to EC averages </li></ul></ul><ul><ul><li>Some export duties </li></ul></ul><ul><li>Evolution: </li></ul><ul><ul><li>Modernization: E-filing of declarations, electronic payment of duties </li></ul></ul><ul><ul><li>Growing awareness of role in trade process </li></ul></ul>
  5. 5. Legal Framework <ul><li>India is a member of the WCO </li></ul><ul><ul><li>WCO framework of rules accepted and implemented </li></ul></ul><ul><ul><li>Tariff structure along HC-lines </li></ul></ul><ul><ul><li>Broadly speaking the same customs regimes exist as under EC-legislation (import, export, warehousing, inward processing…) </li></ul></ul><ul><li>National legislation (main acts) </li></ul><ul><ul><li>Customs Act, 1962 </li></ul></ul><ul><ul><li>Customs Tariff Act, 1975 </li></ul></ul><ul><ul><li>Foreign Trade Acts, 1992, 1993 </li></ul></ul>
  6. 6. International trade with India: lots of opportunities <ul><li>GDP (real) growth forecast (EIU, March 2010): 7.7% for FY 2010, 8% for FY 2011, mainly domestic-driven </li></ul><ul><li>Both im- and exports show a rising trend </li></ul><ul><li>Market is (slowly) opening up </li></ul><ul><li>Major possibilities for development in industry / logistics / distribution </li></ul>
  7. 7. … but it pays to be prudent: <ul><li>Regulatory framework very complex </li></ul><ul><li>Market access impeded by: </li></ul><ul><ul><li>Plethora of fiscal and non-fiscal rules </li></ul></ul><ul><ul><li>Lack of fully unified taxation regime (28 states) </li></ul></ul><ul><ul><li>Obtaining reliable information is problematic </li></ul></ul>
  8. 8. … .but it pays to be prudent: From a total of 183 economies surveyed, Global rank of BE=22, CN=89, SG=1
  9. 9. 2 brief cases: <ul><li>Lack of knowledge = loss of money </li></ul><ul><ul><ul><li>Wood export from India / Belgian cheese import </li></ul></ul></ul><ul><li>If nothing can possibly go wrong… </li></ul><ul><ul><ul><li>The story of a Belgian exporter who received full payment in advance, yet ended up with a 20 K EUR bill. </li></ul></ul></ul>
  10. 10. Recommendations: <ul><li>Know your customer: </li></ul><ul><ul><li>due diligence is absolutely essential </li></ul></ul><ul><ul><li>trust is earned, not given </li></ul></ul><ul><li>Minimize financial risk: </li></ul><ul><ul><li>Terms of sale </li></ul></ul><ul><ul><li>Insurance </li></ul></ul><ul><li>When in doubt, ask independent and expert advice before proceeding </li></ul><ul><ul><li>We (trade authorities, business associations, myself)…are here to help. </li></ul></ul>
  11. 11. Thank you!

×