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India Practically Werner


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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!