14 Nov 2013 ... Page. Agenda. ❑ India's Trade Performance and Enabling Infrastructure. ❑ DHL
in India. ❑ Custom Clearance in India. 2 ...
Trade & Logistics in India Ashutosh Bajpai Singapore, 14th November, 2013
Agenda
India’s Trade Performance and Enabling Infrastructure DHL in India
Custom Clearance in India
Page
2
India’s Trade Performance and Enabling Infrastructure
Page
3
India Trade Trend – Lane & Commodities India’s Imports & YoY Growth
India’s Exports & YoY Growth 0.45 600
350 22% 300 41%
306
-2% 300
250
183
150
100
163
35%
0.15
0.1
126
0.05 50 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Contribution %
32%
0%
489
490
0.
0.
0.
28%
0.2 300
178
Top 5 Key Export Lanes
400
0.25
-3%
29%
0.35
500
$ Bn
$ Bn
12%
200
0.4
0.3
251
0.
20%
-4%
299
288
0.
369
0.
0.
250
200
0.
185
0
100
0
-0
-0.05 -
-0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Top 5 Key Import Lanes
Contribution %
UAE
12.1%
China
11.1%
USA
12.0%
UAE
7.8%
Singapore
4.5%
Saudi Arabia
6.8%
China
4.5%
Switzerland
6.1%
Hong Kong
4.1%
USA
4.9%
Singapore ranks 3rd as an Export Partner for India & 22nd in terms of Imports Source: Centre for Monitoring Indian Economy
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4
India Exports to and Imports from Singapore Imports from SIN & YoY Growth
Exports to SIN & YoY Growth 18 16
0.7
17
14
-19%
12
14 29%
10 8
22%
6
7
4
12%
8
-8%
0.6 0.5
10
6
7
0.3
5
0.2
4
0 -0.1
8
0.6
19%
48%
8
6
0.1
8
9
0.4 $ Bn
$ Bn
0.8
71%
-7% 8
11% -14%
8
-9%
0.5
8
0.4
7
6
0.3
5
0.2
0.1
3
0
2
2
-0.2
1
-0.
-
-0.3
-
-0.
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Top 5 Key Commodities for Export
Contribution %
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Top 5 Key Commodities for Import
Contribution %
Petroleum & crude
55.8%
Electronic goods
20.9%
Transport equipment
15.9%
Chemicals and related
17.4%
Gems & jewellery
4.7%
Transport equipment
12.6%
Machinery & instruments
3.8%
Petroleum crude
10.9%
Electronic goods
2.3%
Gold & silver
10.2%
Source: Centre for Monitoring Indian Economy
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5
India Exports to the World 2012-13
S.No
Description
USD Billion
% of Total Exports
1
Petroleum & Crude products
60
20%
2
Gems & Jewellery
43
14%
3
Chemicals & related products
30
10%
4
Transport equipment
18
6%
5
Machinery & Instruments
15
5%
6
Drugs, Pharmaceuticals & fine chemicals
15
5%
7
Textiles (excluding readymade garments)
14
5%
8
Readymade garments
13
4%
9
Electronic goods
8
3%
10
Iron & Steel
5
2%
11
Leather & leather manufactures
5
2%
Top 11 Exports
226
75%
India Exports to the World
300
Source: Centre for Monitoring Indian Economy
Page
6
India Imports from the World 2012-13
S.No
Description
USD Billion
% of Total Imports
1
Petroleum crude & products
169
34%
2
Gold & Silver
56
11%
3
Chemicals and related products
35
7%
4
Electronic goods
31
6%
5
Non-electrical machinery
28
6%
6
Pearls precious & semi-precious stones
22
4%
7
Metal Ores
15
3%
8
Transport equipment
14
3%
9
Iron & Steel
10
2%
10
Artificial resins, Plastic material etc.
9
2%
11
Project goods (Heavy Machinery)
6
1%
Top 11 Imports
395
81%
India Imports from the World
490
Source: Centre for Monitoring Indian Economy
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7
Air Cargo Dwell Time: Major Asian Air-hubs Vs Indian Airports
Airport
Export Dwell Time (Hrs)
Import Dwell Time (Hrs)
SINGAPORE
6
4
INCHEON
3
5
DUBAI
3
4
HONG KONG
4
6
DELHI
36
129
MUMBAI
48
96
BANGALORE
36
48
Source - Working Group Report on Air Cargo Logistics in India, Ministry of Civil Aviation
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8
World Economic Forum’s Enabling Trade Index 2008 Vs. 2012
Page
9
World Bank Logistics Performance Index 2012 Ranking
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Clearance Turn Around Time in India Studies on clearance of Export shipments infer that a lot of time and activities are required to clear shipments.
Export clearance process part 1
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Clearance Turn Around Time in India Good news is that lot of efforts are being made to reduce unnecessary activities and turn around time. 60% of the points have been closed
Export clearance process part 2
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DHL in India
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DHL Group in India
Combined Established in 1979
2,100+ employees 5000+ employees
400+ vehicles
locations ; 650 cities
2
Over 30 years of experience in India
8,258 employees
16,090+ employees
7,457 vehicles
9,810+ vehicles
18 Air & 19 Ocean Preferred Carrier Partners
7 freighters & 12 domestic hubs
10 freighters, 100 CAL flight options, 12 domestic hubs
43 Locations; 27 cities
33,739 locations, over 2,058,098 sq. ft facility space
Servicing 36,000+ locations, 6.45 MN+ sq. ft. warehouse space
1,080+ employees
2000+ contracted vehicles
4 freighters, 100 CAL flight options 33,000+
Established in 1983
Established in 1997 Established in 1996
139 warehouses, 4.45 MN sq.ft.
Over 2 MN Over 10 MN shipments for SPL shipments (2012) and CL customers (2012)
Free Trade Zone facility at Tamil Nadu
Air 250k shipments/111k tons. Ocean: FCL 83,080 TEU & LCL: 113.13 MN Shipments (2012) 114,835 CBM. Customs Clearances 125k shipments (2012)
Moving 125+ MN shipments
No. 1 in India for International & Domestic Express, Ocean Freight & Air Freight, and Supply Chain services Page 14
DHL Express : India Overview
659 cities served across India More than1,600 fulltime employees 4 major gateways & 27 major service centers Over 60,000 express customers
4 dedicated DHL freighters, With 19 flights weekly Approx 7,700 vehicles
QCC
) TAPA
3 Quality Control Centers Mumbai & Delhi
Major Gateways Major Service Centers
2 Customer Care Centers Mumbai & Chennai 24 X7 TAPA (Technology & Asset Protection Association)
Note: 1) Figures stated in Annual Report 2012 2) Definition of a Hub: a site where DHL transfers packages between countries 2) Definition of a facility: Hubs, Offices, Warehouses. Facility is where express shipments arrive from several locations, re-sorted and re-distributed to the network
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Customs Clearance in India
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Air Import Cargo Process
2
1
4
3
5
Operation
Activity
Advanced IGM filing / aircraft arrival & unloading of Unit Loading Device (ULD)
Handled by
Carriers / Ground Handling by AAI
Receipt of ULD in Receiving Area & Depalletisation
Allotment of IWR (Inward Receipt #) Allocation of shed for storage
Stacking of cargo at the earmarked shed followed by update of details in EDL
Cargo is ready for access now, to apply for Location Slip and to commence various process of Clearance and Delivery activities
AAI or Carriers Cargo Handling Agent
AAI – Manual Process
AAI
AAI
** AAI – Airport Authority of India Page 17
Overview of Inbound Clearance Process
IMPORTS
AIR MODE
Courier Express Mode
Form IV
Gifts & Samples Value < INR 10 000 (SGD224)
Air Freight Mode
Formal
Form V Consolidated or Single BOE
Courier Manual Formal BOE . Courier EDI expected soon
Dutiable, Commercial Shpts Value Till INR 100000 (SGD 2240)
Value > INR 100000 (SGD 2240) Shipment cleared under special requirement
EDI BOE (applicable only for Cargo)
Customs Clearance Modes
Informal
SEA FREIGHT MODE
Cargo shipments including shipments cleared under license. Also applicable for special categories like EOU, SEZ, SVB, CENVAT, NOC, temporary import, etc Page 18
Import Customs Clearance Mandatory Documents Paperwork Requirement Mandatory Documents Informal clearance Formal clearance AWB Invoice Import Export Code Packing List Consignee Authorisation Letter GATT & Importer declaration
For Customs Clearance of each and every shipment Pre-alert Documents consists of Commercial Invoice, HAWB,MAWB, Packing List HAWB Should have Invoice No’s covered under the said Shipment Commercial Invoice Should clearly specify the INCO TERMS Applicable Customs Duty Demand Draft Additional paperwork may be required depending on various factors
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List of Import Paperwork Required based on commodity
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Bill of Entry – Form IV (Low Value Non Dutiable)
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Bill of Entry – Form V (Low Value Dutiable)
LVD: Low value Dutiable
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Bill of Entry {BOE} – Formal
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Bill of Entry {BOE} – Formal - EOU
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SEZ BOE – Front side
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SEZ BOE – Reverse side
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Export Paperwork Required - If no incentive claimed COMMODITY PAPERWORK Garment Shipment Export dutiable commodities
COMMODITY CATEGORY
Silk Fabric (Contains 80% or More Silk) Silk Garments (Contains 70% or More Silk) Leather Shipment Software Electronics/ Engineering Goods/ Automobiles Pharmaceuticals/ Drugs Liquids & Chemicals Handicraft Shipments D O O O
COMMODITY PAPERWORK
O/D D
GSP/ Certificate of Origin ARE 1 SDF Form In duplicate
GR Form Phytosanitary Certificate (Quarantine) Negative declaration
O
Leather Declaration
D
TSCA Certificate
O
MODVAT Declaration
O
STPI Approval
O
Softex Form
O/D O
Only for US
Lab Analysis Report Drug License
O
Non DG Declaration
O
MSDS
O
Non-antique certificate
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Export Paperwork Required - Under incentive scheme SCHEMES PAPERWORK Exhibition Goods Repair and Return (If invoice value > INR 25K)
FREE TRADE SAMPLE DRAWBACK
SCHEMES
DEEC (Duty Entitlement Export Certificate) DEPB (Duty Entitlement Pass Book) DFIA (Duty Free Import Authorization) 100% EOU (Export Oriented Unit) EPCG (Export Promotion Capital Goods) Sec 74 ( Duty Drawback) Personal effects O O
SCHEME PAPERWORK
O
ITPO Invitation copy GR Waiver State the reason for export
Letter addressed to DC
O
Original Import BOE
O
Customs Attested Invoice (Import)
O
Chartered Engineer Certificate
Triplicate Copy Import copy
O
Drawback Declaration
O
Appendix III and IV
O
Annexure I and II
Only for garments
O
DEEC Declaration
O
DEEC License Copy
O
Declaration for Imported/ Indigenous article
O
DEPB Declaration (Annexure D)
O
DFIA Declaration
O
DFIA details of Input and Output (in Duplicate)
two copies
O
Annexure C1
O
Sealed Envelope to ACC from Excise
O O
EPCG declaration Copy of passport, ticket and departure certificate
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Various NOC Requirements for Clearance in India Shipments may be sent for No Objection (NOC) to the various regulatory bodies also know as allied acts. Some of key regulatory bodies examples are listed below :-
NOC from Assistant Drug Controller (ADC) for Pharmaceuticals which includes formulations, intermediaries, raw Material, finished products (prescribed & non-prescribed drugs) Cosmetics Food supplements Tissues, blood samples, etc NOC from Food Safety and Standards Authority of India (FSSAI) for food products, beverages, chocolates, cookies, edible items to be consumed by Humans NOC from Wild life regional office (WLRO) for leather, animal products, plants & plant extracts NOC from Textile committee for Textile products like fabric, garments, etc Chemicals maybe sent for testing to get information on composition to establish value and importability into India For full list of NOCs required, please click here Page 29
Do’s and Don'ts for sending WPX shipments in India Do's and Don’t's for Importing WPX Shipments in India - Mandatory Compliance and Regulatory Requirements
Documents / Packaging Required
Must Do's
Strict Don'ts
Commercial Invoice
• Invoice must be in English and signed • Sample or Gift shipments should mention the following clearly on Invoice:• Free Trade Sample, No Foreign Exchange Involved OR • Personal Gift, No Foreign Exchange Involved • Declare correct description, quantity & value even for samples & gifts.
• Invoice must not mention " Value for Customs Purpose Only„ • Proforma Invoice" should not be accepted for any commercial shipments for India • No Hand Written invoice should be accepted and sent along with shipment • Under any situations Invoice in package and Invoice scanned in system should not be different
Packing List
• If number of packages in shipment is more than 1(one), attach shipper’s detailed packing list
Special Requirements (Chemical and Pharma Shipments)
• Shipment should be accompanied with Certificate of analysis (COA) or MSDS • COA/ MSDS It should be in English • COA/MSDS should be provided by the manufacturer OR an internationallyrecognized testing agency / regulatory body • Shipper should affix proper label on each item giving full details of the contents
• No proper labeling will result in contents being subjected to testing resulting in clearance delays and additional cost
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Thank You
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BACKUP
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Key NOC / Testing requirements with reference to HS code HS code 04
Dairy produce; edible products of animal origin {NOC from Food Safety and Standards Authority of India (FSSAI)}
HS code 10
Cereals {NOC from Plant Quarantine Organization of India / Food Safety and Standards Authority of India (FSSAI)}
HS code 21
Miscellaneous edible preparations {NOC from Food Safety and Standards Authority of India (FSSAI)}
HS code 22 HS code 28
Beverages, spirits and vinegar. {NOC from Food Safety and Standards Authority of India (FSSAI)}
HS code 29
[NOC= No objection certification]
Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of; isotopes {Laboratory testing to understand composition & value AND/OR Assistant Drug Controller (ADC) NOC} Organic chemicals {Laboratory testing to understand composition & value AND/OR Assistant Drug Controller (ADC) NOC}
HS code 30 HS code 31 HS code 33 HS code 34
Pharmaceutical products { Assistant Drug Controller (ADC) NOC} Fertilizers {Laboratory testing } Perfumery, cosmetic or toilet preparations. { Assistant Drug Controller (ADC) NOC} Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, "dental waxes" and dental preparations with a basis of plaster. {Laboratory testing to understand composition & value AND/OR Assistant Drug Controller (ADC) NOC}
HS code 35
Enzymes. {Laboratory testing to understand composition & value AND/OR Assistant Drug Controller (ADC) NOC}
HS code 38
Miscellaneous chemical products. {Laboratory testing to understand composition & value AND/OR Assistant Drug Controller (ADC) NOC}
HS code 41 HS code 42 HS code 43 HS code 50 HS code 51 HS code 52 HS code 53 HS code 58
Raw hides and skins (other than fur skins) and leather. {Wild Life Regional Office (WLRO) NOC} Articles of leather; articles of animal gut (other than silk-worm gut) : {Wild Life Regional Office (WLRO) NOC} Fur skins and artificial fur, {Wild Life Regional Office (WLRO) NOC} Silk {Wild Life Regional Office (WLRO) / Silk Board NOC } Wool, fine or coarse animal hair; horse hair yarn and woven fabric {Wild Life Regional Office (WLRO) NOC} Cotton Fabric {Laboratory testing for hazardous chemicals (AZO dyes) } Fabrics {Laboratory testing for hazardous chemicals } Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery. {Laboratory testing for hazardous chemicals }
HS code 59
Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use. {Laboratory testing for hazardous chemicals }
HS code 60 HS code 61 HS code 62 HS code 63
Knitted or crocheted fabrics {Laboratory testing for hazardous chemicals } Articles of apparel and clothing accessories knitted or crocheted. {Laboratory testing for hazardous chemicals } Articles of apparel and clothing accessories, not knitted or crocheted. {Laboratory testing for hazardous chemicals } Other made up textile articles; sets; worn clothing and worn textile articles; rags. {Laboratory testing for hazardous chemicals }
HS code 71
Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation Jewellery; coin. {Wild Life Regional Office (WLRO) / Jewellery expert NOC}
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