India Freight Facts
Getting started exporting and importing outside of Europe is an intimidating task. Today we wanted to let you know the key India freight facts facts and what to look out for.
1. Growth in Bilateral Trade
The trade relationship between UK and India is ever flourishing. Both nations are keen to increase bilateral trade post-Brexit as India’s global economic stature grows.
2. Major Ports
India has 13 major ports with Mumbai’s JNPT or Nhava Sheva as it is more commonly known being the largest and most significant for containerised cargo.
3. Customs Documentation
The Bill of Entry is the primary document required by Customs in India. Having accurate and complete documentation significantly reduces clearance times.
4. Goods and Services Tax (GST)
Introduced in 2017, GST replaced multiple indirect taxes in India. It’s essential for UK exporters to understand its implications on goods being exported to India. GST is a value-added tax levied on most goods and services sold for domestic consumption – like a tax on the value added at each stage of production or distribution.
5. Freight Corridors
India is developing dedicated freight corridors to facilitate faster movement of goods. This will impact transit times and could offer quicker inland transport options.
6. Labeling Requirements
India has specific labelling requirements – especially for food and cosmetic products. It’s crucial to be aware of these to ensure compliance and avoid shipment delays.
7. Peak Seasons
Festivals like Diwali can lead to congested ports and delayed shipments. Planning shipments outside peak seasons can of course lead to smoother transitions.
8. Restricted Items
India has a list of restricted items that need specific licenses or permits to import. Familiarising yourself with this list is vital to avoid customs issues. You can do so via the DGFT website.
9. Rail Connectivity
India has one of the largest rail networks globally. Rail can be a cost-effective mode of inland transport for any bulk cargo.
10. Bilateral Agreements
India and the UK have several bilateral agreements and trade discussions ongoing to facilitate trade, reduce tariffs, and smoothen the trade process. Keeping up to date with these will help bring you and your business competitive advantage.