In the world of export-import, each shipment counts. And you cannot afford to make any “uninformed investment”. So, if you have any doubt or a question, ask us. Our team of experts at The Dollar Business Intelligence Unit will be happy to answer your queries. Your question(s), if approved, will also be published on www.thedollarbusiness.com, and/or in forthcoming issue of The Dollar Business

Q: We are manufacturers and exporters of electronics products and are registered under Central Excise. Can we export a product that is not manufactured by us and avail Central Excise and other tax exemptions? If yes, what procedure do we need to follow? (Malleswara Durga Prasad, Senior Vice President, MIC Electronics Ltd., [email protected])

Dear Malleswara: Yes, you can export products manufactured by others or even procure them from a non-manufacturer for the purpose of exports. There is no such restriction. In both cases you can not only avail Central Excise exemption, but you are also eligible for export incentives. Exports made by non-manufacturers are termed as merchant exports. So, all you need to ensure is that your Import Export Code (IEC) mentions your status as both manufacturer and merchant exporter.

Response by: Manish K. Pandey, Editor, The Dollar Business

Q: We want to export rice from India. How do we start? (Shiva, Owner, Shiva Shakti Grains (India) Pvt. Ltd., [email protected])

Dear Shiva: We assume you are a first-time exporter. First of all you need to obtain an Importer-Exporter Code (IEC) from the DGFT. An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activity. Application for obtaining IEC can be filed manually and submitting the form in the office of Regional Authority (RA) of DGFT. Now the facility for IEC in electronic form or e-IEC has also been operationalised. Once you have obtained the IEC and received an export order for your product from an overseas market you need to file the following mandatory documents required for export of goods from India: (1) Bill of Lading/Airway Bill; (2) Commercial Invoice cum Packing List; and (3) Shipping Bill/Bill of Export. Once you have submitted these documents you can ship your product to the buyer. You can also begin with approaching your concerned EPC – Agricultural and Processed Food Products Export Development Authority (APEDA) – for assistance or reach out to potential buyers by posting your product information on B2B websites. There are thousands of e-commerce portals across the globe. You can choose from them taking into consideration the parts of the world you want to export to.

Response by: Shakti Shankar Patra, Executive Editor, The Dollar Business

Q: What is the import duty on raw cashews, pistachios and almonds? (Suhas Bhaganagare, Proprietor, Om Exim Enterprises, [email protected])

Dear Suhas: You have not mentioned the countries you want to import these products from. We assume you are interested in importing from countries which are the biggest source of Indian cashews, pistachios and almonds imports.

When it comes to raw cashews, the highest volume and value (as per latest shipment data) of dried cashew nuts in shell are being imported from Tanzania and Indonesia at prices that range between Rs.85 to Rs.92 per kilogram. While the customs duty on importing them from Tanzania is 30%, importing them Vietnam would attract lower customs duty of 12.5% since India has a Trade in Goods Agreement with Vietnam under the Framework Agreement on Comprehensive Economic Cooperation between the country and the Association of Southeast Asian Nations (ASEAN).

In case of almonds, the highest volume and value of shelled almonds is being imported from USA at prices that range between Rs.630 to Rs.722 per kilogram. Importing it from USA would attract a basic customs duty of Rs.65 per kg along with a 4% ACD on total value of imports. CVD and cess are exempted in this case. As far as pistachios are concerned, the highest volume and value of pistachios (in shell) is coming from Iran at prices that range between Rs.340 to Rs.382 and attracts a total import duty of 14.712%.

Please however note that these prices are C.I.F. values and do not include either customs duties (which have been mentioned separately for each product) or logistics-related costs that will be incurred in the process of transporting these imported products to your godown from the port of destination. Hence, viability of importing these products can be determined only after accounting for these factors.

Response by: Steven Philip Warner, Editor-in-Chief, The Dollar Business

Q: How can I import aluminum scrap from China? Is it legal? (Avinash, Manager, Thirupathi Metals, [email protected])

Dear Avinash: Yes, you can import aluminium scrap (HS Code: 76020010) from China. However, import of any form of metallic waste, scrap will be subject to the condition that it will not contain hazardous, toxic waste, radioactive contaminated waste / scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise. Further, import of metal (all) scrap is allowed only through designated ports (the name of the port should be mentioned on the invoice) – Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai, New Mangalore, Paragraphdip, Tuticorin, Vishakhapatnam, ICD Loni, (Ghaziabad), Pipava, Mundra, Kolkata, ICD Ludhiana, ICD Dadri (Greater Noida), ICD Nagpur, ICD Jodhpur, ICD Jaipur, ICD Udaipur, CFS Mulund, ICD Kanpur, ICD Ahmedabad, ICD Pitampur and ICD Malanpur - and no exceptions would be allowed even in case of EOUs and SEZs. You also need to ensure that you have an ISRI (Institute of Scrap Recycling Industries, Inc.) code and the consignment should meet the guidelines prescribed by ISRI.

Response by: Steven Philip Warner, Editor-in-Chief, The Dollar Business

Q: We want to import purses, mobile covers and wallets, clothing for kids, and watches from China. What custom duties and other charges are applicable on these products? (Arpita, Manager - Business Development, Pragya International, [email protected])

Dear Arpita: We assume you want to import purses, mobile covers and wallets made from leather from China. While import of leather products from China attract a total import duty of 29.441%, importing watches from China would attract an import duty of 24.463%. As far as clothing for kids is concerned, we would request greater details. For example, we would like to know which garments are you considering for imports. The Dollar Business Intelligence Unit would like to hear from you.

Response by: Dr. A. K. Sengupta, Chief Consulting Editor, The Dollar Business

Q: Can you help me out with HS codes for Groundnut Kernel Bold 50/60 Count, Tj Mix 50/60 count and 80/90 count, Java 80/90? What government benefits do Groundnut Kernel qualify for? (Rohit Chovatia, Partner, Saurashtra Industries, [email protected])

Dear Rohit: Groundnut Kernel Bold 50/60 Count, Tj Mix 50/60 count and 80/90 count, Java 80/90 fall under either ITC HS Code 12024210 or ITC HS Code 12024220, depending on whether they are hand-picked and selected (HPS) or machine selected. While the HPS category falls under ITC HS Code 12024210, others fall under ITC HS Code 12024220. Further, Groundnut Kernel does not qualify for MEIS benefit or any other such benefit under the new Foreign Trade Policy FY2015-2020.