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: What is the market share of cotton towels from India in United States. What is the transit cost from either Chennai or Tuticorin port? Further, what price is generally paid by US importers for Indian cotton towels? And how can I find importers and secure export orders? (C. Suresh, +91-9003229XXX, [email protected])

Dear Suresh: We assume you want to export cotton towels falling under HS Code: 630260. Interestingly, India is the biggest exporter of cotton towels to USA, accounting for about 33% of the latter’s total import of the product. If we go by latest data, export of cotton towels from India to US has been continuously rising over the last few years and as such the country does present an opportunity for Indian cotton towel exporters. We further assume you are interested in knowing the approximate freight and insurance rates for a 20 feet FCL laden with cotton towels from Tuticorin Port (India) to New York Port (US). Assuming an average weight of 600 grams per unit (of a towel with dimensions of 76X137 cm, the most popular category as per latest shipment data), a 20 feet FCL can be allowed to hold a maximum of 28,000 units (maximum load weight of 17 tonne). Considering an FOB price of Rs.230 per unit (going by recent shipment data), the total FOB value of your shipment will be Rs.64,40,000, or $99,076 (at an exchange rate of USDINR of 65). Total freight and insurance charges for this volume and value comes to anywhere between $2,279 and $2,520. As far as importers are concerned, you can begin with approaching your concerned EPC – The Cotton Textiles Export Promotion Council (TEXPROCIL) – for assistance or reach out to potential buyers by posting your product information on B2B websites. You can also post your products on https://in.thedollarbusiness.com/trade/b2b-login.php. There are other e-commerce portals across the globe. You can choose the ones that meet your requirements and are popular among buyers in United States. [In case our assumption about the intended export product isn’t exact, please write to us.]

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business

Q: Can I import used clothes, segregate them in India and then export to other countries? Can I import used car batteries from Japan? (Rashi M. Vaswani, Proprietor, Om Sama Import Export Enterprise, Mumbai, Maharashtra, +91-8976665XXX, [email protected])

Dear Rashi: Yes, you can import used clothes, segregate them in India and then export to other countries, provided you fulfil certain conditions. Used clothes can be imported into India under two categories – wearable and mutilated. While the import of wearable clothes requires a licence from the government (which shall be granted only to a SEZ unit), with the condition of 100% re-export, import of mutilated clothes is allowed freely. Further, in case of worn and used clothes, each consignment of used clothing imported should be accompanied with a certificate from the exporter/agency in which it was generated regarding dis-infection and fumigation of the containers from an agency licensed in the state of origin of worn clothing with import documents. To ensure that used clothing units in SEZ fulfil their export obligations, the sale of domestic tariff area (DTA) by such units is restricted to 50% of the free on board (FOB) value of the goods physically exported by the SEZ unit.

Coming to the second part of your question, we assume you want to import waste and scrap of batteries falling under ITC HS Code: 8548. Since the import of products under the said HS Code is restricted you need to apply for grant of an ‘Authorisation’ for import or export of the said items to RA, with a copy to DGFT headquarters in ANF 2M (as prescribed in Handbook of Procedures) along with documents prescribed therein. Original application along with Treasury Receipt (TR) / Demand Draft needs to be submitted to RA concerned and self-attested copy of same needs to be submitted to DGFT in duplicate along with proof of submission of application to concerned RA. [In case our assumption about the intended export product isn’t exact, please write to us.]

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

Q: What should I do to export tobacco? Whom should I contact? What is standard packing weight if it’s row-machined tobacco? (Jatin, Proprietor, Jatin Patel & Co., Anand, Gujarat, +91-9909413XXX, [email protected] )

Dear Jatin: If you want to export tobacco from India we advise you to register your company with the Tobacco Board. Almost every trader, small or big, exporter or manufacturer, is registered with the Tobacco Board. Application for Registration-cum-Membership Certificates (RCMC) is to be made in the prescribed form, which can be obtained from Tobacco Board on request or downloaded from the Tobacco Board website. Further, there is no standard packing weight. The packing weight varies for every export order.

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

Q: In response to your answer to Mr. Krishna Agarwal regarding used tyres, I would again like to confirm with you that import of used tyres and tubes, cut in 1, 2 or 4 pieces, not intended to be used in motor vehicle of any sort, to be used for recycled in crumb rubber plant is allowed freely. If DGFT is not restricting these items, is there any other department the approval of which is necessary? (Ashutosh Goenka, Partner, M/s La Raiz Global, +91-9811126XXX, [email protected] )

Dear Ashutosh: Import of used rubber tyres with one cut in bead wire and import of used rubber tubes cut in two pieces is free under ITC (HS) Code: 40040000. However, waste pneumatic tyres and tubes, excluding those which do not lead to resource recovery, recycling, reclamation or direct reuse, are covered under Basel No. B3140. Such imports are subjected to provisions of Hazardous Wastes (Management, Handling and Transboundary Movement) Rules 2008. Also, you need to take consent of / permission from the Ministry of Environment and Forest.

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business

Q: Can I import e-cigarettes from China? (Sanjay Lalwani, Proprietor, Balaji Traders, Balaghat, Madhya Pradesh, +91-9301126XXX, [email protected])

Dear Sanjay: While two Indian states – Maharashtra and Punjab – have already declared selling of e-cigarettes illegal, the central government laws on the product remain unclear. Although the Indian government is contemplating a ban on both sales and import of e-cigarettes, a formal announcement banning the product is yet to see the light of the day. So, as of now, you are allowed to import e-cigarettes from China. However, as per the available shipment data, the most recent consignment of e-cigarettes (falling under ITC HS Code: 85437099) from China had entered India (Chennai seaport) on June 26, 2015.

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

Q: How can I export rice from India? What are the documents required to export rice from India? (Akram Zafar, Manager, AL-SABA Exporters, Meerut, Uttar Pradesh, +91-9045586XXX, [email protected] )

Dear Akram: Currently there is no restriction on export of basmati rice from India. Exports of non-basmati rice (falling under ITC HS Codes: 10062000, 100630, 10063010, 10063090, 10064000) is also free if exports are made by private parties from their privately held stocks through Custom EDI (Electronic Data Interchange) ports. Exports are also permitted through the non-EDI Land Custom Stations (LCS) on Indo-Bangladesh and Indo-Nepal border subject to registration of quantity with DGFT. Registration Certificate is required for non-basmati rice only when it is exported to Bangladesh and Nepal through non-EDI LCS.

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