India Export Facts and Regulations
The European Union is India’s largest trading partner, which means that exporting your goods to India may be a profitable business. While most of the United Kingdom’s regulations for India export are the same as those for export to other non-EU countries, there are some notable differences as well.
Pending Free Trade Agreement
The first major India export regulation is one that should go into effect soon. This is a free trade agreement (FTA) between the EU and India. While the negotiations have been ongoing since 2007, they have picked up speed since the May 2009 elections in India. The FTA is expected to encompass technical barriers to trade, regulations on investment, customs, and services, government procurement, intellectual property rights, and sanitary regulations. When completed, it will remove tariffs and lead to better conditions for India export.
India Export of Nuclear Materials
Recent changes to India export regulations regarding nuclear materials have made it possible to export these materials to India. In 2008 the UK and India signed a statement on nuclear cooperation. This statement provides an exception from the nuclear suppliers group (NSG) guidelines for India exports to civil nuclear facilities that are safeguarded by the India Atomic Energy Agency. Applications for licenses for exports on the NSG trigger-list and dual-use lists are now considered on a case-by-case basis instead of being refused outright.
Declaring India Exports
As with any goods going to a non-EU country (also called a third country), all exports going to India must be declared before they are sent using the National Export System available on the HM Revenue and Customs website. This system requires an Economic Operator Registration Identification (EORI) number, exact destination of the goods, shipping details, the correct Customs Procedure Code (CPC), a description of the items, and the correct value of the goods.
VAT and Duties on India Export
When exporting items to India, it is important to note that the Indian government will require payment of a tax or duty when the India export arrives in the country. This duty may be paid by the sender or receiver of the goods, depending on the contract between the parties. Businesses exporting goods from the UK to India do not have to pay VAT on the goods, provided they leave the EU within a set time limit, keep records of the sale and transport, and obtain official evidence that the materials left the EU.
Top Products for India Export
The UK is one of India’s major trading partners, with a total bilateral trade of £13.8 billion in 2010. The UK’s top products for India export include minerals, gold, uncut diamonds, power generating equipment, telecom equipment, transport equipment, and industrial machinery. The top Indian exports to the UK included clothes, footwear, jewelry, organic chemicals, vegetables, and fruit. In addition, the UK and India have a strong tradition of joint ventures in trade and industries.
If you are considering adding India export to your company’s portfolio, it is important that you know what kinds of goods are most likely to be successful, as well as understanding the different UK and India regulations that govern such trade. India export can be highly profitable if you do it right.
If you enjoyed reading about India Export Facts and Regulations then see our next article Export Marketing.
Video Version of : India Export Facts and Regulations
Tags: India Exports