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 the forthcoming issue of The Dollar Business
I want to import copper wire scrap. Do I need any licence? How much do I have to pay as import duty? Please advise. (Kartik Trivedi, Manager, Chemitex Impex Enterprise, Vadodara, Gujarat, +91-7201985XXX, [email protected])
Dear Kartik: We assume you want to import copper wire scrap falling under ITC HS Code: 740400. Since the import of products under the said six-digit HS Code (except for products falling under ITC HS Code:74040012) is restricted you need to apply for grant of an ‘Authorisation’ for import or export of the said items to Regional Authority (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 the same needs to be submitted to DGFT in duplicate along with proof of submission of application to concerned RA.
As mentioned before, copper scrap falling under ITC HS Code: 74040012 can be imported through all ports into the country. However, import of copper scrap falling under the said HS Code also need to fulfil the conditions mentioned under Paragraph 2.54 (b) of the Handbook of Procedure. You can type the following URL in your browser – https://www.thedollarbusiness.com/HANDBOOK_OF_PROCEDURES__2015_2020 and go through the said paragraph to have a detailed understanding of what you need to do to import copper wire scrap into India. Coming to the second part of your question, copper waste and scrap falling under ITC HS Code: 740400 attract a total import duty of 21.042%. [In case our assumption about the intended import product isn’t exact, please write to us.]
Response by: Steven Philip Warner President (VMPL) & Editor-in-Chief, The Dollar Business
We have recently started a company for supplying disposable areca leaf plates and bowls to both domestic and international markets. We have asked for payment terms to be 50% advance and 50% through Letter of Credit (LC). My question is, if some buyers refuse to work through the LC route, shall we accept payment terms of 50% as advance and the balance 50% against Original Bill of Lading to be sent through courier? (A. Ramesh, Global Trade Connextions, Prakasam Salai, Broadway, Chennai, +91-9840115XXX, [email protected])
Dear Ramesh: We are happy to hear of your decision to foray into exports business. With regards to your query, I would like to advise you that since generally advance payment amounting to 30% of invoice value is the norm, a 50% advance payment is very acceptable. However, the balance 50% should ideally become payable when the overseas bank releases the documents to you with incoterms as cash against documents (CAD). However, if the shipment is of commodities, where international prices fluctuate sharply, the buyer’s credibility should also be verified prior to effecting shipment. Please incorporate a clause of third-party inspection to avoid quality related and/or other disputes later.
Response by: Ajay Sahai Director General & CEO, Federation of Indian Exports Organisation (FIEO)
I am interested in exporting rice to European countries. How do I start? (Ananth, Software Engineer, GGK Tech, +91-8008648XXX, [email protected])
Dear Ananth: We are happy to hear of your decision to head into the world of foreign trade. Well, to start an export-import business, you first 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 activities. Application for obtaining IEC can be filed online on the DGFT website. DGFT only accepts online applications for IEC issuance or modification and requires only three documents: (i) PAN; (ii) Cancelled cheque bearing entity’s pre-printed name or Bank Certificate; and (iii) Digital Photograph (3X3 cm). All you need to ensure is that details filled in the application should match with details in the uploaded documents. Having said that, an online application for IEC however, can only be made using Digital Signature Certificate (DSC; Class II type). You can type the following URL in your browser – www.thedollarbusiness.com/memberships and subscribe to TDB GROW Programme. From applying for your Importer-Exporter Code (IEC), Digital Signature Certificate (DSC) and assisting you with advanced, actionable, and useful analytics derived from impeccable and priceless research on exports/imports of the product of your choice from The Dollar Business Intelligence Unit, a dedicated team at The Dollar Business will do the hard work for you.
Response by: Manish K. Pandey Editor,The Dollar Business
Is it safe to get an order for coconut with 100% irrevocable LC at sight from Mauritius? What are the things that I should take into consideration for secure/safe payment and transaction? (Jay, Marketing Manager, Shree Exports, +91-9500077XXX, [email protected])
Dear Jay: It’s usually safe as an irrevocable Letter of Credit, which once accepted by the seller, cannot be altered or cancelled without the consent of the seller.
You can log on to www.thedollarbusiness.com/tdb-forum and submit your foreign trade-related queries, or write across to our experts at
[email protected] Every question matters – to your business, to The Dollar Business
However, it should be noted that an irrevocable letter of credit is in effect only for a stipulated time period and expires at a pre-determined date. Further, you need to ensure that the documentation of each consignment needs to be as per the conditions of LC at sight otherwise the buyer’s bank has the right to reject payment on any violation of such documentation.
Response by: Dr. A. K. Sengupta Chief Consulting Editor, The Dollar Business
We are into textile business and are currently selling our products in domestic market. We now intend to export our products. Which are the major textiles importing countries? (Arthy, Founder, Arthy Traders, +91-8608188XXX, [email protected])
Dear Arthy: We would request greater details of the textile product you want to export for us to advice you better. Having said that, let’s assume you want to export woven fabrics of cotton containing equal to or more than 85% cotton by weight and weighing less than equal to 200 gram/cubic meter falling under HS Code: 5208. Industry data reveals that India is a big exporter of the products falling under the said HS Code. In fact, India ranks 2nd in the world, just behind China, when it comes to exports of the said product and accounts for about 7.14% share in global exports of the product. While India’s biggest export destination for products falling under the said HS Code is Sri Lanka, the country has also been significantly supplying to Bangladesh and UAE and the exports have been only rising to these countries over the last few years.
More of such pure, researched data is available to members of The Dollar Business GROW and CONNECT Programmes. (You can read more on TDB Membership Programme on https://www.thedollarbusiness.com/memberships). Besides detailed Market Access and Potential Identification System (MAPS and MAPS+) reports, TDB GROW and CONNECT Programme members get access to unique features that ensure a more lucrative business beyond boundaries. In case our assumptions about intended export product isn’t exact, please write to us. The Dollar Business Intelligence Unit would like to hear from you.
Response by: Indranil Das, Executive Editor, The Dollar Business