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 would like to import gold and silver. What are the import duties that I will have to pay along with other charges like freight and insurance? And what would be the cost per kg for silver and gold? (Shiva, KTS Silver Palace, Hyderabad, +91-40-65503XXX, [email protected])

Dear Shiva: We are happy to know that you want to get into imports of gold and silver. Imports of gold and silver can be done only through the agencies notified by the DGFT or the banks authorised by RBI as nominated agencies, according to Para 4.41 of Foreign Trade Policy (FTP) 2015-2020. As many as 36 banks have been authorised by RBI to import precious metals like gold and silver. In addition, the nominated agencies under FTP for importing precious metals are MMTC Ltd., HHEC Ltd., PEC Ltd., STCL Ltd., MSTC Ltd. and Diamond India Ltd.

Apart from these banks and nominated agencies, Four Star Export Houses from gems and jewellery sector and Five Star Export Houses from any sector can be recognised as nominated agency. When it comes to import duties, India imposes 10% customs duty on gold and silver in addition to 3% IGST. The freight and insurance depends on the country that you plan to source from. Further, the prices of gold and silver are market driven and keep changing.

Response by: Sabyasachi Ray, Executive Director, Gem & Jewellery Export PromotionCouncil (GJEPC)

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We are a status holder exporter of fruits [HS Codes: 08011910 and 08109010]. We do not have any domestic sales. The GST regime has affected our exports and we need your guidance to continue smooth operations. Our products fall under the exempted/ nil rate of GST Schedule. We accumulate ITC for inputs used (packing material, freight, etc.). Since all exports are zero rated, are we allowed to take refund of ITC as per Para 54.(3).(i) of CGST Act on (i) zero rated supplies made without payment of tax? Or will 54.(3).(ii) of GST Act cause a hurdle in claiming refund of ITC (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies)? Without clarity on this issue, we are not able to export as the burden of GST on inputs is making it unviable. Thanks in advance for your guidance and support on this issue. [Rahul Mahajan, Sam Agritech Ltd., +91-9908209XXX, [email protected]]

Dear Rahul: Section 16(2) of IGST Act provides for credit of input tax to be availed for making zero rated supplies notwithstanding that such supply may be an exempt supply which is your case. Therefore, in terms of Section 54(8) of the CGST Act, you can claim ITC refund of all the input taxes paid by you including the freight amount used in the exports. The following illustration will clarify the doubt: i. Exports during July Rs.10 lakh; ii. Total Turnover during July Rs.15 lakh; iii. ITC availed in July Rs.1.50 lakh; iv. Refund amount = 10/15x1.5 = Rs.1 lakh.

You will be eligible for Rs.1 lakh in the instant case. If you are 100% into exports and your exports and domestic turnover is same, you will be entitled for refund of entire ITC availed in the said month i.e. Rs.1.50 lakh.

Response by: Ajay Sahai, Director General & CEO, Federation of Indian Export Organisations (FIEO)

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I want to export live goat and sheep to Dubai from India. Can you please advise me on how to go about it? Is it necessary to have an office setup and a trade license in Dubai to export? [Khurram, Co-owner, Prakash Agrotech, +91-8130716XXX, [email protected]]

Dear Khurram: While exports of live goat and sheep to Dubai is allowed from India, there are certain guidelines that need to be followed for the same. The first step of course will be to obtain an Importer Exporter Code (IEC). This can be obtained from the Directorate General of Foreign Trade. The Dollar Business will be happy to help you in acquiring the IEC. Further, for exporting livestock to Dubai, one needs to fulfill the livestock health requirements of the Emirate of Dubai and furnish self-certified copies of health record, including vaccination record, of the animal. An Export Quarantine Certificate will be issued by the Animal Quarantine and Certification System of the Government of India after physical examination/quarantine observation of the animal 2-3 days prior to the shipment date. If required, the animal may be referred for detailed clinical examination including testing. If the animal is not healthy/ fit, certificate is not issued. The animal may be subject to testing at the entry point in Dubai too.

Coming to the second part of your question, you don’t need an office or license in Dubai to export from India. However, the buyer will need a license to import into Dubai.

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

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We are a manufacturer of all kinds of socks – for men, women and kids etc. – with a unit in Greater Noida (Uttar Pradesh). We now plan to export our products. How can we find foreign buyers? [Mukesh Chander, Partner, S. R. Exim Industries, +91-9899597XXX, [email protected]]

Dear Mukesh: We are happy to hear of your decision to head into the world of foreign trade. You can approach your concerned export promotion council – Apparel Export Promotion Council (AEPC) – for assistance or directly reach out to potential buyers by posting your product information on https://in.thedollarbusiness.com/marketplace. From discovering the best markets to source from or supply to, to overcoming statutory and procedural challenges with respect to exports-imports documentation, to identifying the right logistics partners, International Marketplace understands all your requirements and accordingly connects you with the right market and partners so that you can make a fortune out of foreign trade.



Additionally, you can also explore The Dollar Business CONNECT Programme (you can read more on TDB CONNECT Programme on https://in.thedollarbusiness.com/memberships) that gives an in-the making super successful exporter like you the access to TDB Eximaps (https://in.thedollarbusiness.com/exim-maps), the most powerful buyer discovery and competition analysis tool for Indian exporters, which ensures you touch new highs in global trade. In case you have further queries, do write back to us.

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

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Can I import copper scrap (No.1 copper and No.2 copper scrap) from India to US? Is there a list of prohibited items that cannot be imported from India to US? What are the tax implication and duties to be paid while importing from India to US? [George, +91-9725050XXX, [email protected]]

Dear George: We are happy to learn that you want to import copper scrap from India. There is no restriction on exports of copper scrap (HSN Code: 740400) of any kind from India to any country. However, the country which is importing including the US may have local restrictions. You need to check the local laws of the importing country. While there is no restriction on exports of copper scrap, India does have a list of restricted and prohibited items. The list is available on the website of the Directorate General of Foreign Trade (www.dgft.gov.in). US too has its own list of prohibited items that cannot be imported into US. Further, there is no duty on export of copper scrap from India. For import duties in US on copper scrap, you can check the website of US Customs & Border Protection (www.cbp.gov).

Response by: R. K. Sharma, Secretary General, Federation of Indian Mineral Industries (FIMI)