1. Home >
  2. Export Import News >
  3. Import Business News >
  4. Customs crackdown! Checks on Chinese imports throw domestic industry into tizzy >
  5. Customs crackdown! Checks on Chinese imports throw domestic industry into tizzy

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Customs crackdown! Checks on Chinese imports throw domestic industry into tizzy.

Date: 25-06-2020
Subject: Customs crackdown! Checks on Chinese imports throw domestic industry into tizzy
The sudden move of the customs authorities to carry out 100% checks of import consignments coming from China at the ports has thrown the domestic industry into a tizzy at a time when it’s still far from full recovery from the impact of lockdown. Though such a move by the authorities – understandably without any written instructions from the higher-ups in the government – would adversely affect several industrial sectors, but the immediate pinch is being felt by the electronics player.

What has spooked the industry is that such checks are being carried out on the consignments of even the AEOs (authorised economic operators) – green channel importers – who under normal circumstances get clearance automatically without any examination based on their size and past track record.

Though the government denied having given any such instructions to the customs authorities at the ports, a statement by the Chennai Customs Brokers Association, said, “There is an internal instruction from customs to all custodians of cargo including port terminal, airport, all customs freight stations to hold all consignments which have originated from China. It prevails at all the locations across India.”

The electronics sector – manufacturers of smartphones, tablets and laptops – source a bulk of components from China and generally work on very thin stocks, barely of a few days and hence any delays in clearing consignments throws their entire production schedule out of gear.

The vendors of automobile manufacturers also source components from China but their inventory levels are of few weeks therefore they do not face any immediate crunch, but if the delays run into a longer period of time, they too would feel the pinch.

Other engineering sectors like steel etc, source mainly machinery parts from China, where the frequency is maybe twice a year, so they are better placed.

Industry sources said that the latest move of the customs authorities spurs from the border tensions between India and China.

Urging finance minister Nirmala Sitharaman and revenue secretary Ajay Bhushan Pandey to look into the matter, Pankaj Mohindroo, chairman, ICEA (India Cellular and Electronics Association), wrote, “The industry is already in very deep distress having lost production of over Rs 40,000 crore and has only recovered to less than 40% of normalcy. We have just begun to limp back to normal after a massive set of losses for three months – and now this. India is at a very crucial moment with the launch of PLI and two other schemes which require a high level of motivation in the headquarters of global and local companies. They need to move large amount of plant and machinery, components, sub-assemblies, and in some cases, finished products, to India. Regardless of the reasons, such a move, especially without any prior notice, can be counterproductive.”

Mohindroo told FE, “The disruption began with the Chennai airport on Monday night and has spread to several ports and airports across the country. As you are aware that the industry is just about limping back to normalcy after nearly three months, both with regard to production and sales, but equally important, exports from India. With the import disruption at customs across the country which was both unannounced and opaque, there will be further delays for companies, both Indian and foreign, to generate revenues and return to business as usual. This will also impact taxes – both basic customs duty and GST.”

“It is very difficult to comment on this issue at this point. But considering industry is emerging out of a lockdown and piecing itself together, a knee jerk reaction is best avoided. We must take well thought out measures which do not lead to any major disruption in the value chain,” Vinnie Mehta, director general, Automotive Component Manufacturers of India (Acma), said.

According to Mait, CEO, George Paul, “We understand that a step is being taken to do a thorough inspection of containers to safeguard India’s interests. If such a measure is being taken, as industry we suggest that importers with AEO status, also called green channel importers, be excluded from the same as they are entities validated by the government. We wish to emphasise that as citizens of India we will stand by decisions that the government may deem fit to take”.

Source:- financialexpress.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 25-08-2020

Date: 06-07-2020
Notification No. 29/2020-Customs
Seeks to further amend notification no. 152/2009 dated 31.12.2009, to increase the rate of duty of customs on imports of Phthalic Anhydride originating in Korea RP and imported under the India-Korea Comprehensive Economic Partnership Agreement, on recommendation of preliminary findings of Directorate General of Trade Remedies under India-Korea Comprehensive Economic Partnership Agreement (Bilateral Safeguard Measures) Rules, 2017.

Date: 02-07-2020
Notification No. 55/2020 - Customs (N.T.)
Exchange Rates Notification No.55/2020-Custom (NT) dated 02.07.2020.

Date: 01-07-2020
Notification No. 58/2020 – Central Tax
Seeks to make eighth amendment (2020) to CGST Rules

Date: 30-06-2020
Notification No. 54/2020-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg.

Date: 30-06-2020
Circular No.31/2020-Customs
Extension of validity of AEO certification for ease of renewal process (Modification in Circular No. 27/2020 dated 02.06.2020) [Circular No. 31/2020 - Customs dated 30.06.2020].

Date: 30-06-2020
Notification No. 57/2020 – Central Tax
Seeks to amend notification no. 52/2020-Central Tax in order to provide conditional waiver of lat fees for the period from July, 2017 to July, 2020.

Date: 30-06-2020
PUBLIC NOTICE No. 11/2015-2020
Extension of validity of Recognition of Pre-shipment Inspection Agencies (PSIAs

Date: 29-06-2020
Trade Notice No. 17/2020-2021
Procedure and Criteria for submission and approval of applications for export of PPE Medical Coveralls for COVID-19

Date: 27-06-2020
Notification No. 55/2020 – Central Tax
Seeks to amend notification no. 35/2020-Central Tax in order to extend due date of compliance which falls during the period from "20.03.2020 to 30.08.2020" till 31.08.2020.

Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001