IMPORT SHIPMENT FROM CHINA: CUSTOMS CLEARANCE SLOW DOWN

It is learnt that over the last fortnight, as tensions on the Ladakh border grew, Customs authorities have indicated to importers that there will be delays in clearing Chinese shipments, but have not cited any reasons.

China is India’s one of the leading trade partners and constitutes 9 percent of India’s total export and 18 percent of total merchandise imports.

Import dependency on China for a range of raw materials (APIs, basic chemicals, agro-intermediates) and critical components (Auto, Durables, Capital goods) is skewed. To give a flavour, out of the respective imports, 20 percent of the auto components and 70 percent of electronic components come from China. Similarly, 45 percent of consumer durables, 70 percent of APIs and 40 percent of leather goods imported are from China.

Indian government officials said they plan to impose higher trade barriers and raise import duties on around 300 products from China. India currently has a $59.3bn (£47.7nb) trade deficit with China, with 11% of India’s imports coming from China.

Indian customs could carry out 100 per cent checks of Chinese import consignments at ports on the back of heightened security concerns following tensions at the border, people familiar with the development said. The move, possibly aimed at discouraging Chinese imports, could lead to delays in the release of consignments.

“There is an internal instruction from customs to all custodians of cargo including port terminal, airport and all customs freight stations to hold all consignments which have originated from China,” said a statement from the Chennai Customs Brokers Association on Monday. “It prerevails at all locations in India... So there could be some delay in clearance from all the ports/ CFS/airports.”

There is no formal instruction to stop clearances but importers have not been able to secure release of consignments. 

SOURCE:

https://economictimes.indiatimes.com/news/economy/foreign-trade/india-halts-customs-clearance-for-chinese-goods-in-chennai/articleshow/76530095.cms?from=mdr#:~:text=SHARE%20THIS%20NEWS-,Indian%20customs%20may%20start%20inspection%20of%20all,China%20at%20ports%20and%20airports&text=Indian%20customs%20could%20carry%20out,familiar%20with%20the%20development%20said.

https://indianexpress.com/article/explained/explained-shipments-from-china-are-stuck-at-indian-ports-heres-why-6476135/

https://www.hindustantimes.com/business-news/covid-19-china-s-exports-in-may-contract-as-lockdown-devastates-demand/story-G80cAz68tR2R7pzFawEt6M.html