Carry Cargo are experts in shipping to India and here we have outlined some of the pitfalls and problems that may surface when exporting to that country.
Shipments destined for India require expert knowledge of documentation & customs procedure to avoid time consuming and costly mistakes.
The India market can, if you are not extremely diligent, be a minefield of hidden requirements which, if not met in full can delay an urgent shipment or indeed, result in confiscation of goods.
Our Export team at Carry Cargo International has a wealth of in depth experience, practical knowledge and cultural insight which combine to allow you to have confidence that deadlines will be met and customers satisfied.
From the initial drawing up of Letters of Credit through to request of necessary proofs of delivery, Carry Cargo can advise, highlight elements of risk and help exporters avoid traps.
Transport Infrastructure
Air India is the official international airline and a number of other airlines provide domestic (and some international) flights. They are serviced by 352 airports (of which 253 have paved runways) and 45 heliports.
India’s railway system is the fourth largest in the world and the biggest in Asia. It operates 64,015km of track, 18,927km of which are electrified.
The country also has 4.6 million km of roads, the second largest network in the world, of which roughly half are paved. Freight traffic is high, with the private sector preferring road to rail transport.
India has the 29th largest maritime fleet in the world. Some of its main ports are Chennai (Madras), Cochin, Jawaharal Nehru, Kandla, Kolkata (Calcutta), Mumbai (Bombay) and Vishakhapatnam. There are 14,500km of waterways.
Trade Relationship with the UK
6.4% of exports go to the UK and 5.4% of imports come from the UK.
Bills of Lading
No special regulations. May be made out “to order”, showing name and address of party to be notified.
As long as there are no payment or title (ownership) issues then check if the goods can move with an express bill or on express release to avoid potential delays that may occur when shipping with the full marine bill of lading (ie cargo cannot be released until the original has been handed to the carrier in your buyer’s country).
Cargo Notification Regulations Due to an increased awareness of the requirement for security procedures, India is one of the many countries that have introduced a mandatory Cargo Notification system known as the International Ship and Port Facility Security Code. Generally completed by the masters of vessels, the airline, the carrier or the freight company, it must be received at least 24 hours prior to the departure of a vessel and in advance of arrival of an aircraft to the customs office of entry. Goods arriving without pre-notification may be denied entry or experience severe
Authorised Economic Operator Scheme
India has introduced a scheme for approving reliable and compliant traders with the benefit of awarding faster customs clearance. The status similar to the EU Authorised Economic Operator (AEO) scheme is granted to companies who over a period of time have proven to be compliant partners of the Customs Authorities. Accredited parties are allowed to self-assess their customs entries and are granted expedited processing of their shipments with minimal checks.
Certificates of Origin
Certificates of Origin (CofO) are no longer mandatory for EU shipments.
Special Certificates
- Sanitary Certificates are required for livestock, plants, cut flowers, unmanufactured tobacco and sugar cane. They are available from The Forestry Commission, Plant Health Section, 231 Costorphine Road, Edinburgh EH12 7AT. Tel: 0131 334 0303, fax: 0131 334 3047, website: www.forestry.gov.uk.
- Plants and some, but not all, plant products require a phytosanitary certificate. Phytosanitary controls are required for the import of certain plants, seeds, potatoes, seed potatoes, fruit and berries, plant propagation material products and peat that could present a phytosanitary risk. Further information on the International Plant Protection Convention can be found at www.ippc.int.
- Animals and animal products must be accompanied by a Veterinary Health Certificate acceptable to the authorities (also check prohibitions and restrictions).
- Exports of milk and milk products to non-EU countries must be accompanied by a Declaration Origin (Dioxin) issued by the Rural Payments Agency (RPA) in the UK.
- Whisky and other alcoholic spirits may require a Certificate of Verification of age, origin and GI confirmation if Scotch Whisky.
- Health Certificates raised by an official authority in the exporter’s country are required for food and foodstuffs, including vegetables and fruit. The certificate is required even if only samples of food are being shipped.
- Exporters of consumer products may be required to provide a Certificate of Free Sale (CFS) certifying that their goods may lawfully be sold in the UK. This CFS can be provided free of charge by the Import Licensing Branch (ILB) of the Department for Business, Innovation and Skills (BIS). Contact Trade Facilitation & Import Policy Directorate, Billingham. Tel: 01642 364331 or email CFS.enquiries@bis.gsi.gov.uk.
- Regulations are in place concerning the Registry and Labelling Requirement for Medical Products, which may also require a Health Certificate. A Health Certificate is also required for sample medical supplies.
- Second-hand clothes should be accompanied by a Fumigation Certificate and an import licence issued by the director general of foreign trade.
- Certain chemicals will require a Certificate of Analysis.
- Second-hand/used machinery: import licenses are needed for these goods, and inspections are mandatory. Contact Intertek Testing Services (tel: 01277 223400) for full details.
- Secondary steel: imports of seconds/defective steel items appearing in chapter 72 of the ITC (HS) classification are subject to a mandatory pre-shipment inspection certificate. This includes products such as HR coils and sheets, CR coils and sheets, tin plate, electrical sheets, plates, alloy steel bars and red (hot) rolled in coils. This type of shipment is allowed through Customs only at the Indian ports of Mumbai, Chennai and Calcutta. For further information contact Intertek Testing Services, Academy Place, 1–9 Brook Street, Brentwood, Essex CM14 5NQ. Tel:01277 223400, fax: 01277 220127 or SGS United Kingdom Ltd (exporter helpline tel: 01276 697899, fax: 01276 697832). A list of goods exempt from pre-shipment inspection is available on the agency’s website: www.intertek-fts.com.
- Metal scrap: a pre-shipment inspection certificate must be presented for all scrap imports. The pre-shipment inspection certificate at the original port of loading will apply on all scrap in unshredded, compressed and loose form regardless of origin. Shredded scrap, however, is freely importable from any port without a pre-shipment inspection certificate but must pass the test of 10% inspection. Contact Alex Stewart Ltd, Caddick Road, Knowsley Business Park, Prescot, L34 9HP. Tel: 0151 525 1499, email: analysis@alexstewartinternational.com — website: http://alexstewartinternational.com/ for more information.
- Shipments of wildlife and wildlife products subject to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) require an import permit.
- Shipment of paper waste to India is controlled to ensure that it is free of hazardous waste, municipal waste or bio-medical waste and that non-paper content does not exceed 8% under policy circular 88 dated May 2009. Contact SGS for full pre-shipment inspection guidelines, (exporter helpline tel: 01276 697899, fax: 01276 697832).
- Under the Kimberley Process Certification Scheme (KPCS) the importation of rough diamonds, a Kimberley Process Certificate is required.
Commercial Invoices
Invoices to be issued in triplicate, originally signed. Invoices must include a full and accurate description of goods; first six digits of the commodity code (HS Code); transport details, weights and dimensions (including, when relevant, number and type of packages and packing details for loose cargo or container number for full containers); value and currency of the supply including separate indication of additional costs such as freight and insurance; the shipping term (the Incoterms® 2010 rule, eg FCA, CIP, DAP); country of origin and the full addresses of all parties concerned; the import licence number (when applicable); and, if insured in India, information about the insurance policy covering the shipment. If possible, exporters are recommended to obtain the India importer’s BIN (Business Identification Number) to quote on the invoice. If goods are not sold CIF, a separate freight note should be prepared showing amount of freight and insurance payable. It is advisable to display the following declaration on the Commercial Invoice: “We declare that the invoice shows the actual price of the goods described and that all particulars are true and correct”.
UK Export Regulations
All goods must be declared to Customs on leaving the EU (generally arranged by the freight forwarder/carrier). Because of increased cargo security measures, all shipments leaving the EU require a pre-departure message to be sent to the country of destination — it is known as the ECS (Export Control System). For goods travelling across the EU Member States to a non-EU country, the Export Accompanying Document (EAD) must be used to comply with Customs cargo security procedures. This is also the exporter’s official evidence of export. Created by Customs at the Office of Export (ie in the UK), it must be officially closed at the Office of Exit from the EU. The shipment can be tracked by the Movement Reference Number (MRN), which appears on the EAD on the Europa website (http://ec.europa.eu/index_en.htm). The information required differs depending on the security status of the exporter and freight companies involved, ie whether all or some are approved under the EU’s AEO (Authorised Economic Operator) status. The export customs declaration for shipments leaving the EU is also required giving details of the shipment including the exporter’s EORI (Economic Operator Registration Identification number — similar to the VAT No.) commodity code, value, customs procedure code, export licence requirements, transport and packing information. Details submitted to Customs on this form must be notified to the freight company by the shipper and the shipper must check that the declaration has been completed accurately to avoid customs penalties. A copy of this official customs declaration and/or a certified transport document is required for VAT purposes.
Export Controls: Certain classes of goods are controlled under National and EU regulations. Examples are military goods, dual-use and military technology (including intangible transfer of such technology, eg by email or fax). These are all listed on the GOV.UK website under Consolidated list of strategic military and dual-use items that require export authorisation. Other goods not listed in the statutory instruments may be controlled if their end-use involves chemical, biological or nuclear weapons or the means of delivering them. Subscribers are recommended to seek advice from the BIS Export Control Organisation (ECO) website.
Source: Croners
Religion
Muslim, Christian, others
Economy
Output from the offshore Jubilee oilfield — which began production in 2010 — is expected to double between 2015 and 2017. However, the Government now faces challenges in managing this new revenue while maintaining fiscal discipline and resisting debt accumulation. Also, despite being well-endowed with natural resources, including gold, Ghana still remains heavily dependent on international financial and technical assistance. The domestic economy continues to revolve around agriculture, which accounts for about 35% per cent of GDP and employs about 55% per cent of the workforce, most of whom are small landholders. The key crop is cocoa. Thematic priorities under the government’s current Growth and Poverty Reduction Strategy, which also provides the framework for development partner assistance, are: economic stability; private sector competitiveness; human resource development; and good governance and civic responsibility. A new IMF assistance programme was approved in April 2015 and will guide the Government’s future economic policies.
Political background
The legal system is based on English common law and customary law. The cabinet is nominated by the president and subject to approval by parliament. The unicameral parliament consists of 200 seats. The current president is John Dramani Mahama, who took office in 2012.
Working Week
0800–1230 and 1330–1700 (Saturdays 0800–1230)
Transport Infrastructure
Ghana has 109,515km of roads, of which only 13,787km are paved. Many roads outside Accra are in poor condition. The country also has 947km of railway track but services can be slow in comparison to travel by road. Of 10 airports, seven have paved runways.
Communications Infrastructure
Ghana has a rather outdated and unreliable telephone system and only 285,000 main lines are in use, most of which are in Accra. The country also has 25.6 million mobile phone subscribers and 3.5 million internet users.
Business Protocol and Social Convention
Generally, Ghanaian business customs are similar to those of the UK. Ghanaian businessmen wear suits during working hours and would expect their visitors to dress in the same manner. It is relatively easy to arrange appointments with local businessmen and government officials. Business cards are widely used.
Main Industries
Agriculture, mining, forestry, light manufacturing, aluminum smelting, food processing, cement production, small commercial ship building, petroleum.
Main Products Exported
Gold, oil, cocoa, timber, tuna, bauxite, aluminium, manganese ore, diamonds, horticultural products.
Trade Relationships
International Reputation
The exporter will be paid in either US$ or other foreign currency and the recipient of the goods will wire currency direct to the exporter’s bank account.
Major Trade Partners
The Netherlands, China, Germany, Italy, France, the UK, South Africa and the US
Membership of Organisations and Trade Agreements
Trade Agreements
ACP, AfDB, AU, C, ECOWAS, EITI (compliant country), FAO, G-24, G-77, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, MINUSMA, MONUSCO, NAM, OAS (observer), OIF, OPCW, UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNISFA, UNMIL, UNMISS, UNOCI, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO.
Membership of Organisations
ADB, APEC, ARF, ASEAN, BIS, CD, CICA (observer), CP, D-8, EAS, EITI (candidate country), FAO, G-11, G-15, G-20, G-77, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MONUSCO, NAM, OECD (Enhanced engagement), OIC, OPCW, PIF (partner), UN, UNAMID, UNCTAD, UNESCO, UNIDO, UNIFIL, UNISFA, UNMIL, UNIMISS, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO
Documentation
Bills of Lading
No special regulations. May be made out “to order”. Weight/measurement details must be stated in imperial and metric units. Through bills of lading to inland points within Ghana are not acceptable.
Note:
The original freight account, officially receipted by the shipping company, must accompany all documents when payment is made through a bank.
Certificates of Origin
None, unless specifically required by the customer in the order or letter of credit. If requested then an EC Certificate of Origin must be obtained from your local Chamber of Commerce (see the EC Certificates of Origin topic). If required, the certificate may be submitted in any language, though a translation into French may be requested.
Special Certificates
- Animal, marine, vegetable and plant products (including seeds, plant propagation material products and peat) require a Health Certificate or import permit. Plants and some, but not all, plant products require a Phytosanitary Certificate. Phytosanitary controls are required for the import of certain plants, seeds, potatoes, seed potatoes, fruit and berries, plant propagation material products and peat that could present a phytosanitary risk. Further information on the International Plant Protection Convention can be found on www.ippc.int.
- Exports of milk and milk products to non-EU countries must be accompanied by a Declaration Origin (Dioxin) issued by the Rural Payments Agency (RPA) in the UK.
- Whisky importers require a Certificate of Verification of age, origin and GI confirmation if Scotch Whisky.
- Health Certificates raised by an official authority in the exporter’s country are required for food and foodstuffs, including vegetables and fruit. The certificate is required even if only samples of food are being shipped.
- Regulations are in place concerning the Registry and Labelling Requirement for Medical Products that may also require a Health Certificate. Second hand clothes should be accompanied by a Fumigation Certificate.
- Pharmaceutical products, organic chemicals, fertilisers require a Health Certificate or import permit.
- Special permits, usually obtained by the importer, are required for a range of products including telecommunication equipment, explosives, firearms, chemicals, inorganic chemicals, dyes and paints, cosmetics and the like, photo lab and some photographic materials and refrigeration equipment.
- Shipments of wildlife and wildlife products subject to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) require an import permit.
- Textiles are classed as high-risk items and can only be imported through three main entry points: Kotoka International Airport; Tema Port and Takoradi Port. The aim is to prevent the importation of low-quality textiles and to provide for a better control of the imported amounts of cotton in order to protect the local production in this raw material. Consignments of textiles are also subject to Destination Inspection.
- Second hand goods may be inspected by the Ghana Standards and require, along with usual customs paperwork a Port Health Certificate / Fumigation Certificate and Customs Division of the Ghana Revenue Authority (GRA) Certificate of Analysis. (In the absence of a Fumigation Certificate from the country of origin, the agent/importer will arrange fumigation locally with the port authority.) Second-hand fridges, freezers, air conditioners and incandescent filament lamps are prohibited.
- The import of second-hand motor vehicles and personal effects are subject to special controls that must be checked out prior to exporting.
Shipping to Ghana
Pre-shipment inspection is no longer required for goods going to Ghana. It has been replaced by the Destination Inspection System. Almost all goods imported into Ghana, regardless of value, are subject to inspection upon arrival. The checks are made to valuation and classification. Upon satisfactory checks a Final Classification and Valuation Report (FCVR) or Gateway pass is issued to allow import to continue. The DIS Exemption List includes:
- personal household goods, including motor vehicle
- scrap metal
- goods imported by mail not exceeding US$2000
- crude oil
- supplies for diplomatic missions and United Nations organisations not involving the provision of foreign exchange from Ghana
- imports by the Ghana Armed Forces and Ghana Police Service of explosives and pyrotechnic products, arms, ammunition and implements of war
- gold, precious stones and objects of art
- live animals
- trade samples
- foodstuff from bordering African countries
- fresh or frozen fish caught in Ghanaian waters by Ghanaian owned vessels.
The Ministry of Trade and Industry is the responsible authority and has appointed the following inspection companies to administer the programme. The Customs Division of the Ghana Revenue Authority (GRA) verifies the details of the Import Declaration Form against the invoice and other customs documents to determine the code and admissibility of the merchandise. The importer may have to pay a fee for the destination inspection which shall not exceed 1% of the total dutiable CIF value as the minister may by legislative instrument prescribe.
Pre-shipment inspection warning
The rules concerning PSI change frequently and exporters are advised to check the current requirements with either your customer or PSI company.
EU Forms
As part of the European Partnership Agreements (EPA), a preferential trade agreement, exporters may be requested to issue the EUR1 Form to accompany the goods. Before completing an EUR1 exporters must confirm shipments meet the appropriate qualification rules (See Customs Notices 827 and 828). EUR Forms and Customs Notices can be obtained free from the Customs helpline on 0300 200 3700.
Commercial Invoices
Commercial invoices to be issued in three copies, originally signed. Invoices must include a full and accurate description of goods, first six digits of the commodity code (HS Code), transport details, weights and dimensions, value and currency of the supply including separate indication of additional costs such as freight and insurance, the shipping term (the Incoterms® 2010 rule, eg FCA, CIP, DAP), country of origin, name and address of the manufacturer and the full addresses of all parties concerned. It is advisable to include the following declaration on the invoice: “I/We confirm that the goods covered by this invoice are supplied from stock.”
Additionally a specially designed Combined Certificate of Value and Invoice (C/V) must be provided for all goods (eg Certificate of Value Form 166 or Form 61). The purpose of this document is to provide the required attested invoice (GRA). It must be completed in triplicate in line with the instructions on the form and signed on the original by an authorised and responsible person. The signature must be witnessed. For prices contact an export documentation supplier such as Chancellor Formecon.
Note:
It is a legal requirement to show the full transaction price of the sale on the Commercial Invoice at export. There have been some instances of undervaluing of goods at import and the Customs Authorities are taking a strong line in combating this fraud.
Packing List
A packing list is required for Customs clearance containing marks, weights and dimensions and content details. No specific form required though generally should be in two copies.
Source: Croners