India's Ministry of Finance has announced that import duties on 17 types of goods will be increased from the 12th of this month. The 17 items include smartwatches, telecommunications equipment and more. Tariffs on smartwatches and telecommunications equipment have been raised to 20 percent from the current 10 percent, according to the notice.

The Ministry of Finance had previously raised tariffs on 19 types of imported goods. India's finance ministry decided to raise import duties on 19 items, including washing machines, air conditioners, diamonds and jet fuel, from September 27. Among them, the import duty on air conditioners, refrigerators and washing machines will be raised by 20 percent from 10 percent; And the import tax on jet fuel will be raised from zero to 5 percent. In 2017, India's finance ministry said. Imports of these 19 commodities totalled Rs 86,000 crore in FY18.

The rationale for both tariff increases on imported goods is the same: to cut the current account deficit and stop the rupee from depreciating further.

Same as the previous one: almost all of the goods subject to the two successive tariff increases are China's major exports to India!!

The most superficial reason for India's tariff hike is the falling value of the rupee against the dollar. The rupee has lost more than 15% of its value against the dollar since the beginning of the year. In India, this has been attributed to widening current account and trade deficits. Raising tariffs and restricting imports are seen as more effective means to improve India's current trade deficit.

However, from a more internal perspective, the Indian government's increase in taxes is thus forcing relevant importers to shift their production capacity to India in order to promote "Make in India".

In July, India's finance ministry imposed a two-year safeguard tax on imported batteries and components at a rate of 25% in the first year, 20% in the first half and 15% in the second half of the following year. Reacting to the tax hike on September 27, Manish Sharma, CEO and president of white goods at Japan's Panasonic India, said the tariff hike would boost "Make in India", drive momentum for local manufactured goods and develop new capacity in India.

India announced an increase in import duties on 19 "non-essential goods"

On September 26, the Indian government announced an increase in import duties on 19 "non-essential goods", which will take effect on September 27. To reduce the widening current account deficit, to mitigate the impact of rising capital outflows on the depreciation of the rupee.

Among them, the aviation fuel duty rate was raised from zero to 5%, which dealt a certain blow to airlines; Diamonds and other gemstones used in jewelry will be taxed 7.5% from 5%; Imported air conditioners, refrigerators and small washing machines, which are bound to be more expensive, will be doubled from 10 percent to 20 percent. Tyres, speakers, shoes, suitcases, travel bags and a large number of plastic cutlery and kitchen items will all face higher tariffs. As follows:

¡ø Tariffs on the first 19 categories of imports

Imports of the 19 items totaled about 860 billion rupees ($11.84 billion) in the last fiscal year ended in March, the Indian government said in a circular.

Imports totaled 45.967 billion rupees in the same period.

The new tax rate could affect exports to India from countries such as China and South Korea, which make high-end washing machines, refrigerators and air conditioners that are sold to India.

Companies affected would include South Korean electronics giants Samsung Electronics Co LTD and LG Electronics Co LTD, big names such as Nike Inc, luggage maker Samsonite Corp and audio equipment maker Bose Corp.

Also for sellers to note:

Indian laws allow importers to take delivery without payment; It is difficult to return goods in India.

Before the arrival of the goods at the port of destination, the right of the goods will be automatically transferred to the consignee after the guest declares the manifest. The shipping company and freight forwarder have no right to take out the goods. If you want to resell or return the goods, you must get the authorization of the original buyer. Some garbage customers take advantage of Indian customs regulations to default on payment and buy at a lower price when customs auctions.

The risk rose sharply when India experienced economic turmoil and tax reform!

Please adhere to the principle of "no payment, no delivery" for those who have recently shipped to India.

the enclosed query method of India import tariffs:

India's customs official web site:

https://www.icegate.gov.in/Webappl/Trade-Guide-on-Imports

1. Select the country, enter the HS code (try the air conditioning product "8415" query)

2. View the specific tax rate, click on the larger image can be found, the basic tax rate has become 20%

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