Import of Chinese Products in India

Seminar Report submitted for Requirements For the Degree of MBA By Sheenam Parveen !"#MBA#$%& 'nder the Supervision of Mr( )ive* Bansa+

Department of Management Studies ',I)-RSI./ C011-2- 0F -,2I,--RI,2 RA3AS.4A, .-C4,ICA1 ',I)-RSI./5 60.A MA/ %!7!

Ac*no8+edgement
I feel great pleasure in submitting this seminar report on Import of Chinese products In India. I wish to express a true sense of gratitude towards my seminar guide Mr. Vivek ansal who at a very discrete step in study of this seminar contributed his valuable guidance and help to solve every problem that arose and opening the doors of the department towards the reali!ation of the seminar report. Most likely I would like to express my sincere gratitude towards my family for always being there when I needed them the most. "ith all respect and gratitude# I would like to thank all the people# who have helped us directly or indirectly# I owe my all success to them.

$ate %&.'.%()(

*+heenam ,arveen-

Certificate

.his is to certify that the seminar entitled Impact of Chinese products in India submitted by +heenam ,arveen *(/0M 102'%- in the partial fulfillment for the award of Master of usiness 1dministration degree# to $epartment of Management +tudies# 3a4asthan .echnical 5niversity# 6ota# is carried out under my guidance.

*Mr. Vivek ansal$ate7 %&.'.%()(

Chapter 9 7 PR0FI17(7& C4I,A C0',.R/ PR0FI1Country Facts Area: /#/'2#/2( s8 km *9.:m s8 milesPopu+ation: ).%/ bn Capita+ City: ei4ing Peop+e: ;an Chinese make up around /%< of the population. .he remaining =< is comprised of '' minority ethnic groups. 0fficia+ 1anguage: Mandarin *,utonghua- with many local dialects. Re+igion s&: China is officially atheistic# but there are ' +tate>3egistered religions7 $aoism# uddhism# Islam# Catholic and ,rotestant Christianity. Currency: ?uan or 3enminbi *3M Ma;or po+itica+ parties: Chinese Communist ,arty 2overnment: .here are & ma4or hierarchies in China7 the Chinese Communist ,arty *CC,-# the @ational ,eopleAs Congress *ChinaAs legislature-# the government and the military. .he supreme decision>making body in China is the CC, ,olitburo and its /> member +tanding Committee# which acts as a kind of Ainner cabinetA# and is headed by the Beneral +ecretary of the Chinese Communist ,arty. .he @ational ,eopleAs Congress *@,C- is ChinaAs legislative body. It has a '>year membership and meets once a year in plenary session. ;owever# in practice it is the CC, who takes all key decisions. 4ead of State and 2enera+ Secretary of the CCP: ,resident ;u Cintao Chairman of the Standing Committee of the ,PC: "u angguo Premier of the State Counci+: "en Ciabao State Counci++or Foreign Affairs&: $ai ingguo Foreign Minister: ?ang Ciechi Membership of internationa+ groups<organisations: 5nited @ations *including permanent membership of the 5@ +ecurity Council-# 1+D1@ 3egional Eorum *13E-F 1sia>,acific Dconomic Cooperation Eorum *1,DC-F 1sian $evelopment ank *1$ -F +hanghai Cooperation GrganisationF "orld .rade Grganisation *".G-.

-C0,0M/

Dconomic indicators 2DP: 5+ H9#%'(.=bn *est.- *%((:2DP per capita: 5+ H%#&2) per capita *est.- *%((:Annua+ 2ro8th: ))./< *%((:Consumer prices: :.)< %((: -=change rate: )9.: 3enminbi I J) China has been one of the worldAs economic success stories since reforms began in )/:=. In purchasing power parity terms# China is the worldAs second biggest economy. Gfficial figures show that B$, has grown on average by /< a year over the past %' years with an estimate of )(.&< recorded for %((:. .he current growth model# and policy underlying it# remains heavily skewed towards exports and investment# with little emphasis on private consumption. China has started to ad4ust its economic policies to better promote sustainable growth. .he Bovernment has highlighted its intention to7 5ndertake more bank reform *and encourage banks to provide finance to rural areas and smaller firmsdevelop the capital markets *to give firms more opportunity to raise financeengage in deeper reform of the insurance sector *to expand the options available to savers-# and provide a sounder regulatory structure *aimed at promoting financial integration-. 1 growing share of ChinaAs economic growth has been generated in the private sector as the government has opened up industries to domestic and foreign competition# though the role of the state in ownership and planning remains extensive. ChinaAs entry into the "orld .rade Grganisation in $ecember %(() is further integrating China into the global economy.

2-02RAP4/ China is twice the si!e of "estern Durope. It is the third largest country in the world# after 3ussia and Canada. Its terrain varies from plains# deltas and hills in the east to mountains# high plateaux and deserts in the west. .o the south its climate is tropical# whilst to the north it is sub>arctic. Kess than one>sixth of China is suitable for agriculture. .he most fertile areas lie in the eastern third of the country# which is economically the most developed region. I@.D3@1.IG@1K 3DK1.IG@+

3elations with the International Community China has said that it wishes to pursue an independent foreign policy of peace in order to preserve its independence# sovereignty and territorial integrity. .he concept of LharmoniousM development# at the heart of ChinaMs domestic policy# has been extended to its foreign policy as China aims to create a favourable international environment to continue its agenda of reform and opening up. .o date# China has focused on developing close relations with its neighbours# ma4or partners and international organisations. In support of its desire to promote a foreign policy of peace# China is playing an increasingly active role in international affairs. It has supported the international war against terrorism# including in the 5@ +ecurity Council *where it holds one of the five ,ermanent +eats- and voted in favour of limited sanctions on @orth 6orea. China has played a mainly constructive role in supporting 5@ +pecial Dnvoy BambariMs mission to urma. China moved from more or less unconditional support of +udan# supporting 5@+C3 ):2/ which mandated a hybrid peacekeeping force in $arfur# and has deployed 9)' peacekeepers. China voted for 5@+C3 )=(9# which mandated a third round of sanctions on Iran# and has begun to put the s8uee!e on financial transactions with Iran. ;owever# ChinaMs recent use of its veto *only the third since )///- over a 5@+C3 on Nimbabwe demonstrates its increasing confidence to protect its own interests. D5>China 3elations D5 relations with China were established in )/:' and are currently governed by the )/=' D5>China .rade and Cooperation 1greement. .he D5 is important for ChinaMs vision of a multipolar world and China is arguably the D5Ms most important relationship outside its own neighbourhood and the 5+. In Canuary %((: the D5 and China launched negotiations on a single and over>arching ,artnership and Co>operation 1greement *,C1- to reflect the breadth and depth of todayMs strategic partnership. .he ,C1 will set a broad framework for the D5Ms relationship with China across a wide range of areas and# in part# will replace the )/=' .rade and Dconomic Co>operation 1greement. 1reas of cooperation currently under negotiation include issues such as non>proliferation# human rights and climate change. .oday# the D5 is ChinaMs second largest trade partner and China is the D5Ms largest partner. .his is reflected in the rapidly growing trade in goods in recent years# rising by %(< per annum to reach O9(% billion in %((:. .here is however# increasing concern in the D5 at the growing si!e of ChinaMs trade surplus with the D5. 1t the %((: D5>China +ummit# both sides agreed to hold an annual ;igh Kevel $ialogue Mechanism# to discuss issues affecting the trade imbalance# in order to find concrete means to increase trade in a balanced way. .he first of these meetings took place in 1pril %((=# establishing a framework for future exchanges. "ithin the maturing D5>China comprehensive strategic partnership# dialogue and cooperation have been increased on key international issues *e.g. Iran# +udan and urma-# and on key issues of globali!ation# such as climate change and 1frica0development. 1part from regular political# trade and economic dialogue meetings# there are over %& sect oral dialogues and agreements ranging from ;uman 3ights to industrial policy# education and culture. 56>C;I@1 IK1.D31K 3DK1.IG@+

ilateral relations are excellent and have undergone a period of rapid expansion since May %((& when the former ,rime Minister# .ony lair and ,remier "en Ciabao signed a Coint +tatement announcing a comprehensive strategic partnership and a commitment to hold annual +ummit meetings between the two ,remiers. ritain remains ChinaMs largest Duropean investor# Chinese students make up the largest number from any single nation in the 56# and China publishes more 4oint scientific research papers with the 56 than any other Duropean country.

7(%& I,DIA C0',.R/ PR0FI1Country Facts Area: 9#%=:#2%9m s8 km *)#%2/#%)/ s8 milesPopu+ation: )#)92#(((#((( *+ept %((: estCapita+ City7 @ew $elhi 1anguages: .he official language of India is ;indi# written in the $evanagari script and spoken by some 9(< of the population as a first language. +ince )/2' Dnglish has been recognised as an Aassociated languageA. In addition there are )= main and regional languages recognised for adoption as official state languages. Re+igions: India is a secular state and freedom of religion is protected under the Constitution. .he main religious groups are ;indus *=).9<-# Muslims *)%<-# Christians *%.9<-# +ikhs *)./<-. Currency: 3upee 2overnment: 5nited ,rogressive 1lliance# a Congress>led %(>party coalition( 4ead of State: ,resident ,ratibha ,atil Prime Minister: ,rime Minister Manmohan +ingh Membership of international groupings0organi!ations7 CommonwealthF 5nited @ations and the 5nited @ations ;uman 3ights CouncilF "orld .rade GrganisationF +outh 1sian 1ssociation for 3egional Co>operation *+113C-F 1+D1@ *dialogue partner-F B&.

-C0,0M/ asic Dconomic Eacts 2DP: H)#(/( billion *%((:2DP per head: H:)& per head *%((2Annua+ 2ro8th: =.&< *%(('>%((2Inf+ation: '.2< *%((2 est.Ma;or Industries: .extiles# chemicals# food processing# steel# transportation e8uipment# cement# mining# petroleum# machinery# software# gems and 4ewellery# leather manufactures. Ma;or trading partners: -=ports for %!!$: 5+1 *)/.)<-F China */.&<-F 51D *=.&<-F 56 *&./<Imports for %!!$: China *:.9<-F 5+1 *2.'<-F elgium *'.%<-F +ingapore *&.=<Aid > deve+opment: Eoreign aid was approximately H9.= billion *%(('>%((2-=change rate: Indian rupees per 56 ,ound +terling P :=.= *end Canuary %((=-.

2-02RAP4/ India forms a natural sub>continent with the ;imalayas to the north. .he 1rabian +ea and the ay of engal# which are sections of the Indian Gcean# lie to the west and east respectively. IndiaAs neighbours are China *.ibet-# hutan and @epal to the north# ,akistan to the north>west# and urma to the north>east. .o the east# almost surrounded by India# is angladesh. @ear IndiaAs southern tip# across the ,alk +trait# is +ri Kanka. India has %= states with constitutionally defined powers of government. .he states vary greatly in si!e# population and development. Dach state has a Bovernor appointed by the ,resident for ' years# a legislature elected for ' years# and a Council of Ministers headed by a Chief Minister. Dach state has its own legislative# executive and 4udicial machinery# corresponding to that of the Indian 5nion. In the event of the failure of constitutional government in a state# the 5nion can impose ,residentAs 3ule. .here are also : 5nion .erritories including the @ational Capital .erritory of $elhi# administered by Kieutenant Bovernors or 1dministrators# all of whom are appointed by the ,resident. .he .erritories of $elhi and ,ondicherry also have elected chief ministers and state assemblies. .he %= states are7 1ndhra ,radesh# 1runachal ,radesh# 1ssam# ihar# Chhattisgarh# Boa# Bu4arat# ;aryana# ;imachal ,radesh# Cammu and 6ashmir# Charkhand# 6arnataka# 6erala# Madhya ,radesh# Manipur# Maharashtra# Meghalaya# Mi!oram# @agaland#

Grissa# ,un4ab# 3a4asthan# +ikkim# .amil @adu# .ripura# 5ttar ,radesh# 5ttarakhand# and "est engal. .he .erritories are7 1ndaman and @icobar Islands# Chandigarh# $adra and @agar ;aveli# $aman and $iu# $elhi# Kakshadweep# and ,ondicherry.

.RAD- A,D I,)-S.M-,. .rade and Investment with the 567 .otal two>way trade *goods- grew by %&.&< in %((= compared to %((:. Ma4or items of trade in goods7 56 exports> Metalliferous ores and metal scrap# non>metallic mineral manufactures# non>ferrous metals# power generating machinery and e8uipment# machinery specialised for particular industries# general industrial machinery and e8uipment# electrical machinery Q appliances# transport e8uipment. 56 imports>.extile yarn and fabrics# petroleum# petroleum products Q related materials# power generating machinery Q e8uipment# general industrial machinery Q e8uipment# iron Q steel# manufactures of metal not elsewhere specified# electrical machinery# apparatus and appliances# articles of apparel and clothing accessories# footwear# miscellaneous manufactured article. Gver %''&).9 new Indo> ritish 4oint ventures have been approved by the Bovernment of India since 1pril )//2. Eor the period 1ugust )//) to Gctober %((=# the number of technical collaborations approved from 56 stands at =2=# which is )(.=< of the total technology transfer approvals *Eourth after 5.+.1.# Bermany and Capan-. etween Canuary and @ovember %((=# the highest number of E$I approvals in India was in service sector *eight- where as the highest value of E$I approvals was in drugs and pharmaceuticals *3s %'(( mn-. Eor the period 1ugust )//) to Gctober %((=# the number of technical collaborations approved from 56 stands at =2=# which is )(.=< of the total technology transfer approvals *Eourth after 5.+.1.# Bermany and Capan-. .he 56 is the four largest investor in India *after Mauritius# +ingapore and 5+1- for the period 1pril %((( to $ecember %((= P01I.ICS .he Indian Constitution provides a system of parliamentary and cabinet government both at the centre and in the states. .he Indian ,arliament consists of the ,resident# currently ,resident +mt ,ratibha $evisingh ,atil# *elected for a '>year term as the constitutional

head of the executive- and % ;ouses7 .he Kower ;ouse > Kok +abha *A;ouse of the ,eopleA- > directly elected on the basis of universal adult suffrageF and the 5pper ;ouse > 3a4ya +abha *ACouncil of +tatesA- > indirectly elected by the members of state legislative assemblies. .he haratiya Canata ,arty * C,- and the Congress ,arty are the % main forces in the current Indian political scene# but neither can command a clear ,arliamentary ma4ority. .he balance of power is held by a loose collection of regional and other parties 7(?&C4I,A -@P0R. IMP0R. DA.A .0 I,DIA

?ear %((( %(() ,ercent Browth %((% ,ercent Browth %((9 ,ercent Browth %((& ,ercent Browth

ChinaAs Dxports to India )'2(.:' )=/2.%: %).' %2):.:9 &(./ 99&9.'/ %%.% '/%2.2: ::.9

ChinaAs Imoprts from India )9'9.&= )2//./: %'.2 %%:&.)= 99.= &%').&/ =: :2::.&9 =(.2

Chapter #% Introduction to Import

%(7&Introduction: +tarting an import business is a goal of more than thousands of merchants and businessman. Kike an export business# import business is also very profitable business# if an importer proceeds with the right strategies. ;owever# the long term success and profitability of an import business greatly depends on the importerMs knowledge and understanding about the international market and foreign market analysis. .oday# importing goods from abroad has becomes a big business. Dverything from beverages to cars>>and a staggering list of other products that one might have never imagined has now become the part of the global import. Millions of products are bought# sold# represented and distributed somewhere in the world on a daily basis. %(%&Definition: Import: Benerally an import means bringing goods into one country from another country in a legitimate manner# typically for use in trade. Import of goods and services are provided to domestic consumers by foreign producers import of commercial 8uantities of goods normally re8uires involvement of the customs authorities in both the country of import and country of export. 1s per the customs act )/2% import means bringing goods into India from a place outside India. *%.9-Reasons for Import .here are number of supporting reasons why import business and services is growing at such a fast rate7> Avai+abi+ity: 1n individual or business man or an importer needs to import because there are certain things that he canMt grow or manufacture in his home country. Eor example ananas in 1laska# Mahogany Kumber in Maine and all ,ark franks in Erance.

Cachet: 1 lot of things# like caviar and champagne# pack more cachet# more of an Rimage#R if theyAre imported rather than home>grown. .hink +candinavian furniture# Berman beer# Erench perfume# Dgyptian cotton. It all seems classier when it comes from distant place. Price: ,rice factor is also an important reason for import of products. +ome products are cheaper when imported from foreign country. Eor example 6orean toys# .aiwanese electronics and Mexican clothing# to rattle off a few# can often be manufactured or assembled in foreign factories for far less money than if they were made on the domestic country. %(A&Import in India .he rising middle income groups of consumers in India and their increasing levels on expenditure on various products has resulted a faster rising demand of the Indian import business. Ma4or imports of India include cereals# edible oils# machineries# fertili!ers and petroleum products. .otal import from India estimated to be around 5+H)=:./ billion. India is also a bulk importer of edible oil# sugar# pulp and paper# newsprint# crude rubber and Iron and steel. %($&Import of Chinese product in Indian: .he flood of Chinese imports has raised temperatures all around# 8uestions have been asked in ,arliament# and the many chambers of commerce have be seeched the government to protect Indian domestic industry from the new Chinese invasion. Suite naturally# Indian producers claim the Chinese are dumping their products in Indian markets. $umping refers to the practice of selling products abroad at artificially low prices. 5nder the "orld .rade Grgani!ation# the recipient country can levy anti> dumping duties in order to protect domestic industry. It is also true that most Chinese goods are sold at dirt>cheap prices. Eor instance# a Chinese Ean with a built>in invertor is available for 3s. =((>/((# whereas Indian Ean costs about 3s. ))'(. icycles are about 3s. '(( cheaper than Indian ones. +imilarly# most electronic goods are significantly cheaper than products of comparable 8uality available in India. .hird# it is also undeniably true that the sheet volume of Chinese imports will soon have an adverse effect on Indian manufacturing industries. 1 newspaper report mentions that a4a4 Dlectricals has started importing items like Chinese .oasters and fans into India and providing brand support and after>sales service. "hile this is good news for the Indian Consumer# this can only be disastrous for the Indian worker. Gf course# the difference in price is not a sufficient proof of dumping. Chinese labour is certainly cheaper than in countries such as India# from where we import significant volumes of electronic items. China also has a much lower rate of indirect taxes on inputs. .hese could well account for a large part of the difference in prices. 1nother contributory

factor underlying the price differential is the general inefficiency of Indian manufacturing. 1 recent confederation of Indian Industry seminar in Calcutta focussed on the large distance which Indian manufacturing industries have to traverse in order to catch up with international norms in prices and 8uality. India has a rather dismal rating in competitiveness. It ranks a low '9 out of '/ countries ranked by the "orld Dconomic Eorum and &( out of &2 countries ranked by "orld ank.

1s a wide range of cheap Chinese products flooded the Indian market# some local industries were adversely affected# while others benefited by using these products as raw materials .he Chinese are exporting to India a wide range of low>cost consumer goods that have a mass market in India such as kitchen>ware# textiles# electronic items# furniture# toys# cosmetics# footwear and accessories. In fact in the last four years# there has been a deluge of cheap imports Erom China tyres# bicycles# watches and clocks# toys# plastics and dyes# and bulk drugs In the very near future Indian scooter and motorcycle manufacturers are going to face stiff competition from the Chinese. .he sector that will be worst hit will be the smallscale sector. .he Chinese export import corporations are financially stronger# have more efficient processes and turn out goods at extreme %(B&For the purpose of import goods have been divided into fo++o8ing categories: ,rohibited goods are not permitted to be import at all. 3estricted goods can be imported against a license or sub4ected to certain conditions. Canali!ed goods are permitted to be imported only through state trading enterprises. Eree goods are goods which can be import it without any license or conditions.

Chapter# ?

IMP0R. D0C'M-,.S
?(7&( Importer -=porter Code I-C& ,umber: @o person can import goods without obtaining an Importer>Dxporter Code *lDC- @umber unless he has been specifically exempted. .he IDC @umber is obtained from the 3egional Kicensing 1uthority. ?ou have already learnt the procedure of obtaining IDC @umber in 5nit. ?(%&( Bi++ of -ntry: It is a document on which clearance of imported goods is affected. 1ll goods discharged from a vessel# from foreign or coastal ports are cleared on ill of Dntry in the prescribed form. .he ill of Dntry form has been standardi!ed by the Central oard of Dxcise and Customs. Eour copies of bill of entry are submitted. Griginal and duplicate for customer departments# triplicate is ownerAs copy and the fourth copy is for the purpose of foreign exchange to be submitted to bank. .here are three types of ill of Dntry as discussed below7 I& Bi++ of entry for home consumption 8hite in co+our&: where an importer wants to get his goods cleared in one lot# he has to present the ill of entry for home consumption. ii& Bi++ of entry for 8arehousing into bond5 ye++o8 in co+our&: "here an importer wants to shift goods to a warehouse and thereafter gets his goods cleared in small lots# he has to present Ainto bondA bill of entry. 3eason may be that he is unable to pay duty leviable on all goods at one instance or may be because of storage problem. iii& -=(#Bond Bi++ of -ntry 2reen in Co+our&: "hen an importer wants to remove goods from the warehouse# he has to present an Dx>bond bill of entry which is green in colour. a. ill of Dntry is not re8uired in the following cases7 b. passengers baggage favour parcels c. Mail box and post parcels $. boxes# kennels of cargos containing live animals or birds D. unserviceable stores# e.g. dunnage wood# empty bottles# drums etc. of reasonable value E. shipMs stores in small 8uantities for personal use B. cargo by sailing vessels from customs ports when landed at open bundles only Eor imports through the medium of post there is no bill of entry. Instead a way bill is prepared by the foreign post office for assessment of duty.

?(?&R-.IR-M-,. 0F IMP0R. D0C'M-,.S: a& 1oading of 2oods and Receipt of Shipment Advice7 > Gn loading of goods the overseas supplier dispatches the shipment advice to the importer informing him about the shipment of goods. .he shipment advice contains invoice number# bill of lading# airways bill number and date# name of the vessel with date# the port of export# description of goods and 8uantity and the date of sailing of the vessel.A b& Retirement of Import Documents: > 1fter shipping the goods# the overseas. &(A supplier prepares the necessary documents as per the terms of contractM and letter of credit and hands them over to his bank for their onward negotiation to importer in the manner as specified in the K0C. .he set normally contains bill of exchange# Commercial invoice# bill of lading# packing list# certificate of origin# marine insurance policy# etc. Eor the retirement of documents# the importer is re8uired to submit the following documents to his bank7 *a- 1 letter authori!ing his bank to debit the e8uivalent Indian rupees to the value of documents including bank charges. *b- Dxchange control copy of the Import Kicence# if applicable. Eorm 1l duly completed for the remittance in foreign excl)ange. c& Acceptance of the bi++ of e=change: > bill of exchange accompanied by the above documents is known as the $ocumentary ill of Dxchange. It is of two types7> Documents against Payment Sight Drafts&:# In case of sight draft# the drawer instructs the bank to hand over .the relevant documents to the importer only against payment. Documents against Acceptance 'sance Draft&:# In case of usance draft# the drawer instructs the bank to hand over the relevant documents to the importer against his AacceptanceA of the bill of exchange. d& Scrutiny of Documents Received under 1<C7> 1fter receipt of import documents from the exporterAs bank# the importerAs bank will scrutinise the documents as to their correctness as per the terms and conditions of K0C and hands over them to the importer after payment. .he importer should also scrutinise the documents and ensure that there are no discrepancies. e& Appointment of C > F Agent: > In India# the procedure for clearance of imported goods is very lengthy# time consuming and involves lots of legal formalities. .herefore# it is advisable to hire the services of CQE agents who are well versed with such formalities. .he CQE 1gent prepares the bill of entry containing details of goods to be cleared from the customs. In case# the CQE agent does not have relevant information about the goods to be cleared# he prepares a bill of sight in order to enable himself to physically check the goods imported and prepare bill of entry on that basis.

?(A& C1ASSIFICA.I0, 0F 200DS F0R IMP0R. P01IC/ > ASS-SSM-,. 0F D'./ Most of the goods imported are assessed and valued for calculation of import duty provided they are imported in terms of the Import ,olicy and evaluated for calculation of customs duty by virtue of the nature of goods or by virtue of its end use. .he imported goods# which do not fall in parameter of the Import ,olicy# areA normally confiscated or allowed to be cleared only on payment of heavy penalty. .ypes of Customs $uties .he following types of Customs $uties are levied on goods imported into or exported out of India7 a& Basic DutyF > asic duty is levied on all goods imported into India as prescribed in +chedule>I of Customs .ariff 1ct. .his duty is levied as a percentage of value of goods imported or at a specified rate. b& Au=i+iary DutyF > .his duty was levied in addition to the basic duty prescribed under the Einance 1ct every year. ;owever# with effect from %=th Eebruary )//9# the government has withdrawn auxiliary duty. c& Additiona+ or Countervai+ing DutyC > .his duty is levied on the total cost of imported goods at the rate e8ual to excise duty on like goods when manufactured in India. .his duty is levied to protect the domestic industry. d& Specific Duty: > .his duty is levied in order to counter balance the excise duty leviable on the imports going into the production of such goods in India. ?($& Mode of 1evy of Customs Duty: a& Specific Duties: > +pecific duty is a duty imposed on each unit of a commodity imported or exported. Eor example# 3s.' on each meter of cloth imported or 3s.'(( on each ..V. set imported. In this case# the value of commodity is not taken into consideration. b& Adva+orem Duties: 1dvalorem duty is a duty imposed on the total value of a commodity imported or exported. Eor example# '< of E.G. . value of cloth imported or )(< of C.KE. Value of ..V. sets imported. In this case# the physical units of commodity are not taken into consideration. c& Compound Duties7 > Compound duty is the combination of specific and 1dvalorem duties. In this case# the 8uantities as well as the value of the commodity are taken into consideration while computing tariff. Eor example# '< of E.G. . value plus# '( paisa per meter of cloth imported. ?(B& )a+uation of 2oods:

Valuation of goods is done as per principles and down in Customs Valuation $etermination and ,rices. Gf Imported Boods- 3ules# )//=.

?(D& Demurrage Charges .he goods imported and discharged in the Customs area are stored in the warehouses of C"C or ,ort .rusts or other designated authority. Initially# such goods are allowed to be stored freely for few days and thereafter demurrage or storage charges are levied. .he Eree ,eriodR for different cargo is different as under7> a& Commercia+ and ,on#commercia+ Cargo: > : calendar days from date of landing. b& 'naccompanied Baggage: # )& calendar days from date of landing. $irect $elivery Eacility for Imports by 1ir7 > .he facility of A$irect $eliveryA of goods imported by air>is allowed in certain cases7 *a- Boods like fresh fruits# fro!en food# life saving drugs and appliances# .V filmsF *b- 1ny cargo re8uiring special handling or storageF and *c- 1ny cargo in respect of which order of the $eputy Collector of Customs# 1ir Cargo 5nit# have been obtained in advance permitting direct delivery. ?(E&BI11 0F -,.R/ .he bill of entry is a document# prepared by the importer or his clearing agent in the prescribed form under ill of Dntry 3egulations# )/:)# on the strength of which clearance of imported goods can be made. "hen goods are imported in a particular country# the importer has to pay the necessary import duty. Eor this purpose# necessary information about the goods imported must be given to the customs authorities in a prescribed form called bill of entry form. ill of entry is a document# which states that the goods of the stated values and description in the specified 8uantity have entered into the country from abroad. .he bill of entry is drawn in triplicate. .he customs authorities may ask the importer to supply other documents like invoice# brokerAs note and insurance policy# etc.# inA order to verify the correctness of the information supplied in the bill of entry form.

.ypes of Bi++ of -ntry:

Eor the purpose of giving information in the bill of entry form# goods are classified into three categories namely7 *a- ill of Dntry for Boods Imported for ;ome Consumption *"hite colored-7> .his kind of bill of entry is used for clearing imported goods by paying customs duty at the port. *b- ill >of Dntry for onded BoodsA *?ellow colored-7> .his kind of bill of entry is used when no duty is paid on imported goods and# therefore# they are transferred to customs recogni!ed bonded warehouses. *c- ill of Dntry for Dx>bond Clearance for ;ome Consumption *Breen colored-7> .his kind of bill of entry is used where the importer intends to clear the dutiable goods# either in part or full# from a bonded warehouse by paying necessary duty. Contents of Bi++ of -ntry .he main contents of the ill of Dntry are7 *a- @ame and address of the importer. *b- @ame and address of the exporter. . *c- Import licence number of the importer. *d-@ame of the port0dock where goods are to be cleared. *e- $escription of goods. *f- Value of goods. *g- 3ate and amount of import duty payable. *h- Gther relevant documents. ;owever# no bill of entry is re8uired in the following cases7 *a- ,assengersA baggageF *b- Eavour parcelsF *c- Mail bags and ,ost parcelsF *d- oxes# kennels of cages containing live animals or birdTF *e- ,ost parcels ship stores in small 8uantities for persona# use. *f- 5n>serviceable stores# such as# dunnage wood# empty bottles# drums# etc.# of reasonable value *below 3s. '(-F *g- Cargo by sailing vessels from Customs ,orts when landed at open bunders only. PR0C-SSI,2 0F .4- BI11 0F -,.R/ Gnce the ill of Dntry is completed by the 1ppraiser# and the same has been countersigned by the 1ssistant Collector# then it is forwarded to the Kicense $epartment for debit and audit# and thereafter returned to the importers for payment of duty in the 1ccounts 0 Cash department. 1fter recovery of duty# the original ill of Dntry is retained in the 1ccounts $epartment and the duplicate and other copies are returned to the importers for getting the goods examined in the docks. In the $ocks# +hed 1ppraiser 0 Dxaminer shall examine the goods# and if the consignment is in order# he will give the out of charge for payment of the ,ort .rust Charges. .his procedure under which =( to /(<

of the consignments are being cleared is known as the +econd Check ,rocedure. 1s against this# in the alternative procedure what is known as the Eirst Check ,rocedure# the +crubnising 1ppraiser in the Broup gives the examination order. .he goods are then examined in the docks and the ill of Dntry returned to the +crutini!ing 1ppraiser for completion and licence debit. In this case# the Customs out of charge is given by the 1ccounts $epartment soon after the recovery of duty. .his procedure is resorted to only in cases where the appraisers or the assessing Broup finds it difficult to complete the assessment on the basis of the documents made available. .he import consignment can be opened only by the proper officer of the customs for examination of the goods lying in a Customs 1rea. Dxamination of cargo for assessment U purpose is chiefly the function of the 1ppraising $epartment having special staff of Dxaminers in the docks 0 1ir Cargo shed. A.he result of the examination or weighment is noted on the reverse of the ill of Dntry. It is absolutely essential that records of examination and weighment should be made# attested and dated at the time of examination or weighment. If examination or weighment takes place on more than one day# the result of examination or weighment made on each is clearly recorded. .he Gfficer at the same time# obtains on the documents the importerAs or his accredited representativeAs signature on the entries made from day>to> day showing the result of weighment. ?("& A ,0.- 0, F0RFARD C0,.RAC. International contracts are either concluded in Indian rupees or in foreign currency. If the contract is concluded in terms of Indian rupees# all relevant documents are prepared in Indian rupees and hence no conversion is involved. ;owever# if the contract is concluded in some internationally accepted currency then the importers have to pay Indian rupees e8uivalent. .o the amount of foreign currency. "here the international contract has been concluded in foreign currency# an importer is always at risk due to adverse fluctuations in the exchange rates in the international market. +uch risks can be avoided by the following methods7 *a- Invoicing the Boods in Indian 3upees7 > .he first remedy to adverse movements in exchange rates is invoicing goods in Indian rupees. ;owever# foreign seller may not agree to invoicing goods in Indian rupees. *b- Dntering into a Eorward Dxchange Contract7 > .his is the most commonly practiced alternative for insuring the risks arising out of adverse movements in exchange rates. 5nder this ad4ustment# the importer enters into contract with its bank to purchase from the bank# foreign exchange at a future date or period and the bank agrees to sell the firm the foreign exchange on that date or during the agreed period at certain predetermined rate agreed upon at the time of entering into contract. .hus# the importer knows in advance the exchange rate that he is going to pay on delivery of import documents.

Chapter#A Import Products From China

A(7& Introduction: "e are importing many products from China because products are very cheaper than Indian market and they fullfill the needs of our citi!ens ecause of cheaper prices products made in China are becoming more popular among the Indian masses. Cheap chinese products are kind of relief to the lower middle class in India. Companies operating in India are facing a good competition against these chinese products as In india middle class consumer market is very big which got badly affected because of these products."ell consumer are basically two types >one who wants best features at affordable prices# and the others who go with 8uality and brand tag. Chinese product have benifitted the consumers of first category. .here is a huge demand in India for low>cost# less durable consumer goods# from China. .hese goods are very popular with people who wish to buy the fake versions of their favorite brands at throwaway prices. .hese products are being sold at the cheapest rate and wages of poor people has not beein raised# therefore# they stick to these products due to their poverty. A(%& .here are many types of products 8hich 8e Import such as: Products Agricu+ture > Food Appare+ > Accessories Arts > Crafts Auto Parts > Accessories Bags5 Cases > Bo=es Chemica+s Computer Products Construction > Decoration Consumer -+ectronics -+ectrica+ > -+ectronics Furniture > Furnishing 4ea+th > Medicine Industria+ -quipment > Components Instruments > Meters 1ight Industry > Dai+y 'se 1ights > 1ighting Manufacturing > Processing Machinery Meta++urgy5 Minera+ > -nergy 0ffice Supp+ies Security > Protection Service Sporting 2oods > Recreation

.e=ti+e .oo+s > 4ard8are .oys .ransportation

Some Important Products 8hich 8e import in huge quantity are as : A(?& Agricu+ture and food products:# Introduction: China is the worldMs sixth largest economy and its most populous country# home to ).9 billion people or %)< of the DarthMs total population. ut it faces a ma4or challenge in providing its people with food P China has only )(< of the worldMs arable land and only one 8uarter of the average world water resources per person.

1gricultural reform has therefore been a ma4or pillar of the fundamental economic reforms undertaken by China since )/:=# resulting in a gradual transition from a centrally planned economy towards a socialist market economy. .he commune system was replaced by one where individual families lease land from the collectives# ensuring that almost all rural households have access to land. .hen# rural industries started to expand and absorbed a large part of farm labour. .he reforms have achieved a sharp rise in agricultural production together with a dramatic fall in poverty and a significant improvement in the amount and 8uality of food available.

Re+ated products are:

A(?(i& FroGen )egetab+es :

*Ero!en Vegetables Ero!en green bean# fro!en broccoli# fro!en green peas# fro!en green asparagus# fro!en spinach# fro!en chopped spinach# fro!en taro# fro!en green pepper slices# fro!en cauliflower# fro!en lotus root# fro!en 3omano beans# fro!en black fungus# fro!en diced

A(?(ii& Food P+astic Bag

Product Description Eeatures +pecifications7 ,lastic Kamination ,ouch0plastic bag0lamination bag0food bag0 Vacuum pouch0packaging bag )- Material7 Kamination from high 8uality G,,# ,D.# ,1# C,,# 1K# ,D for the packaging bag %- +uitable for do!ens of food packaging# pet food# beverage# agriculture# daily Chemical products and tea packaging

9- Bood printing 8uality# low temperature heat sealing property# high transparency# Dxcellent moisture# oxygen and gas barrier. A(A& -+ectrica+ > -+ectronics products :# Introduction: 7 India is heavily dependent on imports of electronic goods from countries like the 5+ and China to meet its domestic demand. RMeagre spending on 3Q$ by electronics industry has increased IndiaMs dependence on electronics imports . India had imported electronics goods worth 5+$ )/.:: billion in the recent times# while the export earnings were 5+$ 9.): billion# the study said adding that more than :( percent of electronics appliances demand is met through imports.R...more than 9' percent of electronics appliances imports in India are sourced from China#R

Re+ated products: A(A(i& AC Motor /B% Seires -=p+osion Proof Motor&

Introduction: 1C Motor *? % +eires Dxplosion ,roof MotorMode+ ,0(: ? % Standard: IDC Productivity: '(((0month 'nit Price<Payment:.. or K0C at sight .rademar*: kailida 'sage: Industrial Po8er Source: 1C Motor Structure: 1synchronous Motor Function: $riving Product Description 1C Motor *? % +eires Dxplosion ,roof Motor-

A(A(ii& Car Refrigerator DC#%%/&

Introduction: Car 3efrigerator *$C>%%?Pac*ing: normal standard package Mode+ ,0(: $C>%%? Standard: "'(/V$9)(V;9/&MM Productivity: %(((pcs0month 'nit Price<Payment:EG Eoshan# guangdong .rademar*: colku 0rigin: foshan# guangdong# china Min( 0rder: )V%(AB, .ransportation: ocean shipping Capacity: ))>%(K Certification: CD )o+tage: )%V Product Description Car cooler0mini cooler0cooler box0car fridge0Compressor refrigeratro0car refrigerator0mini refrigerator0portable refrigerator0outdoor cooler Features Dxtremely powerful $C compressor cooling system. oundless independence for all outdoor enthusiasts +ilent and convenient cooling comfort anywhere. Multifunctionally# fridge and free!er all in one# Dxtremely high reliability and long life expectancy. ,olyethylene rotomoulded body# unbreakable Q rust free# $igital control with KDC display. Compact overall si!e# easily accommodate anywhere. Item no. $C>%%? .emperature >)=T)(W C*&(T&'W C below ambient3ated Voltage 1C %9(V0'(T2(;! or ))(V02(;! ,ower Input $C 29" Cooling type $C Compressor cooling system 3efrigerant 3)9&a *CEC>Eree-

Isolation C>pentane *CEC>Eree"eight )96B0net# )'6B0gross 5nit +i!e "'(/V$9)(V;9/&MM ,acking +i!e "'9%V$9:2V;&''MM Koading Suantity 99(pcs0%(B,# 22(pcs0&(B,# 22(pcs 0&(;S(.

A(A(iii& Air Conditioner

1ir Conditioner Product Description CG,X&.'# powered by &=0%&V$C# V .his series products can be widely deployed for elclosed area climate control such as wireless communication caniet# battery cabinet# industry control cabinet etc. V the internal and external interface of product is I, '' level to avoid moisture# dust# water penetrating into inside of enclosure# inside electronics e8uipemnt is completely well protected. V applicable for severe ambient environment# such as high temperature# high humidity# high corrpsion atmosphere. Product design feature V less dehumidifying comparing traditional air conditioner V environmental friendly refreigerant such as 3)9&1 V heat pressure smart control function to enable active cooling work in winter season V completely safety protected accordingly 5K# D@# CCC norms V alarming output to monitoring system V interchangeable and visual display adapter for service V automatic self start after power recovery V remote control through 3+&=' comm. ,ort V proper design for easily intallation and service V side0door mounting V applicable for .9 condition

A(A(iv& B+uetooth Car 6it -SB?!%&

Introduction: luetooth Car 6it *D+ 9(%,acking7 lister Model @G.7 D+ 9(% +tandard7 CD# 3G;+ ,roductivity7 )((60Months 0rigin: +hen!hen# China Min( 0rder: '((,C+ .ype: luetooth Car 6it -=port @orth 1merica# +outh 1merica# Dastern Durope# Dastern 1sia# "estern Mar*ets: Durope#India Product Description > +afe $riving with entertainment > +teering wheel luetooth Car 6it with $+,# support luetooth hands>free phone call > C3+ luetooth version %.(YD$3 > KC$ $isplay for caller I$# fre8uency# se8uence# etc > +upport last phone call redial > uilt>in speaker and Micro>phone for phone talking > "ireless headset for privacy phone call also with earphone 4ack > uilt>in re>chargeable battery > uilt>in EM .ransmitter with %(2 preset channels > ,lay M,9 from .E or +$ card in "ith .E or +$ card slot in car stereo system

*&.&.v- So+ar System Battery Series 7%)7!!S

Introduction: +olar +ystem attery +eries )%V)((+ Model @G.7 )%v)((+ .rademar*:KG@B"1? Product Description Model7 2fm)((g*)%v)((ah0)(hrsi!e7 9%:V):(V%)2 *total height %%9 - mm more si!e available terminal7 b )(hr7 )('ah packing 8ty7 ) pcs0ctn :'( pcs0container lead>time7 )' days for one container application7 ups# inverter# solar system oem acceptable battery )%v)((ah7 )('ah0)(hr hs code7 ='(:%((( trademark7 long way model7)%v)((ah standard74is iec productivity7 &(#((( pcs unit price0payment7 fob cif cnf0tt or l0c at sight origin7 guangdong# china packing7 )pcs0ctn min. Grder7 2( pcs transportation7 by sea

A(A(vi& 0ffset Dish Antenna /4A$6'#I)&Sate++ite A$cm

Introduction: &'cm Gffset +atellite $ish 1ntenna *?;&'65>IVModel @G.7 ?;&'65>IV +tandard7 CD Q 5K ,roductivity7 %((# (((pcs0month 5nit ,rice0,ayment7.0. in advance or K0C .rademar*: ?oohon Product Description Material7 +teel board +urface7 ,olyester powder coating +hort axle7 &'cm Kong axle7 &/.'cm 6u waveband gain at )%.'B;!7 9&.%%d E0$ radio7 (.2 Eocal distance7 %:(mm +tand7 "all and0or ground mount 1ngle of elevation7 ( to /(Z C Kevel7 ( to 92(Z C "ind speed7 Can receive7 %'m0sec Can replace7 &(m0sec "orking temperature7 >&( to Y2( C .op of Eorm ottom of Eorm

A(A(vii& Radio Fith 'SB And SD 2F#D%?&

Introduction:

3adio "ith 5+ 1nd +$ *BE>:%9Model @G.7 BE>:%9 Min( 0rder:)2((pcs Product Description7 1m0fm % band radio 5+ function# with sd $C7 2v

*&.&.viii- App+iance For+d and 4ome .heater # .he For+d 0f -+ectronic 2oodsH

1ppliance and "orld and ;ome .heater is the safest option if they are looking for electronics and other appliances. .he store known for its 8uality products is one of the leading electronic stores . .he store offers the best prices and products to its customers. .he products of almost all the leading brands can be found here. Erom "hirlpool to KB to BD# the products of all big brands are available here. .he staff is very friendly and cooperative and they make sure that their customers get the best offers. 1ppliance "orld and ;ome .heater is thus the obvious choice for the people of our country. Its products are of supreme 8uality and extremely durable. ItAs hard to find better products than what one gets at this store. Erom dishwashers to microwaves to refrigerators# the store offers the best in everything. .he latest models are displayed here and customers can carefully look at all of them before choosing what suits them the best. Dverything related to their stores can be found out on the website. Erom the storeAs address# nearby landmarks to its phone number# everything can be traced from the site. 1 site map is also present which describes the routes in detail. 1ll this makes it easier for the customers to locate the store. .he site also tells the timings of the store so that people can plan their visit accordingly. It mentions the days on which the stores are closed to avoid any inconvenience.

A($& 0ther Products A($(i& Fa*e Brand Shoes

Detai+ed Product Description eautiful seasons#fresh products[ "ith our fashionable brand shoes# you will make this season more wonderful. .he shoes of $unk# @ike# Cordan# ap 1ir force can give your feet a comfortable and easy home[ ,opular shape# fashion design and various colors show you a perfect picture. Many choices are prepare for you#no matter you are men# women or kids. +o pls 8uickly visit to our website for these lovable leisure prodcucts. and tell me your idea with by your convenience.

Chapter 9 $ Chinese Mar*et in India

$(7& Introduction: een to a market which glows with right 3ed Color in the morning and light bulbs in the night. If not# then this is the market where you should go. Eilled with 3ed color products# be it electronic items# toys# dolls# dresses# carpets or curtains. 1 variety of

products can be found in the Chinese Market. "ith the Indian Market flooding with Chinese Boods# this is one place where Chinese Boods are sold at length. rightly colored# cheaply priced and good to use for a couple a months# these are liked by the people who cannot afford very highly priced products or by those who do not have a long term use of the particular item. *'.%- 1ocation 7 Chinese Market is located near the 6irti @agar Mall of Gld $elhi. It can be easily reached by cabs or taxis. Fast Facts City @ame > @ew $elhi Market @ame > Chinese Market Eamed Eor > Chinese ,roducts. Kanguage +poken > ;indi# Dnglish# Chinese est .ime to Visit > @ovember to Eebruary $(?& Shopping Spree in Chinese Mar*et : \ Meena BaGar# .his Market opened by @oor Cahan for the ladies# still stands todayF though the look and the products sold here have changed with the time. ,erfumes# 1rtificial Cewellery# Keather ,roducts# +ouvenirs and .raditional $resses are the main attractions of Meena a!ar. \ Chinese BiGaree# .he first name which comes with the Chinese Market is the .oys. right red colored toys with the combination of yellow and Breen# its one of the places where you can really buy Cheap .oys for almost all ages. .hen there are the clothes > polyesters and tervinyls are names here to be found in every second cloth shop. .here is another thing for which Chinese Market is famous for > Dlectronic goods. 1lmost every electronic good can be found here > spare parts# sockets# wires# full pieces all are here. .he prices of these items are also very cheap but there is no warranty for these goods. ;ow long they will work is no ones headache. ut there is one Buarantee > even if the Dlectronic good works for a day# then it will be the best [ Chinese Market is usually crowded# with lots of people coming here on an average. "ith them comes the noise and the voices of thousands of feet > but that is the main attraction of the $elhis Chinese Market. $(A& Suggestions: Chinese Market is all about second grade Chinese ,roducts. @one of the Indian ,roducts can be found in the Chinese Market.

Chinese ,roducts are cheaply priced but they have no guarantees. Its upto you to buy them. 1ll the Dlectronic items sold in the Chinese Market# come with one agenda > use and throw. .oys can be purchased from here. +ome of the average 3estaurants and eating Coints can be found here. ut its preferable to have food in your ;otel. If you are coming to the Chinese Market# then make a half day plan to see the entire Market. 1s there will be all time walking# then there should be some time to rest. If you are shopping in the months of March to Cune end# then its best to shop in the evenings after 2 oAclock. eware of the .hugs in the Chinese Market. .hings once lost cannot be recovered because of the huge Crowd in the Market. Its better to leave the Valueables like passport in the ;otel Kocker. Money Converters can be easily found in $elhi City. ;owever# its difficult to find them in Chinese Market and the around areas. ;owever# you may find one or two ranches of "estern 5nion in the corners or else you can go to ank of India and +tate ank of India for Money Conversion.

Chapter 2 Impact of Chinese products in India7

Introduction B(7& Impact on our -conomy:

Cheaper prices products made in China are becoming more popular among the Indian masses. .his has had a very negative effect on our own manufacturing units and as a result many of them have had to shut shop. .he Chinese goods have invaded almost all the sectors of Indian market and seem to be bringing tougher times for the Indian Industry. ecause of wide availability of cheap and apparently technologically advanced Chinese goods# many economists fear decline of local manufacturing units or the small>scale industry in India. .he rise in demand and sudden popularity of Chinese products# which are available at cheaper prices# is giving nightmares to the Indian industry to the extent that they have started sticking Made in China stickers on their products to boost their sales. Chinese manufacturing units produce goods on a large scale. .hey are using the big Indian market merely to dump their products and by doing so they are killing the Indian units. Eor example last year during $iwali# China made crackers were sold in the Indian market. .hese crackers reportedly contained +ulphur. +ulphur is more harmful than @itrate# which is used in India to make crackers. +ince the Chinese crackers were cheaper than the Indian crackers# so they managed to attract gullible and largely illiterate Indian lot. 1s a result the Indian cracker industry saw a decline in the revenue. China is our ma4or competitor in sectors like software# hardware# electronics etc. "e should not allow China to dump their excess produce here. .he small>scale industry *++Icontributes 9'>&( per cent to the total manufacturing in India. +o it is the ++I# which suffers most because of Chinese goods. Eor instance# data reveals that 2( per cent of the industrial units in the industrial belts of .hane and hivandi near Mumbai have been closed down. Many small>scale Indian companies have stopped manufacturing their own goods as now they import them from China. .hatMs why many Indian workers have lost their 4obs. .his shows that the ob4ective of ++Is of providing employment to the rural youth of India is defeated completely. In the last one decade Chinese labour has developed the skills of manufacturing electronic goods like semi>conductors# telecom e8uipment# power e8uipment etc# which helped them to capture big markets of 1merica and Durope. It is no surprise that they have been successful in capturing the Indian market too. 1lthough Indian labour can meet these challenges by improving their skills# the Indian manufacturing scenario is hampered due to stringent and weak labour policies. It is the high time that our political leaders change their mindset and bring about the right kind of reforms without losing precious time in endless discussions. "e must take necessary steps so that we do not fall prey to the $31BG@Ms designs of capturing a ma4or share of our growth# which could prove to be a setback for our economy in the future. B(%& Cheap imports may hit IndiaIs stee+ mar*et:

India ] ChinaMs decision to cancel export duty on some )(% steel products could see it flood Indian markets with cheap priced steel items# the Indian steel industry feels. .he industry is already reeling from falling demand# crashing prices and high production costs. China# the worldMs largest steel producer# announced two weeks ago that it would remove the ' percent levy on steel exports from $ecember )# to boost its steel industry# which has been severely hit by the global slowdown. 1ccording to industry sources in India# exporters in China have started shipping steel to India at ridiculously low prices# in a bid to clear stock. $ue to the removal of the export duty# Chinese steel prices# currently# the cheapest in the world will encourage already sliding local demand to shift to Chinese imports. .he current global economic slowdown has led to a decline in the demand for steel and thereby the prices# whereas# the prices of raw materials for steel industry have remained firm over the period# affecting the viability of the sector. Keading steel companies like +teel 1uthority of India and C+" +teel have reported %' to 9( percent dip in consumption demand and have# conse8uently# resorted to production cuts. ;owever# the local steel industry faces a much harder blow from imports. 1ccording to the steel ministry# IndiaMs steel imports have shot up '( percent to about 9 million tons from 1pril to +eptember last year# compared to the same period last year# out of which at least a million ton came from China. .he fear is that with China taking measures to boost exports and with no ade8uate protection within the country# much more of Chinese steel will start entering in the next few months impacting the local market severely.. In a recent address to the industry# minister for steel# 3am Vilas ,aswan said that at the current rate of imports# India may end up importing 2 million tons of steel by March %((/ accounting for over )( percent of its current steel production# which is '=.2& million tons. .he reason why India is scared of China the most compared to other steel exporters >> after all India also imports steel from 5kraine and .aiwan where prices are almost as cheap >> is the fact that ChinaMs steel industry too is suffering from excess production and falling consumption# which are forcing it to adopt aggressive measures to ship out existing stocks. 1ccording to Market 1venue# a ei4ing based business intelligence outfit# China will add '( million tons to its steel production capacity this year# which will take its total output to &(( million tons by the end of the year. ut# even as China is producing capacity relentlessly# its consumption is taking a hit. +teel usiness riefing# a China>based steel consultancy outfit predicts that steel consumption in China will grow by only =>)( percent in the second half of next year# as little as half the )2 percent growth seen in %((=. @evertheless# heeding the industry pleas for taking it out of a serious situation# India re> imposed a duty of ' percent on steel imports last week. .he duty was removed six months ago to stall steel prices in the country that were ruling at all>time highs of over 5+H)#)(( per ton. Moreover# import restrictions were also imposed on some items of finished steel products like seamless tubes and pipes from China. +till# the industry says# thatMs hardly enough. .he ' percent *import- duty may not be ade8uate because despite the duty# the landing cost *of imports- is lower than the production cost of local steel makers. "hile China is offering steel at 5+H&&( per ton#

domestic prices in India are ruling at almost 5+H:((. +o# the latest duty would push import cost by 4ust 5+H%% per ton.

B(?& Cheap Chinese goods harming Indian industry: .he government is taking measures to counter the threat posed to the domestic manufacturing sector in India# especially from the small and medium scale segment# from cheap and subsidised Chinese products# the commerce ministrys said today. India imposed anti>dumping duty on Chinese goods in %% cases# including final duty in )% cases and provisional duty in )( cases# during %((=>(/ and %((/>)( *up to @ovember %((/-. Einal safeguard duty was imposed in & cases during the two years# a government release said today. .hese duties are in accordance with the 1greement on 1nti>$umping *the agreement on the implementation of 1rticle VI of B1..# )//'-# the agreement on subsidies and countervailing measures# and the agreement on safeguards# the release said. .hese provisions are aimed at offsetting the adverse effects of AdumpedA imports# AsubsidisedA imports or AincreasedA imports# it added. IndiaAs merchandise imports from China doubled during the last 9 years to 3s)#&:#2(' crore *H9%.(' billion- during the financial year %((=>(/ from 3s)#(/#))2 crore *H%9.2/ billion- in %((:>(= and 3s:/#((= *H):.)2 billion- in %((2>(:. .he government said trade defence measures are available to the domestic industry to counter unfair trade practices followed by exporters of goods from other countries. In case a product is imported into the country at less than its normal value# and it causes in4ury to the domestic industry# the domestic industry can make an application to the $irectorate Beneral of 1nti>$umping and 1llied duties *$B1$- in the department of commerce for imposition of anti>dumping duty# the release said. 1lternatively# the affected industry or unit can make an application for imposition of safeguard duty to the $irectorate Beneral of +afeguards under the ministry of finance# in case there is serious in4ury0market disruption# or threat of series in4ury0threat of market disruption to the domestic industry# as a conse8uence of increased imports of an article into the country# the release added. 5nder section 9 *%- of Eoreign .rade *$evelopment and 3egulation- 1ct# )//%# the central government has an inherent power to impose restrictions on import of goods. .he Customs .ariff 1ct# )/:' includes provisions for providing relief to the domestic producers against in4ury caused to them by imports.

B(A& Fhy are 8e Importing e+ectronic products from chinaJ Fho+esa+e -+ectronic Products # Reasons to Buy From China China is now being considered as one of the biggest giants in producing electronics items in reasonable price range. .herefore# those in trading business of imported electronic items may find it convenient to have electronics goods buy from China. Dven international locations like 5+1 and some Duropean traders are importing electronics items from China at regular basis. Consistent supply# good 8uality# and reasonable price are three pillars of electronics export market of China. If a business unit wants to buy from China at wholesale rate# it has to follow some easy methods of import. ecause of the flexible import policies# business with China is easy and hardly needs any special effort to run the business under smooth spell. .he electronics goods from China are of good 8uality and highly affordable thus proves cost> efficient for trading. .he market trend of China has reached at its full pace due its wide array of goods# especially of electronics items# which is manufactured at the fraction of its regular cost with accuracy and precision. ;owever# in case of electronics products# the one of the prime reasons to buy from China for the importers is its good and consistent 8uality in spite of its low cost. In the same category products from Capanese origins are costlier as well as import policies are not that flexible as China policies. If an importer approaches China ship agents to coordinate the import sale deal it has provision for minimi!ing over all cost for the entire business transaction. ;owever# it is always better to skip the involvement of middlemen in the course of the import business otherwise unit price for the electronics item will be higher. "hile planning to purchase from China# it is always recommended to contact China vessel agents and they can help the importer to find out the best possible deal in terms of price in electronics products. In short# for running import business# the involvement of shipping agent will help to keep the wholesale electronic goods prices at the lowest range. Gn the other hand# the combo of 8uality and aesthetics has kept the demand of China electronics products ahead of other products of the same category. 3ecent research and study have shown the fact that the technological advancement of China electronics industry has made the production 8uality of China with +outh 6orea# Capan# and even with the electronic goods made in .aiwan and it has merged as one of the leaders in 1sian force of electronic consumer goods industry in %)st century. esides this ranking# China is ranked as one of the most eye>catching consumer market on electronics items from the investment point of view. .hese statistics has expressed the facts that China export market of consumer electronics item has taken a steady pace and it is worth importing consumer electronics item from China. China has been now tagged as the world factory of electronics goods item at reasonably lower costF the low> set up cost to low> labor cost and corporate low tax level has helped the price tag to be on the lowest side and good 8uality against low price factor has

emerged as one of the main reasons to buy from China market for the importers across the world.

B($& Chinese 4andsets F+ooding the Indian Mobi+e Stores: .he Indian mobile phone market is flooded with new handsets every week. Makers from all over the world are recogni!ing the potential of the Indian markets. Manufactures are adhering to the needs of the people and are customi!ing their handsets to suit the Indian buyers. .he urban market has been exploited and the penetration is soaring this is evident with the growing number of mobile stores. .he semi>urban and rural markets are next in line to avail this convergent medium of communication. .he low priced Chinese handsets are becoming an easy buy for the Indian consumers. .he lifestyle handsets are not yet preferred of Chinese origin but the entry>level ones are highly popular. .he cheap pricing with basic functions suits the routine of the semi>urban and rural crowd in India. "hile most unaware of Dnglish language the 3s. =(( handset from +pice mobile has no display screen but a voice based application which helps in dialing numbers. .he mid>range handsets are not yet populari!ed by the Chinese products and so is the higher end range. .he bu!!word in the Indian mobi+e industry is the rural market the Chinese makers are raking in business and profits. Grpat# a watch making company also entered the rural mobile market industry by manufacturing their handsets in China. It is about time when mobi+e handsets are extensively produced in India. "hile being one of the most communication hungry nations it should thrive to start production for the same. .o venture into this obvious growing market mobile phone producers thought of opening manufacturing plants in India. ut due to the bureaucratic structure the process was elongated. .hus many manufacturers moved their base to China for production. .he Indian mobi+e phone market is flooded with handsets produced from China but marketed and sold in India. Dven ChinaMs big guns in mobile production like N.D# ird International and 6e4ian have forayed into the Indian mobile phone market and are expanding. N.D has a huge share in the C$M1 *Code Division Mu+tip+e Accessmarket. Most of the entry level# basic utility phones to mid>range phones is manufactured by N.D. .hey supply handsets to players like 3eliance Communications and .ata .eleservices. Dven +pice mobile which has been famed for its dual>sim capacity handsets it also rolling out a series of cheap handsets. .hese handsets will be priced as low as 3s. =((. "ith the kind of technology and marketing the costs could be further lowered. It is about time we see the rural markets flaunting mobi+e stores and the mobiles selling like hot cakes.

*2.2- Chinese goods are creating prob+ems: China the growing market is producing the cheaper goods and exporting to all over the world. Many goods are manufactures in china and you can always see Made in china label even you purchase an electronic $V$ or KC$ from 5+1 or 56. In China the cost of manufacturing is very less because of cheaper labour and bulk 8uantity of the production. ;ence the Chinese goods are much cheaper compare with local products ecause of this every company like +ony# ,anasonic etc will manufacture their goods in China and import them to their countries. Gf late many countries are not allowing the Chinese goods to be imported to their countries. .he examples are 5+1 has banned Chinese toys as these creating health problems to children# the milk powder also banned Chinese goods are dumped every where# you can see China market every nook and corner of the country. .he most popular goods are plastic # home appliances# watches# cell phone and even the ;indu gods photos also printed in china. Many people flock to China markets because of the cheaper cost compare with local goods. Many manufacturing companies like 1uto mobile and tyre are also facing the heat. Many companies are protesting to ban the Chinese import# the import of Chinese goods are harming the local markets. .he latest is anarasi saree industry in Varanasi +cores of handloom weavers took to streets. Varanasi# famous for its world renowned anarasi sarees# against the cheap 8uality Chinese imitation products flooding the market. .he anarsi saree industry has also been adversely affected due to the import of cheap Chinese fabric. ,owerloom owners have been producing cheap imitation products at various places# helped by computer>assisted copying of designs. 1ccording to protestors cheap imitation products are doing roaring business while highly skilled weavers who produce the original product suffer. RDarlier we used to do good business in anarasi sarees# but slowly it started falling# because of the Chinese sarees which are being sold at lesser price than our sarees. anarasi sarees re8uire more labour# money and expensive raw material# but people are selling imitation of anarasi sarees in cheap 8uality Chinese material# so our business is being affected badly. 1fter facing lot of hardship we have today decided to take to streets as for how long can we go on living in penury^R said 3a!ia egum# a protester. 1ccording to data available through @on>Bovernmental Grganisations *@BGAs- working with the weavers# the number of people employed in the once thriving industry has reduced from around :((#((( people to %'(# ((( people only. Imports from China to India had galloped pace from H)) billion to H%: billion in the last three years. 1mong all the countries in the world# India imposed the maximum measures and ordered the highest number of probes *9)- into dumping of goods from different countries# including China# during Culy ) to $ecember 9)# %((:# according to the "orld .rade Grganisation. Chinese products faced the maximum number of anti>dumping measures# accounting for nearly half *%2- of the '= new measures. China was most fre8uently sub4ected to new investigations# with &( measures directed at its exports between Culy and $ecember %((:# slightly up from the 9/ investigations on exports from China that were reported for the

corresponding period of %((2. +ectors that are hit hard with imports from China are machinery and e8uipment# chemicals# textiles# base metals and auto components +olutions _ Bovernment should ban the imports of Chinese goods immediately _ 5nder intellectual property rights patenting should be encouraged for traditional goods like anaras saree# .an4ore painting etc _ ,eople also should not flock for cheaper goods as these good are not good as far as 8uality is concern If correct measures are not taken immediately the manufacturing industry# traditional industries like anaras saree will face problems.

Chapter #D Chinese goods: Boon or baneJ

D(7& Boon or Bane:

.he recent flooding of Chinese goods into the Indian market has raised a hue and cry# and the 8uestion whether we should accept this silently. Erom the narrow viewpoint of the average consumer# sufficiently satisfactory 8uality goods are available at roc k>bottom prices. Eor instance# the prices of China>made compact fluorescent lamps are less than the prices of lamps of well>established Indian brands# and of comparable 8uality. "ith the tremendous explosion of communications technology# countries are finding it increasingly difficult to maintain closed>door policies. Consumers are becoming more aware of the availability of various technologies. .he inefficiencies of companies a re exposed to competition from efficient enterprises# and the market share of the laggards is diminishing rapidly. .raditional manufacturing industries in India were reaping profits at the cost of both consumers and workers till the early )/2(s. "ith the growth of socialism# the workers started asserting themselves under the banner of trade unions. $ue to this pressu re# public sector units registered tremendous growth and large private enterprises were also able to record higher profits. In the early )/=(s# with liberalisation# the ma4ority of non>Keft parties# in cooperation with various industry associations and some economists with `western outlookA# started supporting the idea of globalisation at the cost of national interest. Gne basic fact that cannot be ignored is IndiaAs large population of diverse culture and religion. Dven China >> with its large area and population >> is not comparable. .o keep the country together with a socially stable set>up# the Indian model of econ omic development has to be different from traditional "estern models. .he right economic model should provide social stability in terms of gainful employment for the masses. ut the new economic model# with the advent of information technology# has given rise to a new class of people whose salary levels# on the one hand# h ave risen to di!!ying heights and# on the other# reduced the employment opportunities of the middle>classes. Grganised industry has resorted to employing labour contractors on a daily>wage basis# bypassing the statutory provisions of facilities and# in effect# reducing the wage levels for the ma4ority. Dven very profitable concerns have lured employees into vol untary retirement schemes. 1s a result# people below retirement age# who opt for superannuation# come back to the 4ob market with the advantage of experience. .his process helped capitalists exploit the toiling millions. .he @,1s stand testimony to how our nationalised banks are being systematically looted to promote a few while keeping the ma4ority of the workers below the re8uired wage levels. .he governmentAs globalisation policy was welcomed initially by the industry associations for two reasons7 .o dismantle the last semblance of labour laws and to divest ,+5s and nationalised banks with the supposed aim of increasing efficiency and removin g @,1s from their books. @ow# when these industries face the onslaught of globalisation on home turf *in the form of cheaper Chinese products-# they are again pleading that there is no labour law in China. .his parochial campaign must be exposed. "ith the fruits of the increased sales

by these industries failing to reach the common man# the availability of cheaper Chinese items definitely spells relief for him.

D(%& Advantage and Disadvantage of Chinese Products: Advantages: *)- Cheaper price benefits the consumer *%- Cheaper raw materials are beneficial for industries *9- Importer and trader makes money by selling goods. *&- Import business leads to some employment generation *'- Bovernment collects tax by way of customs duty. *2- It may lead to competition which in turn may lead to better 8uality products.

Disadvantages: *)- Cheap imported Chinese products kill competition and local small scale industries suffer. +ometimes# may close down. *%- Closure of local industries due to Chinese imported goods# may lead to unemployment. 9- It may also lead to loss of revenue due to the closure of local industries. *&- Closure of local industries may also lead to social unrest arising out of unemployment of staff and employees *'- Cheaper goods means cheap 8uality and consumers may suffer on (

C0,C1'SI0,
I have comp+eted my thesis report on IMP0R. 0F C4I,A C4I,-S- and found that documentation and procedure for import is very crucia+ and important5 8ithout these the e=port#import can not be done( 2ood documentation and procedure of import is very necessary and it shou+d be e=ecute very carefu++y and sincere+y( .he documents and procedure is necessary for both importer as 8e++ as e=porter(

R-F-R-,CSites: 888(a+ibab(com 888(indiatrade(com 888(indiatradeGone(com

888(s+ideshare(com 888(goog+e(com 888(e=imindiamart(com 888(importere=porterhe+p(com ). 1runachalam# $harma# ,opular +uper ,owers7 Dmerging ,opulation Issues in China and India# Geodate, Vol. %)# Issue &#pp.2>/# %((= %. ardhan# ,radhan# China# India +uper ,ower^ @ot +o East# Yale Global# Gctober %'# %(('. 9. iggs# arton M.# India "ill +teal ChinaMs .hunder# The International Economy, p./# spring %((2. &. orick# Coseph# China> Dconomic +uperpower^ +ooner .han ?ou .hink# Chinese American Forum, Vol. xx# Issue 9# pp. %=>9# %(('. '. uruma# Ian# 1fter 1merica# New Yorker# Vol. =&# Issue )(# pp. )%2>)9(# 1pril %)# %((=. 2. Chaddha# @avin# IndiaMs Dconomy7 Gff the Kaunch ,ad# Business week Online# p. :# March =# %((:. :. Chancellor# Ddward# Glympic +howdown# Institutional In estor ! International Edition, Vol. 99# Issue 2# pp. /2>/# %((=. =. Dmmott# ill# 3ivals7 "ow the #ower $tru%%le Between China, India, and &a'an (ill $ha'e Our Ne)t *ecade, ;arcourt# Grlando# EK# %((=. ook review by +irkuk ,e iews# Vol. :2# Issue2# pp. %=9>%=&# %((=. /. 6oehler# enedikt# ook review# $avid +mithMs The *ra%on And The Ele'hantChina, India And The New (orld Order, ,rofile ooks# Kondon# %((:# Economic A..airs# Vol. %:# Issue &# p. =2# %((:. )(. 6ohli# 1tul# +tate# usiness# and Dconomic Browth# $tudies in Com'arati e International *e elo'ment, Vol. &%# Issue )>%# pp.=:>))&# %((:. )). 6oo# Beorge# ChinaMs Dconomy is @ot a Nero>+um# Chinese American Forum, Vol. xxiii# @o. &# pp. )>:# %((=.

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