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COMPREHANSIVE STUDY ON IMPACT OF CHINESE

RPRODUCT ON INDIAN MARKET

For Partial Fulfillment of Degree

Bachelor of Business Administration (BBA)

SUBMITTED TO SUBMITTED BY
MEGHA BHATT SHUBHADURGAPAL

AMRAPALI INSTITUTE OF APPLIED SCIENCES


SHIKSHA NAGAR, LAMACHAUR, HALDWANI
(AFFILIATED TO KUMAUN UNIVERSITY, NAINITAL)
Chapter 1 PROFILE

(1.1) CHINA COUNTRY PROFILE


Country Facts
Area: 9,956,960 sq km (3.7m sq miles)
Population: 1.29 bn
Capital City: Beijing
People: Han Chinese make up around 92% of the population. The remaining 8% is
comprised of 55 minority ethnic groups.
Official Language: Mandarin (Putonghua) with many local dialects.
Religion(s): China is officially atheistic, but there are 5 State-Registered religions: Daoism,
Buddhism, Islam, Catholic and Protestant Christianity.
Currency: Yuan or Renminbi (RMB)
Major political parties: Chinese Communist Party
Government: There are 4 major hierarchies in China: the Chinese Communist Party (CCP), the
National People's Congress (China's legislature), the government and the military. The supreme
decision-making body in China is the CCP Politburo and its 9-member Standing Committee,
which acts as a kind of 'inner cabinet', and is headed by the General Secretary of the Chinese
Communist Party. The National People's Congress (NPC) is China's legislative body. It has a 5-
year membership and meets once a year in plenary session. However, in practice it is the CCP
who takes all key decisions.
Head of State and General Secretary of the CCP: President Hu Jintao
Chairman of the Standing Committee of the NPC: Wu Bangguo
Premier of the State Council: Wen Jiabao
State Councillor (Foreign Affairs): Dai Bingguo
Foreign Minister: Yang Jiechi
Membership of international groups/organisations: United Nations (including permanent
membership of the UN Security Council), ASEAN Regional Forum (ARF); Asia-Pacific
Economic Cooperation Forum (APEC); Asian Development Bank (ADB); Shanghai Cooperation
Organisation; World Trade Organisation (WTO).
ECONOMY

Economic indicators
GDP: US $3,250.8bn (est.) (2007)
GDP per capita: US $2,461 per capita (est.) (2007)
Annual Growth: 11.9% (2007)
Consumer prices: 7.1% 2007
Exchange rate: 13.7 Renminbi = 1
China has been one of the world's economic success stories since reforms began in 1978. In
purchasing power parity terms, China is the world's second biggest economy. Official figures
show that GDP has grown on average by 9% a year over the past 25 years with an estimate of
10.4% recorded for 2007.
The current growth model, and policy underlying it, remains heavily skewed towards exports and
investment, with little emphasis on private consumption. China has started to adjust its economic
policies to better promote sustainable growth.
The Government has highlighted its intention to:
Undertake more bank reform (and encourage banks to provide finance to rural
areas and smaller firms)
develop the capital markets (to give firms more opportunity to raise finance)
engage 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).
A growing share of China's 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. China's entry into the World Trade
Organisation in December 2001 is further integrating China into the global economy.

GEOGRAPHY

China is twice the size of Western Europe. It is the third largest country in the world, after Russia
and Canada. Its terrain varies from plains, deltas and hills in the east to mountains, high plateaux
and deserts in the west. To the south its climate is tropical, whilst to the north it is sub-arctic.
Less than one-sixth of China is suitable for agriculture. The most fertile areas lie in the eastern
third of the country, which is economically the most developed region.

INTERNATIONAL RELATIONS

Relations 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. The concept of harmonious
development, at the heart of Chinas 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. To date, China has focused on developing close relations with its neighbours, major
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 UN Security Council (where it holds one of the five Permanent Seats) and voted
in favour of limited sanctions on North Korea. China has played a mainly constructive role in
supporting UN Special Envoy Gambaris mission to Burma. China moved from more or less
unconditional support of Sudan, supporting UNSCR 1769 which mandated a hybrid
peacekeeping force in Darfur, and has deployed 315 peacekeepers. China voted for UNSCR
1803, which mandated a third round of sanctions on Iran, and has begun to put the squeeze on
financial transactions with Iran. However, Chinas recent use of its veto (only the third since
1999) over a UNSCR on Zimbabwe demonstrates its increasing confidence to protect its own
interests.

EU-China Relations
EU relations with China were established in 1975 and are currently governed by the 1985 EU-
China Trade and Cooperation Agreement. The EU is important for Chinas vision of a
multipolar world and China is arguably the EUs most important relationship outside its own
neighbourhood and the US. In January 2007 the EU and China launched negotiations on a single
and over-arching Partnership and Co-operation Agreement (PCA) to reflect the breadth and
depth of todays strategic partnership. The PCA will set a broad framework for the EUs
relationship with China across a wide range of areas and, in part, will replace the 1985 Trade and
Economic Co-operation Agreement. Areas of cooperation currently under negotiation include
issues such as non-proliferation, human rights and climate change.
Today, the EU is Chinas second largest trade partner and China is the EUs largest partner. This
is reflected in the rapidly growing trade in goods in recent years, rising by 20% per annum to
reach 302 billion in 2007. There is however, increasing concern in the EU at the growing size
of Chinas trade surplus with the EU. At the 2007 EU-China Summit, both sides agreed to hold
an annual High Level Dialogue Mechanism, to discuss issues affecting the trade imbalance, in
order to find concrete means to increase trade in a balanced way. The first of these meetings
took place in April 2008, establishing a framework for future exchanges.
Within the maturing EU-China comprehensive strategic partnership, dialogue and cooperation
have been increased on key international issues (e.g. Iran, Sudan and Burma), and on key issues
of globalization, such as climate change and Africa/development. Apart from regular political,
trade and economic dialogue meetings, there are over 24 sect oral dialogues and agreements
ranging from Human Rights to industrial policy, education and culture.

UK-CHINA BILATERAL RELATIONS


Bilateral relations are excellent and have undergone a period of rapid expansion since May 2004
when the former Prime Minister, Tony Blair and Premier Wen Jiabao signed a Joint Statement
announcing a comprehensive strategic partnership and a commitment to hold annual Summit
meetings between the two Premiers. Britain remains Chinas largest European investor, Chinese
students make up the largest number from any single nation in the UK, and China publishes
more joint scientific research papers with the UK than any other European country.
(1.2) INDIA COUNTRY PROFILE
Country Facts
Area: 3,287,623m sq km (1,269,219 sq miles)

Population: 1,136,000,000 (Sept 2007 est)

Capital City: New Delhi

Languages: The official language of India is Hindi, written in the Devanagari script and spoken
by some 30% of the population as a first language. Since 1965 English has been recognised as an
'associated language'. In addition there are 18 main and regional languages recognised for
adoption as official state languages.

Religions: India is a secular state and freedom of religion is protected under the Constitution.
The main religious groups are Hindus (81.3%), Muslims (12%), Christians (2.3%), Sikhs (1.9%).

Currency: Rupee

Government: United Progressive Alliance, a Congress-led 20-party coalition.

Head of State: President Pratibha Patil

Prime Minister: Prime Minister Manmohan Singh

Membership of international groupings/organizations: Commonwealth; United Nations and the


United Nations Human Rights Council; World Trade Organisation; South Asian Association for
Regional Co-operation (SAARC); ASEAN (dialogue partner); G4.

ECONOMY
Basic Economic Facts
GDP: $1,090 billion (2007)

GDP per head: $714 per head (2006)

Annual Growth: 8.4% (2005-2006)


Inflation: 5.6% (2006 est.)

Major Industries: Textiles, chemicals, food processing, steel, transportation equipment, cement,
mining, petroleum, machinery, software, gems and jewellery, leather manufactures.

Major trading partners:

Exports for 2005: USA (19.1%); China (9.4%); UAE (8.4%); UK (4.9%)

Imports for 2005: China (7.3%); USA (6.5%); Belgium (5.2%); Singapore (4.8%)

Aid & development: Foreign aid was approximately $3.8 billion (2005-2006)

Exchange rate: Indian rupees per UK Pound Sterling 78.8 (end January 2008).

GEOGRAPHY

India forms a natural sub-continent with the Himalayas to the north. The Arabian Sea and the
Bay of Bengal, which are sections of the Indian Ocean, lie to the west and east respectively.
India's neighbours are China (Tibet), Bhutan and Nepal to the north, Pakistan to the north-west,
and Burma to the north-east. To the east, almost surrounded by India, is Bangladesh. Near India's
southern tip, across the Palk Strait, is Sri Lanka.
India has 28 states with constitutionally defined powers of government. The states vary greatly in
size, population and development. Each state has a Governor appointed by the President for 5
years, a legislature elected for 5 years, and a Council of Ministers headed by a Chief Minister.
Each state has its own legislative, executive and judicial machinery, corresponding to that of the
Indian Union. In the event of the failure of constitutional government in a state, the Union can
impose President's Rule. There are also seven Union Territories including the National Capital
Territory of Delhi, administered by Lieutenant Governors or Administrators, all of whom are
appointed by the President. The Territories of Delhi and Pondicherry also have elected chief
ministers and state assemblies.
The 28 states are: Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa,
Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala,
Madhya Pradesh, Manipur, Maharashtra, Meghalaya, Mizoram, Nagaland, Orissa, Punjab,
Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, and West Bengal.
The Territories are: Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman
and Diu, Delhi, Lakshadweep, and Pondicherry.
TRADE AND INVESTMENT

Trade and Investment with the UK:

Total two-way trade (goods) grew by 24.4% in 2008 compared to 2007. Major items of trade in
goods: UK exports- Metalliferous ores and metal scrap, non-metallic mineral manufactures, non-
ferrous metals, power generating machinery and equipment, machinery specialised for particular
industries, general industrial machinery and equipment, electrical machinery & appliances,
transport equipment. UK imports-Textile yarn and fabrics, petroleum, petroleum products &
related materials, power generating machinery & equipment, general industrial machinery &
equipment, iron & steel, manufactures of metal not elsewhere specified, electrical machinery,
apparatus and appliances, articles of apparel and clothing accessories, footwear, miscellaneous
manufactured article.

Over 25541.3 new Indo-British joint ventures have been approved by the Government of India
since April 1996. For the period August 1991 to October 2008, the number of technical
collaborations approved from UK stands at 868, which is 10.8% of the total technology transfer
approvals (Fourth after U.S.A., Germany and Japan).

Between January and November 2008, the highest number of FDI approvals in India was in
service sector (eight) where as the highest value of FDI approvals was in drugs and
pharmaceuticals (Rs 2500 mn). For the period August 1991 to October 2008, the number of
technical collaborations approved from UK stands at 868, which is 10.8% of the total technology
transfer approvals (Fourth after U.S.A., Germany and Japan).

The UK is the four largest investor in India (after Mauritius, Singapore and USA) for the period
April 2000 to December 2008

POLITICS

The Indian Constitution provides a system of parliamentary and cabinet government both at the
centre and in the states. The Indian Parliament consists of the President, currently President Smt
Pratibha Devisingh Patil, (elected for a 5-year term as the constitutional head of the executive)
and 2 Houses: The Lower House - Lok Sabha ('House of the People') - directly elected on the
basis of universal adult suffrage; and the Upper House - Rajya Sabha ('Council of States') -
indirectly elected by the members of state legislative assemblies.
The Bharatiya Janata Party (BJP) and the Congress Party are the 2 main forces in the current
Indian political scene, but neither can command a clear Parliamentary majority. The balance of
power is held by a loose collection of regional and other parties

(1.3)CHINA EXPORT IMPORT DATA TO INDIA


Year China's Exports to India China's Imoprts from India

2000 1560.75 1353.48

2001 1896.27 1699.97

Percent Growth 21.5 25.6

2002 2617.73 2274.18

Percent Growth 40.9 33.8

2003 3343.59 4251.49

Percent Growth 22.2 87

2004 5926.67 7677.43

Percent Growth 77.3 80.6

Chapter -2
Introduction to Import
(2.1)Introduction:

Starting an import business is a goal of more than thousands of merchants and businessman. Like
an export business, import business is also very profitable business, if an importer proceeds with
the right strategies. However, the long term success and profitability of an import business
greatly depends on the importers knowledge and understanding about the international market
and foreign market analysis.

Today, importing goods from abroad has becomes a big business. Everything 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.

(2.2)Definition:

Import:

Generally 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 quantities of goods normally requires
involvement of the customs authorities in both the country of import and country of export. As
per the customs act 1962 import means bringing goods into India from a place outside India.

(2.3)Reasons for Import


There are number of supporting reasons why import business and services is growing at such a
fast rate:-

Availability: An individual or business man or an importer needs to import because there are
certain things that he cant grow or manufacture in his home country. For example Bananas in
Alaska, Mahogany Lumber in Maine and Ball Park franks in France.

Cachet: A lot of things, like caviar and champagne, pack more cachet, more of an "image," if
they're imported rather than home-grown. Think Scandinavian furniture, German beer, French
perfume, Egyptian cotton. It all seems classier when it comes from distant place.

Price: Price factor is also an important reason for import of products. Some products are cheaper
when imported from foreign country. For example Korean toys, Taiwanese 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.
(2.4)Import in India
The 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. Major imports of India include cereals, edible oils, machineries, fertilizers and
petroleum products. Total import from India estimated to be around US$187.9 billion. India is
also a bulk importer of edible oil, sugar, pulp and paper, newsprint, crude rubber and Iron and
steel.

(2.5)Import of Chinese product in Indian:

The flood of Chinese imports has raised temperatures all around, questions have been asked in
Parliament, and the many chambers of commerce have be seeched the government to protect
Indian domestic industry from the new Chinese invasion.

Quite naturally, Indian producers claim the Chinese are dumping their products in Indian
markets. Dumping refers to the practice of selling products abroad at artificially low prices.
Under the World Trade Organization, 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. For instance, a Chinese Fan
with a built-in invertor is available for Rs. 800-900, whereas Indian Fan costs about Rs. 1150.
Bicycles are about Rs. 500 cheaper than Indian ones. Similarly, most electronic goods are
significantly cheaper than products of comparable quality available in India. Third, it is also
undeniably true that the sheet volume of Chinese imports will soon have an adverse effect on
Indian manufacturing industries. A newspaper report mentions that Bajaj Electricals has started
importing items like Chinese Toasters and fans into India and providing brand support and after-
sales service. While this is good news for the Indian Consumer, this can only be disastrous for
the Indian worker.

Of 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. These could well account for
a large part of the difference in prices. Another contributory factor underlying the price
differential is the general inefficiency of Indian manufacturing. A 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 quality.
India has a rather dismal rating in competitiveness. It ranks a low 53 out of 59 countries ranked
by the World Economic Forum and 40 out of 46 countries ranked by World Bank.
As 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

The 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

From 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. The sector that will be worst hit will be the smallscale
sector. The Chinese export import corporations are financially stronger, have more
efficient processes and turn out goods at extreme

(2.6)For the purpose of import goods have been divided into following categories:

Prohibited goods are not permitted to be import at all.


Restricted goods can be imported against a license or subjected to certain conditions.
Canalized goods are permitted to be imported only through state trading enterprises.
Free goods are goods which can be import it without any license or conditions.

Chapter- 3

IMPORT DOCUMENTS

(3.1). Importer Exporter Code (IEC) Number: No person can import goods without obtaining
an Importer-Exporter Code (lEC) Number unless he has been specifically exempted. The IEC
Number is obtained from the Regional Licensing Authority. You have already learnt the
procedure of obtaining IEC Number in Unit.

(3.2). Bill of Entry: It is a document on which clearance of imported goods is affected. All
goods discharged from a vessel, from foreign or coastal ports are cleared on Bill of Entry in the
prescribed form. The Bill of Entry form has been standardized by the Central Board of Excise
and Customs.

Four copies of bill of entry are submitted. Original and duplicate for customer departments,
triplicate is owner's copy and the fourth copy is for the purpose of foreign exchange to be
submitted to bank. There are three types of Bill of Entry as discussed below:

I) Bill of entry for home consumption (white in colour): where an importer wants to get his
goods cleared in one lot, he has to present the Bill of entry for home consumption.

ii) Bill of entry for warehousing (into bond, yellow in colour): Where an importer wants to
shift goods to a warehouse and thereafter gets his goods cleared in small lots, he has to present
'into bond' bill of entry. Reason may be that he is unable to pay duty leviable on all goods at one
instance or may be because of storage problem.

iii) Ex.-Bond Bill of Entry (Green in Colour): When an importer wants to remove goods from
the warehouse, he has to present an Ex-bond bill of entry which is green in colour.

a. Bill of Entry is not required in the following cases:


b. passengers baggage favour parcels
c. Mail box and post parcels
D. boxes, kennels of cargos containing live animals or birds
E. unserviceable stores, e.g. dunnage wood, empty bottles, drums etc. of reasonable value
F. ships stores in small quantities for personal use
G. cargo by sailing vessels from customs ports when landed at open bundles only

For 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.

(3.3)RETIREMENT OF IMPORT DOCUMENTS:

(a) Loading of Goods and Receipt of Shipment Advice: - On loading of goods the overseas
supplier dispatches the shipment advice to the importer informing him about the shipment of
goods. The 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 quantity and the
date of sailing of the vessel.'

(b) Retirement of Import Documents: - After shipping the goods, the overseas. 40' supplier
prepares the necessary documents as per the terms of contract and letter of credit and hands
them over to his bank for their onward negotiation to importer in the manner as specified in the
L/C. The set normally contains bill of exchange, Commercial invoice, bill of lading, packing list,
certificate of origin, marine insurance policy, etc.

For the retirement of documents, the importer is required to submit the following documents to
his bank:
(a) A letter authorizing his bank to debit the equivalent Indian rupees to the value of documents
including bank charges.
(b) Exchange control copy of the Import Licence, if applicable. Form Al duly completed for the
remittance in foreign excl1ange.

c) Acceptance of the bill of exchange: - bill of exchange accompanied by the above documents
is known as the Documentary Bill of Exchange. It is of two types:-

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 (Usance Draft):- In case of usance draft, the drawer instructs
the bank to hand over the relevant documents to the importer against his 'acceptance' of the bill
of exchange.

(d) Scrutiny of Documents Received under L/C:- After receipt of import documents from the
exporter's bank, the importer's bank will scrutinise the documents as to their correctness as per
the terms and conditions of L/C and hands over them to the importer after payment. The 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. Therefore, it is advisable to
hire the services of C&F agents who are well versed with such formalities. The C&F Agent
prepares the bill of entry containing details of goods to be cleared from the customs. In case, the
C&F 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.

(3.4) CLASSIFICATION OF GOODS FOR IMPORT POLICY & ASSESSMENT OF


DUTY

Most of the goods imported are assessed and valued for calculation of import duty provided they
are imported in terms of the Import Policy and evaluated for calculation of customs duty by
virtue of the nature of goods or by virtue of its end use. The imported goods, which do not fall in
parameter of the Import Policy, are' normally confiscated or allowed to be cleared only on
payment of heavy penalty. Types of Customs Duties

The following types of Customs Duties are levied on goods imported into or exported out of
India:

(a) Basic Duty; - Basic duty is levied on all goods imported into India as prescribed in Schedule-
I of Customs Tariff Act. This duty is levied as a percentage of value of goods imported or at a
specified rate.
(b) Auxiliary Duty; - This duty was levied in addition to the basic duty prescribed under the
Finance Act every year. However, with effect from 28th February 1993, the government has
withdrawn auxiliary duty.

(c) Additional or Countervailing Duty; - This duty is levied on the total cost of imported goods
at the rate equal to excise duty on like goods when manufactured in India. This duty is levied to
protect the domestic industry.

(d) Specific Duty: - This duty is levied in order to counter balance the excise duty leviable on
the imports going into the production of such goods in India.

(3.5) Mode of Levy of Customs Duty:

(a) Specific Duties: - Specific duty is a duty imposed on each unit of a commodity imported or
exported. For example, Rs.5 on each meter of cloth imported or Rs.500 on each T.V. set
imported. In this case, the value of commodity is not taken into consideration.

(b) Advalorem Duties: Advalorem duty is a duty imposed on the total value of a commodity
imported or exported. For example, 5% of F.O.B. value of cloth imported or 10% of C.LF. Value
of T.V. sets imported. In this case, the physical units of commodity are not taken into
consideration.
(c) Compound Duties: - Compound duty is the combination of specific and Advalorem duties.
In this case, the quantities as well as the value of the commodity are taken into consideration
while computing tariff. For example, 5% of F.O.B. value plus, 50 paisa per meter of cloth
imported.

(3.6) Valuation of Goods:

Valuation of goods is done as per principles and down in Customs Valuation Determination and
Prices. Of Imported Goods) Rules, 1998.

(3.7) Demurrage Charges

The goods imported and discharged in the Customs area are stored in the warehouses of CWC or
Port Trusts or other designated authority. Initially, such goods are allowed to be stored freely for
few days and thereafter demurrage or storage charges are levied. The Free Period" for different
cargo is different as under:-

(a) Commercial and Non-commercial Cargo: - 7 calendar days from date of landing.

(b) Unaccompanied Baggage: - 14 calendar days from date of landing.

Direct Delivery Facility for Imports by Air: - The facility of 'Direct Delivery' of goods imported
by air-is allowed in certain cases:
(a) Goods like fresh fruits, frozen food, life saving drugs and appliances, TV films;

(b) Any cargo requiring special handling or storage; and

(c) Any cargo in respect of which order of the Deputy Collector of Customs, Air Cargo Unit,
have been obtained in advance permitting direct delivery.

(3.8)BILL OF ENTRY

The bill of entry is a document, prepared by the importer or his clearing agent in the prescribed
form under Bill of Entry Regulations, 1971, on the strength of which clearance of imported
goods can be made.

When goods are imported in a particular country, the importer has to pay the necessary import
duty. For this purpose, necessary information about the goods imported must be given to the
customs authorities in a prescribed form called bill of entry form. Bill of entry is a document,
which states that the goods of the stated values and description in the specified quantity have
entered into the country from abroad. The bill of entry is drawn in triplicate. The customs
authorities may ask the importer to supply other documents like invoice, broker's note and
insurance policy, etc., in' order to verify the correctness of the information supplied in the bill of
entry form.

Types of Bill of Entry:

For the purpose of giving information in the bill of entry form, goods are classified into three
categories namely:

(a) Bill of Entry for Goods Imported for Home Consumption (White colored):- This kind of bill
of entry is used for clearing imported goods by paying customs duty at the port.
(b) Bill -of Entry for Bonded Goods' (Yellow colored):- This kind of bill of entry is used when
no duty is paid on imported goods and, therefore, they are transferred to customs recognized
bonded warehouses.
(c) Bill of Entry for Ex-bond Clearance for Home Consumption (Green colored):- This 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 Bill of Entry

The main contents of the Bill of Entry are:


(a) Name and address of the importer.
(b) Name and address of the exporter. .
(c) Import licence number of the importer.
(d)Name of the port/dock where goods are to be cleared.
(e) Description of goods.
(f) Value of goods.
(g) Rate and amount of import duty payable.
(h) Other relevant documents.

However, no bill of entry is required in the following cases:


(a) Passengers' baggage;
(b) Favour parcels;
(c) Mail bags and Post parcels;
(d) Boxes, kennels of cages containing live animals or bird~;
(e) Post parcels ship stores in small quantities for persona, use.
(f) Un-serviceable stores, such as, dunnage wood, empty bottles, drums, etc., of reasonable
value (below Rs. 50);
(g) Cargo by sailing vessels from Customs Ports when landed at open bunders only.

PROCESSING OF THE BILL OF ENTRY

Once the Bill of Entry is completed by the Appraiser, and the same has been countersigned by
the Assistant Collector, then it is forwarded to the License Department for debit and audit, and
thereafter returned to the importers for payment of duty in the
Accounts / Cash department. After recovery of duty, the original Bill of Entry is retained in the
Accounts Department and the duplicate and other copies are returned to the importers for getting
the goods examined in the docks. In the Docks, Shed Appraiser / Examiner shall examine the
goods, and if the consignment is in order, he will give the out of charge for payment of the Port
Trust Charges. This procedure under which 80 to 90% of the consignments are being cleared is
known as the Second Check Procedure. As against this, in the alternative procedure what is
known as the First Check Procedure, the
Scrubnising Appraiser in the Group gives the examination order. The goods are then examined in
the docks and the Bill of Entry returned to the Scrutinizing Appraiser for completion and licence
debit. In this case, the Customs out of charge is given by the Accounts Department soon after the
recovery of duty. This procedure is resorted to only in cases where the appraisers or the assessing
Group finds it difficult to complete the assessment on the basis of the documents made available.

The import consignment can be opened only by the proper officer of the customs for
examination of the goods lying in a Customs Area. Examination of cargo for assessment \
purpose is chiefly the function of the Appraising Department having special staff of
Examiners in the docks / Air Cargo shed.

'The result of the examination or weighment is noted on the reverse of the Bill of Entry. 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.
The Officer at the same time, obtains on the documents the importer's or his accredited
representative's signature on the entries made from day-to- day showing the result of weighment.
(3.9) A NOTE ON FORWARD CONTRACT

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. However, if the contract is concluded in some
internationally accepted currency then the importers have to pay Indian rupees equivalent. To the
amount of foreign currency. Where 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. Such risks can be avoided by the following methods:

(a) Invoicing the Goods in Indian Rupees: - The first remedy to adverse movements in exchange
rates is invoicing goods in Indian rupees. However, foreign seller may not agree to invoicing
goods in Indian rupees.

(b) Entering into a Forward Exchange Contract: - This is the most commonly practiced
alternative for insuring the risks arising out of adverse movements in exchange rates. Under this
adjustment, 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. Thus, the importer knows in advance the exchange rate that he is going to
pay on delivery of import documents.
Chapter-4

Import Products From China


(4.1) Introduction:
We are importing many products from China because products are very cheaper than Indian
market and they fullfill the needs of our citizens Because 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.Well consumer are basically two types -one who wants best features at affordable
prices, and the others who go with quality and brand tag. Chinese product have benifitted the
consumers of first category.
There is a huge demand in India for low-cost, less durable consumer goods, from China.
These goods are very popular with people who wish to buy the fake versions of their favorite
brands at throwaway prices.

These 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.

(4.2) There are many types of products which we Import such as:

Products
Agriculture & Food
Apparel & Accessories
Arts & Crafts
Auto Parts & Accessories
Bags, Cases & Boxes
Chemicals
Computer Products
Construction & Decoration
Consumer Electronics
Electrical & Electronics
Furniture & Furnishing
Health & Medicine
Industrial Equipment & Components
Instruments & Meters
Light Industry & Daily Use
Lights & Lighting
Manufacturing & Processing Machinery
Metallurgy, Mineral & Energy
Office Supplies
Security & Protection
Service
Sporting Goods & Recreation
Textile
Tools & Hardware
Toys
Transportation

Some Important Products which we import in huge quantity are as :

(4.3) Agriculture and food products:-

Introduction:

China is the worlds sixth largest economy and its most populous country, home to 1.3 billion
people or 21% of the Earths total population. But it faces a major challenge in providing its
people with food China has only 10% of the worlds arable land and only one quarter of the
average world water resources per person.

Agricultural reform has therefore been a major pillar of the fundamental economic reforms
undertaken by China since 1978, resulting in a gradual transition from a centrally planned
economy towards a socialist market economy. The commune system was replaced by one where
individual families lease land from the collectives, ensuring that almost all rural households have
access to land. Then, rural industries started to expand and absorbed a large part of farm labour.
The reforms have achieved a sharp rise in agricultural production together with a dramatic fall in
poverty and a significant improvement in the amount and quality of food available.

Related products are:

(4.3.i) Frozen Vegetables :

(Frozen Vegetables )

Frozen green bean, frozen broccoli, frozen green peas, frozen green asparagus, frozen spinach,
frozen chopped spinach, frozen taro, frozen green pepper slices, frozen cauliflower, frozen lotus
root, frozen Romano beans, frozen black fungus, frozen diced

(4.3.ii) Food Plastic Bag


Product Description
Features Specifications: Plastic Lamination Pouch/plastic bag/lamination bag/food bag/ Vacuum
pouch/packaging bag

1) Material: Lamination from high quality BOPP, PET, PA, CPP, AL, PE for the packaging bag

2) Suitable for dozens of food packaging, pet food, beverage, agriculture, daily
Chemical products and tea packaging
3) Good printing quality, low temperature heat sealing property, high transparency,
Excellent moisture, oxygen and gas barrier.

(4.4) Electrical & Electronics products :-

Introduction:

: India is heavily dependent on imports of electronic goods from countries like the US and China
to meet its domestic demand. "Meagre spending on R&D by electronics industry has increased
Indias dependence on electronics imports .

India had imported electronics goods worth USD 19.77 billion in the recent times, while the
export earnings were USD 3.17 billion, the study said adding that more than 70 percent of
electronics appliances demand is met through imports."...more than 35 percent of electronics
appliances imports in India are sourced from China,"

Related products:

(4.4.i) AC Motor (YB2 Seires Explosion Proof Motor)


Introduction:

AC Motor (YB2 Seires Explosion Proof Motor)

Model NO.: YB2


Standard: IEC
Productivity: 5000/month
Unit Price/Payment:TT or L/C at sight
Trademark: Kailida
Usage: Industrial
Power Source: AC Motor
Structure: Asynchronous Motor
Function: Driving

Product Description
AC Motor (YB2 Seires Explosion Proof Motor)

(4.4.ii) Car Refrigerator (DC-22Y)

Introduction:
Car Refrigerator (DC-22Y)

Packing: normal standard package


Model NO.: DC-22Y
Standard: W509*D310*H394MM
Productivity: 2000pcs/month
Unit Price/Payment:FOB Foshan, guangdong
Trademark: Colku
Origin: foshan, guangdong, china
Min. Order: 1*20'GP
Transportation: ocean shipping
Capacity: 11-20L
Certification: CE
Voltage: 12V

Product Description
Car cooler/mini cooler/cooler box/car fridge/Compressor refrigeratro/car refrigerator/mini
refrigerator/portable refrigerator/outdoor cooler

Features
Extremely powerful DC compressor cooling system. Boundless independence for all outdoor
enthusiasts Silent and convenient cooling comfort anywhere. Multifunctionally, fridge and
freezer all in one, Extremely high reliability and long life expectancy. Polyethylene rotomoulded
body, unbreakable & rust free, Digital control with LEC display. Compact overall size, easily
accommodate anywhere.

Item no. DC-22Y


Temperature -18~10 C(40~45 C below ambient)
Rated Voltage AC 230V/50~60Hz or 110V/60Hz
Power Input DC 63W
Cooling type DC Compressor cooling system
Refrigerant R134a (CFC-Free)
Isolation C-pentane (CFC-Free)
Weight 13KG/net, 15KG/gross
Unit Size W509*D310*H394MM
Packing Size W532*D376*H455MM
Loading Quantity 330pcs/20GP, 660pcs/40GP, 660pcs /40HQ0.

(4.4.iii) Air Conditioner


Air Conditioner
Product Description
COP>4.5, powered by 48/24VDC,
* This series products can be widely deployed for elclosed area climate control such as wireless
communication caniet, battery cabinet, industry control cabinet etc.
* the internal and external interface of product is IP 55 level to avoid moisture, dust, water
penetrating into inside of enclosure, inside electronics equipemnt is completely well protected.
* applicable for severe ambient environment, such as high temperature, high humidity, high
corrpsion atmosphere.

Product design feature


* less dehumidifying comparing traditional air conditioner
* environmental friendly refreigerant such as R134A
* heat pressure smart control function to enable active cooling work in winter season
* completely safety protected accordingly UL, EN, CCC norms
* alarming output to monitoring system
* interchangeable and visual display adapter for service
* automatic self start after power recovery
* remote control through RS485 comm. Port
* proper design for easily intallation and service
* side/door mounting
* applicable for T3 condition

(4.4.iv) Bluetooth Car Kit (ESB302)


Introduction:
Bluetooth Car Kit (ESB302)
Packing: Blister
Model NO.: ESB302
Standard: CE, ROHS
Productivity: 100K/Months
Origin: Shenzhen, China
Min. Order: 500PCS
Type: Bluetooth Car Kit
Export North America, South America, Eastern Europe, Eastern Asia, Western
Markets: Europe,India

Product Description
- Safe Driving with entertainment
- Steering wheel Bluetooth Car Kit with DSP, support Bluetooth hands-free phone call
- CRS Bluetooth version 2.0+EDR
- LCD Display for caller ID, frequency, sequence, etc
- Support last phone call redial
- Built-in speaker and Micro-phone for phone talking
- Wireless headset for privacy phone call also with earphone jack
- Built-in re-chargeable battery
- Built-in FM Transmitter with 206 preset channels
- Play MP3 from TF or SD card in With TF or SD card slot in car stereo system

(4.4.v) Solar System Battery Series 12V100S

Introduction:
Solar System Battery Series 12V100S
Model NO.: 12v100S
Trademark:LONGWAY

Product Description
Model: 6fm100g(12v100ah/10hr)
size: 327*170*216 (total height 223 ) mm
more size available
terminal: b
10hr: 105ah
packing qty: 1 pcs/ctn
750 pcs/container
lead-time: 15 days for one container
application: ups, inverter, solar system
oem acceptable
battery 12v100ah: 105ah/10hr
hs code: 85072000
trademark: long way
model:12v100ah
standard:jis iec
productivity: 40,000 pcs
unit price/payment: fob cif cnf/tt or l/c at sight
origin: guangdong, china
packing: 1pcs/ctn
min. Order: 60 pcs
transportation: by sea

(4.4.vi) Offset Dish Antenna (YH45KU-IV)Satellite 45cm

Introduction:
45cm Offset Satellite Dish Antenna (YH45KU-IV)
Model NO.: YH45KU-IV
Standard: CE & UL
Productivity: 200, 000pcs/month
Unit Price/Payment:T/T in advance or L/C
Trademark: Yoohon

Product Description
Material: Steel board
Surface: Polyester powder coating
Short axle: 45cm
Long axle: 49.5cm
Ku waveband gain at 12.5GHz: 34.22dB
F/D radio: 0.6
Focal distance: 270mm
Stand: Wall and/or ground mount
Angle of elevation: 0 to 90 C
Level: 0 to 360 C

Wind speed:
Can receive: 25m/sec
Can replace: 40m/sec
Working temperature: -40 to +60 C
Top of Form
Bottom of Form

(4.4.vii) Radio With USB And SD (GF-723)

Introduction:

Radio With USB And SD (GF-723)


Model NO.: GF-723
Min. Order:1600pcs

Product Description:
Am/fm 2 band radio
USB function, with sd
DC: 6v

(4.4.viii) Appliance World and Home Theater - The World Of Electronic Goods!
Appliance and World and Home Theater is the safest option if they are looking for electronics
and other appliances. The store known for its quality products is one of the leading electronic
stores . The store offers the best prices and products to its customers. The products of almost all
the leading brands can be found here. From Whirlpool to LG to GE, the products of all big
brands are available here. The staff is very friendly and cooperative and they make sure that their
customers get the best offers. Appliance World and Home Theater is thus the obvious choice for
the people of our country. Its products are of supreme quality and extremely durable. It's hard to
find better products than what one gets at this store. From dishwashers to microwaves to
refrigerators, the store offers the best in everything. The latest models are displayed here and
customers can carefully look at all of them before choosing what suits them the best. Everything
related to their stores can be found out on the website. From the store's address, nearby
landmarks to its phone number, everything can be traced from the site. A site map is also present
which describes the routes in detail. All this makes it easier for the customers to locate the store.
The 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.

(4.5) Other Products

(4.5.i) Fake Brand Shoes

Detailed Product Description


Beautiful seasons,fresh products! With our fashionable brand
shoes, you will make this season more wonderful.
The shoes of Dunk, Nike, Jordan, Bap Air force can give your feet a comfortable and easy home!
Popular 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.
So pls quickly visit to our website for these lovable leisure prodcucts. and tell me your idea
with by your convenience.

Chapter 5

Chinese Market in India


(5.1) Introduction:

Been to a market which glows with Bright Red Color in the morning and light bulbs in the night.
If not, then this is the market where you should go. Filled with Red color products, be it
electronic items, toys, dolls, dresses, carpets or curtains. A variety of products can be found in
the Chinese Market.

With the Indian Market flooding with Chinese Goods, this is one place where Chinese Goods are
sold at length. Brightly 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.

(5.2) Location : Chinese Market is located near the Kirti Nagar Mall of Old Delhi. It can be
easily reached by cabs or taxis.

Fast Facts
City Name - New Delhi
Market Name - Chinese Market
Famed For - Chinese Products.
Language Spoken - Hindi, English, Chinese
Best Time to Visit - November to February

(5.3) Shopping Spree in Chinese Market :

Meena Bazar- This Market opened by Noor Jahan for the ladies, still stands today; though the
look and the products sold here have changed with the time. Perfumes, Artificial Jewellery,
Leather Products, Souvenirs and Traditional Dresses are the main attractions of Meena Bazar.

Chinese Bizaree- The first name which comes with the Chinese Market is the Toys. Bright red
colored toys with the combination of yellow and Green, its one of the places where you can
really buy Cheap Toys for almost all ages. Then there are the clothes - polyesters and tervinyls
are names here to be found in every second cloth shop. There is another thing for which Chinese
Market is famous for - Electronic goods. Almost every electronic good can be found here - spare
parts, sockets, wires, full pieces all are here. The prices of these items are also very cheap but
there is no warranty for these goods. How long they will work is no ones headache. But there is
one Guarantee - even if the Electronic 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. With them
comes the noise and the voices of thousands of feet - but that is the main attraction of the Delh is
Chinese Market.

(5.4) Suggestions:

Chinese Market is all about second grade Chinese Products. None of the Indian Products can be
found in the Chinese Market.

Chinese Products are cheaply priced but they have no guarantees. Its upto you to buy them.

All the Electronic items sold in the Chinese Market, come with one agenda - use and throw. Toys
can be purchased from here.

Some of the average Restaurants and eating Joints can be found here. But its preferable to have
food in your Hotel.

If you are coming to the Chinese Market, then make a half day plan to see the entire Market. As
there will be all time walking, then there should be some time to rest.

If you are shopping in the months of March to June end, then its best to shop in the evenings
after 6 o'clock.

Beware of the Thugs in the Chinese Market. Things once lost cannot be recovered because of the
huge Crowd in the Market. Its better to leave the Valueables like passport in the Hotel Locker.

Money Converters can be easily found in Delhi City. However, its difficult to find them in
Chinese Market and the around areas. However, you may find one or two Branches of Western
Union in the corners or else you can go to Bank of India and State Bank of India for Money
Conversion.

Chapter 6

Impact of Chinese products in India:


Introduction

(6.1) Impact on our Economy:


Cheaper prices products made in China are becoming more popular among the Indian masses.
This has had a very negative effect on our own manufacturing units and as a result many of them
have had to shut shop.

The Chinese goods have invaded almost all the sectors of Indian market and seem to be bringing
tougher times for the Indian Industry. Because 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. The 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. They are using the big Indian
market merely to dump their products and by doing so they are killing the Indian units. For
example last year during Diwali, China made crackers were sold in the Indian market. These
crackers reportedly contained Sulphur. Sulphur is more harmful than Nitrate, which is used in
India to make crackers. Since the Chinese crackers were cheaper than the Indian crackers, so
they managed to attract gullible and largely illiterate Indian lot. As a result the Indian cracker
industry saw a decline in the revenue.

China is our major competitor in sectors like software, hardware, electronics etc. We should not
allow China to dump their excess produce here. The small-scale industry (SSI) contributes 35-40
per cent to the total manufacturing in India. So it is the SSI, which suffers most because of
Chinese goods. For instance, data reveals that 60 per cent of the industrial units in the industrial
belts of Thane and Bhivandi near Mumbai have been closed down. Many small-scale Indian
companies have stopped manufacturing their own goods as now they import them from China.
Thats why many Indian workers have lost their jobs. This shows that the objective of SSIs 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 equipment, power equipment etc, which helped them to capture
big markets of America and Europe. It is no surprise that they have been successful in capturing
the Indian market too. Although 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. We must take necessary steps so
that we do not fall prey to the DRAGONs designs of capturing a major share of our growth,
which could prove to be a setback for our economy in the future.

(6.2) Cheap imports may hit India's steel market:

India Chinas decision to cancel export duty on some 102 steel products could see it
flood Indian markets with cheap priced steel items, the Indian steel industry feels. The
industry is already reeling from falling demand, crashing prices and high production costs.
China, the worlds largest steel producer, announced two weeks ago that it would remove the 5
percent levy on steel exports from December 1, to boost its steel industry, which has been
severely hit by the global slowdown.
According to industry sources in India, exporters in China have started shipping steel to India at
ridiculously low prices, in a bid to clear stock. Due 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.
The 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. Leading steel companies like Steel Authority of India
and JSW Steel have reported 25 to 30 percent dip in consumption demand and have,
consequently, resorted to production cuts.
However, the local steel industry faces a much harder blow from imports. According to the steel
ministry, Indias steel imports have shot up 50 percent to about 3 million tons from April to
September last year, compared to the same period last year, out of which at least a million ton
came from China. The fear is that with China taking measures to boost exports and with no
adequate 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, Ram Vilas Paswan said that at the current
rate of imports, India may end up importing 6 million tons of steel by March 2009 accounting for
over 10 percent of its current steel production, which is 58.64 million tons.
The reason why India is scared of China the most compared to other steel exporters -- after all
India also imports steel from Ukraine and Taiwan where prices are almost as cheap -- is the fact
that Chinas steel industry too is suffering from excess production and falling consumption,
which are forcing it to adopt aggressive measures to ship out existing stocks.
According to Market Avenue, a Beijing based business intelligence outfit, China will add 50
million tons to its steel production capacity this year, which will take its total output to 400
million tons by the end of the year.
But, even as China is producing capacity relentlessly, its consumption is taking a hit. Steel
Business Briefing, a China-based steel consultancy outfit predicts that steel consumption in
China will grow by only 8-10 percent in the second half of next year, as little as half the 16
percent growth seen in 2008.
Nevertheless, heeding the industry pleas for taking it out of a serious situation, India re-
imposed a duty of 5 percent on steel imports last week. The duty was removed six months ago to
stall steel prices in the country that were ruling at all-time highs of over US$1,100 per ton.
Moreover, import restrictions were also imposed on some items of finished steel products like
seamless tubes and pipes from China.
Still, the industry says, thats hardly enough. The 5 percent (import) duty may not be adequate
because despite the duty, the landing cost (of imports) is lower than the production cost of local
steel makers. While China is offering steel at US$440 per ton, domestic prices in India are ruling
at almost US$700. So, the latest duty would push import cost by just US$22 per ton.

(6.3) Cheap Chinese goods harming Indian industry:

The 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 22 cases, including final duty in 12 cases
and provisional duty in 10 cases, during 2008-09 and 2009-10 (up to November 2009). Final
safeguard duty was imposed in 4 cases during the two years, a government release said today.

These duties are in accordance with the Agreement on Anti-Dumping (the agreement on the
implementation of Article VI of GATT, 1995), the agreement on subsidies and countervailing
measures, and the agreement on safeguards, the release said.

These provisions are aimed at offsetting the adverse effects of 'dumped' imports, 'subsidised'
imports or 'increased' imports, it added.
India's merchandise imports from China doubled during the last 3 years to Rs1,47,605 crore
($32.05 billion) during the financial year 2008-09 from Rs1,09,116 crore ($23.69 billion) in
2007-08 and Rs79,008 ($17.16 billion) in 2006-07.

The 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 injury to
the domestic industry, the domestic industry can make an application to the Directorate General
of Anti-Dumping and Allied duties (DGAD) in the department of commerce for imposition of
anti-dumping duty, the release said.

Alternatively, the affected industry or unit can make an application for imposition of safeguard
duty to the Directorate General of Safeguards under the ministry of finance, in case there is
serious injury/market disruption, or threat of series injury/threat of market disruption to the
domestic industry, as a consequence of increased imports of an article into the country, the
release added.

Under section 3 (2) of Foreign Trade (Development and Regulation) Act, 1992, the central
government has an inherent power to impose restrictions on import of goods.
The Customs Tariff Act, 1975 includes provisions for providing relief to the domestic producers
against injury caused to them by imports.

(6.4) Why are we Importing electronic products from china?

Wholesale Electronic 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. Therefore, those in trading business of imported electronic items may
find it convenient to have electronics goods buy from China. Even international locations like
USA and some European traders are importing electronics items from China at regular basis.
Consistent supply, good quality, 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. Because of the flexible import policies, business with China is easy and hardly needs
any special effort to run the business under smooth spell. The electronics goods from China are
of good quality and highly affordable thus proves cost-efficient for trading. The 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.

However, in case of electronics products, the one of the prime reasons to buy from China for the
importers is its good and consistent quality in spite of its low cost. In the same category products
from Japanese 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 minimizing over all cost for the entire business transaction. However, 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.

While 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. On the other hand,
the combo of quality and aesthetics has kept the demand of China electronics products ahead of
other products of the same category.

Recent research and study have shown the fact that the technological advancement of China
electronics industry has made the production quality of China with South Korea, Japan, and even
with the electronic goods made in Taiwan and it has merged as one of the leaders in Asian force
of electronic consumer goods industry in 21st century. Besides this ranking, China is ranked as
one of the most eye-catching consumer market on electronics items from the investment point of
view. These 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
cost; 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 quality against low price factor has emerged as one of the main
reasons to buy from China market for the importers across the world.

(6.5) Chinese Handsets Flooding the Indian Mobile Stores:

The Indian mobile phone market is flooded with new handsets every week. Makers from all
over the world are recognizing the potential of the Indian markets. Manufactures are adhering to
the needs of the people and are customizing their handsets to suit the Indian buyers. The urban
market has been exploited and the penetration is soaring this is evident with the growing number
of mobile stores. The semi-urban and rural markets are next in line to avail this convergent
medium of communication.

The low priced Chinese handsets are becoming an easy buy for the Indian consumers. The
lifestyle handsets are not yet preferred of Chinese origin but the entry-level ones are highly
popular. The cheap pricing with basic functions suits the routine of the semi-urban and rural
crowd in India. While most unaware of English language the Rs. 800 handset from Spice mobile
has no display screen but a voice based application which helps in dialing numbers.

The mid-range handsets are not yet popularized by the Chinese products and so is the higher end
range. The buzzword in the Indian mobile industry is the rural market the Chinese makers are
raking in business and profits. Orpat, a watch making company also entered the rural mobile
market industry by manufacturing their handsets in China. It is about time when mobile
handsets are extensively produced in India. While being one of the most communication hungry
nations it should thrive to start production for the same.

To venture into this obvious growing market mobile phone producers thought of opening
manufacturing plants in India. But due to the bureaucratic structure the process was elongated.
Thus many manufacturers moved their base to China for production. The Indian mobile phone
market is flooded with handsets produced from China but marketed and sold in India. Even
Chinas big guns in mobile production like ZTE, Bird International and Kejian have forayed into
the Indian mobile phone market and are expanding. ZTE has a huge share in the CDMA (Code
Division Multiple Access) market. Most of the entry level, basic utility phones to mid-range
phones is manufactured by ZTE. They supply handsets to players like Reliance Communications

and Tata Teleservices. Even Spice mobile which has been famed for its dual-sim capacity
handsets it also rolling out a series of cheap handsets. These handsets will be priced as low as Rs.
800. With the kind of technology and marketing the costs could be further lowered. It is about
time we see the rural markets flaunting mobile stores and the mobiles selling like hot cakes.

(6.6) Chinese goods are creating problems:

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 DVD or LCD from USA or UK. In China the cost of manufacturing is
very less because of cheaper labour and bulk quantity of the production. Hence the Chinese
goods are much cheaper compare with local products Because of this every company like Sony,
Panasonic etc will manufacture their goods in China and import them to their countries. Of late
many countries are not allowing the Chinese goods to be imported to their countries. The
examples are USA 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. The most popular goods are plastic , home appliances, watches, cell phone and even the
Hindu 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 Auto 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. The latest is Banarasi saree industry in
Varanasi Scores of handloom weavers took to streets. Varanasi, famous for its world renowned
Banarasi sarees, against the cheap quality Chinese imitation products flooding the market. The
Banarsi saree industry has also been adversely affected due to the import of cheap Chinese
fabric. Powerloom owners have been producing cheap imitation products at various places,
helped by computer-assisted copying of designs. According to protestors cheap imitation
products are doing roaring business while highly skilled weavers who produce the original
product suffer.

"Earlier we used to do good business in Banarasi sarees, but slowly it started falling, because of
the Chinese sarees which are being sold at lesser price than our sarees. Banarasi sarees require
more labour, money and expensive raw material, but people are selling imitation of Banarasi
sarees in cheap quality Chinese material, so our business is being affected badly. After facing lot
of hardship we have today decided to take to streets as for how long can we go on living in
penury?" said Razia Begum, a protester. According to data available through Non-Governmental
Organisations (NGO's) working with the weavers, the number of people employed in the once
thriving industry has reduced from around 700,000 people to 250, 000 people only.
Imports from China to India had galloped pace from $11 billion to $27 billion in the last three
years. Among all the countries in the world, India imposed the maximum measures and ordered
the highest number of probes (31) into dumping of goods from different countries, including
China, during July 1 to December 31, 2007, according to the World Trade Organisation.

Chinese products faced the maximum number of anti-dumping measures, accounting for nearly
half (26) of the 58 new measures. China was most frequently subjected to new investigations,
with 40 measures directed at its exports between July and December 2007, slightly up from the
39 investigations on exports from China that were reported for the corresponding period of 2006.
Sectors that are hit hard with imports from China are machinery and equipment, chemicals,
textiles, base metals and auto components
Solutions
Government should ban the imports of Chinese goods immediately
Under intellectual property rights patenting should be encouraged for traditional goods like
Banaras saree, Tanjore painting etc
People also should not flock for cheaper goods as these good are not good as far as quality is
concern
If correct measures are not taken immediately the manufacturing industry, traditional industries
like Banaras saree will face problems.

Chapter -7
Chinese goods: Boon or bane?
(7.1) Boon or Bane:

The recent flooding of Chinese goods into the Indian market has raised a hue and cry, and the
question whether we should accept this silently. From the narrow viewpoint of the average
consumer, sufficiently satisfactory quality goods are available at roc k-bottom prices. For
instance, the prices of China-made compact fluorescent lamps are less than the prices of lamps of
well-established Indian brands, and of comparable quality.
With 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. The inefficiencies of companies a re exposed to
competition from efficient enterprises, and the market share of the laggards is diminishing
rapidly.

Traditional manufacturing industries in India were reaping profits at the cost of both consumers
and workers till the early 1960s. With the growth of socialism, the workers started asserting
themselves under the banner of trade unions. Due to this pressu re, public sector units registered
tremendous growth and large private enterprises were also able to record higher profits.

In the early 1980s, with liberalisation, the majority of non-Left parties, in cooperation with
various industry associations and some economists with `western outlook', started supporting the
idea of globalisation at the cost of national interest.
One basic fact that cannot be ignored is India's large population of diverse culture and religion.
Even China -- with its large area and population -- is not comparable. To keep the country
together with a socially stable set-up, the Indian model of econ omic development has to be
different from traditional Western models.

The right economic model should provide social stability in terms of gainful employment for the
masses. But 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 dizzying heights
and, on the other, reduced the employment opportunities of the middle-classes.

Organised 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
majority. Even very profitable concerns have lured employees into vol untary retirement
schemes. As a result, people below retirement age, who opt for superannuation, come back to the
job market with the advantage of experience.
This process helped capitalists exploit the toiling millions. The NPAs stand testimony to how our
nationalised banks are being systematically looted to promote a few while keeping the majority
of the workers below the required wage levels.
The government's globalisation policy was welcomed initially by the industry associations for
two reasons: To dismantle the last semblance of labour laws and to divest PSUs and nationalised
banks with the supposed aim of increasing efficiency and removin g NPAs from their books.
Now, 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. This
parochial campaign must be exposed. With 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.

(7.2) Advantage and Disadvantage of Chinese Products:

Advantages:

(1) Cheaper price benefits the consumer


(2) Cheaper raw materials are beneficial for industries
(3) Importer and trader makes money by selling goods.
(4) Import business leads to some employment generation
(5) Government collects tax by way of customs duty.
(6) It may lead to competition which in turn may lead to better quality products.

Disadvantages:

(1) Cheap imported Chinese products kill competition and local small scale industries
suffer. Sometimes, may close down.
(2) Closure of local industries due to Chinese imported goods, may lead to
unemployment.
3) It may also lead to loss of revenue due to the closure of local industries.
(4) Closure of local industries may also lead to social unrest arising out of unemployment of
staff and employees
(5) Cheaper goods means cheap quality and consumers may suffer on .
CONCLUSION
I have completed my thesis report on IMPORT OF CHINA CHINESE and found that
documentation and procedure for import is very crucial and important, without these the
export-import can not be done.

Good documentation and procedure of import is very necessary and it should be execute
very carefully and sincerely. The documents and procedure is necessary for both importer
as well as exporter.
REFERENCE
Sites:

www.alibab.com

www.indiatrade.com

www.indiatradezone.com

www.slideshare.com

www.google.com

www.eximindiamart.com

www.importerexporterhelp.com

1. Arunachalam, Dharma, Popular Super Powers: Emerging Population Issues in China and
India, Geodate, Vol. 21, Issue 4,pp.6-9, 2008

2. Bardhan, Pradhan, China, India Super Power? Not So Fast, Yale Global, October 25, 2005.

3. Biggs, Barton M., India Will Steal Chinas Thunder, The International Economy, p.9, spring
2006.

4. Borick, Joseph, China- Economic Superpower? Sooner Than You Think, Chinese American
Forum, Vol. xx, Issue 3, pp. 28-3, 2005.

5. Buruma, Ian, After America, New Yorker, Vol. 84, Issue 10, pp. 126-130, April 21, 2008.

6. Chaddha, Navin, Indias Economy: Off the Launch Pad, Business week Online, p. 7, March 8,
2007.

7 .Wikepedia, Free Encyclopedia

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