INDIA READER
INDIAN EMBASSY (VIENNA) Kärntner Ring 2, 1010 Vienna indemb@eoivien.vienna.at www.indianembassy.at
Business India Series by the Indian Embassy (Vienna)
FIND INSIDE Why import from India? The major trade routes with Austria FAQs about Logistics Matters when doing Business with India
Transport and Logistics within and from India
What does my supplier need to provide for general cargo?
ndia is a rapidly changing country and provides several transport and logistics solutions by air and ocean freight, forwarding, consolidation, customs clearance, project transportation (ODC – Over Dimension Cargo), break-bulk, vessel-chartering, warehousing & distribution plus value added global logistics services for a complete supply chain management solution.
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The supplier needs to provide a packing list, invoice Import/Export Code, Authorization Dealer Code number and their Bank A/C number. If they export under any special scheme i.e. Drawback & Advance License, details are required in advance.
Why import from India?
In India customs are only open from Monday to Saturday, every second Saturday of the month customs are closed.
Indian economy is one of the fastest growing economies in the world. The B2B market position in India is increasing rapidly. In addition to major business houses, the real contributors to economic development in various areas are small and medium enterprises. Major growth takes place in the food and beverage, automotive including spare parts, healthcare, textiles, pharmaceutical, bio-technology, electronics and handicrafts industries . This is only to point a few major sectors that could be of interest specially for Austria. India is only 3:30 hours ahead of Austria in the summer and 4:30 hours during the winter. There are 2:30 hours time more for exchange of information and communication. If an order is placed early in the morning, the goods are ready quickly. Export documents such as the packing list and invoice can be ready for pick up on the same day and export can take place the day after. Another advantage is the shorter transit time from main Indian ports to main European ports, which is about18-23days (China to Europe: 24-26 days).
Is it possible to get my goods customs cleared at the weekend?
How long in general does export customs clearance of goods by Air and Sea take? For airfreight and sea freight shipments you should estimate at least 1-3 days for customs clearance, depending on commodity and proper preparation of documents of shipper..
If I want to send goods for exhibition and re-import them, is there anything I need to consider? A Carnet or ATA Carnet is an international customs and export-import document. It is used to clear customs without paying duties and import taxes on merchandise that will be re-exported within 12 months. In India the Carnet is only valid up to 6 months but can be extended through the customs authorities. One month before expiry, the authority concerned must receive an extension request.
What are the transport requirements for temperature sensitive pharmaceutical and foodstuff products from India? In order to ensure product quality we have to maintain a prescribed temperature environment throughout the entire transportation. This is enabled by use of special container equipment s.c. REEFER containers. The transport disposition is arranged by dedicated specialists in the area of cold chain logistic.
From which Air and Sea ports can the supplier export the goods? The supplier can only use the Air and Sea ports where he is registered at that customs port office. For example: if the customer is based in Vadodara and doesn’t wish to use his nearest Airport of Ahmedabad but rather Mumbai Airport, he needs to be registered with the customs office at Mumbai Airport, the same applies for sea freight shipments.
Which are the main Sea ports and in which state are they located? Main Sea ports in India Name of Sea Port NhavaSheva (JNPT) Mundra Kandla Hazira Mormugao Cochin V.O.Chidambaram Port Trust Chennai Vishakhapatanam Haldia
Location
State
Mumbai
Maharastra
Mundra (Kutch)
Gujarat
Gandhidham (Kutch)
Gujarat
Baroda
Gujarat
Goa
Goa
Cochin
Kerala
Tuticorin
Tamil Nadu
Chennai
Chennai
Vishakhapatanam
Andhra Pradesh
Medinipur
West Bengal
How to import by Sea freight if the city has no own port? In certain areas where no Sea Port is available, FCL (Full container loads) are transported by truck for short distances and by railway for long distances. LCL (Less than container load) is mainly transported by truck. In bigger cities and subsidiaries there are ICD (Inland Container Depots) available with and without a Container Freight Station.
Main ICD (Inland Container Depots) in India with and without CFS Name of IDC Tughlakabad Dadri (Greater Noida) Dhandarikalan Moradabad Agra Daulatabad Chincwad Jodhpur Kanakpura Vadodara Sabarmati Whitefield Balasore Kochi Coimbatore
Location
State
CFS?
New Delhi
New Delhi
Yes
New Delhi
New Delhi
Yes
Ludhiana
Punjab
Yes
Moradabad
Uttar pradesh
Yes
Belanganj
Uttar pradesh
Yes
Aurangabad Maharashtra
Yes
Pune
Maharashtra
Yes
Jodhpur
Rajasthan
Yes
Jaipur
Rajasthan
Yes
Vadorara
Gujarat
No
Ahmedabad
Gujarat
Yes
Bangalore
Karnataka
Yes
Balasore
Orissa
Yes
Kochi
Kerala
Yes
Coimbatore
Tamil Nadu
Yes
What is a CFS (Container Freight Station)? Mainly it is an inland port facility for loading and unloading containerized cargo to and from ships for Exports or Imports.
How long is the transit time from Indian Seaports to European ports and which are the most common routes to Austria?
Bremerhaven
Koper
NhavaSheva Mundra
24 days
23 days
20 days
30 days
21 days
21 days
18 days
37 days
Chennai
28 days
23 days
21 days
29 days
Kolkata Tuticorin
31 days
29 days
40 days
34 days
30 days
23 days
30 days
28 days
Tax rate
32,45%
42,02%
Not taxable
42,02%
Closure /app. time
ROC 12 to 16 months
RBI 6 to 8 months
RBI 3 to 6 months
RBI 3 to 6 months
Port of Loading/Port of Discharge
Rotterdam
Hamburg
Most frequently used ports in India to Europe with average transit time
Is there a direct service? Direct services are very limited and only possible from Nhava Sheva and Mundra, other ports ship via Singapore, Dubai or Colombo to Europe.
What’s the approximate transit time from an EU Seaport to the Austrian capital? As soon as the container has been discharged from the incoming vessel and handed over to the European container operator, the transit time for Full Container Loads should be around 2-3 days. In the case of Less than Container Load expect an average transit time of 4-5 days. FCL are usually moved by railway to Austrian rail terminals and then by truck to the final destination. LCL is picked up by truck at Hamburg CFS and delivered after customs clearance to the final delivery place.
We require goods to be moved quickly and cheaply, especially during our peak season. In order to avoid high airfreight costs, is there an Air & Sea combination? From several ports such as Mumbai, Chennai and Cochin there is a Sea/Air combination possible. Goods are moved by Sea to UAE-Dubai and uplifted by Air to Vienna for delivery by truck to Austria. The average transit time from Seaport Mumbai, Chennai and Cochin to Airport Vienna would be 10-16 days.
Are there direct flights for Cargo movements to Austrian Airports? There is one direct flight from DEL to VIE, operated by LH/AUA; from all other major airports there are connecting flights.
Which are the major airports for cargo exports from India? Overview of the main Airports in India Name of Airport Location Chattrapati Shivaji InternaMumbai tional Airport Indira Ghandi International Delhi Airport Pune International Airport
Pune
Sardar Vallabhai InternaBangalore tional Airport Rajiv Gandhi International Hyderabad Airport (Pharma Hub) Chennai International Chennai Airport Netaji Subhash Chandra Kolkata Bose International Airport Ahamedabad International Ahamedabad Airport
State Maharashtra Delhi Maharashtra Karnataka Andhra Pradesh Tamil Nadu West Bengal Gujarat
If Freight is paid in Austria, which information does my logistic provider require? Incoterm, Shippers as post code, street, contact person with phone number, commodity, value, weight and dimensions.
Is service tax applicable for transportation? Service Tax of 12.36% is applicable on local handling only, there is no service tax for freight.
What do we need to consider during Monsoon? Goods need to be Shrink wrap to secure the cargo from getting wet. Besides, because of heavy rain you need to calculate with delays at the port.
Why is a insurance recommended for imports from India? Without transport insurance the liability of the carriers is limited; so in case of damage or loss, the
compensation will not be up to the value of the goods. Damage could happen due to heavy rainfall or bad road conditions, for instance.
I am on holiday in India and would like to take my motorbike back to Austria. Is that possible?
What can be covered with an external insurance?
Yes, it is. Besides the bike’s paperwork, it is important that you always have the sales invoice with you. The bike must be imported under the baggage scheme.
Coverage of full value of goods Door to door coverage, including loading and unloading Compensation of general average Additional imaginary win (10%-30%) War and strike risks are insurable Commissioning of surveyors Short handling times
I am planning a motorbike tour within India and would like to sell my bike later. Are there any requirements? The provision of Bike Import will be applicable. It will be necessary to pay duty at the time of Import. About the Author of this Publication Joachim Feiks, born in Linz, Austria, joined cargopartner in 1980. Currently he holds a variety of managerial positions in the company including Regional Director of Air Cargo for Austria, Centraland Eastern Europe and Middle East as well as the responsibility for the Global Network Development of the group. Regular business trips to India in the past decades as well as his position as Director of the cargo-partner board on-the-spot makes him an
The Indian Embassy Commercial Wing The website of the Embassy of India, Vienna, offers a wide variety of business related information carefully selected to meet India-Austria’s business demands. In our online portal, companies not only have the opportunity to find relevant information on India-related trade matters, but can also interact with the commercial wing of the Embassy by submitting their trade inquiries online. Additionally, the Embassy compiles a quarterly economic and commercial report on Austria, which is targeted at Indian business readers and trade corporates. The same can be downloaded directly from our Website or received via email by registering on our website.
Additionally, the customs authorities require a stamp of immigration leaving India, copy of boarding pass and a letter from the airline that the person has left India. The person needs to confirm the bike is new/ second hand. A local invoice has to be made and export has to be done under a free shipping bill. DISCLAIMER This brochure contains general information only and is not intended to be comprehensive. This is not a substitute for professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed. Neither the Publishers nor the Authors shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the utilizer’s risk.
authority on the Indian Subcontinent. His tremendous experience in the fields of trade lane management, commercial and corporate development and his advisory activities for many European and Indian companies on trade and logistics issues distinguish Joachim as logistics senior expert. Contact Information: info@cargo-partner.com www.cargo-partner.com Besides the online presence, the Embassy also has a Business Centre Facility, located on the first floor of the Main Chancery building. Businesspeople and parties interested in requesting, exchanging or providing information on India-related business matters are cordially invited to visit us. You can either schedule an appointment with a representative of our commercial wing at the contacts given below or simply visit us during our opening hours Mondays to Fridays from 11AM to 1PM. The Commercial Wing/Business Centre Kärntner Ring 2 (1st Floor), 1010 Vienna Tel : +43 1 505 8666 31 Email: marketingofficer@indianembassy.at Email: marketingassistant@indianembassy.at