Tax Guru

Tips to exporters for 2009

Jan 7, 2009 Custom Duty

LOOK AT FREE/PREFERENTIAL TRADE AGREEMENTS India has entered into trade agreements with neighbouring countries, Thailand, Singapore, China, Korea, Chile, and Afghanistan besides being part of Global System of Trade Preferences that covers 52 developing countries. The agreements cover select items that attract concessional rate of import duties provided origin criterion is met. USE EXIM BANK LINES OF CREDIT Exim bank has lined up a number of lines of credit mostly with least developed countries that enable Indian exporters give longer credits to the buyers. LEVERAGE LOWER FREIGHT COSTS With ocean freight at historic lows, the disadvantage of high shipping costs to countries in Latin America, East Europe and West Africa has diminished considerably. The government also gives 2.5 per cent duty credit under the Focus Market Scheme for export to these countries.

Tags: AGREEMENTS, developing countries, Export Tip, freight, import duties, least developed countries, ocean freight, preferential trade agreements, shipping costs