Can I Avoid Upfront Duty and Taxes on Electronics Exports to India?
Electronics export to India invites roughly 18% GST. The merchants who receive these goods in India are liable to pay other customs duties and taxes. The fees and taxes add to the overall costs of electronics exports and merchants have to pay them as soon as the consignment lands in the territory of the country. But there is a fantastic way through which you can effortlessly defer customs duties and taxes on these items. How? With free trade warehousing zones, you can save upfront duties and taxes on all imports, including electronic items as well.
When you use India’s free trade warehousing zones for electronic exports or imports, you don’t have to immediately pay all the applicable duties. Rather you can save the money that you would otherwise pay for importing these goods to India for other purposes that helps in the growth of your business.
The concept of free trade zones is a blessing for traders involved in the import-export of electronics and other goods to/from India. The free/foreign trade zones refer to the areas specifically designated as a foreign territory despite being within the territory of the country where goods are being imported. This arrangement is immensely beneficial for merchants (big and small) as they are relieved from the immediate stress of paying upfront fees and taxes that are otherwise a part of import-export.
The biggest benefit of delayed or deferred duty is that your working capital is free and available when you need it. When you use the free trade zones and warehouses for electronics exports to India from another country, you are entitled to avail all the benefits that the FTZs (Free Trade Zones) offer such as:
- Duty Deferment
- World Class Infrastructure
- Long tenure for warehousing and storage
- Rapid Customs Clearance
- No Licenses are required
- No need for any permanent establishment
- Enjoy JIT delivery
- Value-added services
- 24*7 customer support
- Safety and security of your consignment
- Cold storage, temperature-controlled warehouses
The activities that are typically allowed inside the foreign trade zones include labeling, assembling, reassembling, kitting, re-invoicing, repackaging, packing, etc. You may store your goods inside the free trade zones for a period of 3 years which is further extendable for up to 5 years. Above all, there is no tax or customs duty applied if you choose to re-export the electronics or other items later on.
To learn more about free trade zone warehousing solutions and our third-party logistics services, please feel free to contact our FTZ experts. Call us or email us at email@example.com and we will readily assist you in resolving your concerns about electronic exports to India and more.