How to Defer Heavy Customs Duty When Importing-Exporting to India?
Import-export is a lucrative business option. While you can earn anything between thousand of dollars to billions in import-export trade, there are several challenges also involved in it.
Some of the most common challenges most merchants face include damage/loss to/of goods during transit, non-payment for exported goods, heavy costs of returning the rejected goods from foreign customers back to your homeland, economic/political instability in the country of the buyer, the creditworthiness of a new buyer, and currency fluctuations, so on and so forth.
Furthermore, hefty taxes and customs duties make import-export difficult for most businesses with a limited budget. Whether you import medicines, raw materials, food items, apparel, part of electrical appliances, auto parts, or anything, customs duties and taxes aren’t something you can afford to overlook and not pay.
Can Customs Duties and Taxes Be Avoided on Auto Parts Exports to India?
Do you import or export auto parts to India?
Are you worried about the heavy customs duties and other taxes & fees that apply when importing or exporting to India?
Long answer short, you cannot avoid customs duty and taxes but yes you can defer it easily.
With Free Trade Warehousing Zones, you can easily avoid upfront customs duties, taxes, and fees. You don’t need to pay any taxes or customs duties on your auto parts exports to India. It would only be charged once the shipment moves out for DTA (Domestic Tariff Area) Sales.
With Free Trade Warehousing Zones and third-party logistics services offered by OSV, you can enjoy deferment of customs duties and taxes when you import or export auto parts from or to India.
You can enjoy duty freedom as long as your goods are stored inside the free trade warehousing zone. Various activities can also be performed inside these zones such as kitting, repacking, packaging, inspection, sorting, strapping, etc.
Another great aspect of using OSV’s FTZs for auto parts exports to India is that you don’t have to pay any duties or fees even if you re-export these goods directly from the FTZs to another country. The duties and taxes apply only when you choose to sell or move the goods in the local market outside of the free trade zones.
In short, you can defer taxes and customs duty while ensuring that your overall import-export experience is absolutely hassle-free and stress-free. Contact us now to know more…