On June 27, 2024, the Revenue Bureau of the Ministry of Finance of India issued Circular No. 12/2024-Customs(ADD), Accept the decision issued by the Ministry of Commerce and Industry of India on 28 March 2024 on Easy open ends of tin plate (including electroplated tin plate) of 401 diameter (99 mm) and 300 diameter (73 mm) originating or imported from China. including electrolytic tin plate (ETP), measuring 401 Diameter (99MM) and 300 Diameter (73MM) in dimension], It decided to impose an anti-dumping duty of US $741 per 100,000 pieces on the Chinese products involved, valid for five years. This case involves products under Indian Customs code 83099090. The following products are not subject to taxation in this case: 1. Can covers made of materials other than tinplate, such as aluminum, Wuxi sheet, etc.; 2. Can LIDS of any brand/imported material in other sizes except 401 diameter (99 mm) and 300 diameter (73 mm); 3. Partial or short aperture can LIDS of any brand and size. The measure shall take effect as of the date when this circular is published in the official gazette.

How to finesse India’s high tariffs:
The strategy of entrepot trade is revealed

Entreprise trade, as an important part of international trade, provides a perfect solution. The strategy involves first transporting the good to a third country and then exporting it from this country to the final destination country. This process changes the country of origin identification of the goods, thus effectively avoiding trade restrictions in the target market.

Process of operation

Choose the right entrepot: Choose a country that has good trade relations with both China and India and has favorable tax policies, such as Malaysia or Singapore.
Export from China to transit countries: Chinese enterprises will normally export cans LIDS to selected transit countries and complete the necessary customs declaration and tax refund procedures.
Simple processing or packaging in the transit country: after arriving in the transit country, necessary cabinet change operation or label change, etc., and apply for the country’s certificate of origin.
Export from the transit country to India: After completing the above process, the commodity is exported again, this time to India. By using the certificate of origin of the transit country, high anti-dumping duty can be avoided when clearing customs in India.
Entreprise trade, as an important part of international trade, provides a perfect solution. The strategy involves first transporting the good to a third country and then exporting it from this country to the final destination country. This process changes the country of origin identification of the goods, thus effectively avoiding trade restrictions in the target market.

Process of operation

Choose the right entrepot: Choose a country that has good trade relations with both China and India and has favorable tax policies, such as Malaysia or Singapore.
Export from China to transit countries: Chinese enterprises will normally export cans LIDS to selected transit countries and complete the necessary customs declaration and tax refund procedures.

Using this strategy, several Chinese manufacturers have successfully exported cans to India while avoiding hefty anti-dumping duties. This not only maintains the competitiveness of Chinese products in the Indian market, but also shows the wisdom and resilience of Chinese enterprises in the face of international trade barriers.

The successful application of transit trade strategy provides an effective way for Chinese exporters to avoid international trade barriers. The success of this strategy depends not only on accurate market analysis and careful planning, but also on close cooperation with reliable international logistics partners. In the face of various challenges in the globalized economy, transit trade shows the flexibility and innovation ability of Chinese enterprises, and provides strong evidence for the maintenance of global trade liberalization and multilateralism.

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