INDIA, WITH ITS VIBRANT AND EXPANDING CONSUMER MARKET OF OVER 1.2 BILLION PEOPLE, AND WITH MORE THAN A QUARTER OF THE WORLD'S UNDER 25S, IS SLATED TO BE THE WORLD'S 3RD LARGEST ECONOMY BY 2030. THIS MAKES INDIA AN EXTREMELY ATTRACTIVE MARKET WITH BROAD-RANGING OPPORTUNITIES FOR UK EXPORTERS.

If you are looking to expand your Designer door handles business abroad, exporting is often a logical place to start. There is strong evidence to suggest that companies that export tends to grow faster, employ more people, and become more efficient and profitable than their non-exporting counterparts.

HOW  TO START

To export successfully to India you will need to learn not just about India, but also about the designer door knobs and handles. For example, you’ll need to understand export documentation, regulations and licensing, labeling and marking, tariffs, and foreign currency management. While you’re doing research on materials and equipment used for designing handles and knobs., be sure to contact the UK India Business Council, UKTI, and other organizations that have the expertise and knowledge to guide you on the dos and don’ts of exporting to India. If you’re not sure if your product is right for India we can also help with in-country market research including competitor analyses and product feasibility assessments.

ORGANISE YOUR PAPERWORK

Exporting stylized handles will involve paperwork for transport, customs clearance, insurance, and payments. According to the British Chambers of Commerce, you will be typically required to complete 11 documents to export to India. These must be dealt with in detail and may take more time and resources than you expect. At first, you may want to hire a consultant to help with the paperwork whilst your export volumes grow and you build up the necessary in-house skills and resources. All your paperwork bills regarding the designer's gate knob and handles

DOCUMENTATION REQUIRED FOR EXPORTING

The documents required will depend on the products you export to India. Apart from the documentation required for the transportation of goods, insurance, and payment mechanism you may also need:

1. Clear written contract which covers at least the following:

§  where and when the goods will be delivered

§  who arranges transport and insuring of goods

§  who handles customs procedures and pays any duties and taxes

§  currency of payment and what payment method will be used

2. Export documentation such as

§  Know Your Customer (KYC)

§  GATT (General Agreement on Tariffs and Trade) /DGFT (Directorate General of Foreign Trade) declaration

§  Import Export code

§   Purchase order/Letter of Credit

§  Bill of Lading / Airway bill

§  Bill of Entry

§  Commercial Invoice and packing list

§  Technical write-up for specific goods if any

In addition to the documents mentioned above, (IEC code is important) documents may be required for the export of certain specific goods. Your customer in India should tell you what paperwork they require at their end and some of the paperwork can be arranged by your importer in India.

EXPORT LICENCE REQUIREMENTS

Although the majority of goods can be shipped to India without an export license, for certain goods the receiver should hold special import permission or license from the Government of India. A list of those can be found on the website of the Directorate General of Foreign Trade.

STANDARDS, CERTIFICATIONS, AND LABELLING REQUIREMENTS

The standards followed in India are generally in line with international norms and most are harmonized with International Organization for Standardization (ISO) standards. However, imports of some 109 products are subject to compliance with specified Indian quality standards. To remain compliant with the law, manufacturers of these products must obtain certification from the Bureau of Indian Standards (BIS) before exporting such goods to India.

Labeling requirements in India require that all imported pre-packaged commodities, intended for direct retail sale, must carry the following declarations on the label:

§  Name and address of the registered importer.

§  Generic or common name of the commodity packed for import.

§  Net quantity in terms of standard unit of weights and measurement – in metric.

§  Month and year of packaging in which the item is manufactured, packed, or imported.

§  Maximum retail sales price (MRP) at which the goods, in packaged form, may be sold to the end consumer.

It is important to remember that consignments to India should be appropriately packed. Packages may receive heavy handling and be left in the open air for longer than anticipated. Remember much of India has a hot and humid climate, as well as seasonal extremes such as the Monsoons.

TARIFFS AND TAXES

The Central Board of Excise and Customs provides information on Indian customs tariffs. India’s current customs regulations are guided by the Export-Import Policy of 2012 to 2017. In addition to customs duties, a 1% handling fee is imposed.

Indian customs regulations allow:

§  Temporary import of goods into India with the drawback of some customs duty possible.

§  Import of goods for use or display at exhibitions and trade fairs, subject to certain conditions.

Countervailing duty (CVD), Customs Education/CESS, and Special Additional Duties may apply.

SELLING AND DISTRIBUTION

Of course, before you start exporting to India, you will need to make a few fundamental choices about selling and distribution. There are four main ways in which to sell your product or service: selling direct, selling through local agents or distributors, contractual methods, and setting up an overseas site.

An agent is an individual or firm you employ to sell your product or service. A distributor, on the other hand, buys your product from you and then sells it to the end users. It is important to find the right representative, who is familiar with the local market and can help you find customers, distribute channels and handle documentation. In addition to market research, UK India Business Council also offers an Introduction service where we can help you identify and qualify relevant contacts in the Indian market. For more information on our Introductions service click here.