WHAT IEC (IMPORTER EXPORTER CODE)CODE:

No Import or Export shall be made by any person without an IEC number unless specifically exempted.

IEC number is 10 digit code number given to an importer or exporter by the regional office of the DIRECTORATE GENERAL OF FOREIGN TRADE in short DGFT, Department of Commerce, Govt of India.

IEC is not required to following categories: 

1.  Import/Export of goods for personnel use, which is not                     connected with trade, manufacture or agriculture.

2.  Import/Export by government ministries and departments, and         certain notified charitable organizations. 

ROLE OF INTERNATIONAL CHAMBER OF COMMERCE:

International Chamber of Commerce (ICC) fosters international trade and commerce to promote and protect open markets for goods and services and the free flow of capital. The ICC performs three primary activities:

1.  The establishment of rules

2.  Dispute Resolution and 

3.  Policy Advocacy

ICC is world business organization, founded in 1919 in Paris, is a non governmental organization whose membership is composed of thousand of companies and business associations in near 150 countries and across all economic sectors.

WHAT IS HS CODE?

The Harmonized Commodity Description and Coding System, HS code for short is a common standard worldwide for describing the type of commodity that is shipped.

Every commodity that enters or crosses most international borders has to be declared to customs using this code. Thus the code helps to standardize and identify the cargo in the same manner whether it is in Singapore, Rotterdam or in any country in the world.

Developed and managed by the world customs organization, the HS code consists of :

5000 commodity groups covered in 99 chapters containing 21 sections;

Is identified by six digit code 

Is arranged in a legal and logical structure and 

Is supported by well defined rules to achieve uniform classification all over the world.

HOW IS HS CODE USED?

The system is used by many economies in the world as the basis for their customs tariffs and for the collection of international trade statistics. Over 98% of the merchandise in international trade is defined in the terms of the HS CODE. 

Through its contribution to the harmonization of customs and trade procedures, the HS code reduces the costs related to international trade as there is no "translator" required for people to read and understand this code.

CHALLENGES IN CLASSIFICATION FOR COMPANIES: 

The acceptance and versatility of the HS code as a universal economic language and code for goods may vary between countries and customs authorities. Improper usage of HS code could result an improper tariff being applied by customs which can increase the cost of imports exponentially to the customers.

Using the correct HS code and the right interpretation is of utmost importance for an importer as usage of incorrect code may be considered by customs as non-compliance, misleading or mis- declaration, all of which comes with its associated penalties.  

WHEN IN DOUBT, IT WOULD ALWAYS BE PRUDENT TO CONSULT CUSTOMS DIRECTLY OR EXPERTS IN THE CUSTOMS CLEARANCE COMPANIES FOR ADVISE ON THE CORRECT HS CODE TO USE  

MAJOR PORTS ON INDIAN COASTLINE:

KANDLA PORT (GUJARAT)

MUMBAI (MAHARASHTRA)

NAVASHEVA (JAWAHARLAL NEHRU PORT)

MURMAGAON (GOA)

NEW MANGALORE (KARNATAKA)

KOCHI (KERALA)

TUTICORIN (TAMIL NADU)

CHENNAI (TAMIL NADU)

ENNORE (TAMIL NADU)

VISAKHAPATNAM (ANDHRA PRADESH)

PARADIP (ODISHA)

HALDIA AND KOLKATA ( WEST BENGAL)

PORT BLAIR (ANDAMAN AND NICOBAR ISLAND)

 

PORTS IN INDIA:

India's coastline spanning 7516.6 kilometers. There are 13 major ports(12 Government-owned and one private) and 187 notified minor and intermediate ports. The total 200 ports are presents in the following states:

        STATE                             PORTS

MAHARASHTRA   -    53

GUJARAT                -    40

TAMIL NADU         -    15

KARNATAKA         -    10

OTHERS                  -    82

Government of India plans to modernise these ports and has approved  a project called Sagarmala.

There are also 7 shipyards under the control of Central Government of India. 2 shipyard controlled by State Governments and 19 Privately owned shipyards.

NOTE: Transportation Infrastructures often require government ownership or regulation because of its inherently monopolistic nature. In the absence of a monopoly, deregulation and market forces are an effective mechanics.When the infrastructure is publicly owned,it is important to price usage to reflect the marginal impact on the cost. If this is not done, over use and congestion result because the cost borne by a user is less than his or her marginal impact on total cost. 

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