Discussion Board

Introductory sample email for importing

Hi Ann,

How are you? I hope you are having a great day.

My name is John Smith from Company Holdings in the United States. We have been selling widgets to customers nationwide for over 5 years. I am looking for a business partner for manufacturing widgets and came across your company. Your products look high quality and are definitely something we are very interested in. I have a few questions about the product and your company.

  1. What is your MOQ for the red widget that is 2x2 inches long?
  2. What is the price per unit for a MOQ order?
  3. What is the lead time on a MOQ order?
  4. What payment methods do you accept?
  5. For the red widget, is the metal handle 20% iron or 50% iron?
  6. Can you do custom OEM logo for the product itself and product packaging?

Thank you so much for taking the time to answer my questions. I look forward to speaking with your further.

Kind Regards,

------------------------------

John Smith

CEO

Company Holdings, Inc

www.companyholdingsinc.com

111-111-1111

--------------------------------------------------------------------------------

Negotiation technique in Importing

Negotiate in importing 

Hi Ann,

How are you? I hope you are having a great day.

My name is John Smith from Company Holdings in the United States. We have been selling widgets to customers nationwide for over 5 years. I am looking for a business partner for manufacturing widgets and came across your company. Your products look high quality and are definitely something we are very interested in. I have a few questions about the product and your company.

  1. What is your MOQ for the red widget that is 2x2 inches long?
  2. What is the price per unit for a MOQ order?
  3. What is the lead time on a MOQ order?
  4. What payment methods do you accept?
  5. For the red widget, is the metal handle 20% iron or 50% iron?
  6. Can you do custom OEM logo for the product itself and product packaging?

Thank you so much for taking the time to answer my questions. I look forward to speaking with your further.

Kind Regards,

------------------------------

John Smith

CEO

Company Holdings, Inc

www.companyholdingsinc.com

111-111-1111

--------------------------------------------------------------------------------

 

Hi Ann,

How are you? I hope things are well!

Thank you so much for responding to our request for a quote. We found the price satisfactory and would like to order a sample of the product. I do not have a DHL account, so could you please quote me a total price to have a sample shipped to this address?

123 Maple Street

Los Angelos, CA

95463

USA

Thanks,

------------------------------

John Smith

CEO

Company Holdings, Inc

www.companyholdingsinc.com

111-111-1111

-------------------------------------------------------------------------

 

Hi Ann,

How are you? We received the samples and found the product to be satisfactory.

We are interested in getting in your OEM services and getting custom packaging with our logo and design. Is this possible?

I have attached our logo and a sample package design to this email. If there are any formatting changes required to be compatible with your machinery, please let me know and we will correct it quickly.

Regards,

------------------------------

John Smith

CEO

Company Holdings, Inc

www.companyholdingsinc.com

111-111-1111

------------------------------------------------------------------------

 

Hi,

 

One of my partners has a concern about the price. He heard back from another supplier who is quoting us $1.25 per unit for 1000 units, which is around 10% less than your price. The sample product they sent is very similar too. My partner is pushing us to order from them instead.

If you can lower our price to $1.25, I will be able to place the order right now with you, otherwise we will unfortunately have to go with the other supplier.

I look forward to your reply,

Regards,

------------------------------

John Smith

CEO

Company Holdings, Inc

www.companyholdingsinc.com

111-111-1111

-----------------------------------------------------------------------------------

Supplier is asking for LOI, what is it ??

LOI is Letter of Indent. 

Many times supplier ask for LOI, when we ask them about the rates of the products. 

LOI is the formal way to ask for the price to a supplier. It could be given in your firm letter pad made in Microsoft word with your signature and stamp.

Format for LOI

Letter of Indent 

Product: We are looking to buy A4 Size Papers 

Grans Square Meter: 70 GSM

Brightness: 100 to 102% 

Required Quantity: 1 Container of 20FT 

Rims : 8000 Rims

Shipment Terms : CIF

Port of Delivery: Mundra

Acceptable Payment Terms : 100% Irrevocable LC at Sight. 

 

 

 

 

Is import of used tyres allowed in India?

One can easily find product Import Export Policy via www.icegate.gov.in or www.indiantradeportal.in or for specific doubts, Eximmitra.in helps a lot to exporter or importer, queries are always replied in it by experts, its nice government initiative 

Import of retreaded or used pneumatic tyres under ITC (HS) codes 40121100 (retreaded tyres of a kind used on motor cars including station wagons and racing cars), 40121200 (retreaded tyres of a kind used on buses or lorries), 40121300 (retreaded tyres of a kind used on aircraft), 40121910 (retreaded tyres for two wheelers), 40121990 (other retreaded tyres), 40122010 (used pneumatic tyres for buses, lorries and earth moving equipment including bigger size vehicles and light commercial vehicles), 40122020 (used pneumatic tyres for passenger automobile vehicles, including two wheelers, three wheelers and personal type vehicles) is restricted. Import under these HS codes is allowed freely if the consent of / permission from the Ministry of Environment and Forest is taken and the following conditions are met (where applicable): (i) Import of retreaded tyres for buses, lorries and earth moving equipment including bigger size vehicles and light commercial vehicles is permitted freely if the per tyres CIF value is USD175 and above; (ii) Import of retreaded tyres for passenger automobile vehicles including two wheelers, three wheelers and personal type vehicles is permitted freely if the per tyre CIF value is USD25 and above. However, import of used rubber tyres with one cut in bead wire and import of used rubber tubes cut in two pieces is free under ITC (HS) code 40040000.

Kindly also read my article on TMI : https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=8033&kw=How-to-check-Import-or-Export-policy-for-any-particular-product-I-choose-for-EXIM

On what value the import duties are calculated ? any online import duty calculator ?

Import duties are always calculated in CIF value. If your buying is in CIF then your duty would be calculated based on your billing but if your billing is in FOB or CFR then the government will convert it into CIF billing & then duties would be calculated based on that. 

Government formula for conversion of FOB = FOB + 20% Freight + 1.125% Insurance = CIF 

Goverment formula for conversion of CFR = CFR + 1.125% Insurance = CIF

Goverment formula for conversion of CIF (no converson , direct calculate duty on it) = CIF 

 

In short, the CIF value would be considered as an Assessable Value for the calculation of import duty. 

Official Government Import Duty calculator is available in www.icegate.gov.in -> Custom Duty Calculator -> Trade Guide for Imports -> Enter products HSN or Description -> Get a calculator, enter Assessable Value CIF in it & you got an answer. -> Hit show bifurcation -> See IGST amount that would be refunded (adjusted as Input Tax Credit) when you sell it with the bill in a local market and collect GST in domestic sales) 

I want to import food products for domestic sales , so what would be my requirements ? FSSAI

You can apply for FSSAI Online ( Food Safety and Standards Authority of India )

https://foodlicensing.fssai.gov.in/index.aspx

Common Faq's for FSSAI Licence for imports 

Q. Are lab test required for products?

A. No, you will get FSSAI online with only a few basic documents given in the attachment. 

Q. What are charges to get FSSAI Licence?

A. At present official government fees are 7500 INR Online for Importers. 

Q. What precautions we need to keep in the domestic sale of imported products?

A. We need to show our FSSAI Code number in products packet or box.

Q. Is FSSAI required in exporting food products?

A. NO, but in a rare case, some buyer may ask for it but it's not required FSSAI has got no value in International Market, they more believe in another lab test like SGS done each and every time at the time of shipment. 

 

 

Following are the documentation required for it. (Please download the attachment file)

 

Can we startup with small import from Alibaba to learn the process ? What precautions should be taken ?

Small products import at startups is an very good idea , it would help you to learn the chain for your export business in future.

 

Following precautions you must take while doing small import. 

 

-> Best Sourcing place for small import is Alibaba.

 

-> Find unique / new products which are not available much in the market 

 

-> Get an IEC Code in advance & import only under that name via www.dgft.gov.in & GST via www.gst.gov.in to avail ITC [Input Tax Credit] on IGST paid at the time of Imports. 

 

-> Make sure supplier is Gold suppliers in Alibaba, you will see a gold coin Signe 

 

-> Make sure supplier must have an trade assurance, you will find a crown yellow symbol i.e Alibaba takes the personal guarantee of goods & quality & your money would be refunded if no goods arrive or arrival with damage. 

 

-> Always do payment via Alibaba online payment method (avoid direct TT via bank for small imports) 

 

-> Make sure you import it under CIF terms , so your shipment includes cost, insurance & freight. Or DDP shipment of too small to be done via courier you receive at your home. 

 

-> Always ask & check Proforma Invoice (PI - Quotation) before you import. Only after receiving PI via email / Alibaba app , pay via Alibaba link with trade assurance. 

 

-> Better then Amazon & Flipkart, OLX also trigger many sales. Selling in OLX requires nothing not even GST Code, you can import some unique wrist watch in very small quantities without IEC via courier & can post it's pic on OLX & it works many time for unique products. 

 

-> Keep on increasing the QTY, it would reduce your per unit cost. 

 

-> Feel free to contact with Kishan Barai Sir for any help via WhatsApp or email. 

Which certificate is required to import products duty free if there is a FTA with India ?

If the exporting country has a Free Trade Agreement (FTA) with India then Indian importer would enjoy the benefits in a concession of import duty. 

For it, the exporter has to provide Preferential Certificate of Origin to Importer along with other basic documents like Invoice, PKL, Inspection, Insurance, BL, etc. 

 

 

What is CAROTAR ?

CAROTAR 2020

 

(Custom Administration of Rules of Origin under a Trade Agreement Rule)

 

  1. A trade agreement is a contract/agreement/pact between two or more nations that outlines how they will work together to ensure mutual benefits in the field of trade and investment. It is an arrangement between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non-tariff barriers on substantial trade between them. It covers trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, trading, etc.). It also covers other areas such as intellectual property rights (IPRs), investment, government procurement, and competition policy, etc.
  2. CAROTAR 2020 implement of the finance minister in her budget speech to product the domestic industry from misuse of FTAs (Free Trade Agreement). Section 28DA makes it incumbent upon an importer to possess sufficient information as regards how Country of Origin criteria, including the regional value content and product-specific criteria, specified in the Roo in the trade agreement, are satisfied. CAROTAR, 2020 has provided a form, containing a list of basic minimum information that an importer is required to obtain while importing goods under a claim of a preferential rate of duty. Therefore, in case there is a doubt concerning the origin of goods, the information should be first called upon from the importer of the goods, before initiating verification with the partner country.
  3. Section 28DA of the Customs Act, 1962 further states that mere submission of a Coo shall not absolve the importer of the responsibility to exercise reasonable care to the accuracy and truthfulness of the information supplied. In case of failure of the importer to do so, the fact should be informed to the Risk Management Centre of Customs (RMCC) through written communication to enable compulsory verification of assessment of all subsequent import consignments. However, the compulsory verification of assessment should be discontinued once the importer demonstrates that he has established an adequate system of controls to exercise reasonable care as required under the Customs Act, 1962;
  4. CAROTAR 2020 applies only when an importer ai importing goods claiming a preferential rate of duty following rules of origin (ROO) criteria and commitments specified under Indias Free Trade Agreements. These include FTAs such as India ASEAN FTAs, India Asia Pacific Trade Agreement (APTA), India-japan Comprehensive Economic Partnership Agreement (CEPA), India-Singapore CECA, and India-Thailand FTA. India has inked FTAs with several countries, including Japan, South Korea, Sri Lanka, and ASEAN members. Major imports to India come from five ASEAN countries Indonesia, Malaysia, Thailand, Singapore, and Vietnam. The ASEAN (Association of Southeast Asian Nations) FTA allows imports of most items at nil or concessional basic customs duty from the 10-nation bloc. It is a regional grouping that promotes economic, political, and security cooperation. It was established in 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the founding fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore, and Thailand. Currently, it consists of ten members namely, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Chairmanship of the group rotates annually, based on the alphabetical order of the English names of Member States. The benefit of concessional customs duty rate applies only if an ASEAN member country is the country of origin of goods.

 

  1. This means that goods originating from China and routed through these countries will not be eligible for customs duty concessions under the ASEAN FTA. Importers will have to ensure that imported goods meet the prescribed ‘rules of origin’ provisions for availing concessional rate of customs duty under Free Trade Agreements (FTAs). Importers have to prove that imported products have undergone a value addition of at least 35% in the countries of origin. Earlier, merely a country of origin certificate, issued by a notified agency in the country of export was sufficient to avail the benefits of FTAs.
  2. This was exploited in many cases, i.e. the FTA partner countries have been claiming to have produced the goods in question without having the necessary technological capacity for the required value addition. The investigation into FTA imports in the last few years has revealed that the rules of origin, under respective FTAs, were not being followed in the true spirit. Customs officials suspect that China diverts its supplies to India through the Association of Southeast Asian Nations (ASEAN) nations, abusing rules of origin, to illegally take advantage of duty-free market access under FTA. The ASEAN FTA allows imports of most items at nil or concessional basic customs duty from the 10-nation bloc. Major imports to India come from five ASEAN countries — Indonesia, Malaysia, Thailand, Singapore, and Vietnam.
  3. The benefit of concessional customs duty rate applies only if an ASEAN member country is the country of origin of goods. This means that goods originating from China and routed through these countries will not be eligible for customs duty concessions under the ASEAN FTAs the new rules will make the importer to correctly ascertain the country of origin properly claim the concessional duty and assist customs authorities in the smooth clearance of legitimate imports under FTAs. They were notified on 21st August 2020 by the Department of Revenue.30-day period was given to importers and other stakeholders to familiarize themselves with new provisions. Imports are required to maintain a record of basic minimum information specified in form of the CAROTAR 2020 and provide such information to customs authorities if requested. Customs authorities are also empowered to request any details or documents from importers in addition to the records maintained to verify the authenticity of the preferential tariff treatment claim which if not provided within a specified time would lead to denial of the claim to the importer. The bill of entry format has been modified so that importers can make the necessary declarations and provide the requisite information about the COO.
  4. Request information and supporting documents from the importer concerning the claim for preferential tariff benefit during the course of customs clearance or thereafter. Request for verification of COO from Verification Authority of the exporting country, following the provisions of the FTA. Declare a COO as inapplicable and reject an importer’s claim of preferential tariff treatment without requesting verification from the Verification Authority of the exporting country in specified circumstances. The Principal Commissioner of Customs or the Commissioner of Customs can reject importers claim for preferential treatment without verification for the reasons to be recorded in writing, if
  • The importer relinquishes the claim for preferential treatment; or
  • The information and documents furnished by the importer and available on record provide sufficiently
  1. evidence to prove that goods do not meet the origin criteria prescribed in the respective ROO. Without verification, the Principal Commissioner of Customs or the Commissioner of Customs

 

can reject a claim of preferential duty benefit, after recording reasons in writing, on identical goods imported from the same exporter or producer by any importer where it has been determined by the customs authorities that the criteria of ROO is not met by the exporter or producer. The claim could be restored prospectively if demonstrated by submitting information and details that the exporter or producer has undertook necessary modifications to meet the ROO criteria. Importers should consider implementing a recurring systematic and institutional procedure for obtaining details from exporters concerning every consignment imported on which preferential treatment under FTAs. the claim is made.

  1. This will ensure the relevant information is automatically recorded and updated. Obtain an undertaking from the exporters before the arrival of each consignment that the origin criteria have been met and there is no change in the information/data shared with the importer based on which the COO is obtained. Obtain a health check report from the exporters of an independent agency (from an exporting country) at regular intervals in terms of the documents/information/data shared with the importer certifying that the criteria of ROO has been met
  2. The importer can consider simplifying transactional structures so that it is easier to justify compliance of origin conditions (which becomes essential since FTA claims are bound to be subject to incremental scrutiny under the new regime). E.g. APTA does not clearly allow for third party invoicing, hence it would be preferable to have a direct agreement with a manufacturer located in APTA country. They supplement the existing operational certification procedure prescribed under different trade agreements (FTAs/PTA/CESA/CEPA).
  3. The CAROTAR, 2020 and Rules of Origin notified for a trade agreement, broadly provide the following grounds for verification: In case of a doubt regarding the genuineness of the Certificate of Origin (Coo) such as any deficiency in the format of the certificate or mismatch of signatures or seal when compared with specimens on record. In case of a doubt on the accuracy of information regarding the origin, i.e. where doubt arises on whether the product qualifies as an originating good under the relevant Roo. Verification could also be undertaken on a random basis as a measure of due diligence. For this purpose, factors such as the quantum of duty being foregone, the nature of goods vis-à-vis the Country of Origin, commodities that are prone to misdeclaration of Country of Origin, compliance record of the importer, etc., may be given regard while selecting Coo for random verification
  4. Its basic objective is the to accelerate economic growth, social progress, and cultural development to promote regional peace and stability, to promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical, scientific, and administrative fields. To assist each other in the form of training and research facilities in the educational, professional, technical, and administrative spheres. In the event, the rejection of preferential tariff benefit is by and officer below the rank of the Principal Commissioner of Customs or the Commissioner of Customs importer may appeal to the Commissioner (Appeals) within sixty days from the issuance of the decision following Section 128 and 128A of the Act. In case of an order passed by the Principal Commissioner of Customs or the Commissioner of Customs rejecting the claim for preferential tariff benefits the importer may file an appeal before the Appellate Tribunal under Section 129A of the Act within three months from the date of the order. Further, based on the facts and circumstance of the case, an

 

importer may also approach the High Court by filing a writ petition under Article 226 of the Constitution of India.

  1. It will be interesting to see if any importers challenge the provisions of CAROTAR, 2020 on grounds such as inconsistencies with the letter and spirit of the provisions of the FTA, imposition of onerous requirements on importers concerning COO (which is an obligation on part of exporters) and lack of clarity in the CAROTAR, 2020 regarding COOs that will be granted preferential treatment. To accelerate economic growth, social progress, and cultural development to promote regional peace and stability, to promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical, scientific, and administrative fields. To assist each other in the form of training and research facilities in the educational, professional, technical, and administrative spheres.
  2. Procedure for ascertaining the correctness of a claim of a preferential rate of duty. For ascertaining the correctness of a claim of a preferential rate of duty under a trade agreement, information may be sought from the importer during the course of customs clearance or thereafter. Likewise, a verification request may be made to an exporting country during the course of customs clearance of imported goods or thereafter. While the Customs Act, 1962 provides that information may be sought within a period of five years from the date of claim of a preferential rate of duty by the importer, this time limit is subject to any other time limit as may be specified for this purpose under the trade agreement. Further, it has also highlighted
  3. The format of Coo as per Roo under various trade agreements, the period of validity, manner of obtaining the certificate, and the procedure for verification of origin. Communication of the authorized signatory details by the partner country through agreed channels. The facility of an online repository on ICES for storing signatures/seals to facilitate comparison by the assessing officers and alternate procedure for reference to CBIC for verification Mode of circulation of copies of specimen signatures and seals by DRI for the benefit of non-EDI customs locations Designation of Director, CBIC as the nodal point for taking-up verification of origin with partner countries Methods/steps to help reduce the time taken in the communication of requests for verification of preferential country.
  4. CAROTAR 2020 needs we because the investigation into Free Trade Agreement imports in the last few years has revealed that the rules of origin under the respective free Trade Agreement were not being followed in the true spirit. its further impacts and requirements are given in the following paragraph, Preferential Trade Agreements are a widely practiced norm in international trade policy in recent times; India too, has its share of PTAs. For example, in 2009, India signed the ASEAN FTA with 10 nations including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam which entitled exports from such countries to India at a preferential rate of duty. But there are increasing trade irregularities and undue claims of Preferential Tariff Treatment by fraud and manipulation of the country of origin criteria. In order to check the undue claims under PTT and to bring in the requirement for stringent checks on imports of goods especially focusing on the Coo, the Government of India notified the CAROTAR Rules 2020 which came into effect on September 21, 2020. Under the CAROTAR regime, the declaration and verification criteria will become comprehensive for import under PTT.
  5. There are some changes in particulars of the bill of entry such as the declaration regarding satisfaction of originating goods (for PRD), Coo details, originating criteria “wholly obtained”

 

(WO) or “Not wholly obtained” (NWO), accumulation or cumulation, back to back Coo or direct transport, etc. The importer is required to obtain basic minimum information from the exporter such as the process of claiming WO, the production process for NWO, origination criteria, inputs used in the production with HSN codes, regional value content, and goods of unascertained origin, etc., at the time or prior to import.

  1. The Additional information and supporting documents from the importer to establish the accuracy and truthfulness can also be demanded. The stringent requirements will impact the importers, especially those who are legitimately claiming PTT. The parallel amendment has also been made to Customs Act to enable the confiscation of goods imported on a claim of PRD which are in contravention to applicable provisions of the CAROTAR. In addition, there can be a demand for the short-levied duty, interest, and penalty under the Customs Act.
  2. Given the latest standoff between India and china the diversion may surge.

Russia-Ukraine war an opportunity for Indian Exporters and Importers. Key Questions Answered

  • How to receive the payment from Russia , for the goods exported earlier to Russia from India?

Trade between Russia and India is of utmost importance. India is looking for ways to make rupee and ruble arrangements powerful to make sure the trade with Russia after the dreadful results of the sanctions which are caused by West as a result of war between Ukraine and Russia. All the international transactions of India having any relation to trade depend on The Society for Worldwide Interbank Financial Telecommunication. The Society for Worldwide Interbank Telecommunication make sure the easy and fast communication between the lenders worldwide for the purpose of cross border payments. Seven Russian banks are not included in messaging system anymore. In 2014 India and Russia signed an agreement to make payments through the rupees ruble trade. However, the issue is conversion of ruble into rupee. Ruble is not completely converted.  Therefore, the Bitcoin trading markets with no restrictions do not easily trade in ruble. This results in the low rate of trade for rupee ruble currency pair.

 

  • What are the products which small startups can export or import currently from Russia to India under 10,000 USD?

Russian products are inexpensive and are very affordable for the small startups. Moreover, if the Rupee will be recognized in Russia, the small startups in India will be able to get Russian products on much cheaper rates. The small startups can import silk, carpets and other textile floor coverings, special woven or tufted fabric, lace and tapestries, cotton and footwear. These are the major imports of India from Russia. A small startup can import these products on much cheaper rate than the others. Fewer than 10 thousand Dollars, a small startup can be established by these products. The war between Ukraine and Russia has a very adverse impact on the trade of Russian with different countries. There is a bilateral trade between India and Russia. Russia mainly imports telephones, Packaged Medicams, Nitrogen Heterocyclic compounds, crustaceans and large construction vehicles. The small starters can export these products to Russia and earn a good amount. The trade between India and Russia will be much easier when the rupee will be recognized in Russia. India could be able to export and import as well on much inexpensive and cheaper rates than the other countries, as the value of Russian ruble is less than Rupee.

  • What are the products which small startups can export or import currently from Ukraine to India under 10,000 USD?

India and Ukraine have bilateral political, economic and cultural relations. India is the 5th largest exporter of Ukraine. India export mainly pharmaceutical products. It is the third largest exporter of pharmaceutical products to Ukraine. Other major exports of India to Ukraine are reactors/boiler machinery, mechanical appliances, oil seeds, fruits, coffee, iron, steel, tea and spices etc. Whereas the major imports of India from Ukraine are sunflower oil, iron steel, plastic and chemicals etc.

Under 10,000 dollars a small startup can be established by importing some of these products from Ukraine and with minimal changes these can be exported to other countries on much more profit. Small startups can have the duty free access to many products which is another plus point of starting a small startup by importing or exporting products from Ukraine to India.

 

  • At present which shipping line or Airline is active in Ukraine for shipping the goods?

In the present situation of war between Russia and Ukraine UIA is still providing the cargo transportation services for the transport of goods. It is the most reliable, fast, secure and high quality cargo delivery service around the globe. Moreover, it is the most trustable cargo delivery transportation service throughout the world. UIA kept on providing transportation services of the goods in different countries even in covid-19 pandemic challenges. The war between Russia and Ukraine has created many problems for air lines and shipping lines as well. Airlines are facing many restrictions because of the situation of war between Russia and Ukraine. It also affects the cost for cargo sector. The rules for airlines to fly over Russia and Ukraine are also changed. The prices of fuel are increasing as well. United Airlines is another Airline which is transporting goods and passengers to Ukraine and fly over Russian airspace. Many shipping lines are working in Ukraine for the transportation of goods including Arkas Logistik Ukraine, Trucking Neolit and Stoles Logistic Ukraine. These are the most popular shipping lines for the transportation of goods in Ukraine.

  • What are keynotes or rules which are kept to be in mind before exporting the goods to Ukraine or Russia? A detailed guideline with reference to government notification which is also applicable to Indians already visible.

Due to the Russian invasion of Ukraine America and its partners impose some financial restrictions on Russia. Some Congress members have also introduced the law to remove Russia permanently from normal trades relations status. America and its partners also try to permanently remove the membership of Russia from World Trade Organization. Whereas, the trade of Ukraine has become limited because of the war of Russia and Ukraine. In present situation if some country is planning to trade with Russia, it must look through the situation and restrictions imposed on Russia and the situation in Ukraine is equally important as well. APHAServiceDesk@apha.gov.uk. or

https://www.gov.uk/government/publications/the-border-operating-model

 

  1. How to find the business partner from Ukraine and Russia? List all the ways with the relevant government and pvt body websites to get more leads regarding it.

With the help of social media one can find the business partners in Russia and Ukraine online with very little or no effort. Indian Embassy & Europages.com post different proposals of business and partnerships in Russia. You can find the partner for your business on this website. Moreover, fiverr.com is another website that provides you the opportunity to find the perfect partner for your business in Russia.  In Ukraine you can get a partner for your business from LinkedIn. It is an authentic platform where you can find partners for your business easily.

 

Q. How to register office in Russia and Ukraine? What are the rules and cost after war for Indians?

  • The list of documents required to have your company registered with the tax authorities

 

Ukraine has updated registration rules for foreign companies (organizations). From now on, foreign companies (organizations) are required to register with the State Tax Service of Ukraine if they:

carry out activities in Ukraine through separate units (that is, through non-commercial or commercial representations)

Acquire real estate or obtain property rights to real estate in Ukraine.

A registration application form has been introduced (form 1-???). A cover letter and copies of the documents listed below must be submitted with the application form 1-??? (the applicants must also show the originals):

Extract from the commercial register of the country where the company was registered confirming the company’s registration and containing the identification number, address, and the name of the company (or other official documents confirming this information).

Power of Attorney as proof of the Representative’s authority to act on behalf of the non-resident company in Ukraine. The text of the Power of Attorney must clearly define the scope of the authority delegated to the Representative, the text of the power of attorney must also cover all the rights and obligations of the Head of the taxpayer for all cases determined by the tax laws of Ukraine. As a general rule, a power of attorney issued for the purpose of appointing the Head of the Representative Office and determining their scope of authority, is not suitable for registering a foreign company.

A document on registration (accreditation) of a representative office in Ukraine, if the foreign company is operating in Ukraine through a representative office.

  • Representative (Director) of a foreign company in Ukraine: who can be appointed? 

Information about the Representative (Director) must be indicated in the application form 1-O??. In addition, companies must also indicate the person in charge of accounting and tax records. Companies may indicate either the individual who is appointed as Director in accordance with the company’s charter documents, or a Representative who is acting in Ukraine on the basis of a Power of Attorney. It is important that the individual have a tax number in Ukraine. If the individual is a foreigner who does not have a taxpayer registration number in Ukraine, it must first be requested and obtained it from the tax authorities.

Protect those who are not fighting, such as civilians, medical personnel or aid workers.

Protect those who are no longer able to fight, like an injured soldier or a prisoner.

Prohibit targeting civilians. Doing so is a war crime.

Recognize the right of civilians to be protected from the dangers of war and receive the help they need. Every possible care must be taken to avoid harming them or their houses, or destroying their means of survival, such as water sources, crops, livestock, etc.

Mandate that the sick and wounded have a right to be cared for, regardless of whose side they are on.

Specify that medical workers, medical vehicles and hospitals dedicated to humanitarian work cannot be attacked.

Prohibit torture and degrading treatment of prisoners.

Specify that detainees must receive food and water and be allowed to communicate with their loved ones.

Limit the weapons and tactics that can be used in war, to avoid unnecessary suffering.

Explicitly forbid rape or other forms of sexual violence in the context of armed conflict.

To open a branch in Russia some documents are required. These documents are:

A copy of the articles which are related to the documents of main company

Information about the main company

A certificate of tax registration a statement of the bank account of the main company, indicating that the main company is in good financial condition.

The cost to established a branch or office in Russia range from 19760 US dollars to 12,000 US dollars.

If you want to open a branch in Ukraine all you need is:

An address that is registered

A copy of the certificate of incorporation of main company

A copy of all the documents associated with the main company

The appointment of the branch representative of a Ukrainian

If the directors of the office or branch are not Ukrainian citizens, Ukrainian work permits are required.

The cost of establishing a branch or office in Ukraine vary from 9500 US dollars to 25760 US dollars.

  • What are the websites to study market of Russia and Ukraine , demand and supply after war?

The authentic websites to study the market of Russia and Ukraine demand and supply after supply are:

Reuters.com, Nytimes.com and think.ing.com

These are the most authentic websites to study market of Russia and Ukraine after war.

  • Consulting on startup and development of business in Russia. Marketing and sales leads local help.

There are different companies which provide the consultations for startup and business establishment in Russia. Starting a business in Russia means that you need to follow new rules and regulations. Russia is at war with Ukraine currently. The situation is changing everyday that affects the prices of goods cost of living and immigrations. There are many things you need to keep in mind while establishing a business in Russia you need to start your business with basic knowledge such as if you can operate your business according to law in Russia.

The major thing is having a business idea that will work for you. The other things you must consider while joining a Russian company or establishing your own business in Russia aur opening a Russian Bank account for your business completing all the documents and having a legal structure for your business.

You have to check your immigration status if you want to start a business in Russia to make sure that your immigration status allows you to trade in the country. Other requirements include the legal structure of your business, to choose a company name and address and complete Foundation documents.

 

  • Websites where we can find the freelancers of Russia and Ukraine;

 

  • Upwork.com
  • Fiverr.com
  • PeoplePerHour.com

 

 

 

 

  • What are the top countries which Russia and Ukraine trade where there is FTA benefits, where importing from those countries attracts duty free imported material to Russia and Ukraine?

FTA agreement was signed between eight countries which are Russia, Ukraine, Tajikistan, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova and Belarus. According to Free Trade Agreement.

 

  • What are the Famous E-Commerce websites where Indians can register for online selling in Ukraine and Russia?

Ecommerce is getting more and more popular in Ukraine. In June, about 13.6 million internet users visited online stores in the Eastern European country, which is 1.3 million more than in the same period last year. And these are the most popular ecommerce websites in Ukraine. Online store Rozetka is the most popular ecommerce website in Ukraine, based on information from Gemius. The retail company, which was founded in 2006 and started with selling mostly consumer electronics, welcomed 6.7 million internet users on its ecommerce website this June.

Another very popular ecommerce site in Ukraine is OLX.ua, a website that lists many classified ads and attracted 5.5 million visitors during the same month. And Prom.ua welcomed about 4 million visitors in June. That’s more than the most popular foreign ecommerce website managed to attract in Ukraine. The three most popular foreign ecommerce websites in Ukraine reached over 4 million people, which corresponds to one in five internet users. The most popular one is Aliexpress, which saw 3.8 million people visit their website, followed by Amazon (411,000) and eBay (328,000).

 

  • What are the goods that could be exported or imported to Ukraine and Russia via Air?

Because Russia and Ukraine are pivotal sources exporters of energy and food globally, the world may soon face crises in fuel and food prices. Even before the invasion, global food prices were at near record highs since the U.N.'s Food and Agriculture Organization began keeping track in 1960, and oil prices were well above their 30-year average. Will the conflict drive fuel and food prices even higher, and for how long? The answer is complicated. Oil and gas prices are likely to rise and fall often in the coming days and weeks, but with little change to prices over the long term. The world’s supply of food, on the other hand, may tighten. Ukraine supplies 8 percent of the world’s exported wheat and 13 percent of its maize — and that harvest will be disrupted. Russia supplies 18 percent of exported wheat and 39 percent of rapeseed oil, but if Russia restricts exports or nations around the world refuse to transport or import its products, that too may exacerbate hunger worldwide.

The names of food that are exported from Russia and Ukraine are; corn, wheat, barley, soybeans, and sunflower oil.

The names of food that are imported from Ukraine and Russia are; avocados, apples, honeydew melons, blueberries, cantaloupe, mangoes, nectarines.

During the past six years, Ukraine has been a victim of heightened Russian aggression – militarily, politically and economically. In fact, in 2013, economic pressure was used to try to persuade Ukrainian President Viktor Yanukovych not to sign the Association Agreement (AA) with the EU. Though temporarily successful, this pressure triggered the Euromaidan protests in November 2013, which eventually led to collapse of the Yanukovych regime in February 2014 and subsequent Russian military intervention.

In the following months, Russia continued to exert pressure to stop the Association Agreement, or at least its trade component, the Deep and Comprehensive Free Trade Area (DCFTA), which Russia (wrongly) judged detrimental to its interests, arguing that zero-duty imports from the EU into Ukraine could easily ‘leak’ into Russia. Despite the European Commission’s efforts to avoid a trade conflict through a one-year postponement and trilateral negotiations, the DCFTA eventually entered into force from 1 January 2016.