/ Navigating Customs Challenges: Fill in the right paperwork to sell goods in India at an exhibition
When a foreign company faced significant delays and complications with customs clearance for an exhibition in India, Maier Vidorno Altios stepped in to resolve the issue swiftly and efficiently. This situation highlighted the critical role of expertise in customs regulations – and also underscored the impact on business operations when it goes wrong.
The Challenge
A new company, without any legal presence in India, aimed to test the waters by showcasing their products at an Indian trade fair. However, they found themselves stuck due to wrong advice from their freight forwarder.
The advice also missed essential guidance on GST implications and the selection of the right Free Trade and Warehousing Zone (FTWZ).
Key Issues Faced:
Clearance Before the Exhibition: The freight forwarder failed to ensure that the goods were cleared only for exhibition and not for potential sale within India. This oversight came from a lack of planning by the forwarding agent and inadequate understanding of import documentation and procedures, including the nuances of customs duty and legal compliance.
Clearance After the Exhibition: As the goods were only cleared for exhibition purposes, they could not be sold within India until the export process was reinitiated. Double the import paperwork and further complications, unnecessary GST costs, and significant delays.
These errors not only cost money but also wasted valuable time – and undermined their brand’s reliability in the market. The company’s efforts to enter the market were jeopardized due to inadequate advice on supply chain logistics and customs regulations.
Our Solution
Maier Vidorno Altios was brought in to correct the situation, providing a quick and comprehensive solution. “We cannot stress enough the importance of the right advice and due dilligence, especially for companies new to the Indian market. We often get asked to help when things go wrong working with agents that promise it is simple but don’t fully understand what’s needed for selling for new foreign companies in India” said Shashank Verma, head of supply chain solutions at Maier Vidorno Altios.
Strategic Steps Taken:
Immediate Assessment and Action: Our team, led by Mr. Verma, swiftly assessed the situation and recognized that the initial clearance provided by the agent was insufficient for subsequent sales. We immediately engaged with customs officials, ensuring that all necessary import documentation and procedures were in place.
Utilizing FTWZ for Export: Leveraging our in-depth knowledge of Free Trade and Warehousing Zones (FTWZ), we facilitated a streamlined process for re-export and domestic sales. This strategic move, which was overlooked by the freight forwarder, allowed us to secure necessary approvals and complete the export process within 20 working days.
Rectifying GST Missteps: We addressed the unexpected GST costs that arose due to incorrect advisory, ensuring that the financial impact was minimized. This demonstrated our capability in providing not just supply chain solutions but also financial and compliance advisory services.
Bridging the communication gap: Ensure clear and consistent communication channels between Maier Vidorno Altios and the company headquarters outside India, facilitating seamless information exchange and collaboration across teams.
Results and Impact
The intervention by Maier Vidorno Altios was both timely and effective. Our expertise ensured that the company’s goods, initially held up due to the freight forwarder’s oversights, were cleared and ready for sale in India without further delays. Compared to the six months of lost time due to the freight forwarder’s mistakes, our team resolved the issue in a fraction of the time, saving the company from additional financial losses and operational disruptions.
This case highlights the importance of due diligence, the right supply chain advisory, and ensuring legal compliance, particularly when entering a new market. The proactive approach of our supply chain solutions—supportive, culturally inclusive, and assertive—proved invaluable in driving performance and achieving the company’s objectives.
The Takeaway
For businesses, especially those new to India with no legal presence, navigating the complexities of customs and supply chain management can be daunting. However, with the right partner like Maier Vidorno Altios, you can confidently exhibit at trade fairs, test your product with real audiences, and ensure that all logistical and legal aspects are expertly handled. From selecting the right FTWZ location to providing accurate financial and compliance advice, we ensure that your market entry is smooth and successful.
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