Recently, the Indian market is opening strongly through the signing of a Free Trade Agreement (FTA) with the United Arab Emirates (UAE) and can be signed with a number of countries and other territories like the UK, EU, Canada, and the Gulf States community.
However, to control the quality of goods and ensure fairness in the market, the government of India has issued a Customs Rule (Management of Rules of Origin under Trade Agreement or CAROTAR 2020). Therefore, experts note that enterprises when exporting to India must provide detailed information about the country of origin (COO) to the authorities of this country to conduct verification procedures when necessary.
Bui Trung Thuong - Vietnam's Trade Counselor in India, said that India is a potential export market for Vietnam in general as the market capacity is still very large. However, exporters should clearly identify the customer segment they want to target, thereby having an appropriate business strategy. With specific information about the characteristics and business practices of Indians, Bui Trung Thuong noted that negotiating and signing contracts, delivery and payment terms must be ensured with benefits to minimize risks for Vietnamese enterprises. Accordingly, the contract must be signed in writing with clear terms, using the irrevocable L/C at sight method of payment, using a quality inspection unit (at the port of departure or at the port of arrival).
Experts affirmed that signing a contract or exchanging is necessary to clearly learn the personal and legal information of the partner such as business registration certificate, import-export certificate, full name, email phone number, bank account number, contact identification number, contract signer etc. In particular, India applies policies, especially policies for imported goods which are sometimes very unexpected and unannounced such as restrictions on imported incense, minimum import prices for pepper products among others. Not only that, the market is also where many trade remedies are applied in the world, mainly on anti-dumping and anti-subsidy measures.
Reported by Tieu My – Translated by Vi Bao
