Chinese shipment stuck at India ports

Imports Halted at…

• Import shipment from the People’s Republic of China are learnt to be facing difficulty at some ports in India, including Chennai and Mumbai. It is learnt that over the last period of time two weeks, Customs authorities of Indai have indicated to importers that there will be delays in clearing Chinese shipments, but have not cited any reasons.

• Besides Chennai port, customs are holding up shipment originating from the People’s Republic of China over the past few days at Delhi air cargo terminal, Kolkata airport and Mumbai’s Nhava Sheva port or Jawaharlal Nehru Port (JNPT) Mumbai.

Boycott China or Some Security issues…

• There has not been any written or verbal notification from the Custom department or Central Board of Indirect Taxes and Customs (CBIC) authorities either, importers says.

• While some Chennai port Custom officers said that checks were being carried out on the basis of specific intelligence based inputs, importers and industry are seeing it as a dig to change their import pattern, especially of non essential goods, amid calls for reducing the consumption of Chinese goods in india after the wake of the border tensions.

Worry for Automobile Firms

• India heavily depends on China for batteries and battery cells used for building electric vehicles. Presently no company in India makes such components locally while China has a near monopoly in battery cell production in the world. • Companies like Bajaj Auto, Mahindra & Mahindra, TVS Motor Company, Hero Electric and several others who build electric two and three wheeler vehicles either directly import batteries or cells from China or their parts vendors do it for them.

Worry for American Firms

• It has started to cause concern for American firms with manufacturing operations in India, as they are experiencing difficulties in accessing crucial components from their facilities in China.

• shipment of around 50 USA companies in India with manufacturing operations across sectors such as telecommunications, automobiles, medical equipment, and fast moving consumer goods (FMGC) are learnt to be among those affected.
• A group representing some of these companies has written to the Secretary in charge of the Department for Promotion of Industry and Internal Trade (DPIIT), Dr Guruprasad Mohapatra, expressing these concerns.

• The US-India Strategic Partnership Forum (USISPF), a countries group representing some USA firms involved in manufacturing activities in India, said they were “increasingly concerned” that component parts and other inputs “necessary” to their manufacturing operations from china, were being detained at the ports.

• This month, the People’s Republic of China rose prices of the common medicine pain reliever paracetamol and of ciprofloxacin, an antibiotic used to fight respiratory infections, by 25%-27%.

Chinese shipment stuck at India ports Chinese shipment stuck at India ports