Country-of-Origin Tariffs Are Rising 

The U.S. has moved from uniform tariffs to heavy, country-specific levies. A recent 2025 trade order imposed a 10% base tariff on all imports, rising to 11–50% depending on the exporter. India’s imports face roughly mid-20% rates under this scheme, far above the ~10% duty most countries had paid before. By contrast, Chinese-made goods are hit with duties as high as 245%. In this climate, origin is everything. For example, an Indian-made product that includes expensive Chinese parts — without sufficient reworking in India — will be classified as Chinese and incur the punitive tariff. In short, whether a shipment is tagged “Made in India” or “Made in China” can mean the difference between 10% duties and 245% duties. Indian exporters must therefore understand and apply U.S. origin rules to minimize their tariff burden. 

Rules of Origin: Key Criteria 

U.S. origin rules fall into two categories: non-preferential (no trade agreement claim) and preferential (FTA or GSP claim). For most Indian exports (no U.S.-India FTA yet), the non-preferential test applies. Here, a good is Indian-origin if it is “wholly obtained” in India (e.g. minerals or crops grown there) or if it is “substantially transformed” in India. Substantial transformation means the product’s form or character changed enough in India – typically through significant processing or value-add – to become a new article. Simple operations (like repacking, relabeling, or minor assembly) generally do not count as transformation. For example, cutting cloth in India into apparel may be sufficient, whereas merely stitching imported fabric might not. 

Preferential origin (for things like a future U.S.-India FTA or GSP) often adds stricter rules. These rules usually require a minimum percentage of local content or a change in tariff classification. To claim a tariff preference, exporters must provide a government-issued Certificate of Origin (CO) in India, certified by an authorized agency. (U.S. law only obligates receipt of a CO when seeking lower FTA/GSP rates.) Without such a certificate, shipments simply enter at the regular Most-Favored-Nation rates for India. In practice, this means Indian companies aiming for any U.S. trade benefits must start gathering proof — invoices, supplier declarations, production records — to back up any origin claim. 

Impact on Indian Businesses 

• Lost GSP Benefits: India’s removal from the U.S. Generalized System of Preferences (GSP) in 2019 illustrates the stakes. Prior to that, roughly $5.6 billion of Indian exports entered the U.S. duty-free under GSP. When India lost GSP, those goods simply faced normal MFN duties. (Many of the affected products — like certain textiles and chemicals — now carry higher tariffs.) Any future revival of GSP or an FTA will depend on meeting origin rules. 

• Avoiding Misrouting: Indian exporters are urged to avoid treating India as a transit point for mainly Chinese products. The Global Trade Research Initiative warns that simply shipping Chinese-made items through India without meaningful India-based processing risks being classified as Chinese origin. In fact, India’s own Trade Remedies agency (DGTR) is watching for such transshipment schemes. Indian firms should instead focus on genuine value-add in India, using Indian or other allowable inputs, to qualify as Indian-made. Failing to do so could backfire: U.S. Customs is now asking for detailed data on foreign inputs, and may demand proof of origin rather than accepting a simple origin declaration. 

• Risk of Penalties: U.S. enforcement is tough. CBP’s Penalties Program makes clear that mislabeling origin is illegal and punishable. Under trade agreements, an exporter or producer who falsely certifies origin can be penalized, and importers face penalties for false claims on customs documents. Maintaining audit-ready records (e.g. bills of materials, production logs) is now essential. 

• Opportunities if Well-prepared: On the positive side, mastering origin rules can lead to tariff savings. In trade negotiations, Indian exporters (especially apparel and engineering sectors) have advocated for relaxed origin criteria in a future India-US pact. For instance, they want rules allowing them to “add value with ease” to goods partly made in China and still claim Indian origin. Even now, if exporters restructure supply chains to source more inputs from India (or from U.S. FTA partners), they could better position their products for any new preferential access. Planning strategic sourcing – say, using more Indian components or inputs from NAFTA partners – might become a competitive edge if a U.S.-India agreement materializes. 

• Strategic Sourcing: Considering origin-sensitive tariffs, Indian firms should audit their supply chains. Questions to ask: Are high-tariff inputs (like Chinese electronics) necessary, or can alternatives be found? Could more of the production be shifted to India so the “Indian content” % goes up? Sometimes sourcing from the U.S. or an FTA country might avoid extra duties. By contrast, minor processing of high-foreign-content goods is likely to invite heavy U.S. duties. 

Best Practices for Indian Traders 

• Document Everything: Maintain detailed records of suppliers, bills of materials, and production steps. U.S. authorities may ask for invoices showing where each part was made. If you claim origin benefits, ensure a proper Certificate of Origin (or equivalent proof) backs each shipment. 

• Add Real Value: Don’t rely on minimal assembly. To make goods “Made in India,” process them enough to change their tariff classification or character. For example, weaving imported yarn into cloth or manufacturing complex machinery parts in India strengthens an Indian-origin claim. As GTRI advises, focus on genuine value-add rather than merely routing Chinese-made goods through India. 

• Know the rules of any preference: If exporting under a U.S. preferential program (hypothetical FTA or GSP), study its origin criteria. Many agreements allow a limited “de minimis” of foreign content or include cumulation with partner countries. But right now, the only way to get U.S. tariff relief is if India negotiates it. Stay tuned to policy talks – business leaders are already urging relaxed origin rules in those discussions – and be ready to adapt if a deal is struck. 

• Avoid Risky Shortcuts: Never engage in prohibited transshipment. Misrepresenting origin (e.g. labeling goods as “Made in India” when inputs are foreign) is fraud. Regulators globally (including India’s customs) are tightening scrutiny to prevent such abuse. 

• Stay Compliant: US penalties for origin fraud can include hefty fines, seizure of goods, and even jail time under the False Claims Act. Regularly train staff on origin rules and update internal audits. Consult customs experts to verify that your classification and origin statements meet U.S. requirements. 

By proactively managing country-of-origin issues, Indian exporters and importers can avoid punitive U.S. tariffs and even capitalize on any preferential access. In the evolving trade environment, a transparent supply chain and rigorous documentation are key. As one expert notes, companies should “be ready to furnish adequate documents to prove the origin of the goods”. With careful planning and compliance, Indian businesses can navigate U.S. rules of origin and turn them from a risk into an opportunity. 

What Are US Tariff Exemptions? 

Tariff exemptions are carefully curated lists of products that are spared from additional duties or taxes imposed on imported goods. These exemptions are designed to protect critical industries, ensure supply chain stability, and mitigate the impact of trade tensions on essential goods.  

Key Product Categories and Prominent Items Exempted from US Tariffs 

Mineral and Ore Products 

• Coral, Shells, Cuttlebone (05080000): Unworked or simply prepared materials. 

• Natural Graphite (25041050, 25049000): Including powder, flakes, and other forms. 

• Natural Calcium Phosphates (25101000, 25102000): Unground and ground forms. 

• Natural Barium Sulfate (Barytes) (25111010, 25111050): Ground and unground. 

• Natural Magnesium Carbonate (Magnesite) (25191000): Various forms including fused and dead-burned magnesia. 

• Fluorspar (25292100, 25292200): Varying purity levels. 

• Manganese Ores and Concentrates (26020000): With manganese content over 20%. 

• Copper, Cobalt, Aluminum, Zinc Ores and Concentrates (26030000, 26050000, 26060000, 26080000): Various forms and purities. 

• Chromium, Tungsten, Uranium Ores and Concentrates (26100000, 26110030, 26121000): Including synthetic rutile and other specific forms. 

Energy Products 

• Coal (27011100, 27011200, 27011900, 27012000): Anthracite, bituminous, and other forms. 

• Lignite (27021000, 27022000): Including agglomerated forms. 

• Peat (27030000): Various forms including agglomerated. 

• Coke and Semi-coke (27040000): From coal, lignite, or peat. 

• Coal Gas (27050000): Including water gas and producer gas. 

• Tar Products (27060000): Distilled from coal, lignite, or peat. 

• Benzene, Toluene, Xylenes (27071000, 27072000, 27073000): From high-temperature coal tar. 

• Natural Gas, Propane, Butanes (27111100, 27111200, 27111300): Liquefied forms. 

Chemical Products 

• Iodine (28012000): Various forms. 

• Rare Gases (28042900): Excluding argon. 

• Boron, Tellurium (28045000): Various forms. 

• Silicon (28046100): High-purity forms. 

• Arsenic, Selenium (28048000, 28049000): Various compounds. 

• Rare-earth Metals (28053000): Including scandium and yttrium. 

• Hydrogen Fluoride (28111100): Various forms. 

• Potassium Hydroxide (28152000): Caustic potash. 

• Zinc Oxide (28170000): Various forms. 

• Fluorides of Aluminum (28261200): Including synthetic cryolite. 

Pharmaceuticals and Medicinal Products 

• Vaccines (30024100, 30024200): For human and veterinary use. 

• Immunological Products (30021300, 30021400, 30021500): Various forms and packagings. 

• Antisera and Blood Fractions (30021200): Including human blood and fetal bovine serum. 

• Medicaments (30031000, 30032000, 30033910): Containing antibiotics and other active ingredients. 

• Hormones and Steroidal Products (29371100, 29371200, 29371900): Including insulin and corticosteroids. 

Wood and Paper Products 

• Wood Charcoal (44021000, 44022000, 44029001): Various forms including agglomerated. 

• Sawn or Chipped Wood (44071100, 44071200, 44071300): Over 6 mm thick. 

• Veneer Sheets and Plywood (44121005, 44121090, 44123106): Various thicknesses and surface treatments. 

• Particle Board and Fiberboard (44101100, 44101200, 44101900): Different densities and surface treatments. 

• Printed Books and Materials (49011000, 49019100, 49019900): Including dictionaries and encyclopedias. 

Metals and Alloys 

• Ferromanganese (72021110, 72021150, 72021910): Various carbon content levels. 

• Ferrochromium (72024100, 72024910, 72024950): Different carbon percentages. 

• Copper and Alloys (74031100, 74032100, 74032200): Including refined copper and brass. 

• Nickel, Zinc, Tin (81032000, 81033000, 81039100): Various forms and purities. 

• Titanium (81082000, 81083000, 81089030): Unwrought and waste forms. 

Electronic Components 

• Diodes and Transistors (85411000, 85412100, 85412900): Including photosensitive devices. 

• Integrated Circuits (85423100, 85423200, 85423300): Processors, memories, and amplifiers. 

• Parts of Semiconductor Devices (85419000): Components for diodes, transistors, and similar devices. 

Why These Exemptions Matter 

Tariff exemptions are not just about reducing costs; they are about maintaining the delicate balance of global supply chains. For instance, exempting fluorspar ensures steel production remains uninterrupted, while vaccine exemptions underscore commitments to global health.  

Download the Full List 

Curated Exim offers comprehensive insights into US tariff exemptions and their implications for global trade. To access the complete list of exempted products and explore how these exemptions can benefit your business, download our detailed report.  

Stay Ahead in Global Trade with Curated Exim 

At Curated Exim, we specialize in navigating the complexities of international trade. From tariff exemptions to export-import strategies, our expertise helps businesses thrive in a dynamic global marketplace.  

Explore more resources on Curated Exim and discover how we can support your trade objectives.  

In a sweeping move that has sent shockwaves through global markets, the United States recently implemented a two-stage tariff strategy. Beginning April 5, 2025, a flat 10% duty was imposed on all imports, with additional country-specific “reciprocal tariffs” coming into effect on April 9.  

Among the affected nations, India is slated to face a 27% tariff—a rate notably lower than those levied on competitors such as China, Vietnam, and Bangladesh. 

A Modest Economic Impact 

Despite the broad reach of these measures, several industry experts and economists suggest that India may be relatively insulated from severe economic disruption. Detailed analyses indicate that even under a worst-case scenario, where all major trading partners enact similar retaliatory measures, the projected GDP contraction for India would be minimal, around 0.19%.  

On a household level, this could translate to an annual impact of roughly $28, which is considered negligible when compared to the potential fallout in other nations. 

An alternative scenario, where other countries choose not to respond in kind, even hints at a slight positive effect, demonstrating India’s resilient economic fundamentals and a lower reliance on volatile external demand.  

This resilience is attributed to the country’s robust domestic consumption, a moderate trade surplus with the US, and the comparatively low share of imports in its inflation basket. 

Competitive Advantages Amid Trade Tensions 

India’s position in the global trade landscape appears to offer a distinct competitive edge. With reciprocal tariffs on US goods set at 27%, Indian exports remain more favorably positioned than those from markets facing much steeper duties, for example, tariffs on Chinese and Vietnamese goods exceed 34% and 46% respectively. This “tariff arbitrage” enables Indian exporters to maintain price competitiveness, even as the broader tariff environment tightens. 

Industry voices, including insights from economists like Sujan Hajra, highlight that even if exports to the US decline by up to 10%, the overall effect on India’s GDP would be contained. Moreover, the ongoing bilateral trade negotiations between India and the US are expected to help mitigate any adverse impacts over the longer term. By potentially securing tariff reductions or exemptions in sensitive sectors, both governments aim to sustain a mutually beneficial trade relationship. 

Looking Ahead: Strategic Trade Negotiations 

While uncertainty looms large in global trade, India’s proactive approach in negotiating a comprehensive trade deal with the United States could further cushion the impact of these tariffs. Experts believe that with a balanced agreement, India’s resilient domestic market and strategic export sectors, ranging from pharmaceuticals to textiles could even benefit from a realignment of global supply chains. 

For Curated Exim, the key takeaway is that the US tariff regime, though disruptive on a global scale, may ultimately present an opportunity for India to strengthen its export competitiveness and secure long-term trade advantages. 

How Curated Exim can help? 

In these uncertain times, strategic use of government export-import schemes can make a significant difference in managing costs and staying competitive. Curated Exim specializes in helping businesses leverage schemes such as the Advance Authorization, EPCG (Export Promotion Capital Goods), and MOOWR (Manufacturing and Other Operations in Warehouse Regulations). 

What is BIS Registration? 

BIS registration is a certification granted by the Bureau of Indian Standards (BIS), India’s national standards body. This certification confirms that your products comply with the quality and safety standards established by the Indian government. Whether you’re a manufacturer, importer, or exporter, BIS registration serves as proof that your goods meet the necessary requirements for the Indian market. 

Key Benefits of BIS Registration 

Quality Assurance 

BIS registration establishes minimum quality standards that products must meet. This focus on quality helps businesses improve their production processes and deliver better products to consumers. 

Enhanced Reputation 

Consumers view BIS-certified products as trustworthy and compliant with legal requirements. This certification can significantly boost your brand’s reputation and consumer confidence. 

Market Access 

For businesses looking to expand internationally, BIS registration demonstrates your commitment to quality, making your products more appealing to global buyers. 

Legal Compliance 

Certain products are legally required to have BIS registration before they can be manufactured, distributed, or sold in India. Compliance helps avoid legal issues and penalties. 

Cost Efficiency 

By focusing on quality, businesses often reduce waste and unnecessary expenses, leading to more efficient operations. 

BIS Registration Procedure 

Application Submission 

The process begins by submitting an application to the Bureau of Indian Standards in the prescribed format. This application should include all relevant business and product information. 

Document Submission 

You’ll need to provide several important documents, including identity proof, address proof, brand registration certificate, and product samples. 

Preliminary Inspection 

A BIS officer will conduct an initial inspection of your manufacturing facilities or premises to ensure they meet the necessary standards. 

Product Testing 

Product samples will be tested in authorized BIS laboratories. These tests verify whether your products meet Indian quality standards. 

Evaluation and Surveillance 

After testing, BIS officials will evaluate the results and may conduct surveillance visits to your factory to verify compliance with test reports. 

Certificate Issuance 

Once all requirements are met, BIS will issue your registration certificate. The entire process typically takes several weeks to complete. 

Documents Required for BIS Registration 

• Identity proof of the applicant 

• Address proof of the applicant 

• Brand registration certificate 

• Product samples 

• Certificate of registration or incorporation of your business entity 

• Any additional documents requested by BIS authorities 

Validity and Renewal of BIS Registration 

BIS certificates are initially valid for two years. Upon expiration, you can renew your registration for periods ranging from one to five years. The renewal process requires updated documentation and may include additional inspections or testing to ensure continued compliance with standards. 

Conclusion 

BIS registration is more than just a formality. It’s a powerful tool for building consumer trust, ensuring quality, and gaining access to the Indian market. By understanding the benefits, procedure, and requirements, businesses can navigate this process efficiently and position themselves for success in India’s competitive marketplace. 

 Under the GST framework, exporters are eligible for a refund of the IGST paid on exports, provided they follow the necessary documentation and procedural requirements.  

However, many exporters face challenges due to errors in filing, causing delays or rejection of refunds. 

 Understanding these errors and their proposals is important for businesses to ensure timely receipt of money. 

Common Errors Leading to IGST Refund Rejections 

Despite the automatic corresponding process, various errors may reject or delay the IGST refund. Some of the most common errors include: 

• Mismatch in GSTR-1 and GSTR-3B: External supply details in GSTR-1 and discrepancies between tax paid in GSTR-3B often cause withdrawal rejection. The GST portal classifies both forms before processing the cross-cross refund, making it important to ensure continuity for businesses. 

• Errors In Shipping Bills and GST Returns: Encysting the wrong entry of the shipping bill number, port code, or other details, there may be a mismatch between the GST system and (Indian Customs EDI Gateway), which can delay the refund. 

• Incorrect Bank Details at ICEGATE (Indian Customs EDI Gateway): If the bank account details registered with ICEGATE (Indian Customs EDI Gateway) do not match those in the GST portal, then the refund may fail to process the refund. 

• Challan Mismatches Between GST Portal And Customs: Differences in challan number, taxable price, or IGST can be refund rejection between GST portal and shipping bill records. 

• Incorrectly Claimed or Additional Corresponding Amount: If the refund claim is more than the actual tax or is calculated incorrectly, the authorities can reject the application, which requires improvement. 

Impact of IGST Refund Errors on Exporters 

Errors in the IGST Refund App can be important results for exporters, including: 

• Cash Flow Disruption and Financial Stress: Fundamental delay means that businesses must manage working capital deficiency, affecting their ability to invest in production and expansion. 

• Delay In Business Operations and Shipments: Exporters rely on IGST refunds to maintain a stable cash flow. Refund rejections may lead to operating disabilities and delays in fulfilling the order. 

• Additional Compliance Burden and Punishment: To improve errors, businesses are required to amend and provide additional documents, leading to an increase in their compliance burden and operational costs. 

Steps to Rectify IGST Refund Errors 

Exporters can take the following measures to solve IGST refund errors and avoid future rejection: 

• GST Returns Verified and Corrected: Businesses should ensure that GSTR-1 and GSTR-3B filings are accurate and consistent. Any anomalies should be cured through modifications in later returns. 

• Ensuring Accurate Shipping Bill Details in Returns: Exporters must cross-check the shipping bill details before filing GST returns to avoid mismatches with ICEGATE records. 

• Updating the Correct Bank Details on the ICEGATE: If the return is rejected due to the wrong bank details, businesses should update their information on the ICEGATE portal and GST portal to match their registered bank accounts. 

• Filing Complaints with GST Officials for A Resolution: In cases where refunds persist despite delay improvement, exporters can increase complaints on the GST portal or contact the judicial GST officer for a resolution. 

How Curated Exim Consultants Can Assist Exporters 

Curated Exim Consultants specialize in assisting exporters with smooth IGST refund processing. His expertise includes: 

• Expert Guidance in Filing Accurate Corresponding Claims: Ensuring that all details of GST returns, and shipping bills are recorded correctly to reduce errors. 

• Identifying and Solving Correspondent Errors: analyzing mismatches and providing corrective measures before filing correspondent applications. 

• Helping With Documentation and Compliance: Help in preparing businesses and presenting the required documents for free refund processing. 

• Contact GST Officials for Smooth Refunds Processing: Coordination with GST officials and customs officers to resolve disputes and ensure timely recreation. 

Conclusion 

Errors in IGST refunds can cause financial and operational barriers for exporters. 

 Understanding general mistakes, their effects and available corrective measures, businesses can increase their compliance and reduce reforms.  

Partnerships with experts such as Curated Exim consultants can simplify the refund process, ensuring an easy experience for exporters. It is important to ensure accuracy in GST filing and shipping documentation, avoid delays and optimize cash flow in international trade. 

The restriction of goods helps maintain trade in accordance with national interests, international treaties, and moral standards. 
 
To avoid legal difficulties and gain access to the global market, it is essential for businesses to understand these restrictions.  
 
The blog thoroughly discusses export-restricted goods, their governing framework, and strategies for businesses to navigate these challenges successfully. 

Restricted Goods for Export: Definitions and Classifications 

What Are Restricted Goods for Export? 

Restricted goods are those that cannot be exported without special permission. They differ from prohibited goods in that the latter are banned altogether, while restricted goods have specified procedures that exporters must follow to comply with regulatory requirements. 

Classification of Restricted Goods for Export 

• Strategic and Dual-Use Goods: Regarding machinery and technology with civil and military applications, strict regulations are imposed on the export of goods. 

• Agricultural Products: Restrictions on some seeds, grains, and organic exports may be established to protect food safety and biodiversity. 

• Cultural Heritage and Antiquities: The export of objects of historical value, such as rare manuscripts and antiques, is tightly controlled to prevent illegal commerce and loss to cultures. 

• Wildlife and Animal Products: Animal products derived from protected species or endangered animals are subject to strict restrictions for export. 

• Toxic and Chemical Goods: Chemicals governed by international treaties, especially the Chemical Weapons Convention (CWC), require special permissions for export. 

Legal Framework Governing Restricted Exports 

Export regulations in India are governed by policies and statutes such as the Foreign Trade Policy (FTP), the Customs Act of 1962, and international treaties, one of which is the Convention on International Trade in Endangered Species (CITES). 

Regulatory Authorities and Compliance for Exporters 

Key Regulatory Authorities 

1. Directorate General of Foreign Trade (DGFT): Authority to issue licenses and permits for restricted exports. 

2. Customs Authorities: Enforce export law at ports and verify that goods comply with Indian laws. 

3. Ministry of Environment, Forest, and Climate Change: Regulates the export of wildlife and hazardous materials. 

4. Archaeological Survey of India (ASI): Oversees the export of cultural artifacts and antiquities. 

Compliance Obligations for Exporters 

To undertake the export of restricted goods lawfully, entities must: 

• Obtain all requisite licenses from DGFT. 

• Accurately classify the goods under the ITC-HS code system. 

• Submit all documents, including shipping bills and compliance declarations. 

• Packaging and labeling must adhere to the specifications set by the appropriate authorities. 

Consequences in Case of Non-Compliance 

Exporters who violate the rules may face: 

• Seizure of goods at ports. 

• Cancellation of export licenses. 

• Heavy fines and lawsuits. 

• Damaged reputations and strained international relationships. 

How Curated Exim Consultants Simplifies Export Compliance 

Curated Exim Consultants understands that navigating the intricacies of restricted goods for export is not always an easy task. With this understanding, the firm provides expert support to businesses. 

Expertise in Licensing and Documentation for Export 

Curated Exim Consultants assists with the acquisition of export licenses from the DGFT while maintaining documentation to ensure smooth approvals. 

Compliance Custom-Designed for Export 

The firm offers tailor-made solutions that fulfil specific business requirements while ensuring compliance with regulations such as ITC-HS classification and packaging requirements. 

Risk Mitigation and Advisory 

Curated Exim identifies various types of risks regarding the export of restricted goods and recommends a wide range of strategies that can be employed to mitigate financial and legal liabilities. 

Training and Knowledge Dissemination on Export Controls 

The team empowers businesses through regulatory change updates, aids, and training sessions to ensure exporters are well-versed and compliant. 

Conclusion 

The export of regulated goods is crucial for national security, the protection of cultural heritage, and the promotion of ethical trading practices.  
 
For the enterprises involved, compliance is less a legal obligation than an act of sustainable and responsible trade.  
 
The expert assistance of Curated Exim Consultants enables businesses to meet all these challenges with confidence, ensuring smooth export processes and seizing global opportunities.  
 

Begin your journey towards successful and compliant export processes with Curated Exim Consultants as your trusted partner. 

It is important for businesses that are determined to grow in international business to understand these limitations.  
 
These blogs have a summary of the ban, the crispy frame, and methods of ensuring that the regulations are being followed while using them.  
 
Benefits from the ban on business opportunities that are banned and how the business can guarantee the following. 

Restricted Goods in Indian Trade: Definitions and Classifications 

A. What is the Prohibited List? 

Restricted goods refer to goods that cannot be freely imported or exported without specific permission or license from the regulatory authority. They are completely prohibited. But they may be subject to rigorous scrutiny to ensure they comply with national policy. 

B. Categories of Restricted Items 

Hazardous Materials: Items such as chemicals, explosives, and radioactive materials require strict control to prevent misuse and safety. 

Agricultural Products: Some seeds and foods may be banned due to biosafety concerns. 

Technology and Electronics: Advanced technology with potential military applications often falls into this category. 

Wild Animals and Animal Products: Strict regulations govern trade in these goods to prevent illegal trade and protect endangered species. 

More detailed can be found on DGFT restricted import goods lists. 

C. The Legal Framework Governing Restricted Items 

Indian import laws are determined by acts and policies such as the Foreign Trade Act. (Development Regulations), 1992, Customs Act, 1962. These laws outline the licensing, documents and procedures businesses must follow when dealing with restricted goods. 

Navigating the Regulatory Maze: Authorities and Compliance 

A. Important Supervision Agencies 

• The Foreign Trade Committee (DGFT): Overseeing licenses and licenses for limited products 

• Customs Department: Enforcing import and export rules at the port and exit 

• Pollution Control Committee: Make sure that the environment is protected for products such as dangerous chemicals. 

B. The Requirements for Importers 

• To import the product legally to India, the business must: 

• Get a license or rights that are needed by DGFT. 

• Follow the label and packaging requirements in accordance with Indian standards. 

• Submit the document in detail, including bills, certificates, invoices, and regulations in accordance with the rules. 

C. The Consequences of Compliance 

It may fail to comply with import rules: 

• Heavy Penalties and Fines  

• Seizures by customs officers 

• Legal actions, including the prohibition of imports in the future 

Economic and Trade Impacts of Restricted Goods 

A. Global trade relations and influence 

Import restrictions may affect international trade relations. Even though they protect the domestic industry, it can also cause conflict with trading partners. For example, restricting the import of certain goods from a country could strain diplomatic relations. 

B. Economic Impact on Businesses and Consumers 

• For Businesses: Compliance costs may increase due to extensive licensing and documentation requirements; however, they also encourage ethical behavior and innovation. 

• For Consumers: Prohibited products may limit the availability of certain products. Affects consumer choice and may increase the price 

C. Real-World Examples 

Ban on imports of certain agricultural products during the COVID-19 outbreak. Help protect local farmers. But it also affects the international supply chain. 

Restrictions on the import of hazardous waste strengthen environmental protection. But it affects businesses that rely on recycled materials. 

How Curated Exim Consultants Simplifies Compliance 

A. Customized Solutions for Documents 

From creating the right documents to managing submissions. The Curated Exim team streamlines all processes, reducing errors and ensuring compliance. 

B. Consulting Services to Reduce Risk 

With in-depth knowledge of import laws, Curated Exim helps businesses identify risks and implement best practices to avoid penalties. 

C. Training and Support 

To empower your business, Curated Exim provides carefully curated training sessions and resources. This ensures that the team stays up to date on the latest regulations and compliance requirements. 

Conclusion  

In the ever-changing world of international trade, understanding and complying with import restrictions is not just a legal obligation. But it is also a strategic imperative. Banned goods play an important role in protecting national interests. Promote sustainability and promote ethical trade practices. 

By partnering with an experienced consultant like Curated Exim, businesses can confidently navigate this complex terrain. Ensure compliance and success in India’s vibrant import and export ecosystem. 

Take the first step towards informed and compliant business practices; choose a Curated Exim consultant for expert advice. 

The export process involves compliance with complex regulations. International logistics management and compliance with trade laws for first-time exporters, these challenges can lead to errors that affect profits and relationships with global buyers. 

Common problems that new exporters face: 

• Lack of knowledge about foreign markets 

• Confusion about export regulations and documents 

• Challenges in competitive product prices 

• Transportation and logistics issues, such as delays or damaged products 

• Poor communication with overseas buyers 

In this blog, we’ll discuss these common mistakes and offer practical solutions to help you avoid them. 

Common Mistakes New Exporters Make 

Failure to Conduct Market Research 

Skipping target market research can result in poor sales. It’s important to know what your customers want and how to buy. 

Ignoring rules and regulations 

Each country has its own business rules. Missing documents, licenses, or fees can delay shipments and cost you money. 

Incorrect Settings 

Incorrect pricing should be lowered or higher. It can hurt your business. Many people need to remember to include shipping costs and currency conversion. 

Poorly Delivered Projects 

Choosing the wrong shipping method or incorrectly labelling the package may result in product damage or delays. 

Forget Insurance 

If you don’t have insurance, you may lose money if your package is damaged, damaged or stolen. 

Bad Marketing 

If your marketing doesn’t match the culture of your target country, you will not be able to attract customers. 

Miscommunication 

Not connecting with buyers or understanding cultural differences can destroy relationships. 

How to Avoid These Mistakes 

Do your homework: Research your target market. Understand customer needs and buying trends. 

Follow the rules: Learn about export laws and get the right licenses and paperwork in place. 

Price wisely: Calculate all costs, including shipping and currency fluctuations, before setting your prices. 

Plan your shipping: Use reliable shipping companies and ensure your packages are labeled and protected. 

Get insurance: Invest in insurance to cover potential losses during shipping. 

Focus on marketing: Adapt your branding and marketing to suit the culture of your target audience. 

Stay connected: Communicate clearly with your buyers and respect cultural differences. 

Conclusion 

Exporting is a great way to expand your business. But it requires careful planning. Curated Exim is here to help you avoid pitfalls and succeed in the global marketplace. Contact us today to get started! 

The list of prohibited goods is part of foreign trade policy. It serves to ensure that sensitive materials enter the country with proper disposal. 

To ensure that businesses Follow EPCG guidelines, the Directorate General of Foreign Trade (DGFT) will provide regular updates on prohibited goods.  

It is essential for businesses to be aware of any changes to their listings and to seek professional advice if they have any questions about a particular product. 

This is where Curated Exim consultants play a crucial role in helping businesses comply. Keep up to date with the latest regulations. And guarantee that they will not violate any trade restrictions. 

Examples of Prohibited Goods 

 
The list of prohibited items under the EPCG scheme is comprehensive and covers a wide range of products. These goods generally include items that may have a direct impact on national security and public health or are subject to international sanctions. The following are the specific products prohibited under the EPCG scheme: 

1. Cables: Permitted only as an integral part of Capital Goods 
    

2. Railway wagons (excluding specialized Tractors): Not Permitted 
    

3. Tractors: Not Permitted 
    

4. Trucks / Tippers / Dumpers and spares thereof including Tyres: Permitted only to mining sector 
    

5. Motor Cars, Sports utility Vehicle / All purpose vehicles: Not Permitted 
    

6. Airport Ground Handling Equipments: Not Permitted   
    

7. Furniture, carpets, crockery, marble, chandelier, tiles, flooring, doors for rooms, fixing panels: Permitted only to Hotel Industry   
    

8. Construction equipment viz. Cranes etc.: Permitted only for providing services   
    

9. All construction material like sheds, cement, steel: Not Permitted   
    

10. Computer and Printers: Not Permitted   
     

11. All seconds Hand Capital Goods: Not Permitted 
     

12. Capital Goods (including Captive plants and Power Generator Sets of any kind) for export of electrical energy: Not Permitted 
     

13. Pre-fabricated Polyurethane Foam (PUF)  : Permitted for use in (i) Chilled Rooms and (ii) Cold Storages set up by the Processing Units for storage of prefrozen and frozen marine products respectively, meant for exports under the EPCG Scheme 
     

14. Furniture and fixtures, flooring materials and furnishing materials : Not Permitted 
     

15. Pre-fabricated Polyurethane Foam (PUF) panels/doors : Permitted for use in (i) Chilled Rooms and (ii) Cold Storages set up by the Units for storage of fresh fruits and vegetables, meant for exports under the EPCG Scheme 
     
     

How Prohibited Goods Impact Importers and Exporters 

Importing prohibited items under the EPCG scheme can have severe consequences for a business. Failure to comply with the restrictions may result in fines, penalties or even revocation of the EPCG license if contraband is imported.  

Customs authorities will seize those goods. Cause delays There is an additional cost. And there may be disruptions in business operations. The legal and financial implications can cause significant failure.  

This is especially true if the business does not adhere to the guidelines set by the DGFT and other regulatory agencies. 

Additionally, importing prohibited products can have a negative impact on a company’s reputation. Collection of sensitive items such as military equipment or hazardous materials may draw negative attention from officials and business partners. Compliance violations can also damage relationships with customs authorities. 

This makes future business difficult. For exporters who rely on EPCG benefits, this may result in license suspension or loss of privileges—affecting growth and market access in the long term. 

How Curated Exim Consultants Can Help 

 
Navigating the complexities of an EPCG project and understanding the list of prohibited items can be a challenging task. This is where Curated Exim Consultants can provide valuable assistance. Our team of experts helps businesses comply with India’s trade policies.  

To ensure that imported or exported products are not classified as prohibited. With a deep understanding of foreign trade policy and expertise in DGFT regulations, we can guide your company through the nuances of EPCG planning, reducing the risk of costly errors. 

Whether you want to import capital goods under the EPCG scheme or need help determining whether your product is banned, Curated Exim consultants can help ensure your business is on the right track.  

We provide expert advice, regulation updates, and a comprehensive understanding of import and export regulations in India. 

(References: Economic Times, Ministry of Commerce) 

Why are bank guarantees important for exporters? 

Bank guarantees are financial instruments that assure the government that exporters using advanced licenses and EPCG schemes will meet their export obligations. If the exporter defaults on its obligations, the government can demand this guarantee to recover the duty exemption granted. Although these guarantees are necessary, the government also offers discounts to reduce compliance burdens for exporters with clear records or special status. 

A bank guarantee is required under the Advance Licensing Scheme. 

The advanced licensing program allows exporters to import duty-free inputs used in the production of export goods. However, duty-free imports include an obligation to deliver the finished goods within a specified period. 

Bank guarantees ensure that the government can recover abandoned tariffs if the exporter defaults on its export obligations. This provision is generally mandatory, especially for first-time or small exporters. 

Advance License: Special Exemptions for High Performers 

Status Holders 

Exporters with “status” recognition, such as One Star, Two Star, and higher Star Export Houses, may qualify for full or partial exemption from the bank guarantee requirement. This recognition is based on export performance and provides a level of trustworthiness to these entities. 

Government Undertakings and PSUs 

Public sector undertakings (PSUs) and government-backed entities are typically exempt from bank guarantees, given their high credibility and established compliance. 

Established Export Houses 

Large Export Houses or those with a high export turnover may receive exemptions. These exemptions incentivize exporters with significant contributions to the national export output. 

High Compliance Record 

Exporters with a proven history of meeting export obligations under previous licenses are often exempted from providing bank guarantees. This exemption is a reward for consistent compliance and encourages other exporters to maintain similar standards. 

Companies in government-approved cluster special economic zones 

Group Members and SEZ Participants: Due to the increased scrutiny and compliance of the masses, companies operating within government-sponsored industrial clusters or special economic zones (SEZs) can benefit from reduced or waived bank guarantees. 

ECGC insured exporter ECGC Supported Exporters  

Reduce Credit Risk Exporters who receive insurance coverage from the Export Credit Guarantee Corporation of India are eligible for discounts. This reduces the exporter’s risk and provides additional protection to the government—a subsidiary of a large export company that provides custom designs.  

Subsidiaries with a proven parent company  

Subsidiaries of multinational corporations or large export entities with a consistent history of meeting their obligations are partially exempt based on their results—the parent company’s operations. 

Exporter with a long history of exporting Decades of Compliance 

Companies with a track record of 10 years or more of continuous exports without defaults or penalties may qualify for automatic exemption due to long-standing trust. 

ISO certified manufacturer ISO 9001 and ISO 14001 Certified Exporter  

Companies with international certificates indicate standards of quality and environmental management. They are often eligible for exemption. Such certification signals compliance and adherence to high-performance standards.  

High-value export projects Government-sponsored projects  

Exporters involved in high-value or strategically important export projects, such as those related to defence or renewable energy, may qualify for special exemptions. These projects are under strict government supervision, which reduces the bank guarantee requirements. 

Companies with high exports  

Companies with consistently high export values ​​year after year, eligibility for exemption, it is based on contribution to the national economy and a proven track record. Export units approved under Make in India Make in India Accredited Units: Companies aligned with the ‘Make in India’ initiative and have been recognized by the government for their contributions. Also, they benefit from exemptions, demonstrating their role in strengthening the country’s manufacturing sector. 

Exporters under bilateral or multilateral trade agreements Trade Agreement Benefits  

Exporters operating under specific bilateral and multilateral agreements promoting international trade and cooperation are exempted. These agreements often include provisions for reducing trade barriers and providing financial guarantees.  

Exporters in priority areas Projects of national importance  

Exporters in areas of high importance to national development, such as high technology, Sustainable energy and critical infrastructure, May be eligible for exemption from bank guarantees. These projects often receive government support to support strategic goals.  

Government Contract Holder 

An exporter who holds a long-term contract with a government agency or agency. Especially those involved in large public projects. This may be exempted due to security and regulatory requirements related to such agreements. 

Companies with an excellent social compliance record Social Responsibility and Compliance 

Exporters who can demonstrate a high level of social responsibility, including compliance with labour laws, Ethical Guidelines, and sustainability initiatives, may be considered for a discount as part of government efforts to promote responsible business practices.  

Green and Environmentally Certified Exporter Environmentally Focused Companies 

 Exporters certified according to recognized environmental standards (such as Green Business Certification) are eligible for rebates because they comply with environmentally friendly practices, thus promoting sustainable exports. Exporters receive special support from state governments.  

State-sponsored exemptions 

Some state governments may have policies that provide discounts to exporters or reduce bank guarantees. These policies are part of a regional development project aimed at promoting trade and the growth of local industry.  

Industry-specific exemptions Sector-based policies 

Specific industries, such as pharmaceutical or electronics manufacturing, may have tailored policies that offer discounts or reduced bank guarantees. This depends on the nature of key exports and expected global competition.  

Exporters with proven supply chain security measures AEO and Supply Chain Certification 

Exporters certified as Authorized Economic Operators (AEO) or with recognized supply chain security standards may be eligible for exemption. These certifications indicate a high level of confidence and safe practices in the handling of goods, reducing the perceived risk. 

Startups Accepted under government programs Government-Backed Startups 

Startups accepted by government programs such as Startup India benefit from policy initiatives that reduce financial and procedural barriers. This may lead to the exemption of some bank guarantees.  

Exporters Involved in Humanitarian or Relief Efforts Special Purpose Exemption  

Companies exporting goods for humanitarian purposes or as part of relief efforts (e.g., medical supplies, emergency equipment) are eligible for an exemption to ensure the timely and continuous passage of essential supplies. 

Exemption based upon Export Turnover of Rs.1 Crore 

Manufacturers and exporters or service providers registered with GST with an export value of Rs.1 crore or more in the preceding financial year and consistent exports over the past two years are exempt. 

Exemption based the payment of GST of Rs.1 Crore 

GST-registered manufacturers or service providers who paid Rs 1 crore or more as GST in the previous financial year are also eligible for this exemption. 

Compliance: key points in risk-free trading 

For exporters, a bank guarantee can represent a significant financial obligation. Understanding when discounts apply can reduce this burden. This results in smoother business operations and increased cost efficiency. Key points of risk associated with compliance and bank guarantees in advance licenses and EPCG schemes include: 

Refund upon Fulfilment of Obligation:

Bank guarantees are generally refundable once the exporter successfully fulfils its export obligations. 

Penalty for non-compliance:

If the obligation is not fulfilled within the specified period. The government may require a bank guarantee. This leads to financial recovery and additional penalties. 

Renewal Requirements:

Periodic renewal and verification of compliance with bank guarantees are necessary to avoid penalties. 

Curated Exim: Your trusted guide to bank guarantee compliance. 

With a focus on proactive guidance and risk mitigation, Curated Exim helps exporters maintain smooth operations. Help them confidently and efficiently take advantage of tax exemptions. Our dedication to timely support and dispute resolution ensures that businesses Remain compliant while focusing on their core export activities, making Curated Exim a key partner in optimizing trade profitability.