Customs speeds up shipments to US
Indian customs authorities are fast-tracking shipments headed to the US ahead of the Trump administration's April 9 deadline for 26% reciprocal tariff on New Delhi.Effective April 5, the US has imposed 10% additional duty on most goods entering the US from India unless they were already in transit. This tariff level is set to increase to 26% from April 9.
Exporters are also expediting the dispatch of their consignments to the US as they seek to minimise the cost escalation and maintain trade continuity."There is a more-than-usual rush at various customs ports for US-bound shipments from the past one week," a senior official told ET. "We are trying to give customs clearance fast, mostly for perishable items."Authorities want to ensure that exporters do not face any unnecessary delays in clearances. "We just want to make it smooth for the business," the official said.US President Donald Trump last week announced sweeping tariffs on 50-odd countries, including India.Another official said many export dispatches were fast-tracked by the midnight of April 4 because no additional duties are applicable on those shipments."We are providing support to exporters so for trade continuity," said another official.The government has also sought details on the orders stuck and those in the pipeline and met some exporters. More stakeholder consultations are slated for the next few weeks to gather feedback on the impact of the tariffs and assess the broader implications.This is crucial as the government expects goods exports growth in 2024-25 to be a tad more than that in the previous fiscal, and that it FY26 growth to be higher than in FY25.India's goods exports in the April 2024-February 2025 period amounted to $395.63 billion."Exporters are also pushing their shipments wherever possible. Exports are expected to slow down in the near future because of uncertainty and the buyer will consider which is the most competitive source country for them," said Ajay Sahai, director general, Federation of Indian Export Organisations.The willingness of consumers to pay more and importers' liquidity is being seen as key issues.
Exporters are also expediting the dispatch of their consignments to the US as they seek to minimise the cost escalation and maintain trade continuity."There is a more-than-usual rush at various customs ports for US-bound shipments from the past one week," a senior official told ET. "We are trying to give customs clearance fast, mostly for perishable items."Authorities want to ensure that exporters do not face any unnecessary delays in clearances. "We just want to make it smooth for the business," the official said.US President Donald Trump last week announced sweeping tariffs on 50-odd countries, including India.Another official said many export dispatches were fast-tracked by the midnight of April 4 because no additional duties are applicable on those shipments."We are providing support to exporters so for trade continuity," said another official.The government has also sought details on the orders stuck and those in the pipeline and met some exporters. More stakeholder consultations are slated for the next few weeks to gather feedback on the impact of the tariffs and assess the broader implications.This is crucial as the government expects goods exports growth in 2024-25 to be a tad more than that in the previous fiscal, and that it FY26 growth to be higher than in FY25.India's goods exports in the April 2024-February 2025 period amounted to $395.63 billion."Exporters are also pushing their shipments wherever possible. Exports are expected to slow down in the near future because of uncertainty and the buyer will consider which is the most competitive source country for them," said Ajay Sahai, director general, Federation of Indian Export Organisations.The willingness of consumers to pay more and importers' liquidity is being seen as key issues.
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