China Will Not Be Able To Ship Goods To India Via Other Countries
China will not be able to ship goods to India through other countries, it will be possible with new guidelines of import law. Due to the new guidelines issued to implement the Rules of Origin under the Import Law, China will be easily controlled.
Dragon will no longer be able to ship goods to India via countries such as Vietnam, Indonesia, and Thailand. Due to the new guidelines issued to implement the Rules of Origin under the Import Law, China will be easily controlled.
The government has taken this step to encourage self-reliant India and Make in India. The new guidelines of the Rules of Origin will apply to all countries linked to the Free Trade Agreement (FTA) or the Preferential Trade Agreement (PTA).
India has an FTA with the ASEAN (Association of Southeast Asian Nations). There are many in 10 countries of ASEAN which have FTA with China. These include countries like Vietnam, Thailand, and Indonesia.
China was taking advantage of the FTA with these countries to send goods easily to India. For example, goods from China came to Vietnam and after adding a small value in it, they are made products of Vietnam and sent to India.
Such a product coming to India is believed to be from Vietnam, whereas the product is actually from China. Likewise, Chinese products were entering India through low-tariffs through countries like Indonesia and Thailand.
China mainly sends its electronics items to India via countries like Vietnam and Indonesia, so that it can be easily sold in India due to lower fees and cheaper. According to experts, the purpose of the Indian government is to stop this trick of China.
India readily accepted the certificates that were given for items coming from countries with which the FTA or PTA was there, and its origins were not investigated. But after the new directive, now that certificate will be examined by an independent agency.
