Export Import in India: How the Right Infrastructure Makes the Difference

India’s trade in export to imports has grown significantly in the last ten years due to an expansion in manufacturing capacity, the increasing number of goods being traded and additional connections with global supply chains. With the growth in export/import trade volumes and the development of regulatory frameworks regulating that trade, businesses engaged in this type of trade are now reliant on having appropriate infrastructure and logistics available for their support.

What Export Import Trade Involves

In essence, export/import trade consists of the transportation of products between countries (exporting items internationally (out) and importing items from other countries (in)). As it relates to India, this includes the movement of agricultural bulk commodities; industrial raw materials; finished consumer goods; pharmaceuticals; textiles; special chemicals.

There are numerous steps involved in each export/import transaction; these steps include documentation & compliance; customs examination and customs clearance; cargo handling and storage; and transportation of the containers from the port of origin or the port of destination. The amount of time, costs, and reliability to a supply chain when these steps are carried out can impact how efficient they are.

Key Challenges in Managing Export Import Cargo

Export import logistics require several different parties to work together. These parties include shipping companies and rates, customs brokers and customs authorities, freight forwarding agents and cargo operators, warehouse operators, and good-quality vehicle to the warehouse. Any delays in one part of the chain will impact all parts of the chain—changing the expected timeframe for delivery, increasing costs of holding cargo while in transit or in storage.

For SMEs starting in international markets for the first time, export/import logistics may seem very complicated. However, with the correct support from infrastructure partners, proper documentation, and compliance processes correctly organized, export/import logistics can be easily managed and executed.

The Role of Terminals and Warehouses in Export Import

The transportation of goods between countries has many obstacles. Container freight stations (CFS), inland container depots (ICD) and warehousing providers help ensure consistency in the movement of goods in and out of a country.

CFS consolidate multiple exporters’ LCL (less than container load) shipments into full containers, allowing exporters that do not have enough cargo to ship via an entire container (full container load) to utilize global shipping lanes efficiently and cost effectively.

When goods are imported into the United States through these facilities, they are processed similarly – the facility receives full containers, conducts customs clearance and provides the necessary customs documentation in a timely and efficient manner for the individual consignees shipping from the same port. Warehousing strategically located in proximity to ports or ICDs further help provide timely and accurate storage, sorting, and final distribution of goods to be shipped to end users on time, as is expected from modern-day supply chains.

Documentation and Compliance in Export Import

For export import operations to be successful, the completion of documentation must be done in an accurate and timely fashion. The core documents needed for each transaction include shipping bills; bills of lading; commercial invoices; certificates of origin; and customs declarations. For the documentation to be handled properly and the cargo to move through the system without unnecessary delays, an experienced logistics partner with established customs relationships is important to have.

Indian customs processes have been progressively digitalised over the last few years, with platforms such as ICEGATE providing easier, faster, and more transparent methods of completing export import formalities. Businesses working at facilities that are well-integrated with the digital processes will see their clearances completed faster and be able to monitor their cargo status more easily than those that do not.

Allcargo Terminals’ Role in Export Import Facilitation

Import-Export Trade is an important part of the supply chain. Allcargo Terminals has successfully supported Import-Export Trade for companies using CFS facilities, ICDs, and warehousing facilities throughout. With Allcargo Terminals’ infrastructure and expertise, businesses can efficiently manage their international cargo from consolidation (Cargo), customs processing and distribution. The different facilities provided by Allcargo Terminals support various stages of the Import-Export process.

Building a Foundation for Trade Growth

With a growing economy and an increasing share of the global economy, companies that invest heavily into developing a strong supply chain will find themselves in an advantageous position when looking at their future. Having a logistics partner who has years of experience will allow for better management of the complexities associated with moving goods around the globe and a consistent way to fulfil orders for customers.