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Looking for advice for manufacturing in India

  • 11-02-2013 12:11pm
    #1
    floatingup
    Registered Users, Registered Users 2 Posts: 1 ✭


    Hi Folks,

    I'm setting up a new website for bespoke a baby clothing product. I want to get the manufacturing done in New Delhi (I have family and friends livingthere) but I don't know where to start. Is it best to outsource the full manufacturingto one company? Or should I set up my own operation in India? ( I'm awarepaperwork and redtape can be a nightmare in India)

    I need to have a close working relationship with the manufacturer as each item is bespoke. Does anyone for any experience of good suppliers and what isthe best way to get the products imported?

    I estimate it will be 2 fulltime staff to start with and increasing to 5 within a year.

    I believe as it is baby clothing there is no VAT charged but I'm not sureabout import tax - is that the same?

    Any advice is greatly appreciated or any other pitfalls I need to beaware of.

    Thanks


Comments

  • #2
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    You are well positioned to have this information procured locally in India with your relatives, friends and contacts there.

    The rate of duty will depend on the Tariff Code of the items and different types of clothing have different codes, and rates can vary from one non-EU country to another. Use tariff code searches on Google and be aware of anti-dumping duties.

    Freight costs will depend on shipment volumes, a box, a pallet, a full container.


    Cheers

    Peter


  • #3
    RUDOLF289
    Registered Users, Registered Users 2 Posts: 794 ✭✭✭RUDOLF289


    floatingup wrote: »
    Hi Folks,

    I'm setting up a new website for bespoke a baby clothing product. I want to get the manufacturing done in New Delhi (I have family and friends livingthere) but I don't know where to start. Is it best to outsource the full manufacturingto one company? Or should I set up my own operation in India? ( I'm awarepaperwork and redtape can be a nightmare in India)

    I need to have a close working relationship with the manufacturer as each item is bespoke. Does anyone for any experience of good suppliers and what isthe best way to get the products imported?

    I estimate it will be 2 fulltime staff to start with and increasing to 5 within a year.

    I believe as it is baby clothing there is no VAT charged but I'm not sureabout import tax - is that the same?

    Any advice is greatly appreciated or any other pitfalls I need to beaware of.

    Thanks

    Hello Floatingup,

    I can give you some help on the shipping / import / customs side of things.

    Baby garments (assuming they are cotton) are customs tariff nr 6111 20 90
    You are correct in saying that they are zero rated from a VAT point of view.
    Customs duty for clothing is normally 12%. However, if the goods are accompanied by a GSP Form A, a reduced rate of 9.6% applies.

    The duty is calculated over the cost of the product plus freight cost and a nominal charge for transport insurance.

    In terms of shipping, since these are a bespoke product and likely to ship in relative small quantities, you are likely to use courier (DHL/UPS/FEDEX etc) or airfreight, certainly in the initial stages.

    In order to work out costs would need some additional information. PM me if you need further assistance

    Cheers,
    Rudolf289


  • #4
    Compton
    Registered Users, Registered Users 2 Posts: 3,157 ✭✭✭Compton


    Just a quick q

    I've just imported some goods, and the first time using fedex

    on the invoice it says "Disbursements out of the scope of EU VAT" this is the main charge, my q is, can I claim this back?

    Thanks!


  • #5
    RUDOLF289
    Registered Users, Registered Users 2 Posts: 794 ✭✭✭RUDOLF289


    Compton wrote: »
    Just a quick q

    I've just imported some goods, and the first time using fedex

    on the invoice it says "Disbursements out of the scope of EU VAT" this is the main charge, my q is, can I claim this back?

    Thanks!

    Hello Compton,

    You may need to clarify with FEDEX what this charge is. If it is VAT paid on imports from outside the EU, yes, you are able to claim it back through your periodic VAT return.

    Alternatively, the charge may actually be the freight costs. Outside the scope of EU VAT suggests that zero rate of VAT has been applied as transportation costs to countries outside the EU or from outside the EU is not subject to VAT.

    If you want to e-mail me a copy of the invoice (rudy@rdglogistics.eu), I can have a look at it for you and advise further on same ?

    Cheers,
    Rudolf289


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