But did you know…
FTAs can reduce it to 0-5%?
Example:
Diesel engines from Malaysia:
→ 5% under India‑ASEAN FTA (Free Trade Agreement) vs 15% standard.
Electric generators:
→ 0% India–ASEAN FTA vs 7.5% standard.
5 FTA benefits importers should never overlook:
→ Zero or reduced customs duty on eligible goods
→ Simplified and faster clearance procedures
→ Access to wider supplier markets
→ Clearly defined Rules of Origin
→ Legal framework for trade dispute resolution
→ Even if the invoice is issued from Country A, And the goods are shipped from B, you may still qualify for FTA.
→ It’s called “Bill‑to‑Ship‑to.”
→ Many FTA cover this situation as well.
→ India is forging FTAs with UK, EU, Canada.
→ Every deal could cut your import costs.
So what’s your next move?
- List your imports.
- Check FTA eligibility.
- Get the necessary docs.
- Claim duty savings.
- Check if your supplier country has an active or upcoming FTA with India.