Global Trade, Customs & GST

Goods and Services Tax (GST)was introduced in India with effect from 1 July 2017. GST is an indirect tax and has replaced a plethora of erstwhile duties, taxes, cesses and levies. The objective of GST introduction is to achieve a One Nation-One Tax regime as well as eliminate the erstwhile complex system of indirect taxation and cascading of levies. Here we discuss the fundamental structure of GST in India.

Free Trade Agreement (FTA) is an arrangement between two or more countries or trading blocs that agree facilitate trade and to reduce or eliminate certain barriers to trade in goods, services, and investments. Ordinarily, whenever a product is traded across international borders, the importing and exporting countries apply certain charges, which are in the nature of tariffs or duties on the products being exchanged. Such an imposition of tariff/duty invariably increases the cost of procuring the products. FTAs seek to reduce or eliminate such tariffs and thereby make available easy access to the domestic markets of partner countries. FTAs are entered into primarily, in relation to goods and services; however, extensive agreements may even provide relaxations in investor regulations and facilitate transfer of Intellectual Property.

Organizations are increasingly using Customs Bonded Warehousing license to manufacture goods with the objective to reduce compliances and better cashflow management. To understand this concept better, please read the FAQs.