Tag: China imports

Walmart shifts supply chain focus to India, cuts Chinese imports

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a strategic move to cut costs and enhance supply chain resilience, Walmart, the world’s largest retailer, is significantly increasing its imports from India while reducing reliance on China, according to data from Import Yeti shared with Reuters, as reported by the news agency on Wednesday (November 29).

The figures reveal that between January and August of this year, Walmart imported a quarter of its US goods from India, a substantial increase from just 2% in 2018. Concurrently, the retailer’s reliance on China dropped from 80% in 2018 to 60% during the same period this year.

However, China is still Walmart’s biggest country for importing goods.

Andrea Albright, Walmart’s Executive Vice President of Sourcing, emphasised the need for supply chain resiliency, citing the rising costs of importing from China and escalating political tensions between the United States and Beijing. “We want the best prices. That means I need resiliency in our supply chains. I can’t be reliant on any one supplier or geography for my product,” Albright stated.

Walmart, however, clarified that the bill of lading data provides a partial picture of its sourcing activities and creating redundancy does not necessarily indicate a reduction in reliance on any specific market. The company nonetheless acknowledged India’s emergence as a key component in its efforts to diversify manufacturing capacity.

Since acquiring a 77% stake in Indian e-commerce firm Flipkart in 2018, Walmart has accelerated its growth in the country. The retailer committed to importing $10 billion worth of goods from India annually by 2027, and it remains on track to achieve this target, Albright said.

Walmart is importing a diverse range of goods from India, including toys, electronics, bicycles, pharmaceuticals, packaged food, dry grains, and pasta. India’s rapidly-growing workforce and technological advancements make it an attractive destination for large-scale manufacturing, factors that played a crucial role in Walmart’s decision to shift focus, she noted.

Earlier, Walmart CEO Doug McMillon’s meeting with Indian Prime Minister Narendra Modi in May underscored the company’s commitment to supporting India’s manufacturing growth. Amazon, Walmart’s rival, also announced its intention to target merchandise exports worth $20 billion from India by 2025.

The rising cost of shipping goods from China, coupled with escalating labour costs, has contributed to the shift in Walmart’s sourcing strategy. Supply chain experts point out that sourcing from mainland China has become less competitive due to increasing labour costs compared to other manufacturing centres.

Walmart’s strategic shift is not limited to India alone, as Pakistan and Bangladesh have also benefited from the retailer’s strategy, expanding as suppliers of home and apparel products.

The COVID-19 pandemic exposed weaknesses in global supply chains, prompting companies like Walmart to diversify their sourcing locations to avoid over-reliance on a small number of markets. Walmart’s move reflects a broader trend among large US companies seeking to mitigate risks and ensure a stable supply chain amid geopolitical uncertainties.

With inputs from Reuters

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Amazon, Flipkart and Snapdeal get CCPA notice for violating toy selling norms

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India has stepped up vigil against substandard toys being sold in the country. The Bureau of Indian Standards (BIS) said it has raided over 40 popular toy outlets for selling non-BIS-compliant toys. Several e-commerce companies, including Amazon, Flipkart and Snapdeal, were also violating these norms. Chairman Nidhi Khare told CNBC-TV18 that the Central Consumer Protection Authority (CCPA) had issued notices to Amazon, Flipkart and Snapdeal for violating norms.

Khare told CNBC-TV18 non-BIS compliant toys were being sold by all three e-commerce players and they have been directed not to sell them further.

BIS Director-General Pramod Kumar Tiwari told CNBC-TV18 that the BIS seized over 18,600 toys at 44 locations over the past month. Most of the seized toys were imported from China, he said.

He said search operations took place at several toy outlets, including Hamleys, Archies, WH Smith, Kids Zone, and Cococart located at major airports and malls across the country.

Outlets at Delhi airport, Noida, Ranchi, Chandigarh, Kolkata and more were raided, he said.

Confirming the receipt of the notice, a Flipkart spokesperson said, “Flipkart is a marketplace committed to democratising eCommerce for all in India and enabling lakhs of small businesses connect with customers through technology. As part of our ‘customer first’ philosophy, maintaining the quality of products that sellers offer on our marketplace has always been the top focus area. We remain committed to ensuring the highest quality of products sold on the platform. We have received notification from CCPA and will respond appropriately.”

Disclosure: RIL, the promoter of Reliance Retail that owns Hamleys, also controls Network18, the parent company of CNBCTV18.com.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bureau of Indian Standards office raids sellers of substandard Chinese toys

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Bureau of Indian Standards (BIS) has started a nationwide enforcement drive against substandard toys. The organisation visited various toy sellers who had been selling children’s toys without adequate licences and standards. The agency said on Tuesday that it seized a large number of toys in raids at 25 outlets across the country.

Nation-wide enforcement drive was conducted by Bureau of Indian Standards against outlets selling toys without valid BIS license Toys in huge numbers were seized during the raids undertaken at 25 outlets across the country@jagograhakjago @PiyushGoyal @AshwiniKChoubey @PIB_India pic.twitter.com/PdhLMMVxcb

— Bureau of Indian Standards (@IndianStandards) January 10, 2023

According to the BIS rules, toys are one of the many goods that come under the Mandatory Certification Scheme by BIS. Goods and items under the Mandatory Certification Scheme need to carry the ISI mark before they can be manufactured, sold, imported or distributed in India. The scheme came into effect in January 2021 since BIS issued its Quality Control Order (QCO).

Toys are under Mandatory Certification Scheme of BIS through Quality Control Order and cannot be manufactured, sold, imported or distributed without bearing the ISI Mark.@PIBConsumerFood @PTI_News @mygovindia

— Bureau of Indian Standards (@IndianStandards) January 10, 2023

The month-long enforcement drive was started by the BIS to tackle the issue of illegal imports of Chinese toys. The agency had received complaints from several Indian companies in the segment. Since the order was issued, BIS has granted licences to around 1,000 toy manufacturers and less than 30 foreign manufacturers received appropriate licences.

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“Sub-standard and non-BIS certified toys have been seized during these raids. We started the raids after receiving complaints from domestic players that Chinese toys are being imported in the guise of chocolates, gifts and other items. No Chinese toy manufacturer has been granted a BIS licence till date,” Pramod Kumar Tiwari, director general of the Bureau of Indian Standards (BIS), had recently said on the organisation’s foundation day.

Tiwari said that raids were conducted in cities like Delhi, Kolkata, Mumbai, Hyderabad, Ahmedabad and Pune. Despite the ban on the import of non-certified toys, Chinese toys are still being found in India. Preliminary investigation by the BIS reveals that Chinese toys are being smuggled in, Tiwari told news agency ANI.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China reports export jump of 28% in Sept, imports up nearly 18%, while surplus with US rose to $42 billion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chinas import and export growth slowed in September amid shipping bottlenecks and other disruptions combined with coronavirus outbreaks, according to customs data reported Wednesday.

The report showed exports rose 28.1% to $305.7 billion. That was slightly slower than the 33% increase logged in August. Imports rose 17.6% to $240 billion, accelerating from the previous months 26%.

Disruptions in industrial supply chains have persisted after last years global economic downturn. Renewed clusters of infections in the United States and some other markets also dampened consumer sentiment.

Economists have forecast that surging global demand for Chinese goods will level off as anti-disease controls ease and entertainment, travel and other service industries reopen.

The politically sensitive trade surplus with the U.S. rose to $42 billion from nearly $38 billion in August, the report said.

Overall growth in two-way trade rose 15% in July-September, slowing from 25% year-on-year growth in the previous quarter.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Iron ore price volatile due to China measures; here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Iron ore futures prices declined in China, but the spot prices have continued to gain. Iron ore spot prices saw all-time highs of $235 per tonne in the month of May before a correction saw prices did go down to $185 on the lower side but it is now back above $210 at this point.

The futures prices are down by nearly 20 percent from their all-time highs in the month of May.

The commodity has seen huge volatility, especially because China has been talking about taking further restrictionary measures. China plans to step up an inspection in the spot markets this time around.

There are also plans to check market irregularities like hyping prices, hoarding and inventories that many of the manufacturers also hold.

Moreover, China imports have continued to decline. China imports from Australia fell specifically but the market believes that with the kind of steel production that China is still undertaking, there is going to be a requirement for iron ore.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India imposes anti-dumping duty on certain types of measuring tapes imported from China

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India on Wednesday again imposed definitive anti-dumping duty on certain types of measuring tapes from China for five years to guard domestic manufacturers from cheap imports.

The duty was imposed on ‘steel and fibre glass measuring tapes and their parts and components’ after the commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR) recommended for continuation of the duty.

The DGTR in its sunset review probe has concluded that there is a continued dumping of the goods from China, and the imports are likely to enter the Indian market at dumped prices in the event of expiry of the duty.

The department of revenue in a notification said it seeks “to levy definitive anti-dumping duty on imports of steel and fibre glass measuring tapes and their parts and components originating in, or exported from, China for a period of five years”.

An anti-dumping duty of USD 1.83 per kg will be imposed on some companies, while others will attract USD 2.56 per kg.

“The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded or amended earlier)…and shall be paid in Indian currency,” it added.

The department had imposed the duty first time on July 9, 2015, for five years.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How Atmanirbhar is India’s pharma sector?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Since 2020, imports from China have witnessed disruption, first for COVID-19 and then due to India- China standoff. Total size of pharma market in the country is nearly $35 billion (exports $15 billion and domestic $20 billion) and the sector is heavily dependent on API imports.

According to a CFA India Society research, 70 percent of India’s imports totalling $2.4 billion of APIs comes from China and the country currently has a significant edge over India in API manufacturing in terms of taxation, low utility cost, low interest loans etc. Indian drugs account for nearly 30 percent (by volume) and about 10 percent (by value) in the $70-80 billion US generics market, according to the research.

Disruption will impact drug makers and Indian API suppliers, which rely on Chinese imports and could also lead to a sharp increase in raw material prices.

While majority of the imports come in for the sector, there are certain companies which are heavily dependent on China. The following excerpts are taken from management interaction, annual reports and conference calls:

IOL Chemicals:
Nearly 35-40 percent APIs and intermediates come from Wuhan province.

Cipla:
A big chunk of its pharma value chain is linked to China.

China has a significant value chain linkage for all pharma companies.

Granules:
The company will be impacted if China import hold-up goes on for a few weeks.
30-35 percent of sales will be impacted if paracetamol imports are impacted.

Solara:
Dependence on China is about 30 percent in terms of raw material.
The company says it will try to bring down dependence.
There are domestic suppliers for one of those key raw materials which it buys.

IPCA:
A lot of key starting materials come from China.
Focus is on building these all 7, 8 intermediates which they have high dependence on China.
The company says it will reduce those kind of dependence in time to come.

Alembic:
Dependence on China is 15 percent of the overall imports.

Aurobindo: annual report:
A major portion of the Company’s raw material sourcing comes from China, and it is a concern for the company.

While the government has introduced policies to reduce dependence on China by allocating 7,000 crore worth of funds to provide production linked incentives, it remains to be seen how quick the execution happens and how Atmanirbhar India becomes a reality in times to come.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Prior approval for power supply equipment imports from China mandatory, says govt

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The power ministry has made prior permission mandatory to import electricity equipment – used in supply network – from prior reference countries like China and Pakistan.

The decision taken by the ministry amid a stand-off with China at the border.

For India, China and Pakistan are prior reference countries with whom it shares land border.

Earlier in the day, Power Minister R K Singh told his state counterparts in a virtual conference that India will not give permission for import of power equipment from prior reference counties.

The recent order of the ministry is a step in that direction to discourage imports from reference countries, mainly China.

He has also asked states not to order equipment for their Discoms from Chinese companies.

Besides, the ministry has made it mandatory to test all imported equipment to be used in power supply system to eliminate possibilities of cyber attacks through malware / Trojans.

In an office order issued on July 2, the ministry said, “Any import of equipment or components or parts from “prior reference” countries as specified or by persons owned by, controlled by, or subject to the jurisdiction or the directions of these ‘prior reference’ countries will require prior permission of the Government of lndia”.

According to the order, all equipment, components, and parts imported for use in the power supply system and network will be tested in the country to check for any kind of embedded malware/trojans/cyber threat and for adherence to Indian standards.

All such testings will be done in certified laboratories that will be designated by the Ministry of Power, it noted.

“Where the equipment or components/parts are imported from ‘prior reference’ countries, with special permission, the protocol for testing in certified and designated laboratories shall be approved by the Ministry of Power,” it added.

This order will apply to any item imported for end use or to be used as a component, or as a part in manufacturing, assembling of any equipment or to be used in power supply system or any activity directly or indirectly related to power supply system, the ministry said.

Power supply system is a sensitive and critical infrastructure that supports not only our national defence, vital emergency services, including health, disaster response, critical national infrastructure such as classified data & communication services, defence installations, manufacturing establishments, logistics services, but also the entire economy and the day-to-day life of the citizens, the ministry noted.

The ministry is of the view that any danger or threat to power supply system can have catastrophic effects and has the potential to cripple the entire country. Therefore, the power sector is a strategic and critical sector.

The vulnerabilities in the power supply system and network mainly arise out of the possibilities of cyberattacks through malware / Trojans etc embedded in imported equipment, the ministry stated.

It has taken this decision to protect the security, integrity and reliability of the strategically important and critical power supply system and network in the country.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Relief for pharma firms as customs starts clearing of consignments with China origin-APIs, status quo on the rest

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After days of delay, customs officials have begun to clear Chinese-origin consignments containing Active Pharmaceutical Ingredients (APIs) across ports, sources in the know told CNBC-TV18.

Customs officials have now started to issue orders to clear these consignments, after pharma companies raised concerns that the delays may lead to hamper production of essential life-saving drugs. Shipments for Dr Reddy’s Labs and Aurobindo Pharma already received clearances on Tuesday.

Customs officials and other agents involved in handling China-origin cargo, including CFSes, port and airport authorities are acting on unofficial instructions to hold back these shipments for a 100 percent physical examination at the item-level, including those containers which have received an Out Of Charge Order.

However, sources say, even after being stranded for over a week, a vast majority of the containers have still not been opened up for an examination, as clearing agents cite inordinate delays and a total lack of probable clearance time-lines. These shipments will start to rack up penalties in the form of port charges, warehouse charges, ground rent and demurrages if the delays continue.

However, for the ninth day running, there are no instructions yet for clearance of other consignments. Since Monday, customs officials permitted AEO – Tier 3 complaint importers to have their shipments cleared without a full examination. However, these importers are minuscule in number and in some cases, such as Toyota Kirloskar Motor, do not have direct sourcing from China.

Sources say some bills of entry are now also getting generated at the Kolkata port, but for all other ports, the situation remain status-quo.

Most Chinese import orders are pre-paid as the country rarely ships orders on credit. Add to that the penalties on delays that importers will have to pay shipping lines and Container Freight Stations (CFSes), if these are not explicitly waived off by a government order.

Container Freight Stations and shipping lines are privately operated.
Industry bodies have highlighted that prolonged delays will hamper production by affecting the supply chain.

“We fear that if the supply chain is broken, then there will be severe shortage of essential communication, equipment required for health, work-from-home and online education goods such as smartphones, tablets and laptops since alternative supplies are not available in the local and global markets amidst the COVID-19 outbreak,” electronics body ICMEA said in its letter to the finance ministry and customs authority.

ICMEA said that opening finished products could lead to their getting soiled and becoming unfit for sale.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Chinese import restrictions: Pharma companies seek more time to meet export orders from foreign clients

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian businesses continue to face hurdles due to import restrictions on consignments of Chinese origin. Some of the worst-hit sectors such as pharmaceuticals, automobiles and auto ancillary, fertilizers, chemicals, etc have made a slew of representations to the government, seeking early clearances.

Pharma industry sources have told CNBC-TV18 that individual companies have now started writing to their domestic and international clients seeking more time to meet export orders, citing longer customs clearance of imported raw material as a prime reason for the delay in meeting order obligations.

Meanwhile, senior government sources added that “Department of Pharmaceutical made an SOS call to Finance Ministry and PMO, seeking immediate clearance of Active Pharmaceutical Ingredient (APIs), Key Starting Raw Materials (KSM’s) and intermediates. Post which, customs authorities from June 30 started clearing imports across Indian ports.”

Clearances, however, are happening for consignments post proper checks, inspections as desired by the customs latest protocols.

The pharma companies and their industry bodies have written afresh yesterday to Finance Minister Nirmala Sitharaman, Cabinet Secretary- Rajiv Guaba, Health secretary Preeti Sudan, Commerce Minister Piyush Goyal, Principal Secretary to PM requesting for expediting clearance of import consignments.

“There has been a huge disruption on account of inordinate delay in Customs Clearing from last one week” and non-clearance of imported Pharma Key Starting Raw Materials (KSM’s), Intermediates & API’s, COVID related medical devices, as well as diagnostics from ports particularly Nhava Sheva & Delhi Airport, are hurting the industry, said the letter.

“There are many international commitments, Indian pharma companies have export orders in advance from a lot of countries in Africa, EU, etc, were not meeting these commitments, there are serious penal provisions. Many pharma companies have global tie-ups where drugs and medicines need to be supplied from India and they get branded and marketed in those countries, so now pharma companies are forced to reach to their clients, seeking an extension of order timelines caused due to the import restrictions. Holland, Germany have already sounded that in the next one or two years they will start pharma manufacturing in their own country and reduce their reliance on India. So there is hardly enough opportunity left and such man-made barriers impact the international reputation of Indian manufacturers,” said Dinesh Dua, Chairman Pharmexcil.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow