India has been experiencing robust growth for the past few years, driven by the dynamic expansion in its services and manufacturing sectors. Foreign investment is flowing rapidly into the Indian economy and the constant rise in the BSE Sensex and NIFTY indices points towards the confidence of foreign and domestic investors. However, India has a complex legal and regulatory regime, further compounded by the sometimes overlapping responsibilities of the Central and States, as well as by the different policies and practices adopted by individual States. Whether companies are already in India or are seeking to do business in India, they often find themselves confused by the number of regulatory requirements, as well as the different practices, depending on the locality. The result is the inability to optimize their business set-ups, and in the worst case scenario, face administrative and criminal charges for violations of Indian laws and regulations.

Bryan Cave International Trade has extensive customs, trade and investment expertise in India. With support from our local partners, we advise clients on their business strategies and operations in India, compliance with India’s laws and regulations governing exports, imports, in-bound investments, direct and indirect taxes, transfer pricing, valuation, classification, franchising, incorporation, and joint ventures, and the general conduct of business in India.  

Strategic Business Advisory

Bryan Cave International Trade assists clients in identifying and analyzing the risks and opportunities for their investment and business strategies in India. Specifically, we advise clients on:

• Identifying the restrictions and requirements when establishing operations in India, such as conditions for setting up representative offices, distribution services, logistics services, trading entities;

• Structuring their operations to capitalize on certain special schemes, such as bonded zones, bonded warehouse schemes, special economic zones, free trade zones, export processing zones;

• Reviewing transaction, documentation, supply chain and financial flows, identifying the cost-savings opportunities as well as assessing the risks;

• Examining the current pricing practices and determine whether they meet with India’s transfer pricing policy; and

• Integrating their Indian operations into their global business network.

We also monitor and analyze the evolving regulatory and administrative environment in India, and in the Asian region, affecting customs, trade and investment. We anticipate movements in policy direction, regulatory changes and competitive developments that would affect their business and operations. We offer insights into the latest policy thinking, as well as government decisions and actions with regard to specific issues or sectors. In addition, we report on the status and direction of on-going FTA discussions and implications of the on-going discussion in relation to a client’s business and operations.

Customs Compliance & Advisory

India has been establishing special zones and offering incentives to attract companies to locate in India; some of these incentive schemes are offered at the State or local level. In order to capitalize on such privileges, companies need to understand and keep up with the strict regulatory requirements. These include determination of the origin of goods, tariff classification and valuation. If the requirements are not properly complied with, companies may face significant penalties.

Bryan Cave International Trade provides assistance in identifying cost saving opportunities, reviewing and implementing customs compliant systems. Specifically, BCIT assists clients in:

• Reviewing transaction, documentation, supply chain and financial flows, identifying the cost-savings opportunities as well as assessing the risks;

• Providing up-to-date information about the conditions and criteria for granting privileges, in order to identify cost-saving opportunities as well as minimize risks;

• Reviewing importations to ensure that information provided to India Customs is accurate and complies with the relevant rules and regulations;

• Reviewing goods and document flows, correspondences, internal controls and systems, contracts and agreements, and transfer pricing policies;

• Determining the declared value of imports for customs purposes. This includes advice relating to dutiable elements not included in the invoice price as well as possible exclusion of certain costs, partially or wholly, from the transaction value resulting in lower customs value and thus, reduced payable duty/tax;

• Determining/verifying the origin of the goods pursuant to relevant rules of origin to exercise the appropriate import duty reduction privileges;

• Developing a reliable and practical internal system to ensure customs compliance;

• Reviewing and updating transfer pricing policies from the perspective of indirect tax planning and assisting in risk analysis; and

• Training relevant personnel to ensure that they understand the customs issues and know how to manage them effectively.