Govt moves to release Chinese supplies stuck at ports

Tribune News Service

New Delhi, July 1

The government is attempting to ease bottlenecks in China-origin supplies to critical domestic sectors and for India-based conglomerates from friendly countries such as South Korea, Japan and Germany.

The 100% inspection of shipments from China at Indian ports caused a tailback in Hong Kong and Shanghai leading to two US freight forwarders to suspend services. Indian apparel, drugs and automotive sectors also sought exemptions from the intensive inspection regime in order to meet urgent domestic and export commitments.

The impact was not on China alone and customs authorities are now working on easing the situation in sectors critically dependent on imports from China, especially the automotive and pharma sectors. Respite will be given to a dozen top conglomerates sourcing components for their white goods, consumer durables and automobile operations from China.

Sources in the customs department maintained inspections are usual to dissuade importers from under-invoicing and mis-declarations. In the past weeks, inspections have been intensified because of the possibility of mischief in view of the Sino-Indian tensions on the border. They also pointed out the two US companies who have announced the suspension of their operations account for a fraction of total China-India trade.

The Indian automotive industry said the logjam at the ports has led to bottlenecks in the supply of critical parts such as gear boxes.