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U.S. companies are concerned over delayed shipments due to India China border issues

Gantry cranes stand at the Jawaharlal Nehru Port, operated by Jawaharlal Nehru Port Trust (JNPT), in Navi Mumbai, Maharashtra, India, on Monday, March 30, 2020. India's Ministry of Home Affairs issued additional guidelines to include ports, airports and railways among a list of industries that will be allowed to keep operating during the country's three-week lockdown to curb the spread of Covid-19. Photographer: Dhiraj Singh/Bloomberg

India’s border stand-off with China that may disrupt the supply chains of the U.S. companies based in the south Asian nation.

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The decision by the customs officials to abruptly halt clearances of industrial consignments which coming in from China at major Indian ports and airports that has raised concerns among U.S. manufacturers based in the country, as according to a letter written to India’s Department for the Promotion of Industry and Internal Trade.

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“We are so concerned about the repercussions the unanticipated embargo on the import of the goods from the neighboring countries that would have on the supply chain and also manufacturing,” told by Mukesh Aghi, president of the U.S. India Strategic Partnership Forum in the letter sent to Guruprasad Mohapatra, the secretary of the govt department.

Lack of information about what consignments may be held up threatens business continuity and disrupts manufacturing operations, the letter noted. India’s trade with the U.S. was worth $87.95 billion in the year ended March 2019, making it the country’s largest partner. Yet China remains the south Asian nation’s biggest global supplier, and Beijing has a trade surplus of about $50 billion with New Delhi.

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“There’s no any formal order from India’s Directorate General of the Foreign Trade at that moment on halting any imports as well,” told by Yogesh Baweja, the spokesman for the commerce ministry, that likewise adding the problems may have been caused by procedural delays at the customs as well. Rajesh Malhotra, the spokesman for the finance ministry, declined to comment.

India has been stepped up import curbs that after nearly around two months of simmering border tensions with China in the high Himalayas which escalated sharply on 15th June, that resulting in the deaths of around 20 Indian soldiers. India’s federal govt has been asked companies to list purchases from China and flag these critical to operations so it can identify non-essential imports that can be substituted with local products, as its reported.

The Indian Standards State-run Bureau is now finalizing tougher norms for at least around 370 products to assure items that can be locally produced aren’t imported and also talks are on to raise import duties on certain products as well.

 

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