Your eyes and hands in India · Est. 2019 · Replies within one working day

India engineering exports and US trade: what buyers should know

India's engineering exports reach the US, Europe and Africa, but tariffs and trade terms change often. Here is how to check the current position for your product.

· 3 min read · Creston & Co

India's engineering exports go to the US, Europe, the Middle East and Africa, and trade terms between India and the US have changed repeatedly in recent years. For a buyer, the practical question is not the overall trade picture but the duty and rules on your own product, which you must check at the time of ordering.

We do not quote export totals or tariff rates here. They are revised often, and the numbers in this article would be stale quickly.

What do India's engineering exports include?

Engineering goods cover a wide range: iron and steel products, castings and forgings, machinery and parts, vehicles and auto components, pumps, valves, hand tools and electrical equipment. Gujarat contributes through clusters in Rajkot, Ahmedabad, Jamnagar and Sanand. See export markets for Gujarat engineering for where these products tend to go.

Official export data are published by the Indian government and by industry bodies. If you need a number for a plan, use the latest release and note its date.

How should you check US duties?

Follow these steps for any product you plan to import into the US:

  • Find the correct tariff code for the product. See our note on HS codes for a machine or a part.
  • Look up the duty for that code in the official US tariff schedule, and check for any additional tariffs or trade remedies that apply to goods from India.
  • Check whether the steel, aluminium or auto content of the product triggers separate measures.
  • Confirm all of this with a licensed customs broker, close to the date of shipment, since measures can change at short notice.

What does this mean for auto parts?

Auto parts attract their own rules in the US and the EU, which can differ from those for general machinery. Our note on tariffs on Indian auto parts in the US and EU explains how to find the current position.

Origin matters. Rules of origin decide where a product is regarded as made, and a part with much foreign content may be treated differently from one made largely in India. Ask the supplier for a declaration of origin and the basis for it.

What about Africa and other markets?

India's engineering goods to Africa include pumps, tractors, agricultural machinery, electrical items and spare parts. Duties, import licences, standards and inspection schemes differ by country. Some African countries require pre-shipment inspection or a conformity certificate, so ask your customs broker or national standards body what applies.

Trade agreements may reduce duty for some routes, but only if the goods meet the origin rules and you hold the right certificate. Check before you rely on a preference.

How should a buyer plan?

Build duty changes into your terms. Agree who pays additional duties if they rise between order and arrival, and avoid fixing a landed cost far ahead without a review clause. Our guide to FOB, CIF or DAP shows how terms divide cost and risk.

Next step

We can help you source Indian engineering goods, check documents and origin papers, and plan shipments around your destination rules. To start, book a free sourcing review.

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