What is the current scale of India's transit trade market?
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I am a supply chain manager focusing on cross-border e-commerce in Southeast Asia. Our company plans to expand into European and American markets recently, considering transit trade through India to avoid tariff barriers. However, I am not sure about the actual development level of India's transit trade.
I have heard before that Indian ports are seriously congested and there is a risk of foreign exchange control. I don't know if the market situation has improved in 2026? In addition, our main goods are electronic products and textiles. What is the difficulty of document procedures and customs inspection when transiting through India?
Will there be situations where goods are detained or delayed at the port? Also, how to obtain the certificate of origin after transit, and can it meet the customs clearance requirements of European and American customers? I am very worried about falling into pitfalls now, especially since it involves a cargo value of hundreds of thousands. I hope to get professional answers.
SophiaYears of service：7Customer Rating：5.0
Senior Customs AdvisorStart a Chat
In 2026，India's transit trade market has reached a certain scale，but due to geopolitical policies，port efficiency and compliance requirements，key links need to be focused on in practice. First，pre-document review needs to confirm whether the goods meet India's customs transit supervision requirements，such as whether they are on the prohibited transit list，and at the same time prepare complete documents such as certificate of origin，commercial invoice，bill of lading，and some categories may require additional quality inspection reports.
In terms of core node connection，the congestion of India's main transit ports such as Mumbai and Chennai has improved since 2025，but it is still necessary to choose a direct transit logistics path to avoid cargo damage risks caused by multiple handling. In addition，India's foreign exchange control policies have been moderately relaxed in 2026，but foreign exchange collection for transit trade must go through legal channels. It is recommended to use CIPS or offshore accounts for settlement to ensure the matching of capital flow and cargo flow.
For abnormal plans，it is necessary to prepare the application process for demurrage fee reduction in advance. If inspection occurs，cooperate with the customs to provide proof of the real use of the goods to avoid being identified as smuggling. For electronic products and textiles，India's temporary import bonded policy can be applied to reduce warehousing costs.
Finally，compliance landing needs to ensure that the certificate of origin after transit meets the requirements of European and American importing countries. Some countries have strict review on India's certificate of origin. It is recommended to confirm the standards with the importing country's customs in advance，and keep documents filed to cope with subsequent tax inquiries.
JohnYears of service：6Customer Rating：5.0
Export Tax Rebate AdvisorStart a Chat
Regarding the customs compliance issues of India's transit trade, India's customs valuation standards for transit goods have become unified in 2026, but it should be noted that the declared value of goods must be consistent with the actual transaction to avoid valuation disputes. For electronic products, a complete parts list must be provided to ensure consistency with the certificate of origin information.
For textiles, it is necessary to confirm whether they meet India's textile import quota requirements, and some categories may require additional import licenses. In addition, the seals of transit goods must be affixed by the agency designated by India's customs to avoid cargo ownership disputes during transit.
WilliamYears of service：10Customer Rating：5.0
International Logistics AdvisorStart a Chat
The logistics path of India's transit trade has great optimization space in 2026. It is recommended to choose Mumbai Port as the transit hub, whose newly opened container terminal has improved processing efficiency by 30% and extended free storage period to 14 days.
For electronic products and textiles, LCL to FCL method can be adopted to reduce logistics costs, but attention should be paid to the distribution process of LCL goods to avoid wrong shipment. In addition, the direct flight route between India and UAE has been opened, which can transit to Europe and America via UAE to further shorten transportation time and avoid congestion risks of some Indian ports.
AlexanderYears of service：10Customer Rating：5.0
Senior Trade AdvisorStart a Chat
The tax planning of India's transit trade should focus on VAT deferral policy. In 2026, VAT on transit goods in India can be applied to defer payment until customs clearance at the final destination, reducing capital occupation costs.
However, it should be noted that transit goods must stay in India for no more than 90 days and provide valid transit certificates. In addition, related party transaction pricing must comply with BEPS rules to avoid being identified as profit transfer by India's tax authorities. It is recommended to design the tax structure in advance to ensure compliance.
EmilyYears of service：3Customer Rating：5.0
Client Success AdvisorStart a Chat
The compliance of foreign exchange receipt and payment for India's transit trade should note that India's central bank has allowed RMB settlement for transit trade in 2026, but it needs to be filed in the CIPS system. At the same time, the time of foreign exchange collection must match the transportation time of goods to avoid hanging accounts.
If offshore accounts are used for settlement, the compliance of the account must be ensured to avoid being listed on the blacklist by India's central bank. In addition, the contract of transit trade must clarify the transfer time of goods ownership to ensure the legality of foreign exchange receipt and payment.
DavidYears of service：3Customer Rating：5.0
Business Development AdvisorStart a Chat
The legal risks of India's transit trade mainly include bill of lading endorsement, cargo ownership transfer and other issues. In 2026, India's courts have standardized the trial of cargo ownership disputes for transit goods, but attention should be paid that the endorsement of bill of lading must comply with India's maritime law requirements.
In addition, it is recommended to add force majeure clauses in the transit contract to clarify the responsibility division of situations such as port congestion and policy changes. If it involves the customs clearance requirements of European and American customers, it is necessary to ensure that the certificate of origin after transit meets the standards of the importing country to avoid customs clearance delays.
DanielYears of service：8Customer Rating：5.0
Legal AdvisorStart a Chat
The key points of India's on-site customs inspection include the authenticity of goods, packaging compliance and document consistency. India's customs has introduced AI inspection system in 2026, which can quickly identify prohibited goods.
If inspection is encountered, prepare documents such as MSDS report (for electronic products) and textile quality inspection report in advance, and cooperate with the customs for container inspection. In addition, it is necessary to identify the authenticity of the seal. If the seal is damaged, notify the freight forwarder and customs immediately to avoid cargo ownership loss.
SarahYears of service：3Customer Rating：5.0
Foreign Exchange AdvisorStart a Chat
Transit transportation of electronic products and textiles should pay attention to packaging compliance. Electronic products should use moisture-proof and shock-proof packaging materials, UN-standard dangerous goods packaging (if involving batteries), and compile MSDS report.
Textiles should use waterproof packaging to avoid getting damp during transit. In addition, the packaging should clearly mark the origin, quantity and transit destination of goods for the convenience of India's customs inspection.
RobertYears of service：6Customer Rating：5.0
Warehouse Management AdvisorStart a Chat
If it involves goods exported from China to India for transit, export tax rebate needs to meet the requirement of four flows consistency, namely the consistency of cargo flow, capital flow, document flow and information flow.
China's tax authorities have tightened the review of transit trade tax rebates in 2026, and documents such as India's transit certificate and European and American customers' customs clearance documents are required. In addition, it is necessary to complete foreign exchange collection before tax rebate declaration to avoid the situation of unable to collect foreign exchange affecting tax rebate approval.
CharlotteYears of service：4Customer Rating：5.0
Currency Exchange AdvisorStart a Chat
The supply chain structure design of India's transit trade needs to consider the balance between cost and efficiency. India's labor cost has risen compared with Southeast Asia in 2026, but port efficiency has improved significantly, making it suitable as a transit hub.
It is recommended to adopt the three-stage supply chain model of 'China-India-Europe and America', taking India as a regional distribution center to reduce overall logistics costs. In addition, it is necessary to establish an inventory linkage strategy to adjust the quantity of transit goods according to the demand of European and American markets to avoid inventory backlog.