Trade between the European Union and India is set to soar in the years ahead, thanks to the comprehensive Free Trade Agreement (FTA) recently reached between the two economies. This “mother of all trade deals”, the outcome of 20 years of negotiations, will reduce tariffs on 99.5% of all Indian goods and services entering the EU.
The deal, still pending approval by the EU parliament, EU Council and India’s Council of Ministers, is expected to come into full force in 2027. It will create a free market of two billion people, accounting for a quarter of global GDP. Notably, about 91% of Indian exports will enter the EU entirely duty-free.
Game-changer for Indian fashion
The FTA will level the playing field for India’s textile, apparel, leather, and footwear sectors, as it will eliminate EU tariffs currently ranging from 12% to17%. This will allow Indian exporters to compete on equal terms with rivals from countries like Bangladesh, Vietnam, Pakistan, and Turkey, who already enjoy zero-duty access.
The Netherlands: gateway to EU
For Indian companies eyeing European expansion, the Netherlands is the perfect entry point. Beyond the country’s world-class logistics infrastructure, its so-called Article 23 regime allows for a net-zero VAT impact on imports. Meanwhile, to help navigate the complexity of EU regulations, specialist service providers are on hand. They offer all-round support with VAT deferment, VAT administration, compliance and any practical or logistical issues.
The right backing
Cableroad, a leading fiscal agent serving importers into the EU since 2014, is already scaling its operations to handle the anticipated surge in demand from Indian businesses. “We’re looking forward to supporting this client group,” says CEO Koen Slobbe. “Importing into the EU is seamless with the right backing. Cableroad has the expertise and connections to shoulder the client’s administrative burden. We ensure compliance and keep their goods moving, so they can stay focused on their core business.”
As a Dutch-licensed Fiscal Representative, Cableroad arranges VAT deferment, so that no up-front VAT payment on entry of goods is necessary. By offsetting the VAT payment against the VAT return filing, the result is a significant cash-flow benefit: zero cash out on import. Being a licensed Importer of Record as well, Cableroad can take care of the client’s customs clearing and compliance with EU regulations.
Extended offering
For clients aiming higher, Cableroad also offers One-Stop Shop (OSS) services, VAT warehousing and even corporate tax advice and structuring. “Whatever your next step is in the EU market,” says Slobbe, “we have the services that match your ambitions.”