How to Import Goods from China to India —
Importing goods and selling in the local market can be a really profitable affair and can earn you millions if done wisely!
Recent times have seen a huge boost in Import and Export business in India. Many entrepreneurs have taken this route to start their own business in this sector and are really performing great.
If you are exploring how you can import goods from China or any other foreign country to India and have no clue where to start from, you have come to the right place!
The start - Having the required legal infrastructure
The first step is to have a legal entity. A legal entity is an individual, company, or organization which holds a PAN card to transact business operations.
After the legal entity has been registered. You will need to open a current account in any of your preferable banks.
It is also important for the entity to have a GST registration. One can apply for a GST registration by going to their official website.
1. Obtaining Import Export Code (IEC) -
IEC is a pan-based registration of traders with lifetime validity, without which no firm or person can import, unless specifically exempted from doing so. An individual can apply for IEC registration by going to the official website of DGFT
Once the legal infrastructure is in place you would need to check the following list of works –
2. Identify the right Good -
It is very important to understand which goods you want to import from overseas. This process requires a lot of brainstorming and research. You need to be sure that the product you are importing comes under your forte and you can sell them easily in the local market. You need to be sure that the goods are not on the restricted item list of the Indian government and can be imported easily.
3. Finding the trusted supplier -
Now that you know which product you are going to deal with. You will need to find the right supplier in the International market and sure at the right price. Several e-commerce platforms may help you in this process. For example, to import goods from China to India, platforms like alibaba.com connect the manufacturers and wholesalers in China with businesses around the world looking to trade or resell. Then the importer can make a trade inquiry to which he will receive a quotation and other details from the exporter.
4. Procuring Foreign Exchange -
Once the above steps are checked, you will have to arrange the payment in their local currency or dollars ( as will be demanded by the exporter ). The importer has to obtain necessary foreign exchange by applying to the Exchange Control Department of the RBI. You may get in touch with your banker for this step and understand the documents that will be required for the same.
5. Selecting a Reliable Logistics Partner -
After the order is placed, the next step would be to decide the mode of shipment.
You can import the goods through air transport or may consider sea transport. Usually, air transport is the fastest and most convenient way to ship your goods, albeit costly.
Transport by ship is suitable for bulky cargo but takes almost a month or so depending on various factors.
So selecting a reliable logistics partner who can take care of the transportation, keep you updated with tracking details, and also facilitate end delivery with the most convenience is the most important concern while importing goods.
6. Custom Clearance -
Once the goods arrive in the country, the next procedure is customs clearance to release the goods.
The customs authorities will permit the delivery after the usual examination of the goods. But if the goods are liable for duty, the importer has to pay custom or import duty along with goods-specific duties such as anti-dumping duty, safeguard duty, and social welfare surcharge.
Basically, the importer has to fulfill many legal formalities before taking the delivery of the goods. However, instead of undergoing the compliances himself, he may appoint ‘clearing agents’ for taking the delivery of the goods for him.
Clearing agents act like specialized persons performing various formalities required for taking the delivery of goods on behalf of the importer. They charge some fees for performing these services.
As soon as the goods are cleared with the Customs, the CHA will intimate you to take the delivery of the goods.
Generic documents required for importing goods from China:
You will be required to mandatorily submit the following documents for the import of goods into India –
- Bill of Lading/ Airway Bill
- Commercial Invoice cum Packing List
- Bill of Entry
- Import License – Many goods may or may not require an import license. You must go through the import policy related to the specific goods to determine whether the license will be needed or not.
Additional documents like Certificate of Origin and Inspection Certificate may also be required in specific cases.