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China is one of India’s top trade partners. Many Indian companies seek out Chinese suppliers for raw materials and ready-made products. However, those unfamiliar with international trade may find the importing procedure particularly daunting.
Importing from China to India is not always the straightforward procedure. Many rules, risks, and expenses can make the process further complicated.
For an import to go off without a hitch, we’ve laid out all the necessary processes and conditions here. Be it customs and import restrictions, choosing popular items, or cost-saving tactics!
9 Simple Steps to Import from China to India
Many people think importing goods from China to India is easy. However, things get complicated when they come across legal procedures. So, here we will discuss all the crucial steps involved in importing goods from China to India.
Step 1: Choose the Product and Supplier
Examine different suppliers thoroughly to learn more about them. You can check their track record, quality standards, and compliance with applicable laws. You must look at their expertise in global sourcing. Use reliable platforms like Global Sources, Alibaba, and others to find supplier contacts.
Step 2: Get an IEC
An importer must have a valid Import Export Code (IEC). It is a unique 10-digit code that serves as a license to import and export products. It is required by the Indian government’s Directorate General of Foreign Trade (DGFT).
Step 3: Understand Product Classification and Duties
Each imported product is classified under a Harmonized System (HS) code in India. It helps determine the various taxes and duties that are due upon arrival. You must find your product’s accurate HS code. You can do it by consulting the Indian Trade Clarification (ITC-HS) database. Check the safeguard or anti-dumping duties that the Indian government may have imposed.
Step 4: Adhere to All Applicable Laws and Product Standards
Imports entering India may be subject to additional requirements, like certificates or permits. Items such as food, medications, and electronics sometimes have strict requirements.
You must check with the appropriate regulatory agencies in India. These might include;
- Food Safety and Standards Authority of India
- Bureau of Indian Standards
- Diseases Controller General of India
Step 5: Arranging Shipment and Documentation
You have found a Chinese supplier and verified compliance with legislation. So, it is time to organize the shipment. However, you might need to handle a lot of paperwork before your product leaves the port. It includes;
- The commercial invoice
- Packing list
- Airway bill or bill of lading
- Certificate of origin
Step 6: Choose the Right Insurance
Your items must be safe while in transit. Thus, you must get the right insurance. It can protect your goods from potential dangers, including theft, damage, or loss.
Step 7: Clear Customs and Pay Duties
Your package must pass customs upon arrival in India. You can hire a customs broker in India. If customs officials seek further paperwork, be ready to supply it.
Step 8: Inland Transportation and Delivery
It is crucial to collect products from the port of entry. So, the next step is to arrange for inland transportation after clearing customs. You will need to work with a freight forwarder to do it. You can also rent a trucking firm to bring your goods to the warehouse.
Step 9: Compliance Following Import
You might face post-import regulations. It includes product registration, labeling, or license acquisition. Of course, it depends on the kind of imported products. To maintain compliance, consult the appropriate authorities.
You must encourage open communication to make import operations succeed. Build partnerships with Chinese suppliers, logistics companies, and other essential parties.
What Major Things Can Affect Your Shipments From China to India?
Familiarize yourself with legal aspects that control the trade between India and China. Some critical considerations regarding customs clearance from China to India are as follows:
1) Import Duty
We have already discussed import tariffs from China to the US. So, you already know that these duties vary depending on the country.
Many items are subject to import tariffs in India. The duties can vary significantly based on the category of the product and its country of origin. Typically, China to India import duties usually fall between 5% and 20%. However, certain items might incur higher rates.
2) Licensing and Permits
The Indian authorities demand licenses or permissions for the import of specific commodities. It includes electronics, food items, and chemicals. It is crucial to study and get the required permissions to prevent fines or delays.
3) Restricted Items
Some products are either wholly restricted or have strict conditions. It includes specific types of equipment, counterfeit items, and potentially dangerous materials.
How to Make Importing Goods from China to India Less Risky?
It is essential to minimize risks while importing from China. Here are a few approaches to think about.
1) Perform Thorough Research
Investigate a Chinese supplier’s background, standing in the industry, and past performance extensively. Ensure you read reviews, check credentials, and even visit their factories before agreement.
2) Make Your Terms Clear
Before choosing a Chinese supplier, ensure your terms and conditions are crystal clear. It includes everything from payment and delivery dates to product quality standards.
Safeguard your company against possible risks like non-delivery, quality issues, or supplier bankruptcy. It is advisable to consider trade insurance solutions.
3) Check Product Certificates
Some products need the acquisition of certificates or the fulfillment of specific criteria. Verify that your Chinese vendor satisfies all requirements and submits all appropriate paperwork.
4) Work with a Reliable Sourcing Agent
There are lots of benefits of working with a China sourcing agent. Agents often have expertise in handling trades between buyers and suppliers. They can help at each step – from finding suppliers to arranging shipments from China to India.
What Items Does India Import from China?
From consumer items to heavy equipment, China is a significant supplier in the Indian market. A few examples of the most popular imported products include;
- Electrical and Electronic
- Machinery and equipment
- Organic Chemicals
- Iron and Steel goods
- Sports Equipment
- Toys
- Apparel and Textiles
- Lights and Furniture
How to Decrease the Cost of Importing Goods from China to India?
Of course, importing from China can save you money. But, there are a few extra ways to cut the costs even more. Remember, most of your charges go into shipping. So, you must consider solutions that can reduce the shipping charges.
1) Consider Combining Shipments
You can combine many shipments into one larger container to save money on shipping. It can reduce per-unit shipping costs.
2) Negotiate the Shipping Costs
Do you have stable import volumes? Are you planning to commit to long-term contracts? It’s a good idea to work with a sourcing agent to negotiate better costs. Agents can negotiate shipping costs on your behalf.
3) Optimize Packaging
Ask Chinese suppliers to reduce extra volume and weight in product packaging. It will have a direct effect on shipping costs.
4) Investigate Other Means of Transport
Air freight may be quicker, but it’s also more costly. To save expenses, think about shipping by ocean. You can also consider using a combination of sea and rail transport.
5) Leverage Free Trade Agreements
Both countries are members of many FTAs, including the Asia-Pacific Trade Agreement (APTA). Such agreements allow for the elimination or reduction of tariffs on certain items.
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Final Thoughts!
Importing goods from China to India can be a profitable business. You must learn the basics of customs laws, take precautions, and find ways to save money.
You can make the most money possible by importing goods from China to India. However, you must know what Indian buyers want. Check several variables before selecting a specific product. It includes market demand, competition, and profit margins.
Owlsourcing offers the best China sourcing service to Indian buyers. A reliable agent handles everything, making you free to focus on your business growth. Connect with us now if you need help with importing goods from China to India.
