How to Import from China to India 2021

Mar 12, 2021 Chapter 1. Sourcing

The E-commerce industry of India has been on the rise for quite a few years. The industry is booming rapidly. On the other hand, the manufacturing sector of China has been doing very well too. Thus, importing goods from China to India is a very good option for businesses. However, since importing is a very long and potentially complicated process, certain regulations need to be followed. Here we will discuss some of them to give you an idea of the process, regulations, and products you’d want to import from China to India.

how to import from China to India

What are the first steps to import from China to India

Your first Import procedure from china to India step is to deal with the regulations that would allow you to begin importing. Such regulations include licenses or permissions you’d need to start. 

 

Business Registration

The very first step; legal entity status for your company. Get your company registered with The Ministry Of Corporate Affairs. It is very important for businesses dealing with imports and exports that their registration status is always valid. 

 

If your company is registered as any one of these, it can import or export goods. 

  • Sole proprietorship
  • LLP
  • Partnership firm
  • Private company
  • Single person Company

 

If you need any assistance regarding the registration process, our team supplyia would be delighted to assist you. 

 

Tax Registration

The second step is to get your business’s registration done with the Income Tax Department of India. This will help you file your annual taxes and returns. It is the law in India that you need to apply for GST registration to sign-up for its GST regime. This registration will provide you with a TIN used to pay your tax on goods imported or exported by you. You might even be required to pay some security deposit by certain states to ensure that your business will operate as stated.   

 

Our team VakilSearch is always ready to assist you if you face any problems with your tax registration. 

 

IEC Code 

When your GST regulation is received, you are allowed to apply for a license at the Directorate General of Foreign Trade Department to import and export goods. The license will be received as an IEC code. You must have a current working account with any Indian bank within India to apply for the code. 

Here is a list of documents that will be required from you when you apply for your IEC code:

  1. Banker Certificate
  2. Bank Statement
  3. The ID of all directors along with address proof
  4. PAN Card of the company

 

As this code’s whole process is done online, you will also need to have Digital Signatures Certificates for the company’s directors. The DGFT will issue a 10 digit IEC code that will allow you to enter the import and export market. 

 

 

 

How to Import from Chinese to India

Now that your registration process has been cleared, we will now talk about importing from China. We would recommend that you get in touch with a renowned shipping company, e.g. Alibaba. Following are the steps to start importing from China to India:

 

Find a supplier in China

  1. Product hunting. You will need to look for the products that you’d like to import. 
  2. When you have selected a product, you will need to look for a manufacturer of it. 
  3. You have an option to use the assistance of service providers to find a manufacturer, apart from the big names like Alibaba. 
  4. Once you have found your manufacturer, you will need to get in touch to finalize your relationship, deciding the quantity, price, frequency, etc. 
  5. It is always recommended to have a sample delivered when dealing with someone for the first time. This will give you a chance to know the quality, time needed for the delivery, etc. 

 

Here is a list of some websites that are among the best suppliers of Chinese goods:

  1. Made in China
  2. Global sources 
  3. Canton fair 
  4. Alibaba
  5. Aliexpress

 

Check certificate

Once a supplier has been selected, you will need to look at the regulations once more to make sure that all of the documentation and license requirements have been met. It is also necessary to make sure that the products you are importing are allowed in your country. For example, products such as narcotics, pirated goods, certain chemicals, and counterfeits are not permitted in India. 

 

Find a shipping agent

Next, you will need to get in touch with any reliable freight forwarder to manage the shipments. Your import-export company will also need to hire an accountant and a customs agent to deal with importing official documents.

 

Calculate the costs

By now, you will be done with the product, freight forwarder, and supplier selection. Adding the products’ cost, the freight charges, and customs duties will give you the landing cost. In case it turns out to be higher than what you would like or what you expected, you can look for any other supplier or freight forwarder to cut your costs.

 

Pay import duty from china to India

Once everything has been settled, make sure you always follow the regulations in all stages and file your taxes and returns timely to continue your import-export business. 

 

 

Best Chinese Products you Can Import from China to India

Now that you have an idea of the overall process let’s take a step back and discuss which Chinese products would be the best to import. Needless to say, deciding the right product is vital for any business. If you have a good quality product, you will be able to advertise it with confidence, and the quality will also play a big role in creating your brand image. You also need to be confident that it will have a high demand in the Indian market. For that, you might also need to conduct market researches to know what the consumers need. 

Here are some goods that are usually imported from China to India. 

  • Motor vehicles and their spare parts

  • Electronics

  • Phones

  • TVs

  • Consumer goods

  • Plastic

  • Pharmaceutical goods

  • Machinery

 

 

Tips for Import from China to India

  • Always be ahead of time. Expect delays so that you arrange for appropriate measures beforehand whenever importing goods because there are many reasons why unforeseen delays might occur, e.g. Special custom inspections, a delay from the supplier’s side, or even in recent context, closure of shipments or flights due to any natural or national emergencies, etc. This will help you not lose your client. 
  • The freight forwarder you choose will have a huge impact on your overall experience and the smoothness of the process. Make sure it is a reliable one and not just the cheapest quote. 
  • Keep track of your shipment and take all the necessary steps to receive it before the arrival time to avoid any mismanagement and delays. 
  • Maintain the documents required to make sure your compliance norms are filed on time. Here’s a list of some documents that you might need:
    • Import items list
    • Importer Exporter code and DGFT Approval
    • Arrival notice
    • Entry Bill
    • Airway Bill
    • Bill of Exchange
    • Certificate to origin
    • Credit letter
  • Is probably one of the most important steps. Always coordinate and never assume. Always make sure you know what the price, condition of goods, and the timings will be. Also, make sure all the specifics are pre-decided, so there is no room for misunderstandings.

 

 

Manufacturing companies in China and India are at different development stages, and the homogeneous competition is small. The two countries’ industrial development strategies can be docked, and each other’s markets will promote China-Indian trade development.

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