HomeImport Export ProcessesHow to Import from China to India? Step by Step Process to...

How to Import from China to India? Step by Step Process to Import from China

China is the largest country in terms of mass-production of goods and exporting them at cheap prices, hence importing goods from China in India makes Chinese goods attractive in India. Traders who import various products from China earn very good profit margins as they are able to buy goods at a very low price. If you are looking for business opportunities, then you can consider importing products from China and selling them in India but for that, you must know How to Import from China to India!!

How to Import from China to India?

For importing goods to India from any country, you have to follow certain laws, rules, and legal processes that can be stressful for beginners. But you need not worry because here at Eximpedia we will tell you the complete process on how to import from China to India. After reading this article, you will be capable to import any goods or products in India from China.

To start any business, it is very important to know the background and scope of the business to ensure scalability and stability. Therefore, before knowing how to import from China we must first get answers to certain questions like – How much does India import from China? What to Import from China? What are the different ways that are used to import from China? Etc. So, let’s get started!

How much does India import from China?

India’s imports from China are Rs.688.82 billion as of March 2022 which has increased from the previous month. In February 2022 imports from China was Rs.638.36 billion.

India imports from China account for 14% of total imports in India.

These were some important facts that you must know, now let us understand how to import from China in India.

What does India import from China?

These are the list of products that India imports from China:

  • Electrical Machinery
  • Cell Phones
  • Heavy Machinery
  • Telecom
  • Power
  • Plastic Toys
  • Pharma & Critical Pharma Ingredients
  • Furniture
  • Fertilizer
  • Food
  • Textiles

The above list is some of the major exports from China to India. As a trader or importer if you are trying to find out information on how to import from China in India, then this list will definitely help you. Apart from the list, there are many other products like spare parts, tools, dairy products, etc. that India imports from China.

Process to Import from China

How to import goods from China into India?

Here is a complete guide on how to import from China in India along with important points that you must follow during the import process –

  1. Open a Firm: When you have a firm and a current account, you will be able to gain shippers’ trust and goodwill because they will not transact on your personal account. So, decide which type of firm you want. For example, Sole Proprietorship, Partnership, Private Limited, LLP, one-person company, etc.

    Whichever type of firm you decide on you will have to prepare documents like Company Pan card, Aadhar Card, GST, and most importantly IEC number without which import won’t be possible.

    Note: Make sure the address is the same on all the company documents
    Also check for – 9 Import Schemes in India for Importers’ Benefit
  2. Import Export Code (IEC): As per the government rule, every importer and exporter should have an Import Export Code without which import-export cannot be done. IEC will be always mentioned on all the important documents for import. The application for IEC is completely online. Here we have mentioned the process to apply for IEC
  3. Product selection: This is the step where most importers make mistakes while importing from China. Selecting the product randomly and importing it without proper research will only lead to loss and therefore before selecting a product to import from China, research and know the product, see the scalability, will it work in India? What is the demand for the product? Is it allowed to be imported into India? etc. Make a list of products that you would like to import and then follow further steps to approve it for import.
  4. Know your Business: Once you know how to import from china and sell in India, you must research about the product, market, Buyers, and how much profit margin will you get after you import the material from China to India. Basically, know your business and its financials well in advance and take further steps accordingly.
    How to Start an Import Business in India – Complete Guide with Ideas
  5. Know your Product Category: This means you will have to check if this comes under the General or restricted or prohibited category. 90% of the products are in a general category and do not need any special permissions to import. The restricted category includes products that need special permission or documents from the government to import into India whereas the prohibited category means products that are banned or are not allowed to be imported into India. Check before placing an order under which category is your product.
  6. Check Product Quality: Since you are importing from China, this is a very essential step. You must check the quality of the product you are going to import and from whomsoever, you are going to import. The product should be as per Indian Quality Standards (IQS). You can ask the supplier to send a sample to check quality and specifications, it will be much better if you physically visit the supplier and check the product and the manufacturing process.
  7. Search Websites: You can find suppliers/manufacturers for your product on websites like Alibaba or Made in China and you can even get data from these websites. You can interact, chat, and communicate with the supplier/manufacturers on these websites and fix a meeting. Make sure to ask for the Company details.

    Here is the list of websites to import from China
  8. Buy a Sample first: Once you decide or choose suppliers/manufacturers, you can ask them to send a sample of the desired product to check the quality and other specifications.
  9. Calculate expenses and Profit: You have to calculate all the expenses right from the supplier’s place that is China till the shipment reaches your customer along with the profit you will earn in the entire process. A freight forwarder or customs broker can guide you on the cost of shipment to reach India and also tell you the cheapest way to import from china into India.
  10. Talk/Deal with the supplier: If you are happy with the quality of the product and sample, you can either visit the supplier office personally or even talk over the phone and make a deal and discuss how much quantity you would like to import, do they have any specific need for the product, payment terms, etc.
  11. Discuss Payment terms & Contract terms:  You must know and understand Incoterms to decide the payment terms and contract terms with the supplier. For example: if you want it on FOB or CIF basis, will you pay on receipt of documents, in advance, or in terms of the letter of credit from the bank? There are many ways to make payments to the supplier. Discuss with the supplier which one suits them best.
  12. Know Import Duties: Government charges duties at the time of import in India like Custom duty, stamp duty, AIDC, Social welfare surcharge, etc. You should know the duty applicable on the product you are importing as that has to be paid immediately as soon as the shipment arrives in India and the bill of entry is filed.
  13. Import Documents: Documents like Invoice, packing list, certificate of origin, Airway bill/ bill of lading, etc. are needed at the time of customs clearance in India. You can ask your supplier to prepare these documents in advance. Apart from this, there is a possibility that you might need more documents or certificates depending on your product, for which your customs broker shall guide you well.
  14. Hire a Customs Broker/ Freight Forwarder: You will need an agent for imports from China which is usually a Custom Broker or the freight forwarder and they help in the customs clearance process once the shipment arrives in India. You hire a customs broker or freight forwarder who is an expert in clearing your type of product for a fast clearance. The agent will guide you on the documents needed for clearance, update you throughout the process, pay duties and other charges on behalf of you at customs, take the delivery from customs and deliver it to your place.

Before importing any products from China to India, you must know the – Most common risks involved in importing and steps to minimize them

Can India Stop Importing from China?

Although the Indian government is trying to put restrictions on imports from China, it will take a very long time to stop importing completely from China as India is largely dependent on Chinese products at least for now. The list of products that are imported from China is very long and the major barrier is the price. Chinese products are in demand because their cost is low and many websites provide easy access to imports from China like Alibaba and Made in China.

It is easy to import from anywhere in this world and especially in China. You will understand the entire process the first time you import and face challenges too but don’t think of stopping. Complete the entire import process because once the order is shipped from the country, there is no turning back. As you continue importing you will be a full-fledged importer and you can even start earning more and more profits.

We hope that through this article you have understood how to import from China in India.

RELATED ARTICLES

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular