Importing goods into India can be a game-changer for your business, but it requires careful planning around licenses, duties, customs clearance, and payments. This guide covers everything you need to know in clear, actionable steps—including who handles what (importer vs. supplier) and how payments work at each stage.
Obtain an Importer Exporter Code (IEC) 🎫
An Importer Exporter Code (IEC) is mandatory for anyone importing goods into India. Without it, you cannot clear customs or send/receive international payments.
Who Handles This?
✅ Importer’s Responsibility – You must apply for the IEC.
👉🏽 Where to Apply?
Apply via the DGFT Portal. The fee is ₹500*.
💳 Payment Method
Online payment via net banking, credit card, or UPI on the DGFT website.
Register for Goods and Services Tax (GST) 🏦
All importers engaged in commercial activities must be registered under GST. Without a GSTIN, you cannot claim Input Tax Credit (ITC) on IGST paid during imports.
Who Handles This?
✅ Importer’s Responsibility – Required for tax compliance.
👉🏽 Where to Register?
You can apply for GST here.
💳 Payment Method
GST payments are made through the GST portal using NEFT, RTGS, or Net Banking.
Know Your Import Duties & Taxes 💰
When importing goods, you must pay customs duties and taxes, which include:
Basic Customs Duty (BCD) – Based on product classification under the Customs Tariff Act.
Integrated Goods and Services Tax (IGST) – Typically 5%-28%, varies by product.
Social Welfare Surcharge (SWS) – Additional charge on BCD.
💡 Where to Check Duty Rates? Visit the CBIC Tariff Database for exact rates.
Who Handles This?
✅ Importer’s Responsibility – Unless the supplier agrees to pay under Delivered Duty Paid (DDP) terms.
How to Pay Import Duties?
All import duties are paid through the ICEGATE (Indian Customs Electronic Gateway).
💳 Payment Methods
Online – Net Banking, Credit/Debit Card, RTGS, NEFT.
Through Bank (Customs-Linked Branches) – If paying offline, a receipt (Challan) is issued.
📌 Payment Proof:
Once paid, you will receive a Challan Identification Number (CIN), which serves as proof of duty payment. You can verify payment status on ICEGATE here.
Customs Documentation & Payment Proof 📄
To clear your shipment at an Indian port, you must provide:
✅ Bill of Entry – Filed electronically via ICEGATE.
✅ Commercial Invoice & Packing List – Provided by the supplier.
✅ Bill of Lading / Airway Bill – Proof of shipment from the carrier.
✅ Import Licenses & Permits (if required).
✅ Duty Payment Receipt – Proof that import duties have been paid in full.
Who Handles This?
✅ Importer’s Responsibility – Filing the Bill of Entry and duty payments.
✅ Supplier’s Responsibility – Providing invoices, packing list, and shipping documents.
📌 Where to Pay & Get Payment Proof?
ICEGATE Portal – Pay duties and generate receipts.
Bank Statements – Ensure the funds are deducted.
Customs Clearance Invoice – Issued after full payment is received.
Check If Your Product Needs Special Approvals ✅
Some products require additional approvals or certifications before they can be imported:
🛑 Electronics & Appliances – Bureau of Indian Standards (BIS)
🍔 Food & Beverages – Food Safety and Standards Authority of India (FSSAI)
💊 Pharmaceuticals & Medical Devices – CDSCO
🐄 Livestock & Dairy – Department of Animal Husbandry (DAHD)
🌱 Agricultural Products – Plant Quarantine India
Who Handles This?
✅ Importer’s Responsibility – Applying for necessary permits.
✅ Supplier’s Responsibility – Providing test reports and certifications.
💳 Payment Methods:
Fees for BIS, FSSAI, and CDSCO certifications can be paid online via their respective portals.
Ensure Proper Labeling & Packaging 📦
All imported goods must meet India’s Legal Metrology Act, 2009, which mandates:
✔️ Country of Origin
✔️ Manufacturer’s Name & Address
✔️ Net Quantity & Weight
✔️ Maximum Retail Price (MRP)
Who Handles This?
✅ Importer’s Responsibility – Ensuring compliance.
✅ Supplier’s Responsibility – Printing correct labels before shipment.
📌 Penalties for Non-Compliance:
If labeling is incorrect, customs may reject or seize your shipment.
Making Payment to your Supplier 💰
When importing, you must pay your supplier before or after shipment, depending on the agreement. Common Payment Methods:
1️⃣ Advance Payment – Wire Transfer, PayPal, or LC (Letter of Credit).
2️⃣ Payment Against Documents (D/P) – Payment is released after the Bill of Lading is verified.
3️⃣ Open Account – Supplier ships goods first; payment is made later.
4️⃣ Letter of Credit (LC) – Bank guarantees payment upon shipment.
📌 Payment Proof for Suppliers
Bank Transaction Receipts – Proof of payment.
SWIFT Copy – For international wire transfers.
LC Documents – If using Letter of Credit.
Other Helpful Factors to Consider
💡 Register an AD Code with Customs – Helps in receiving international payments smoothly.
💡 Engage a Customs House Agent (CHA) – To handle paperwork and logistics.
💡 Use a Bonded Warehouse – Delays duty payments until goods are sold.
Who Handles This?
✅ Importer’s Responsibility – These are optional but recommended steps.
💳 Payment for Services
CHA fees and bonded warehouse costs are paid via bank transfer or demand draft.
👉🏽 Have a query? Book a call now ⌚
Important Links
1️⃣ Read More about India’s Top Consumer Product Exports to the World
2️⃣ Starting an Export business in India
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