If you are
importing from China to India, you need a guide that will assist you during your importation.
Here is a guide that contains all the information you need when importing your cargo from China.
The information you will find here include the laws and regulations when it comes to importing from China to India.
You will also be able to understand the process of finding a freight forwarder for your shipping.
Without getting into details, let’s get straight into it.
Keep reading.
Chapter 1: Identify Products You’re Importing from China to India
You need to have a specific product that you are going to import from China to India.
The process might be tiresome.
However, there are different ways you can find a product to import.
Here is a look at these methods.
Search for Products Yourself
Searching for a product you want to import by yourself involves you researching the available products.
There are various ways you can achieve this.
For instance, you can travel to China to visit the available industries that you can source your products.
The advantage of traveling gives you the first-hand experience of the industries.
You also get to engage them on a matter such as pricing, quality, quantity and if they meet your demand schedule.
The other option is by attending trade fairs and exhibition.
Such events enable you to interact with various suppliers which from where you can choose those that can serve you.
Popular products importing from China to India
Another option of finding a product to import is by checking on the popular products that importers are importing from China to India.
As an importer, you want goods that sell faster to increase o your profit
Among the popular imports in India from China include:
1. Electronics
You can import nearly any electronic that you can think about from China to India.
Electronics such as mobile phones, laptops and computers, and tv make it to the top electronics that you can import.
Other electronics that you can import include security surveillance systems, business automation system and computer software.
2. Heavy machinery
Machinery is yet another category of imports to India from China.
Among the items you can import in this category include industrial engines, pumps, and machines.
Other machines that you can import include refrigerators and refrigeration equipment.
3. Organic fertilizers
India relies heavily on its agriculture to feed its population.
If you want a niche in the agricultural sector, then you can import organic fertilizers.
4. Transport equipment
You can have a wide range of transport equipment that you can import from China to India.
Motor vehicles, ships, and aero equipment make it to the list which also includes their spare parts.
5. Medicines and medical equipment
If you want to get involved in the hospitality sector, then you can import medicines and medical equipment.
The medical equipment that you can import from China to India includes PET and CT scanners, X-ray machines and ultrasound machines.
6. Plastics and plastic products
You can import various plastics or its products from China to India.
They include plastic bottles and plastic pipes that you can use in the construction industry.
7. Consumer products
This category involves the items that are in daily use in India.
They range from a yoga mat, sofa cover, toothbrush, and blankets.
Also, you can import batteries, stationeries, cosmetic items, mobile covers, and table covers.
This list is not comprehensive; however, you can check with the government officials for the full list of goods that you can import.
Alternatively, your forwarder needs to be in a position to advise appropriately on this segment.
Hire China Sourcing Agents to Find Imports to India from China
Lastly, another way of finding a product to import is by hiring a
China sourcing agent to do it for you.
Sourcing agent has a vast experience on which goods you can start importing.
They will guide you on available goods, how to find the best supplier for the products as well as the best price in the market.
Most sourcing agents have supplier contacts which can facilitate you acquiring quality goods at an affordable price.
The advantage you have with hiring a sourcing agent is that it frees you from the hassle of getting to identify the goods to import.
Chapter 2: Establish Relationship with Potential Suppliers in China
Finding a supplier for your goods can be difficult especially when you are new in the industry.
Getting a supplier who meets your specification means that you have to maintain that supplier.
Numerous advantages come with having a reliable supplier.
A right supplier can sort issues such as timely delivery, right quality, and even pricing.
Allow me to take you through the process of getting a supplier and establishing a lasting relationship with them.
1) Identify your supplier
The first step is to identify which supplier you want to engage with to supply your cargo.
There are three categories of suppliers you can engage with when it comes to supplying your goods.
They include manufacturers, distributors, and independent craft persons.
There are various online sites that you can identify the supplier that you want to engage to supply your goods.
Alibaba is one of these sites which avails a pool of supplier for different goods at different prices.
Once you have selected your supplier on Alibaba, you can make contact with them and establish if you can transact.
Also, sites such as made-in-china and global source offer a list of suppliers that can supply your goods.
2) Understanding your supplier
To have a lasting relationship with your supplier, you need to understand your supplier.
There are several factors that you can check on to understand your supplier.
You can check how dependable it is when you want to use their services.
If they can deliver as per your schedule, then that is a supplier that you can engage.
Another element you can check on to understand your supplier is how stable they are.
You can understand this by checking on how long your supplier has been in the industry.
A supplier who has been in the industry for a long time means that they are stable and can handle your cargo.
Lastly, you will need a supplier who offers the right price for the goods you need.
A supplier who you can negotiate when it comes to pricing is a right supplier for your goods.
3) Have a lasting relationship with your supplier
Now that you have the right supplier for your goods, you can go ahead and establish a lasting relationship.
This relationship will come in handy if you are in the importation business for the long run.
You can achieve this in various ways.
You can start by contacting them on a regular basis not only to make an order but checking up on them.
The purpose of this is to make them are of you and that you care.
The other way you can achieve this is by making payments on time.
Suppliers like working with clients who keep their end of the bargain.
The likelihood of your supplier transacting with you again is if you pay them as per schedule.
Place your orders on time to give your supplier ample time to deliver.
Rushing your supplier may make them turn down your orders or even refuse to transact with you.
By giving them enough time, you can develop the trust as they will ensure that they meet your standards.
This will make them want to do business with you again.
Also, make it a habit of reporting any damaged goods or faulty items on time.
By doing this, your supplier takes note of how you want your goods to be.
When you make the next orders, your items will be as per your requirements.
Chapter 3: Understand Laws and Regulation on Importing from China to India
Laws and regulations are there to govern you when you are shipping from China to India.
Breaking these laws can have serious consequences including jail terms.
Understanding these laws and regulations is therefore essential.
Here we take a look at the laws and regulations governing your importation from China to India.
Keep reading.
I. How to get the Import license in India
Before you start importing from China to India, you need to have a license which will give you the freedom to import.
The process of getting a license might seem hard, but it is a simple process that entails the following.
If you are intending on importing to India, the first thing you will be required to have is an
Importer Exporter Code (IEC).
IEC refers to a 10-digit number which you can obtain from the
Directorate General of Foreign Trade (DGFT).
There are several regional offices of the DGFT where you can obtain your IEC.
They have the authority over your business location.
While you are applying for the IEC, you will be required to have the necessary
documents and fees which I will explain to you.
The documents you will need when getting the IEC include:
- The PAN Card of the business entity
- List of partners in the business, their address, their ID and the PAN card
- Bank Account statement
- A banker certificate as prescribed by the law.
When making an online application for the license, you will follow the following steps
You will avail all the documents above in an electronic format when checking the DGFT website portal.
The first thing you will be required to do on the website is to insert you Pan number to create a new account application
The next step will be to register in the right information of yourself and your business.
Once you finish this step, you will have to make payments.
You will then have to upload all the necessary documents which support our application.
Once you have completed, you will be required to print the document and present it to the DGFT offices.
Remember, you will submit the form, to a DGFT that deals specifically with your business.
After you have done this, the system will generate a 10-digit code.
The code is what you will use as your import export license.
II. Know Trade Terms when Importing from China to India
International shipping involves the use of various trade terms that are unique.
If you are a 1
st-time importer, these terms might be confusing.
To help you understand these
Incoterms 2010, here is a look at the definitions and where to apply them.
Importing under this incoterm gives you control and responsibility over your cargo during the shipping period.
While using this incoterm, your responsibility will include paying for the freight and choosing an insurance cover for your cargo.
You are also responsible for customs clearance at the port of destination and facilitating the movement of your cargo from the port to your
warehouse.
On the other hand, your supplier will make sure to avail your goods at the port of origin.
This includes paying for the transportation fee from their warehouse to the port.
They will also pay for loading of the goods to the carrier as well as customs clearance at the port of origin.
The fact that you have total control over your shipment ensures that you get to pick your carrier, negotiate with your forwarder your supplier.
Perhaps this is the commonly used incoterm when it comes to international shipping.
Under this incoterm, you are responsible for the cost of your cargo and customs clearance at the port of destination.
You are also responsible for transporting your cargo to your warehouse.
Your supplier will cater for the availing of your cargo to the port, customs clearance at the port of origin and hiring and paying for the ocean freight.
They will also cater for the port charges at the port of origin as well as providing an insurance cover for your cargo.
Under this incoterm, you are responsible for your cargo in some ways.
First, you are responsible for covering the cost of your cargo and handling customs clearance at the port of origin and port of destination.
You will also pay for the ocean freight as well as taking an insurance cover for your cargo.
The responsibility of your supplier will include delivering your cargo to a named place and providing the documents needed.
The use of this incoterm places the minimum responsibility to your supplier and maximum liability to you.
· DDU
The user of this incoterm implies that your supplier is responsible for the delivery of your goods to a named place usually the port of destination.
Some of the responsibility of your supplier includes paying for the transportation fee to the port of origin.
They will pay for the customs clearance as well as the freight charges up to the named place.
The responsibility of the cargo transfers to you once the goods are in your possession.
You will be in charge of paying the duties involved as well as arranging transportation to your warehouse.
The use of this incoterm implies that your supplier is responsible for the shipment of your cargo up to the named place in the country of destination.
Your supplier will cater for all the charges including paying taxes and duties and any risk that may happen during shipment.
The use of this incoterm places maximum responsibility on your supplier and minimum responsibility on you.
III. Prohibited Items for Import in India from China
There are some items you cannot import to India.
These items are known as the prohibited items, and the customs will confiscate if you import them.
To prevent such a scenario, don’t import the following items
- Narcotic drugs or psychotropic items
- Certain aero machines like toy helicopters.
- Pornographic or obscene materials
- Counterfeits or pirated goods that infringe on the rules governing intellectual property rights.
- Wildlife and wildlife products
- Certain chemicals
- Antiquities
- Maps and literature that depicts incorrect information about Indian external boundaries
IV. Import Documents in India
For faster clearance of your cargo by the customs, there are documents you need to have them a hand.
Missing these documents may result in your goods being held by the customs which implies higher cost and longer clearance time.
Therefore, you need to have the following documents at hand when the customs are clearing your goods.
· Bill of Entry
The Bill of Entry is a document that indicates the exact nature, quantity, and value of goods that have landed in India.
You or your forwarder will prepare this document and hand it over to the customs.
The customs will use this document as an accounting source document when calculating the tax that you will pay.
· Commercial Invoice
This is yet another document that describes the nature, quantity, and price of the gods you are importing to India from China.
Your supplier must fill this document which will be handed over to the customs.
You need to be careful when filling these documents since all the information needs to be the same.
· Bill of lading/ Airway Bill
Another document that acts as a source document when the customs are calculating your duties is the Bill of Lading.
The carrier of your goods usually a ship or a plane for the case of airway bill will issue you with this document.
· Certificate of Origin
The important if this document is to indicate which country you are importing your cargo from to India.
In this case, since you are importing from China, your certificate will state China.
The customs use this document to analyze the trade volume of a country.
The chamber of commerce in China is the one responsible for issuing your cargo with this certificate.
Among the details, you will find on this document is the name and address of your supplier as well as a description of your goods.
· Letter of Credit
When it comes to making payments,
a letter of credit plays a vital role.
This document is an undertaking by your commercial bank to pay your supplier on your behalf for the goods you are importing.
In exchange, your supplier will hand over the necessary documents.
· Bill of Exchange
An alternative way of making payment when you ship your cargo from China to India.
This refers to an undertaking that you will pay at a later date for the goods your supplier has supplied you.
A
bill of exchange can either be Bill of exchange after sight or Bill of exchange after the date.
A bill of exchange after sight is when the calculation of the payment due date is from the date when you accept the bill.
On the other hand, the bill of exchange after the date is where the calculation of the due date starts from the date the bill is drawn.
V. Calculate Import Duties in India
Here is a look at the import duties and taxes that you will have to pay on your cargo.
The critical thing to note is that the calculation of these duties are on the value of the goods you are importing.
Depending on the type of goods you are importing into India, you will pay the following types of duties.
· Basic customs duty
The basic customs duty applies to all goods that you can import to India. Basic
customs duty in India is divided into standard and preferential duty rates.
The standard duty will apply for the goods which you import from China since there is no trade agreement between China and India.
If there were an agreement, preferential duty rates would apply.
· Integrated Goods and Services Tax (IGST) and Compensation Cess
The customs will levy an
IGST tax will on nearly all the goods that you import from China with there being a few exceptions including certain petroleum products.
You will also pay an additional
Compensation Cess on cargoes such as motor vehicles and tobacco products.
The amount to pay is calculated based on the selling value of the goods.
A 10 percent levy charge on your import will go towards the social welfare program.
To avoid importation of substandard goods, you will have to pay an anti-dumping duty on your import.
This duty also protects the growth of local industries.
The list of goods that you pay this duty keeps changing.
Hence you need to check with the customs to determine if you will pay this duty.
To protect domestic goods from imported goods, you will have to pay a safeguard duty on the products you import.
This duty is practical if the sale of imported goods is below the market price of locally manufactured products.
VI. Ensure Compliance with Bureau of Indian Standards
Importing your cargo implies that it has to adhere to certain standards set by the
Bureau of Indian Standards.
Subjecting your shipment to the Bureau of Indian Standards is voluntary.
However, there are some goods which you must subject them to BIS.
They include the following products.
- Cement
- Household electrical goods
- Batteries
- Food and related products
- Oil pressure stoves
- Automobile accessories
- Cylinders, Valves, and Regulators
- Medical Equipment
- Steel and Stainless-Steel Products
- Electrical Motors
- Electrical Transformers
- Capacitors
- Chemicals and Fertilizers
The process of ensuring that your product complies with the Bureau of Indian Standards entails the following steps
The first step involves you giving the samples of the product you are importing to a laboratory that has the approval of the BIS.
This laboratory will test your samples by the standards that are in place.
After the test results are out, you can now go ahead and apply for the BIS certificates.
You can do this by filling the form VI and attaching the lab test report with the relevant documents.
After completing, the officers will counter check the documents and issue you with the certificate after 30 days.
Chapter 4: Agree on Payment Terms when Importing from China to India
Once you have cargo has been shipped to you, you will have to pay for them before receiving the necessary documents.
You will use these documents when clearing your cargo at the customs.
Therefore, you need to agree with your supplier on the payment terms for your goods.
Here is a look at the frequently used payment terms that you can use when importing your cargo from China to India.
a) Telegraphic Transfer
Though not in everyday use nowadays,
Telegraphic Transfers enables you to transfer funds from your account to your supplier.
There is specific information that you will need to compete a telegraphic transfer.
This includes the account and bank details of your supplier.
As a mode of payment, your supplier will receive the cash between three to four days of you making the transaction.
There are limitations for using this mode of payment both for the supplier and you the importer.
If you transfer cash early, there is a risk that you might not get your goods or get cheap goods.
On the supplier’s part, if they send the goods before payment, they run a risk of not getting paid.
An online payment system that lets you send money to your supplier.
The only information you need to do this is there PayPal address.
The use of this method is secure to both end users.
However, if you are a new importer, you need to limit the use of this mode to a small volume of goods.
c) Letter of Credit
A letter of credit is the conventional way of making payment in international trade.
The use of this method is secure to both you and your supplier.
There are many advantages to using a letter of credit for your import transaction.
First, you have a guarantee that your supplier will honor their part of the deal in supplying your goods.
Your supplier, on the other hand, can supply you the goods with the knowledge that if you default in payments, your bank will pay them.
Chapter 5: Hire Freight Forwarder from China to India
You will have to engage the services of a
freight forwarder to handle your shipping from China to India.
There are many forwarders available but having a reliable forwarder can save you a lot of problems.
The problem, however, is finding that trustworthy forwarder.
The following steps will help you in hiring a freight forwarder who can handle your cargo from China to India.
· Conduct a background check on the company
Before engaging a forwarder, ensure that you have the relevant information about the company.
This information includes the physical address of the company and the facilities they have to offer your cargo.
Facilities such as warehouses play an essential role in ensuring the safety of your cargo.
There are freight forwarders who provide these services at a fee while there are others that offer them at a cost.
· Check on experience
Forwarding industry in itself is a massive industry.
You are therefore likely to find a fording company that lacks the expertise to handle your cargo.
Services such as RORO and REEFER can come in handy when you are shipping special cargoes such as vehicles and perishable goods.
You need to inquire about such services before engaging a forwarding company.
On the same note, a forwarding company that has been in the forwarding industry for a long time is likely to handle your goods professionally.
The reason for this is that they have handled various problems during this period and have the necessary solutions to the issues.
· International membership and licenses
A forwarding company that is a member of an international body such as FIAT will be an ideal forwarding company.
You see, such a company has a reputation to uphold by being a member of such an organization.
They will professionally handle your cargo and even communicate during the entire shipping period.
On a local front, a forwarding company needs to be registered by the relevant authorities and given the licenses to operate.
Always insist on this before engaging a forwarding company.
Remember, in international trade; the probability fraudsters are high.
Prevent this by ensuring you are dealing with the right company.
· Office network
Having a forwarding company that will handle your cargo both in China and India will make your shipping easier.
This is because they understand the customs requirement in both countries which facilitates your shipping.
· Meeting your deadlines
The forwarding company that you pick needs to ensure that the shipping of your cargo is per your schedule.
Remember, you don’t want to keep your clients waiting due to the lack of goods.
The best way to find a forwarder is by searching for a forwarder in China.
The reason for this is that most forwarders in China have a global network which will ensure easy shipment of your cargo.
Also, the availability of cheap labor ensures that you minimize your shipping cost.
Don’t forget that you need forwarders who are conversant with the customs.
Most forwarders are conversant with the customs clearance procedures in China and India which ensures smooth clearance process.
And by the way, I have some useful tips for you here:
7 Tips for Finding a Freight Forwarder in China.
Chapter 6: How to Ship Products from China to India
As an importer, understanding the available means of shipping your cargo can be of help in deciding the best option.
You can ship your cargo either via air or ocean when you are importing your cargo from China to India.
To help in coming up with the best shipping for your cargo, here is a look at the details of the ocean and air shipping from China to India.
Note: If you want to get the cheapest rate shipping from China to India, you can contact Tj chinafreight and get our best shipping rate China to India.
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Keep reading.
· Ocean Freight to India from China
Ocean freight from China to India is ideal if you are shipping a large volume of cargo.
The advantage you have is that it will cost you less if you compare with using air freight.
He flipside of using this method is that it takes longer for your cargo to arrive from China.
You can navigate this by aligning your schedule with that of your shipping.
Ocean freight from China to India entails the following.
· China to India Shipping Time
Here is a look at the
shipping time your cargo will take when shipping to different ports of origin and destination.
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