The Indian E-commerce industry has been experiencing a rapid boom in recent years, and businesses are looking for ways to capitalize on this growth. One such option is to import goods from China to India. However, the process of importing from China to India can be lengthy and complicated, requiring businesses to follow specific regulations.
To help businesses navigate this process, this article will provide a guide on how to import products from China to India. It will also highlight some of the best Chinese products that can be imported to India and provide an overview of the import process in India.
Key Takeaways
- Importing goods from China to India can be a lucrative option for businesses looking to capitalize on the growth of the Indian E-commerce industry.
- To successfully import products from China to India, businesses must follow specific regulations and procedures.
- Some of the best Chinese products that can be imported to India include electronics, textiles, and machinery.
How to Import from China to India?
Importing goods from China to India can be a lucrative business venture, but it requires careful planning and adherence to regulations. The following subsections provide a step-by-step guide on how to import from China to India.
Do Business Registration
Before importing goods from China to India, it is essential to register your business with the Ministry of Corporate Affairs. This registration is necessary for businesses dealing with imports and exports to ensure that their registration status is always valid. The following legal entity status can import or export goods:
- Sole proprietorship
- LLP
- Partnership firm
- Private company
- Single person Company
Apply for Tax Registration
The next step to import from China to India is to register your business with the Income Tax Department of India. You are required to have a Taxpayer Identification Number (TIN), which is a unique identifier assigned to the account holder by the government. You will also apply for a Value Added Tax (VAT)/Central Sales Tax (CST) number. This is important because it applies not only to importing goods from China but also to selling any important goods in India. Some states may require you to pay a security deposit to ensure that your business operates as stated.
Apply for IEC Code Registration
After obtaining the GST regulation, you can 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. To apply for the code, you must have a current working account with any Indian bank within India. The following documents will be required when applying for your IEC code:
- Banker Certificate
- Bank Statement
- The ID of all directors along with address proof
- PAN Card of the company
Several import from China to India qualifications and documents are required before one can register for an import-export code. Two recent passport photographs of the applicant are required when the applicant is an individual and not a corporate entity. The income tax department issues a Permanent account number (PAN) card, and any Indian citizen can apply for one online. A valid proof of identity is required when applying for an IEC to limit cases of fraud. The identification accepted by the DGFT is Driver’s License, Voter’s ID, Aadhar card, or International passport. To limit foreign exchange fraud, a copy of the current bank account can be easily obtained from the bank account on request. Copies of the rent agreement, sale or lease deed, and utility bill (electricity bill, telephone landline bill, and mobile postpaid bill) can be used to validate your residence as a person or the address of your business establishment. The application letter with the company letterhead with the subject “Request for Issue of New IEC Certification” is also required. A Self-addressed envelope for delivery of the IEC certificate by registered post and an RS.25 post stamp for delivery of the IEC certificate by registered post are also necessary.
Find a Supplier in China
To find a supplier in China, there is no magic formula. Following the right process will most likely take you from “no supplier” to “right supplier”. It would be best if you did your homework, provided the right information, and collected the right data simultaneously. The general way to find a Chinese manufacturer to import from China to India is mainly the following 3 channels:
Look for B2B Websites
You can find a China manufacturer on most of the China online websites. Free online directories are a good place for finding a manufacturer for your brand. These directories act as manufacturer catalogs that contain profiles for hundreds or thousands of manufacturers.
Attend Trade Fairs
Trade fairs are a great way to meet manufacturers face-to-face and see their products. These events are usually held in China, and you can find a list of trade fairs on the China Council for the Promotion of International Trade website.
Contact a Sourcing Agent
Sourcing agents are companies or individuals that help businesses find suppliers in China. They can help you with everything from finding the right supplier to negotiating prices and handling shipping. Some sourcing agents even offer quality control services to ensure that the products you receive meet your standards.
Check Certificate
Before importing goods from China to India, it is essential to check the certificate of the products. The certificate ensures that the product meets the required quality standards and is safe for use. The following certificates are required for importing goods from China to India:
- Certificate of Origin
- Bill of Lading
- Commercial Invoice
- Packing List
- Inspection Certificate
Find a Shipping Agent
Once you have found a supplier in China, the next step is to find a shipping agent. A shipping agent is responsible for handling the logistics of shipping your products from China to India. They can help you with everything from choosing the right shipping method to handling customs clearance.
Pay Import Duty from China to India
Import duty is a tax
Best Chinese Products you Can Import from China to India
Deciding on the right product is crucial for any business that imports goods. The product’s quality plays a significant role in creating a brand image and advertising it with confidence. It is also essential to ensure that the product has a high demand in the Indian market. Market research can help identify what consumers need.
Items Imported from China to India:
Here are some of the commonly imported goods from China to India:
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Motor vehicles and their spare parts
China is known for its automobile industry and has a wide variety of motor vehicles and their spare parts. The Indian market has a high demand for affordable and durable motor vehicles, making this a lucrative import opportunity.
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Electronics
China is the world’s largest producer and exporter of electronics. The Indian market has a high demand for affordable and high-quality electronics, including computers, laptops, and home appliances.
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Phones
Chinese smartphones have become increasingly popular in India due to their affordable prices and advanced features. The Indian market has a high demand for smartphones, making this a profitable import opportunity.
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TVs
Chinese televisions have become increasingly popular in India due to their affordable prices and advanced features. The Indian market has a high demand for televisions, making this a profitable import opportunity.
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Consumer goods
China produces a wide range of consumer goods, including clothing, footwear, and accessories. The Indian market has a high demand for affordable and trendy consumer goods, making this a profitable import opportunity.
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Plastic
China is a leading producer of plastic products, including packaging materials, household items, and toys. The Indian market has a high demand for affordable and high-quality plastic products, making this a profitable import opportunity.
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Pharmaceutical goods
China is a major producer of pharmaceutical goods, including active pharmaceutical ingredients (APIs) and finished dosage forms. The Indian market has a high demand for affordable and high-quality pharmaceutical goods, making this a profitable import opportunity.
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Machinery
China is a major producer of machinery, including construction equipment, agricultural machinery, and industrial machinery. The Indian market has a high demand for affordable and high-quality machinery, making this a profitable import opportunity.
Sourcing Products from China vs. India
Some businesses simultaneously source products from China and India for various reasons. In some cases, companies prefer to import from China for convenience, but some fabrics and embroideries are not available in China. In other cases, companies adopt a “China plus one” strategy to avoid relying on China entirely for procurement.
In rare cases, India has a cost advantage, but Bangladesh is the cheapest option for some product categories, and Pakistan is also an option for some products.
Import Process in India Conclusion
To successfully import products from China to India, one must follow a few key steps. The first step is product hunting, where one must search for the products they wish to import. Once a product has been selected, the next step is to find a manufacturer for it. While big names like Alibaba can be used, there are also service providers available to assist in finding a manufacturer.
After finding a manufacturer, it is important to get in touch to finalize the relationship, including details such as quantity, price, and frequency. It is recommended to have a sample delivered when dealing with someone for the first time to ensure quality and delivery time.
In conclusion, importing products from China to India requires careful planning and attention to detail. By following these steps, one can ensure a successful import process. If there are any questions or concerns regarding the import process, it is recommended to contact a professional for assistance.