How to Import Goods from India – Step-by-Step Guide

Introduction

India has emerged as a major player in the global trade ecosystem, exporting goods and services to over 200 countries. For international businesses seeking to diversify their sourcing base, India offers a compelling mix of quality, scale, and affordability. If you’re exploring how to import goods from India, understanding its trade potential and the import procedure India mandates is the first step to a smooth experience.

India’s Global Export Position

Ranked among the top 20 global exporters, India’s export industry is supported by robust manufacturing infrastructure, skilled labor, and a favorable regulatory environment. According to data from the Ministry of Commerce & Industry, India’s total merchandise exports crossed USD 450 billion in FY 2023–24, with strong performance across multiple sectors.

Key Sectors Driving Indian Exports

India’s export portfolio spans a wide range of industries, with certain sectors being globally dominant. These include:

• Textiles & Apparel – India is the world’s second-largest exporter of textiles, known for cotton, silk, and handloom products.
• Pharmaceuticals – A global leader in generic drugs, India supplies over 20% of the world’s generic medicine exports.
• Engineering Goods & Machinery – From industrial equipment to automotive components, Indian engineering exports have consistently grown.
• Handicrafts & Home Décor – Indian artisanship is highly valued in global markets, especially in the US and Europe.
• Gems & Jewellery – India accounts for a significant share of global diamond cutting and gold jewellery exports.
• Agricultural Commodities – Spices, rice, tea, coffee, and seafood are major export items with high global demand.

Step-by-Step Guide on Importing Products from India

Planning to source goods from India? This step-by-step guide on importing products from India covers the essential phases—from product selection to compliance—so that your international trade operations start off on the right foot.

1. Identify the Right Product and Conduct Market Research

Before entering into any trade agreement, the first critical step is to identify a viable product with global demand and minimal regulatory hurdles.

Key Actions:

• Assess demand in your target market using tools like Google Trends, industry reports, or Amazon product research.
• Ensure compliance requirements like labeling, packaging, and safety certifications are clear in both India and your own country.
• Check trade restrictions or sanctions that may apply to certain categories (e.g., pharma, defense equipment).
• Classify the product using the Harmonized System (HS) Code, a global classification system essential for customs, tariffs, and documentation.
  

Knowing the HS Code also helps calculate duties and taxes before the goods leave Indian shores.

2. Choose a Reliable Indian Supplier

India offers a large and diverse base of manufacturers and traders, but finding a dependable one is key to long-term success.

Where to Find Suppliers:

• B2B Portals: Use trusted platforms like IndiaMART, TradeIndia, GlobalSources and others.
• Export Promotion Councils: Refer to EPCs like FIEO, AEPC, or GJEPC based on your product category.
• Trade Fairs & Expos: Attend international expos like the India International Trade Fair (IITF) or product-specific events.
• Direct Outreach: Source through regional manufacturing hubs (e.g., Surat for textiles, Moradabad for handicrafts, Pune for engineering goods).
  

Tips for Due Diligence:

• Request GST certificate, IEC (Importer Exporter Code), and business registration proof.
• Ask for samples or conduct third-party factory inspections via agencies like SGS or Bureau Veritas.
• Check references and export history.
  

3. Finalize the Import Contract

Once you’ve shortlisted the supplier, it’s time to lock in the agreement with clarity on responsibilities, costs, and recourse.

What to Include:

• Incoterms (e.g., FOB, CIF, EXW): Clearly state who bears the cost and risk at each step.
• Quality and Inspection Clauses: Include details on who will inspect the goods and how quality disputes will be resolved.
• Arbitration & Jurisdiction: Define a dispute resolution mechanism that is neutral and enforceable.
• Payment Terms: Decide on method (advance, L/C, D/P) and currency.
  

A well-drafted contract protects both parties and streamlines customs processes later.

4. Obtain Importer Registration & Licenses in Your Country

Even though India doesn’t mandate an export license for most items, you must be licensed to import goods into your country.

Key Requirements for Foreign Buyers:

• Import/Export Registration: Apply for an Importer Number, EORI (in EU), or Custom Bond (in US).
• Product-Specific Licenses: Depending on your jurisdiction, certain goods may require licenses (e.g., food items, cosmetics, chemicals).
• Customs Broker Authorization: Many countries require appointing a licensed customs broker to handle clearance.
  

Pro tip: Keep your business profile updated with local customs authorities for faster clearance and access to trade facilitation programs.

By following these importing from India step by step instructions, businesses can significantly reduce risks, delays, and hidden costs in the international sourcing journey. Up next, we’ll break down the key documentation and customs processes in India.

Key Documentation Required for Importing from India

Proper documentation is the backbone of a successful international trade transaction. If you’re planning to source products from India, it’s critical to be aware of the documents required for import from India to avoid shipment delays, customs issues, and compliance penalties.

Essential Import Documents from India

Document	Purpose & Importance
Commercial Invoice	Serves as the primary proof of sale. It outlines the transaction value, HS Code, product description, quantity, and terms of sale (e.g., FOB, CIF).
Packing List	Details how the shipment is packed — including weight, dimensions, and number of packages. Helps customs verify the contents without opening each box.
Bill of Lading / Airway Bill	Issued by the carrier as proof of shipment. It confirms receipt of goods and includes the origin, destination, and handling instructions.
Certificate of Origin (COO)	Certifies the country where the goods were manufactured. Often mandatory for availing tariff benefits under trade agreements.
Inspection Certificate	Issued by a recognized third-party quality agency (e.g., SGS, Intertek). Confirms that the goods meet agreed standards or specifications.
Insurance Certificate	Provides proof that the goods are insured during transit. Required especially for CIF (Cost, Insurance & Freight) shipments.
Import License (if applicable)	Necessary for restricted or regulated goods such as electronics, chemicals, or defense-related products. Should be obtained in the importer’s country.

Understanding the Indian Customs Clearance Process

Before goods can be shipped from India, they must clear the country’s customs procedures. The Indian customs clearance process is a mandatory step in every export transaction and ensures legal compliance, proper duty assessment, and eligibility for incentives like duty drawback. Whether you’re a new importer or a seasoned buyer, it’s crucial to know how customs clearance works in India and the associated customs documentation India requires.

Step-by-Step Breakdown of the Customs Clearance Process in India

1. Filing of the Shipping Bill

The process starts with the filing of a Shipping Bill, which is the primary legal document for export customs clearance.

• Filed electronically via ICEGATE (Indian Customs Electronic Gateway).
• Typically handled by a Customs House Agent (CHA) or freight forwarder on behalf of the exporter.
• Required details include:
  
  • Exporter & importer information
  • Invoice value and currency
  • HS Code and product description
  • Port of export and final destination
    

The Shipping Bill must match all supporting documents such as the invoice, packing list, and transport contract.

2. Submission of Export Documents

Once the Shipping Bill is filed, the exporter submits the required set of documents to customs authorities for verification and record-keeping.

Commonly submitted documents include:

• Commercial Invoice
• Packing List
• Bill of Lading or Airway Bill
• Certificate of Origin
• Export Licenses (if applicable)
• Insurance Certificate
• Inspection Certificate (for regulated goods)
  

Consistency across documents is crucial. Mismatches can trigger delays or even detainment of goods.

3. Customs Examination and Assessment

The customs department may conduct an examination to verify the shipment against declared documents.

• Risk-based examination: Low-risk consignments may be cleared without physical inspection.
• Physical verification (if flagged): Officers inspect the cargo to confirm quality, quantity, and compliance.
• Duty Assessment: If duties are applicable (e.g., on special goods), they’re calculated at this stage.
• Drawback Check: Exporters eligible for duty drawback are evaluated for reimbursement claims.
  

India’s customs uses RMS (Risk Management System) to streamline this process and reduce bottlenecks.

4. Let Export Order (LEO) and Shipment

Once the assessment is complete and no discrepancies are found, customs issues a Let Export Order (LEO).

• LEO is the final approval for the cargo to leave Indian territory.
• Goods are handed over to the shipping line or airline for loading.
• Exporter receives the Export General Manifest (EGM), confirming that goods have exited the country.
  

The LEO date is critical for claiming export incentives and benefits under schemes like RoDTEP.

Freight Forwarding and Shipping Logistics from India

Once your goods are cleared by Indian customs, the next crucial step is shipping them efficiently to your destination. Choosing the right shipping mode and logistics partners in India can significantly impact both your delivery timelines and landed cost.

Choosing the Right Mode of Shipping from India

When shipping from India, you must align the transport mode with your product type, budget, and urgency.

Shipping Mode	Best For	Typical Transit Time*
Air Freight	High-value, time-sensitive items	3–7 days
Sea Freight (FCL/LCL)	Bulk shipments, cost-efficiency	15–45 days (depending on route)
Land/Rail (for SAARC nations)	Cross-border trade to Bangladesh, Nepal, Bhutan	3–10 days

*These timelines are just for reference purposes and may not be accurate.

Role of Indian Freight Forwarders and Logistics Partners

A freight forwarder in India acts as your intermediary, handling the end-to-end shipping and documentation process.

Services typically include:

• Booking cargo space with airlines or shipping lines
• Coordinating with customs brokers and CHAs
• Handling warehousing, consolidation, and insurance
• Tracking shipments and managing delivery timelines
  

Reputed logistics partners in India like DHL Global, Blue Dart, Allcargo, and Maersk offer both full-load and groupage (LCL) options, ensuring flexibility.

Understanding Incoterms and Their Impact

Incoterms (International Commercial Terms) define the roles, risks, and costs borne by buyer and seller in global trade.

Common Incoterms in Indian exports:

• FOB (Free On Board) – Exporter handles everything till goods are loaded.
• CIF (Cost, Insurance & Freight) – Exporter bears freight and insurance up to destination port.
• EXW (Ex Works) – Importer takes full responsibility from factory pickup.
  

Choosing the right Incoterm helps optimize your shipping costs and avoid confusion during freight handovers.

Payment Methods & Forex Regulations in India

Handling payments with Indian exporters involves compliance with local foreign exchange laws governed by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA).

Common Payment Methods for Indian Exporters

• Advance Payment: Importer pays before goods are shipped. Preferred for first-time transactions.
• Letter of Credit (LC): Secure method involving banks on both sides; widely used for bulk trade.
• Document Against Payment (DAP): Exporter ships goods and sends documents through their bank, which releases them to importer upon payment.
  

These payment methods for Indian exporters ensure risk mitigation and smooth documentation under international trade protocols.

Forex Regulations India: What Importers Should Know

All international payments to Indian exporters must comply with RBI guidelines for export under FEMA.

• Export proceeds must be received within a prescribed time frame (typically 9 months from shipment).
• Payments must be routed through AD Category-I Banks (Authorized Dealer banks approved by RBI).
• Exporters must file appropriate shipping and payment documentation with their banks (e.g., EDPMS entries).
  

Adhering to forex regulations in India ensures that the transaction is legal, traceable, and eligible for trade incentives or duty drawback schemes.

Compliance Checklist for Importers

Whether you’re a first-time buyer or a seasoned importer, ensuring legal and procedural accuracy is critical. This import compliance checklist helps you navigate key steps to avoid delays, penalties, and compliance issues when importing goods from India.

Use this customs checklist India mandates to streamline your process before, during, and after the shipment.

Before Shipment

1. Finalize the Purchase Agreement
   
   • Include product details, price, Incoterms (FOB, CIF), delivery timelines, and dispute resolution.
     
2. Verify Exporter Credentials
   
   • Confirm the supplier holds a valid IEC (Importer Exporter Code) and RCMC (Registration-Cum-Membership Certificate) with the relevant export promotion council.
     
3. Check Product Compliance Requirements
   
   • Ensure goods meet destination country standards like:
     
     • REACH (for chemicals in EU)
       
     • CE (for electronics in EU)
       
     • FDA Approval (for food, pharma in the US)
       

At Shipment

4. Collect Essential Export Documents
   
   • These typically include:
     
     • Commercial Invoice
       
     • Packing List
       
     • Shipping Bill (filed on ICEGATE)
       
     • Insurance Certificate
       
     • Bill of Lading / Airway Bill
       
5. Appoint a CHA for Customs Clearance
   
   • A Customs House Agent (CHA) handles clearance, ensures proper classification, and submits necessary documents to Indian customs.
     

Post Shipment

6. Pay Import Duties in Your Country
   
   • Calculate the total duties and taxes applicable on the goods (covered in the next section).
     
7. Verify Quality on Arrival
   
   • Ensure the products received match the agreed standards and specifications. Raise quality claims promptly if discrepancies arise.
     

Sticking to this importing goods from India compliance checklist ensures your import process remains smooth, legal, and risk-free.

Import Duties and Taxes: What to Expect

When planning a shipment, it’s important to understand the import duties from India that will be levied in your home country. While Indian exporters don’t charge GST on exports, duties and taxes are borne by the importer in the destination country.

Common Import Taxes and Charges

Depending on where you’re importing to (e.g., USA, UK, EU), expect the following:

Country	Typical Duties	Additional Charges
USA	0–20% (varies by HS code)	Merchandise Processing Fee (0.3464%, $31.67–$614.35 per entry), Harbor Maintenance Fee (0.125% for ocean shipments), FDA fees (e.g., $0.07–$0.28 per entry for food/drugs, $5,546 annual registration for facilities, if applicable), state sales tax (0–10%, post-import at sale)
UK	0–14% (based on UK Global Tariff, HS code)	VAT (20% standard, 5% or 0% for specific goods), courier handling fees (£8–£15), excise duties (e.g., alcohol, tobacco), Carbon Border Adjustment Mechanism (CBAM, for specific high-emission goods, developing), CE compliance costs (regulatory, not a tax)
EU	0–14% (based on Common Customs Tariff, HS code)	VAT (19–27%, varies by country, e.g., 19% Germany, 21% Netherlands), courier handling fees (€5–€20), excise duties (e.g., alcohol, tobacco), Carbon Border Adjustment Mechanism (CBAM, for specific high-emission goods), CE compliance costs (regulatory, not a tax)
Australia	Duty-free ≤ AUD 1,000; 5–10% above AUD 1,000 (based on HS code)	GST (10%, on customs value + duty + shipping), Biosecurity fees ($40–$200 for food/plants/animals), Import Processing Charge ($50–$200 per declaration), excise equivalent duties (e.g., fuel, alcohol, tobacco)

Key Points

• USA: Duties range from 0–20% based on HS codes, with no federal VAT or import sales tax. Merchandise Processing Fee (MPF) and Harbor Maintenance Fee (HMF) are standard. FDA fees apply only to regulated goods (e.g., food, drugs). State sales taxes vary and apply at the point of sale, not import.
• UK: Duties (0–14%) depend on the UK Global Tariff, with 20% VAT standard (reduced for some goods). No “Border Adjustment Tax” exists; courier handling fees or CBAM (for specific goods) are relevant. CE compliance is a regulatory cost, not a tax.
• EU: Similar to the UK, with duties (0–14%) based on the Common Customs Tariff. VAT varies by country (19–27%). CBAM applies to high-emission goods, and CE compliance is regulatory. Courier fees are common.
• Australia: Goods ≤ AUD 1,000 are duty- and GST-free (except alcohol/tobacco). Above AUD 1,000, 5–10% duties and 10% GST apply. Biosecurity fees target high-risk goods, and Import Processing Charges are standard.

How to Calculate Landed Cost

The landed cost includes all expenses incurred to bring the product to your doorstep:

Landed Cost = FOB Value + Freight + Insurance + Import Duties + Local Taxes + Handling Charges

Use your HS Code and consult with a customs broker or import consultant to get exact duty rates and exemptions.

Knowing how much tax on imports from India helps avoid surprises at the port and improves cost forecasting. For high-volume or regular importers, consider enrolling in trade facilitation programs like AEO (Authorized Economic Operator) for faster customs clearance.

Country-Specific Import Considerations for Goods Imported from India

While Indian exporters are generally familiar with international compliance standards, each importing country has its own regulatory requirements. Understanding these upfront helps avoid shipment delays, rejections, and penalties. Below is a concise guide for top destinations importing goods from India.

USA: CBP and FDA Regulations for Indian Imports

The United States Customs and Border Protection (CBP) enforces strict inspection protocols. In addition, agencies like the Food and Drug Administration (FDA) regulate specific product categories such as pharmaceuticals, cosmetics, and food items.

Key Considerations:

• Obtain FDA Prior Notice for food shipments.
• Pharmaceuticals and cosmetics must comply with FDA labeling and registration rules.
• Ensure product declarations match the Harmonized Tariff Schedule (HTS).
• Use a US Customs Broker to manage formal entry processes and assist with documentation.
  

Tip: Incorrect documentation or unregistered facilities can result in border holds by CBP or FDA.

EU: CE Marking, REACH & Product Standards

Imports into the European Union are subject to some of the most comprehensive compliance regimes globally, especially for electronics, chemicals, and personal care products.

Key Requirements:

• CE Mark: Mandatory for electronic goods, machinery, medical devices, and toys to indicate conformity with EU safety directives.
• REACH Compliance: Registration, Evaluation, Authorisation and Restriction of Chemicals—critical for products containing chemical substances.
• Mandatory language labeling and eco-packaging standards must be met for retail goods.
  

Tip: Importers should request compliance declarations and technical files from Indian suppliers before shipment.

UAE: Customs Code and Product Registrations

The United Arab Emirates (UAE) is a key re-export hub that follows structured import protocols via the Federal Customs Authority.

Checklist for UAE Imports:

• Register as an importer and obtain a customs code with the UAE Federal Customs.
• Certain products (cosmetics, dietary supplements, electronics) must be pre-registered with relevant authorities like Dubai Municipality or ESMA.
• Arabic labeling may be mandatory depending on product type.
  

Delays often occur due to lack of importer registration or mismatches in invoice and shipping data.

Australia / 🇨🇦 Canada: Focus on Biosecurity & Safety

Both Australia and Canada place strong emphasis on biosecurity laws, especially for agricultural goods, textiles, wood products, and food items.

Australia:

• Declare all plant, animal, and food-based products to the Department of Agriculture, Fisheries and Forestry (DAFF).
• Products may be subject to quarantine inspection or need an import permit.
  

Canada:

• Food items must comply with CFIA (Canadian Food Inspection Agency) standards.
• Textile labeling regulations apply to garments and home decor items.
  

Tip: Always check if your product is on the controlled goods list or requires prior permits.