Bringing in goods from China to India is quite popular these
days. However, there are certain things to be kept in mind. This blog will give
you a detailed information on how can you import products from China to India.
Few recent years has shown that the e-commerce sector in India
has been increasing at rapid rate. It has resulted in many online sellers to import
goods from China. China, as everybody knows is a huge manufacturer of several
goods, so getting goods from China is really affordable and economically sound
option. But it doesn’t mean you can directly access the service. If you are a
business holder, you need to meet many terms and conditions in order to import goods
from China. So if you are thinking ways to import goods from China, here is a
detailed information on the process and what are the best products you can
import from China.
Are there any legal requirements that have to be met before
importing goods from China?
Before you wish to import goods from China, you need to figure
out what are the legal requirements associated with it. This is the first step
you perform for importing goods. It needs to be done so that you are sure that
you are on right track and with inside laws. Below are given some of the
licenses and permissions needed to be taken to be able to buy from China.
Explanation on Businesses that are registered:
Before you become able to import or export goods from China,
your company must be registered as legal entity in India. If you are a company
concerned with export and import, it is utmost to have access to valid
registration with Ministry of Corporate Affairs. The concerned companies can register
as one of the following given below for being able to conduct import service
from China:
- Partnership Firm
- Private Limited Company
- Sole Proprietorship Firm
- Limited Liability Partnership
- One Person Company
Explanation on Registration for Tax
The step you need to perform once you register your business
company legally is register with the Indian Tax Department. This will not only
make you able of paying taxes but also enables you to file your returns
annually within time. Indian laws state that after incorporation, under the GST
regime, businesses need to be signed via application for GST registration.
After you have registered, a TIN will be provided to you that can be utilized
by you for the purpose of paying taxes for goods that you have imported or
exported. In order to make sure that business will start up and go in the same
way as mentioned, certain states demand for Security Deposit. We are here to help you guys for the purpose as well.
Explanation on Registration for IEC Code
After successfully completing GST registration, then you can
provide your application for getting import or export license from the DGFT
Department, as Import Export Code form. However before you apply for such code, there
must be valid current account in a bank in India in your company’s name. You
can now apply for the entire process for applying for IEC Code online. So
Digital Signature Certificates for your company directors must be acquired.
Indian companies can import or export goods if you have 10 digit Importer
Exporter Code issued by the Directorate General of Foreign Trades. The
following are the documents necessary for applying for IEC. Document required for import products from China to India
- Statement for Bank Account
- Banker Certificate
- Company PAN Card
- ID and Address proof of all partners/directors
Explain the ways to import goods from China
So here are the ways for importing goods from China. The best
idea would be to rely on trusted shipping and procurement company. Some of
those companies are Alibaba, AliExpress. If you want to bring in goods from
China, here are some of the methods that you can use online:
- The first step would be to find out what products you want to
buy from China
- Once you have decided to what you want to buy, then find a
reliable manufacturer or supplier for the concerned products
- Large agencies like Alibaba will assist you in search for the
suppliers. Also you can approach through third-party service providers that
help in procurement of goods.
- Then a contact must be established with the supplier and make a
deal accordingly. The process includes price deciding, quantity of the order
and shipping frequency.
- In order to make sure of the quality of the products, you can
first order for some samples. And then you can know if it is of the quality you
are looking for. Also since samples are sent via courier, you can evaluate the
time taken for the shipment and what obstructions or delays you can expect for
on the way.
- AliBaba, Canton fair, global sourced, Made-in-China, Hktdc,
Aliexpress are some of the websites that will assist you in your search for
reliable suppliers and manufacturers in China.
- After sorting out suppliers, then you need to look at laws and
regulations imposed regarding import and make sure of having all the necessary
documents and licenses. Also, it must be made sure that the product you are
importing is not banned in India. As for example, import of narcotics, wild
animals, pirated goods, etc. are not allowed in India.
- Then comes process for shipments management, for that you need
to make a co-ordination with NVOCC or freight forwarder. There also comes need
of hiring custom agents and accountants in order to oversee the legal
documentation related to import, as for instance, entry of bill and likewise.
- After you list out products and suppliers, classification of
goods is necessary and their landed cost must be calculated too. For that
purpose, supplier must let know product price, NVOCC should let know of
shipping charges, and Indian government should let know custom chargers. If you
feel your landed cost is expensive and more than you were expecting for, search
for some other cheaper ones.
- Then finally there
comes need of staying in compliance with laws set regarding import service all
the times. Also you need to keep the appropriate and correct records and filing
of your returns on time every year so that you continue to import goods.
List out some of the items that you can import from China
Electronics, smart TVs,
clothes and textiles, motor vehicles, accessories, spare parts, smartphone
components, plastics, heavy machineries, pharmaceutical products, organic
fertilizers, consumer products are some of the best products that you can
import from China.
