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Step-by-Step Process for Importing Goods into India

Written by

Financial Analyst

in

Introduction

Importing goods into India can unlock high-quality global products and competitive pricing for your business. But the process requires proper documentation, customs procedures, logistics planning, and regulatory compliance. This guide explains every step clearly so you can execute your import operations efficiently and avoid delays or penalties.

Step-by-Step Process

Step 1: Obtain Importer-Exporter Code (IEC)

Before importing anything into India, you must have a valid IEC issued by DGFT.

  • Apply online on the DGFT portal
  • Link PAN, Aadhaar, and bank account
  • IEC is mandatory for customs clearance and foreign remittances

Step 2: Identify Supplier & Finalize Product Details

Choose a reliable foreign supplier and confirm:

  • Product specifications
  • Quality standards (CE, ISO, RoHS etc., if applicable)
  • Pricing & payment terms (LC, TT, Advance)
  • Packaging details
  • Delivery timelines

Step 3: Determine Incoterms & Final Contract

Sign a Purchase Order or Contract defining:

  • Incoterms (EXW, FOB, CIF, DDP, etc.)
  • Responsibilities for freight & insurance
  • Risk transfer point
  • Payment terms
  • Inspection terms (pre-shipment inspection if required)

Step 4: Arrange Shipping & Insurance

Depending on the agreed Incoterm:

  • Supplier or buyer books sea/air freight
  • Get cargo insurance (recommended for all imports)
  • Obtain tracking and expected arrival date

Step 5: Prepare Import Documents

Your supplier must provide:

  • Commercial Invoice
  • Packing List
  • Bill of Lading / Air Waybill
  • Certificate of Origin (if required)
  • Insurance Certificate
  • Compliance Certificates (if applicable)

Your documents:

  • IEC, GSTIN, PAN
  • Authorisation for CHA
  • KYC documents

Step 6: Customs Filing – Bill of Entry

Your Customs House Agent (CHA) files the Bill of Entry electronically.
Customs verifies:

  • HS code
  • Customs duty
  • IGST
  • Product restrictions (if any)

If needed, customs may order physical inspection, sampling, or valuation checks.

Step 7: Pay Duties & Clear Goods

Based on classification, you must pay:

  • Basic Customs Duty (BCD)
  • Social Welfare Surcharge
  • IGST
  • Compensation Cess (if applicable)

Once duties are paid and assessment is completed, goods are released.

Step 8: Delivery & Post-Clearance Compliance

  • Take delivery from CFS/port
  • Update inventory and accounting
  • Maintain all import documents for 8 years
  • Claim ITC of IGST (if eligible under GST rules)

Import Documents Checklist (Quick Reference)

  • IEC
  • GSTIN
  • Purchase Order
  • Commercial Invoice
  • Packing List
  • Bill of Lading / Air Waybill
  • Certificate of Origin
  • Insurance Certificate
  • Bill of Entry
  • Duty Payment Challans
  • CHA authorisation letter

Common Mistakes to Avoid

  • Incorrect HS code → wrong duty → penalties
  • Missing or incomplete invoices
  • Wrong Incoterms leading to unexpected freight costs
  • Importing restricted goods without licenses
  • Not insuring cargo

Saving Mantra Support

Saving Mantra provides complete import solutions:

  • IEC registration
  • HS code classification
  • Import documentation
  • Freight & logistics support
  • CHA coordination
  • Customs clearance
  • GST & bookkeeping for imports

Disclaimer

This blog provides general information on the import process in India. Import rules, documentation requirements, duties, and restrictions may change over time and may vary depending on the product category. This article should not be considered legal, tax, or customs advice. For case-specific guidance, please consult DGFT, CBIC, a licensed Customs House Agent (CHA), or a qualified compliance advisor. Saving Mantra can help with personalized import assistance tailored to your business needs.

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