Introduction
Importing goods into India offers new opportunities for businesses to source better-quality products globally. But to avoid customs delays, penalties, or compliance issues, you must follow a structured import process. This guide explains each step clearly so you can handle imports confidently, whether you are a startup, SME, trader, or manufacturer.
1. Obtain Importer-Exporter Code (IEC)
IEC issued by DGFT is mandatory for all importers.
Steps:
- Apply online through DGFT portal
- Provide PAN, Aadhaar, bank details
- IEC activates instantly once issued
Without IEC, customs will not release your shipments.
2. Identify Supplier & Finalize Product Details
Research and shortlist foreign suppliers. Confirm:
- Product specifications
- Quality certifications (CE, ISO, RoHS, etc.)
- Payment terms (Advance, LC, TT)
- Price and minimum order quantity
- Packaging details
- Delivery schedule
Always request product samples before bulk order.
3. Determine Incoterms & Sign Purchase Contract
Incoterms define responsibilities of buyer and seller. Common ones:
- EXW – Buyer handles everything
- FOB – Seller handles loading at port
- CIF – Seller handles freight & insurance
- DAP/DDP – Door delivery options
Proper Incoterms avoid hidden costs and disputes.
4. Arrange Freight & Insurance
Depending on the agreement:
- Book sea/air freight
- Arrange cargo insurance (recommended for all imports)
- Receive booking confirmation, ETA, and tracking details
Insurance protects against loss, theft, or damage during transit.
5. Collect Import Documents
Supplier must send:
- Commercial Invoice
- Packing List
- Air Waybill / Bill of Lading
- Certificate of Origin (if required)
- Insurance Certificate
- Technical/Compliance Certificates
Importer documents:
- IEC, GSTIN, PAN
- KYC
- CHA authorisation
6. File Bill of Entry with Customs
Your Customs House Agent (CHA) files the Bill of Entry electronically through ICEGATE.
Customs verifies:
- HS Code
- View & assess duties
- Product classification
- Restrictions (if any)
Customs may order examination, sampling, or valuation checks.
7. Pay Duties & Taxes
Based on HS code, you pay:
- Basic Customs Duty (BCD)
- Social Welfare Surcharge
- IGST (eligible for ITC if used for business)
- Anti-Dumping Duty / Safeguard Duty (if applicable)
Once duties are paid and inspection cleared, customs issues Out-of-Charge (OOC).
8. Delivery & Post-Clearance Compliance
- Collect goods from CFS/port
- Update inventory
- Record landed cost (product + freight + insurance + duties)
- Maintain all import documents for 8 years
- Claim IGST input tax credit (if eligible)
Proper post-clearance compliance is essential for audits and tax filings.
Quick Checklist
- IEC
- Purchase Order / Contract
- Commercial Invoice
- Packing List
- Bill of Lading / AWB
- Insurance Certificate
- Certificate of Origin
- CHA Authorization
- Bill of Entry
- Duty Challans
Common Mistakes to Avoid
- Wrong HS code → excess duty or penalties
- Missing invoice details
- Not specifying Incoterms clearly
- Importing restricted items without licenses
- Forgetting insurance
- Incorrect valuation → customs objection
How Saving Mantra Helps
Saving Mantra provides end-to-end import services:
- IEC & DGFT compliance
- HS code classification
- Documentation & vendor verification
- Freight coordination
- CHA handling & customs clearance
- GST compliance for imports
- Landed cost calculation
Disclaimer
This blog provides general information to help readers understand the import process in India. Regulations, duties, and documentation requirements may change or vary by product category. This content should not be considered legal, tax, or customs advice. For case-specific guidance, consult DGFT, CBIC, a licensed Customs House Agent (CHA), or a qualified compliance professional. Saving Mantra can assist with personalized import support tailored to your business needs.