Importing goods and customs clearance in India

If you want to ship your goods to India then you have to get them through customs and formally import them. This article describes a number of important aspects.

Please note that if you need help, there are various parties available to support you.

Shipping your products

If you sell physical products, you need to get them delivered into India. Depending on the country you are in, this may be a challenge.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150.

There may also be non-financial bariers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

Container terminal where goods are cleared through customs

Importing goods

Importing goods into India involves following regulations set by the Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance. The CBIC’s official website provides detailed guidance on duties, procedures, and regulations: Indian Customs – English.

General Import Process

  1. Customs Declaration
    • Submit an Import Declaration electronically through the ICEGATE system (ICEGATE Portal).
    • Documents required include a commercial invoice, packing list, bill of lading, and Import Export Code (IEC) registration.
  2. Import Duties and GST
    • Duties are based on the product’s HS code. The Indian Customs Tariff can help determine applicable rates.
    • GST (Goods and Services Tax) rates are:
      • Standard rate: 18%.
      • Lower rates (5% or 12%) apply to specific categories such as food, books, and essential goods.
  3. Additional Non-Financial Requirements
    • Specific goods may require licenses or clearances from regulatory bodies like the Bureau of Indian Standards (BIS) or Food Safety and Standards Authority of India (FSSAI).
    • Use the Access2Markets portal (Access2Markets) for detailed requirements by product category.
  4. Inspection and Clearance
    • Customs may inspect goods for compliance. Processing time is typically 2-4 days if documents are complete.
  5. Release of Goods
    • Once cleared, goods are released for delivery to their destination.

Service Providers for Assistance

  1. DHL India – dhl.com
  2. Blue Dart Express – bluedart.com
  3. Schenker India – dbschenker.com
  4. Allcargo Logistics – allcargologistics.com
  5. Jeena & Co. – jeena.com

Importing Small Parcels

For small parcels, major couriers like DHL, FedEx, UPS, and India Post provide services. Shipping costs for a 2kg parcel typically are:

  • From the USA: ₹2,000-₹4,000 (€25-€50) for economy services.
  • From China: ₹1,500-₹3,000 (€18-€38) for economy services.

Express options (2-5 days) are available at higher rates. Confirm pricing directly with service providers based on weight and urgency.

Customs looks at three things

Whatever you ship, customs checks the same three things. The classification: the HS code that sets the duty rate. The customs value: the price plus, depending on the Incoterm, transport and insurance. And the origin, which can lower the rate under a trade agreement.

On top of that come the registrations: an importer number or EORI, a VAT registration or a local importer of record, and product certificates for food, cosmetics, medical devices and electrical goods.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Get your HS code VAlidation Report for only € 39

Importing into India in three steps

Step 1

Classify and check

Determine the HS code for every product, look up the duty rate, and check which certificates or approvals the country asks for before you ship anything.

Step 2

Arrange papers

Make sure there is a registered importer, and prepare the invoice, packing list, transport document and, where it lowers the duty, a certificate of origin.

Step 3

Ship and clear

Let a customs broker file the declaration, pay duties and import VAT, and keep the documents. Customs audits can go back several years.

Import and customs in other countries

More about India