India is becoming a hub for many countries in terms of importing goods due to numerous reasons, including multiferous resources, low cost of products with first-class quality, technological advancement, and ease of fast delivery. Besides this, as per the data of the Global Trade Research Initiative (GTRI), India’s exports of goods and service
s rose by 1.5 percent to USD 385.4 billion during January-June this year, as against USD 379.5 billion in January-June 2022. Even based on the report of the Central Intelligence Agency, India was in the 12th place for exporting goods.
So, If you’re thinking of importing goods from India, you could be on the verge of making a wise business decision. The Indian economy is experiencing a remarkable surge in all aspects (in terms of income, industrial sector, financial system, educational system, human resources, and technology), thus standing as one of the largest trading nations globally. When exploring their primary exports, you’ll uncover a diverse range of products, including organic chemicals, precious stones, electronic goods, metals, plastic items, ceramic & marbles, handicrafts & handlooms, machinery & equipment, and many more.
Nevertheless, this is an opportunity worth delving into. Yet, you might be thinking – “Do I need a license when importing from India? What would be the exact procedure to go through while product importing from India, and what are the considerations I should keep in mind?”
These are valid questions as they can significantly impact the success of your business. For these reasons, in this blog, we are going to explain all the answers that are wandering in your mind and help you to proceed further in the journey of product importing from India.
Learn About The Laws & Regulations For Products Importing From India
When it comes to products imported from India
to any country around the globe, it’s crucial to have a firm grasp of laws and regulations governing imports, which will vary depending on the country you are residing in or going to import the same products. Therefore, importing from India makes it a necessity to have a good understanding not only of Indian Foreign Trade Policies but also those of your home country.
In India, local regulations may vary, but there are some fundamental steps you’ll need to follow. This includes obtaining Import-Export Code (IEC), ensuring different trade compliances under trade law (like Foreign Trade (Development & Regulation) Act (1992), Section 11 of the Customs Act (1962), and the Foreign Trade Policy,2023), procure import license, completion of other necessary documents (like certificate of origin, certificate of inspection, bill of exchange, and more), and clearance of the custom duty, and other tax levied by Indian government.
Complying with these regulations and procedures is essential to ensure a smooth and legally sound importation process, safeguarding your business interests and maintaining compliance with both Indian and your home country’s laws. Read our blog on : Why Foreign Companies Are Choosing India For Product Sourcing?
Selecting Reliable Indian Suppliers or Product Sourcing Companies
While India offers a cost-effective option for importing, it’s essential to acknowledge the fact that in India, there are chances that you can face issues related to unscrupulous business practices. Therefore, exercising tactfulness when dealing with new suppliers, mainly those located overseas, is crucial.
When engaging with a new supplier, it’s important to adopt a vigilant approach. Make sure your chosen supplier is legitimate by taking proactive measures. This can be achieved through open and frequent communication and asking for the details of clients they have served earlier. Continuously request product samples; counterfeit suppliers often flee when such requests occur.
Additionally, consider planning a visit with a product expert to the import solution provider. This hands-on approach allows you to gain firsthand insights into the product and company operations.
It would be better also to conduct comprehensive research on the supplier’s reputation and online presence. Alternatively, seek guidance from colleagues with prior experience working business in India. Moreover, PGIN Export itself has been a well-reputed (product sourcing company) import solution provider in India for the past 8 years.
We have fulfilled the demands of many individuals and organizations worldwide; you can check all our details on our website.
Furthermore, if you take assistance from any product sourcing company that is offering end-to-end import solutions from India, then this could be very beneficial for your business instead of any product sourcing agent as you don’t need to take headaches for taxes and other international trade documentation because then they will take the responsibility of assisting you in every phase including regulatory documents (letter of intent, ICC NCNDA IMFPA draft, export-agreement, & other necessary certificates) insurance, sampling management, product evaluation & confirmation, payment process, and transportation & logistics.
Scheduling Appointment & Placing Order
You can easily schedule the virtual appointment after finding your preferred supplier with their dedicated team members. Regardless of where you are in the time zone and in which country you reside, these import solution providers in India
will help you with personalized, convenient experiences and preferences.
As you are importing products from India, it is a must to make note of several critical aspects that should be discussed to ensure a successful and mutually beneficial business relationship.
Firstly, the terms of the trade, including pricing, payment methods, delivery schedules, and documents required from your end, must be clearly defined and agreed upon.
Additionally, it’s essential to discuss the specifications and quality standards of the goods being imported to meet regulatory and consumer requirements. Some exporters also offer custom development solutions with your brand name; if required, you can discuss it, too.
Both parties should also address issues related to shipping and logistics, such as transportation methods, insurance, and customs clearance procedures. Furthermore, potential risks and dispute resolution mechanisms should be on the table, along with any applicable legal or contractual obligations. Maintaining transparency, proper communication, and a comprehensive understanding of these key topics are fundamental for long-term business relationships. Once both parties gain a thorough understanding of all the points mentioned above, then placing orders will become effortless.
Ask For Product Sampling & Sourcing
For your reference, India’s manufacturing industry is booming constantly; in FY23, manufacturing exports achieved a historic milestone, reaching an all-time high of $447.46 billion, marking a remarkable 6.03% growth compared to the previous year.
For your information, some of the leading product sourcing companies in India
, like PGIN Export, have tie-ups with top-notch manufacturers/producers who comply with stringent quality management standards and best practices, rigorously follow industry compliances, and set benchmarks in the industry. Thus, evaluation of products won’t be an issue for you.
Still, you must ask your supplier for samples of the original product to ensure that you will get delivered what exactly you are looking for; it also gives an idea of the quality of products you can expect and the time of product importing from India in bulk from that particular importing solution provider.
Making Payment & Order Dispatch
After getting a sample and giving the confirmation to your exporter, it’s time to make the payment and receive the whole order of goods. Your supplier/product sourcing company
will offer you comprehensive logistics solutions that encompass the meticulous coordination and efficient management of various transportation modes, including air transport, sea transport, and road transport, and ensure that everything goes seamlessly and without any hiccups to its intended destination.
Point to be noted:
there are chances that you have to make an advance payment. However, it completely varies on the supplier you are dealing with according to what are the terms and conditions of their company. Moreover, India is witnessing a fintech revolution and digitized payment innovation, so there will be enough options to settle payments to your supplier, which encompass wire transfers, escrow payments, PayPal, letters of credit, and many other international payment gateways.
Duty on products imported from India
Custom duties differ according to the country. For instance, in the case of Europe, if import duty is applicable to your goods from India, Royal Mail (or your chosen courier) will contact you for payment instructions. Typically, you will have a 3-week window to settle any charges before the parcel is returned.
Since your parcel originates from a non-EU country, you may incur VAT or excise duty charges. Additionally, for gifts or other items from India exceeding a specific value threshold, customs duty will be required to be paid.
Another example we can take is the USA; the duty tax rates range from 0% to 37.5%, with the average rate standing at 5.63%. However, e-commerce purchases exceeding the US import tax threshold limits are subject to a fixed rate of 3%. In addition to duty tax, Customs and Border Protection (CBP) may levy various other taxes on imported goods into the United States, including the Federal Excise Tax, user fees, Merchandise Processing Fee (MPF), and Harbour Maintenance Fee (HMF).
It would be better if you knew in advance what import tariffs will be levied by your country’s government on imported goods’ value.
Nowadays, international product procurement
has become a necessity for many businesses in every corner of the world. We hope that you will be able to take valuable insights from this blog; let us know in the comment box what else we can cover in terms of product importing from India.
Also, are you considering product importing from India? If you’re a seller, importing from India can offer a fantastic opportunity to procure cost-effective supplies from an Indian product-sourcing company
and then sell imported products in your home country for a substantial profit margin. Then, just fill out the form on our Contact
Us page so PGIN Export can reach out to you as soon as possible.