Import Process in India: Step-by-Step Guide
Importing goods into India involves multiple steps across different government agencies. Here's a comprehensive step-by-step guide to help you understand the entire import process.
Step 1: Obtain Import Export Code (IEC)
Before you can import anything commercially, you need an Import Export Code (IEC) from DGFT. It's a 10-digit code linked to your PAN. Apply online at the DGFT portal — the process takes 2-3 working days.
Step 2: Check Import Policy
Verify whether your goods are freely importable, restricted, or prohibited under the Foreign Trade Policy. Some goods require licenses or NOCs from regulatory bodies like FSSAI, BIS, CDSCO, etc.
Step 3: Place Purchase Order
Negotiate terms with your overseas supplier including price, quantity, quality specifications, and Incoterms (FOB, CIF, etc.). Incoterms determine who is responsible for freight, insurance, and customs.
Step 4: Arrange Financing
Set up payment terms — advance payment, Letter of Credit (LC), or Documents against Payment (DP). For large imports, LC provides security for both buyer and seller.
Step 5: Shipment and Documentation
Your supplier ships the goods and provides shipping documents — commercial invoice, packing list, bill of lading/AWB, certificate of origin, and any required certificates.
Step 6: Customs Clearance
Engage a licensed CHA to file the Bill of Entry, pay customs duties, and obtain release of goods. This is the most complex step and requires expertise in customs regulations.
Step 7: Port Handling and Delivery
After customs clearance, arrange transportation from the port to your warehouse. Ensure you have the original Bill of Lading to take delivery from the shipping line.
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