Save Big on Taxes with Expert Assisted ITR Filing from ₹799!

Got an ITR notice? Talk to our CA for the right response.
Import Export Code

Starting a Business for Importing Goods from China

Get into the world of importing from China to India, covering customs, documentation, and key FAQs. Uncover cost-effective strategies and licensing nuances for a seamless trade experience.

You do not need a special Import-Export License in India to do business with China. You just need an import-export licence with an IEC Number to Importing Goods from China or any other country in the world. If your business is new, that IEC is your 10-digit PAN. In this article, we will tell you in detail about how to obtain an import-export license online , Importing goods and the documents required for an export-import license.

What Is an IEC?

IEC stands for import-export code and is also known as an import-export license in India. The IEC is a 10-digit number that allows the DGFT (Directorate General of Foreign Trade) to any Indian business entity that seeks to do international trade from India. However, to ensure ease of doing business, the Government of India recently said that your 10-digit PAN card will suffice as an IEC number.

Prerequisites for IEC Application for Importing Goods From China

You need to keep in mind the following points before applying for an import-export licence in India-

  1. You need to choose your products carefully. The import-export license is issued for the specific category of product for which you apply. You need to pay an additional fee if you want an IEC for additional product categories
  2. You need to register your company if you have not done so already. Also, choose an appropriate name while registering. If you are a new firm looking to do an import-export business, you may consider names ending with ‘Exports’ (such as ABC Exports).  Post-registration, you will receive a TIN (Taxpayer Identity Number) and a CIN (Corporate Identity Number)
  3. Obtain a PAN in the name of your company
  4. Open a current account with a registered bank before you apply for IEC online
  5. You will need a bank certificate if you are unable to provide a cancelled cheque bearing your account number and the name of your business.

“Unlock global trade opportunities! Obtain your Import Export Code in India swiftly. Streamline international transactions, boost business growth.”

Customs Duties on Imports Goods from China

Importing goods from China to India involves adherence to customs duties, where the amount paid is contingent upon the value of the item. According to Customs Duty India, importers are obligated to pay 0.3464% of the item’s value for a formal entry, applicable to items costing more than $2,500. However, the charge may vary based on the specific product, and certain commodities may be exempt from this fee at the discretion of the government.

Customs Documents for Imports from China

The process of importing demands thorough paperwork. Crucial customs documents comprise the commercial invoice, providing details on product and cost; the packing list, listing contents; the bill of lading or airway bill, confirming shipment; and any certificates or licenses as required by Indian authorities. This comprehensive documentation is imperative, ensuring a systematic and compliant import procedure, aligning with governmental regulations for the smooth transit of goods

Documents Required for Importing Goods from China

Here are the documentation criteria for IEC online application

A) Proprietorship Business

  1. PAN of the applicant
  2. Passport-sized photograph of the applicant
  3. ID proof (any one fromPAN card, voter ID, Passport, driving license, and so on)
  4. Proof of business address (any one from rent/lease agreement, sale deed, electricity bill, owner NOC, and so on)
  5. Bank certificate or a cancelled cheque showing the name of the account holder and the account number

B) If You Are a Partnership Business

  • Passport-sized photograph of the partner/director
  • PAN in the name of the partnership firm
  • Identity proof (any one from PAN card, voter ID, passport, driving license and so on) of the managing partner who is the signatory on the application
  • Proof of business address (any one from rent/lease agreement, sale deed, electricity bill, owner NOC, and so on)
  • Bank certificate or a cancelled cheque showing the name of the account holder and the account number

C) If You are an LLP or Company (Both Private & Public)

  • Passport-sized photograph of the partner/director who is the signatory on the application
  • PAN in the name of the company/LLP
  • Identity proof (any one from PAN card, voter ID, passport, driving license, and so on) of the authorised signatory
  • Proof of business address (any one from sale deed, electricity bill, rent/lease agreement, owner NOC, and so on)
  • Certificate of incorporation
  • Bank certificate or a cancelled cheque showing the name of the account holder and the account number

How to Import Goods from China to India

The importation of goods is a carefully orchestrated process that unfolds in distinct stages. It commences with a detailed examination to pinpoint the specific products in demand. This initial step involves comprehensive market research to identify reliable suppliers capable of meeting the specified requirements, thereby laying the foundation for a successful import venture. Once the products and suppliers are meticulously chosen, the subsequent phase centres on meticulous compliance with customs documentation. This entails the preparation and submission of essential paperwork, including commercial invoices, packing lists, and bills of lading or airway bills, ensuring adherence to regulatory standards and facilitating a seamless transition through customs procedures.

The subsequent segment of the import process concentrates on the practicalities of shipping logistics. Selections regarding transportation modes, negotiation of freight terms, and meticulous packaging and labelling procedures become pivotal at this stage. Simultaneously, an in-depth understanding of the regulatory landscape governing international trade proves crucial. This knowledge not only aids in avoiding potential obstacles during customs clearance but also fosters a proactive approach to adapting to evolving regulations. Staying well-informed about customs duties is equally essential, as it directly influences the overall cost implications of the imported goods. In essence, a successful import experience demands a holistic and strategic approach, intertwining product identification, supplier collaboration, meticulous documentation, and nuanced comprehension of shipping and regulatory intricacies.

How to Apply for an Import-Export License Online?

Here is the step-by-step process to apply for an IEC online-

STEP 1: Visit the online portal of DGFT. Click on the ‘Apply for IEC’ tab

STEP 2: You will be prompted to an online form where you will need to fill up your details (Name, mobile number, email ID, etc). An OTP will be sent to your mobile number. Enter the OTP in the space provided and click the ‘Submit’ button.

STEP 3: On the resulting page, you will need to submit details related to your business such as establishment date, PAN, account details etc. After completing, click ‘Submit’ to proceed

STEP 4:   In this step, you will need to pay the requisite IEC application fee. You can make the payment through an electronic fund transfer

STEP 5: After successful payment, you will need to upload the digital copies of the documents required

STEP 6:  In this step, you will be asked to submit the completed IEC application form. On successful submission, an Ecom Reference Number will appear on the screen

STEP 7:  Take a print of the completed IEC application form. You need to submit it to the DGFT office having jurisdiction in your area

STEP 8:  On successful verification of your credentials, your IEC will be issued within 3 to 7 days.

Vakilsearch will smoothly execute the import-export license online registration process for you. Our dedicated representatives will file the IEC application on your behalf. Post the submission; we would be doing the necessary coordination with the DGFT for expediting your application. We will ensure you receive your import-export licence in just a few days.

FAQs on Goods from China

Can I still import Goods from China to India?

Yes, importing Goods from China to India is possible, subject to compliance with customs regulations.

How much does it cost to import Goods from China to India?

Import costs vary based on factors such as the nature of the product, quantity, and shipping method.

What is the cheapest way to import Goods from China to India?

The most economical method of importing Goods from China to India involves utilising sea transport. The cost tends to decrease with larger orders, making it particularly cost-effective. Typically, opting for a full container is considered the most advantageous and budget-friendly approach for importing Goods from China. However, the suitability of this method is contingent upon the nature of the product being imported.

Do I need a license to import Goods from China to India?

Licensing requirements vary. Some products may require specific licenses, while others may not.

How much does 1 container cost Goods from China to India?

Container costs are influenced by factors like container type, shipping company, and the goods being transported.

Is it profitable to import Goods from China?

Profitability depends on factors like product demand, market conditions, and effective cost management.

How do I start ordering from China?

Start by researching products, finding reliable suppliers, understanding regulations, and ensuring compliance with customs procedures.

How do I find direct suppliers in China?

Utilise online platforms, attend trade fairs, or engage with sourcing agencies to identify direct suppliers.

What is the most profitable import business in India?

Profitability varies, but popular imports include electronics, textiles, machinery, and consumer goods.

Which items are imported into India from China?

India imports a diverse range of items from China, including electronics, machinery, textiles, and chemicals. The specific items depend on market demand and trade dynamics.

Read More

Subscribe to our newsletter blogs

Back to top button


Remove Adblocker Extension