Importing can open doors to new products, better margins, and competitive advantage, but a single error in compliance can cause your goods to be held at port, leading to massive financial losses.
This guide gives you the step-by-step legal and operational roadmap to successfully import into India - from obtaining licenses to clearing customs and paying your supplier.
Table of Contents
Mandatory Registrations
Importer Exporter Code (IEC)
Without this, you can’t import or remit payments. Apply here.
GST Registration
Needed for commercial imports & to claim ITC on IGST. Register here.
Current Account with AD Bank + AD Code
Required for duty payments and remittance approvals.
Know Your Duties & Taxes
Basic Customs Duty (BCD): Varies by HS Code.
IGST: 5–28%, depending on product.
Social Welfare Surcharge (SWS): Applied on BCD.
💡 Check duty rates here (CBIC).💳 Pay online via ICEGATE.
Customs Documentation
For clearance, you’ll need:
Bill of Entry (filed online via ICEGATE).
Commercial invoice & packing list.
Bill of Lading/Airway Bill.
Import licenses/permits (if required).
Duty payment receipt.
Pro Tip: Always maintain both digital and physical copies for 5+ years.
Special Approvals & Licenses
Depending on goods:
Electronics: BIS approval
Food & Beverages: FSSAI license
Pharma & Medical Devices: CDSCO approval
Agri/Livestock: Quarantine clearance
Missing these can result in shipment seizure.
Labeling & Packaging Compliance
As per India’s Legal Metrology Act:
Country of origin
Manufacturer’s details
Net quantity/weight
MRP in ₹
Penalty: Non-compliance → goods can be seized or destroyed.
Making Payment to Supplier
Common methods:
Advance Payment (T/T, Wire Transfer, PayPal)
D/P (Documents against Payment)
Open Account (riskier, used for trusted suppliers)
Letter of Credit (safest for large shipments)
Always keep SWIFT copies, LC docs, and transaction receipts for proof.
Risk Protection for Importers (Often Ignored)
Marine Insurance: Covers damage/loss at sea.
Forward Contracts: Lock exchange rates to avoid forex shocks.
ECGC cover: Available for select import-related risks.
Case Example: An electronics importer in Mumbai reduced losses by 8% annually after using forward contracts to hedge USD fluctuations.
Optional But Smart Moves
Hire a Customs House Agent (CHA) to handle paperwork.
Use a Bonded Warehouse to delay duty payments until sale.
Quick Importer Checklist
IEC & GST active
AD Code registered with customs
Duties & taxes calculated via HS Code
Bill of Entry filed on ICEGATE
Product-specific licenses (FSSAI, BIS, CDSCO, etc.)
Proper labeling as per Legal Metrology Act
Supplier payments & proof secured
Insurance & forex protection arranged
Now that you know all the essential documents, it’s time to get your IEC & AD Code in India, which are mandatory for starting any import or export operations.