Importing from China to India: a practical small-business guide
China is one possible sourcing market for Indian businesses, but a low factory quotation does not automatically mean a profitable import. Product restrictions, certification, quality, freight, customs valuation, exchange rates and supplier risk must be assessed before paying.
Step 1: Choose a product with a real buyer
Identify who will purchase the product in India and what they currently pay. Compare local suppliers, competing imports, warranty expectations and after-sales needs. Start with a narrow product range rather than a large mixed shipment.
Step 2: Check Indian import rules
Identify the correct ITC(HS) code and verify the current import policy on DGFT. Check whether the item is free, restricted or prohibited. Depending on the product, BIS compulsory registration or quality-control orders, WPC, FSSAI, CDSCO, Legal Metrology, plant quarantine or other requirements may apply. Verify the current rules with the relevant authority before placing an order.
Step 3: Find and verify suppliers
Use established trade fairs, supplier platforms, referrals and industry networks. Ask for the supplier's registered legal name, business licence, factory address, export references and product specifications. Confirm that the bank beneficiary matches the contracting entity or obtain a documented explanation. Arrange samples and independent inspection for material orders.
Step 4: Request a complete quotation
Ask for model numbers, materials, dimensions, tolerances, packaging, MOQ, production time, sample cost, warranty, spare parts, Incoterm and named place. Confirm whether the quotation covers tooling, labels, export packing and inspection.
Step 5: Calculate landed cost in India
Model product price, origin charges, freight, insurance, customs duty, applicable taxes or cess, port handling, customs broker, testing, local transport, bank charges, currency conversion and finance cost. Duty depends on correct classification, origin and current tariff notifications; do not use a generic online percentage.
Step 6: Agree payment and quality controls
Use a written purchase contract. Define inspection stages, acceptable defect limits, packaging, delivery dates, claims and remedies. Avoid sending funds to personal accounts or changing beneficiary details based only on an email. Independently verify any bank-account change by a known contact channel.
Step 7: Arrange customs clearance
The usual core import documents include the transport document, commercial invoice-cum-packing list and Bill of Entry. Additional certificates, licences or declarations may be required. Work with an experienced customs broker and retain all records.
Warning signs
- Supplier refuses to provide verifiable company details.
- Price is far below comparable market quotes without a credible explanation.
- Beneficiary account belongs to an unrelated party.
- Supplier refuses samples or independent inspection.
- Product certification is vague, expired or for a different model.
- Pressure to pay immediately before basic checks are complete.
FAQs
Can a small business import from China?
Yes, if it can comply with Indian import policy, product regulations, customs and tax obligations and manage the commercial risk.
Is IEC needed?
Generally yes for commercial imports of goods, subject to applicable exemptions.
Is importing from China always cheaper?
No. Compare the landed cost, quality, lead time, warranty and regulatory expenses against Indian alternatives.
Official resources
- DGFT: https://www.dgft.gov.in/
- ICEGATE: https://www.icegate.gov.in/
- BIS: https://www.bis.gov.in/
- CBIC: https://www.cbic.gov.in/
Find local distributors and suppliers through Twimzi business listings, or add your business.
Verify product-specific approvals and current customs rules before making payment or shipping goods.