In India, E-commerce Business is one the growing sector and Now Many Online Sellers want to Import Goods from China to India but they don’t Know about the Procedure so let’s learn about “How to Import Goods From China to India “.
India is one of the largest Importers of China. Below are the Indian Import Export Old Statistics so you got a clear idea that there is a huge opportunity to Import From China to India.
First of all, we have to understand the LEGAL things which are required to start an Import Export Business in India or required to Import Goods From China.
Legal License is Required
Register your Legal Entity in India
For Starting any type of business you have to register a Legal Entity in India. Legal Entity is required for any type of business even if you are not doing the Import Export Business in India. For the Exporting Business, you have to incorporate a legal entity on your brand name or firm name or Company Name. There are 5 types of legal entities which you can register –
a) Sole Proprietorship Firm
b) Partnership Firm
c) Limited Liability Partnership
d) Private Limited Company
e) One-Person Company
If you just starting on the Small Level or trying to test your ideas in the Import Business then go with the Sole Proprietorship firm and at a later stage you can convert into a Private Limited Company or LLP.
After the Incorporation, you have to apply for Tax Registration on your Goods. Mostly its required GST Registration from your state government. Even if you do not import the goods from China then also required to sell in India. In Some States, it required Security Deposit Concept and Surety Concept so it’s a little bit expensive to license.
IEC Code Registration
After applying for GST Registration for the Import or Export of Goods in India you need especially one license from the DGFT Department i.e called IEC Code. It is also required a Current bank account in your Company name which is possible only after the Incorporation of your legal entity in India.
DGFT Procedure is Now Online but you have to require Digital Signature to the apply New Online IEC Code so you can save the Expense during the Incorporation.
Ways to Import Goods
Now Let’s talk about the Option which is available for Import Goods From China to India. One of the best ways to import goods from China i.e is Online through Alibaba or AliExpress or you can use some other third parties agent which can do this on your behalf on a Commission Basis. So Let’s understand How you can Import Goods from China through Online Websites or Agents.
There are 4 Important steps to be considered during the Import the Goods From China to India Completely Online.
a) Find the Products Online Which are hot in Demand
You have to find the Products Online on the Chinese Online Shopping Website which are hot in Demand in your Country. There is multiple websites which are providing shipping in India. In that the Leader is Alibaba. As per Wikipedia in 2012, two of Alibaba’s portals handled 1.1 trillion yuan ($170 billion) in sales. So it is one the biggest Online Supplier in the World and it is the world’s largest retailer as of April 2016. So if you already decided on the product then you have to find the relevant information about the products on various listing websites apart from Alibaba like Amazon China, eBay China etc.
b) Find a Good Manufacturer or Supplier on Alibaba or Other Websites
After finding a Good Product you have to find a good Supplier also on the Ecommerce Websites. On Alibaba India, you can find the Gold Supplier tag. You can contact any buyer for the cost of the product and various kinds of details about the product. If you want to buy a product then you can negotiate with the supplier. Supplier quotes you the price according to its quantity. If you can convince suppliers to large orders in future, you can get samples at a very cheap price.
It is suggested to ask for a sample product to check the quality, the buyer can send you the product sample by courier. Check the sample and then decide about your products. If you are lucky then you can find the same supplier registered on Aliexpress (But not all, only a small percentage). It is easier to get samples from AliExpress.
So There is Alibaba and Aliexpress in India which can help you Import Goods from China to India Online. Apart from Alibaba or Aliexpress you can find hktdc, cantonfair and globalsources & made in china which are some helpful websites.
c) Understanding about the Laws and Regulations in the Country
You have to Understand the Laws and Regulations between India and China for Trading. There are a lot of Chinese products which are banned in India.
Certain items are prohibited and restricted for import in India from any country. Some of the prohibited items include articles of apparel and clothing accessories of wild animals covered under the Wild Life Protection Act -1972, mobile handsets without International Mobile Equipment Identity (IMEI) number or with all zeroes IMEI, narcotic drugs, counterfeit and pirated goods.
You can read here about the Restricted and Banned Chinese Products in India on the official DGFT Website.
d) Hire a Custom Clearing Agent and Freight Forwarder
A freight forwarder or forwarding agent also known as an NVOCC (non-vessel operating common carrier), is a person or company that manages and organizes point-to-point shipments for individuals or corporations to import goods from the manufacturer abroad to your location.
For the Custom Duty, you can hire many Customs Agents for the Clearance if you don’t have knowledge about the Documentation part like Bill of Entry etc. You can Calculate the Customs duty through this official govt custom duty calculator .
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