In India Ecommmerce Business is one the growing sector and Now Many Online Sellers want to Import the Goods From China to India but they do’nt Know about the Procedure so let’s learn about the ” How to Import Goods From China to India “.
India is the one of the most largest Importer from the China. Below are the Indian Import Export Old Statistics so you got the clearly Idea about that there is a hug Opportunity to Import From China to India.
First of all we have to understand about the LEGAL things which is required to starting a Import Export Business in India or required to Import Goods From China.
Legal License Required to Import Goods From China
1. Register your Legal Entity in India –
For the 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 entity which you can register –
a) Sole Propreitorship Firm – Read Here about How to Register a Sole Propreitorship Firm
b) Partnership Firm – Read here about How to Register a Partnership Firm
c) Limited Liability Partnership – Read here about How to Register a LLP in India
d) Private Limited Company – Read here about How to Register a Private Limited Company in India
e) One Person Company – Read here about How to Register One Person Company in India
Tip by MyOnlineCA :- if you just starting on the Small Level or try to testing your ideas in the Import Business then go with the Sole Propreitorship firm and on later stage you can convert into the Private Limited Company or LLP.
2. Apply for the Tax Registration –
After the Incorporation you have to apply for the Tax Registration on your Goods. Mostly its required VAT/CST Registration from your state government. its also called TIN Number, even if you not import the goods from China then also its required to sell in India. In Some State its required Security Deposit Concept and Surety Concept so it little bit expensive license.
Tip : In Delhi there is no security and cheapest VAT Registration and Simplified Rules but you need a Business Place in Delhi for the Starting.
3. Apply for the IEC Code Registration –
After the applying VAT/CST Registration for the Import or Export Goods in India you need specially one license from the DGFT Department i.e is called IEC Code. its also required a Current bank account on 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 required Digital Signature for the apply New Online IEC Code so you can save the Expense during the Incorporation.
How to Import Goods from China to India
Now Let’s talk about the Option which is avaialble for Import the Goods From China to India. One of the best way to import the 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 as Commission Basis.
So Let’s understand about How you can Import the Goods from China through Online Websites or Agents.
How to Import Goods From China to India Online
There are 4 Important steps to be consider 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 are multiple website 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 its is the world’s largest retailer as of April 2016. So if you already decided the product then you have to find the relevant information about the products on various listing website apart from Alibaba like Amazon China, Ebay China etc.
b) Find a Good Manufacturer or Supplier on the Alibaba or Other Websites-
After the finding a Good Products you have to find a good Supplier also on the Ecommerce Websites. On the Alibaba India you can find the Gold Supplier tag. You can contact any buyer for cost of the product and various kinds of details about the product. If you want to buy product then you can negotiate with the supplier. Supplier quotes you the price according to its quantity. If you can convince supplier to large order in future, you can get samples at very cheap price.
It is suggested to ask for sample product to check the quality, 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 (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 helps you to Import the Goods from China to India Online. Apart from Alibaba or Aliexpress you can find hktdc, cantonfair and globalsourc
c) Understanding about the Law and Regulations between the Country –
You have to Understand about the Law and Regulations between the India and China for the Trading. There are 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 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 official DGFT Website.
d) Hire a Custom Clearing Agent and Freight Forwarder
A freight forwarder or forwarding agent is also known as a NVOCC (non-vessel operating common carrier), is a person or company that manage 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 do’nt have knowledge about the Documentation part like Bill of Entry etc. You can Calculate the Customs duty through this official govt custom duty calculator
Summary on the How to Import Goods from China to India
Below is the Good PPT about the 10 Tips to Import Goods from China to India which is very helpful when you buy Products Online through Alibaba or AliExpress. If you have any Query on the legal things about How to Import Goods from China to India then just drop an email at email@example.com.