Import into India step by step: IEC and GST, ITC(HS) import policy, customs broker, bill of entry timing, duty payment and clearance.
Short answer: to import goods into India commercially, you need four things. First, an Importer-Exporter Code (IEC) from DGFT and GST registration. Second, a check that your product is "free" to import under the ITC(HS) import policy, or that you hold the licence it needs. Third, a bill of entry filed with Customs (usually by a licensed customs broker on ICEGATE), ideally before the ship or aircraft arrives. Fourth, payment of customs duty and IGST, after which Customs gives "out of charge" and you can take delivery.
This guide takes a first-time importer through the whole process, from checking the rules to getting goods out of the port, and points out the steps where most delays happen.
The Foreign Trade Policy (FTP) 2023, para 2.05, says no one may import goods without an IEC unless they fall in an exempt category, such as goods for personal use not connected with trade. You apply online at dgft.gov.in. See our IEC registration guide.
GST registration matters too. IGST is charged on imports, and CBIC's guidance note for importers advises quoting your GSTIN in the bill of entry in addition to the IEC. Input tax credit of IGST paid on imports is linked to the GSTIN declared there.
Every product has a code in the Indian Trade Classification (Harmonised System), or ITC(HS). India's codes run to 8 digits and are aligned with the international Harmonized System at the 6-digit level (FTP para 2.02).
Schedule 1 of ITC(HS) sets out the import policy for each code. Items are broadly:
Schedule 1 applies to new goods. Second-hand goods have their own policy in FTP para 2.31. You can search the policy on DGFT's ITC(HS) page.
"Free" does not mean "no rules". FTP para 2.01 notes that some free items are still subject to conditions under other laws. Depending on the product, these can include food safety clearance (FSSAI), BIS certification under quality control orders, plant or animal quarantine, or packaging and labelling rules. Check these before you pay your supplier.
Before you place the order, settle:
Our guide Incoterms, Uncomplicated explains the trade terms in plain English.
Most importers use a customs broker (often still called a CHA), licensed under the Customs Brokers Licensing Regulations, to file documents and deal with Customs at the port. You can file yourself on ICEGATE, CBIC's electronic filing portal, but many first-time importers find a good broker saves time and penalties.
When choosing a broker, ask about their experience with your product, how they share duty estimates in advance, and what they charge per bill of entry and for examination days.
The bill of entry is your declaration to Customs of what you are importing, its value, its classification and the duty you owe. Section 46 of the Customs Act, 1962 governs it.
Since the Finance Act, 2021, the law expects early filing. A CBIC circular reproduced in a Bengaluru Customs public notice (No. 12/2021) explains that importers must file the bill of entry before the end of the day preceding the arrival of the vessel, aircraft or vehicle. The Board can allow later deadlines for some modes of transport, but never later than the end of the arrival day. A bill of entry can still be filed up to 30 days before expected arrival. Late filing without sufficient cause attracts charges, so ask your broker to file as soon as the shipping documents are ready.
There are three main types:
Customs assesses the bill of entry. In many cases this is a check of your self-assessment through its risk management system. Duty is then paid online. The main parts of the import duty bill are:
Assessable value is generally the transaction value plus freight and insurance to the Indian port. If freight or insurance is not known, the Customs Valuation Rules use 20% and 1.125% of the FOB value respectively. Our upcoming guide to import duty and landed cost works through the numbers step by step.
Some consignments are picked for physical examination. Your broker arranges this at the port or container freight station. Paperwork that matches the goods exactly is the best way to keep examinations short.
Once duty is paid and any examination is complete, Customs grants "out of charge". You then pay the shipping line's delivery-order charges and the terminal or CFS charges, and move the goods out. Plan transport ahead. Storage and demurrage charges start to add up quickly once free days run out.
Yes, for commercial imports. FTP para 2.05 makes an IEC mandatory unless you fall in an exempt category, such as imports for personal use not connected with trade.
Yes. A proprietor can get an IEC on their own PAN and import in the name of the proprietorship. The same Customs, GST and product rules apply.
Look up its 8-digit code in Schedule 1 of ITC(HS) on DGFT's website. It will show whether the item is free, restricted, prohibited or STE-only, and any policy conditions. Then check other laws (FSSAI, BIS, quarantine) that apply to that product.
Before the end of the day before the ship, aircraft or vehicle arrives, unless the Board has set a different deadline for that mode of transport. You can file up to 30 days before expected arrival.
Usually basic customs duty, the social welfare surcharge, and IGST (plus compensation cess on a few goods). Anti-dumping or safeguard duties are added for specific products and origins. IGST can usually be claimed as input tax credit by a GST-registered importer.
Educational information only, not legal or tax advice. Duty rates, deadlines and policy conditions change. Check the current Customs Tariff, ITC(HS) and CBIC notifications, or ask a licensed customs broker, before you import.
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Educational information only, not legal, tax or financial advice. Always verify current rules on DGFT, ICEGATE and RBI portals before acting.