What do importers need to know before importing from China into India?

1. What do importers need to know before importing from China into India? China and India share a strong and booming bilateral trade relationship with China accounting for 11% of India’s imports. To run a successful import business in India, there are certain basic legal requirements that importers have to meet. These requirements are: A registered company A current bank account Tax Identification Number (TIN) including registration with the Central Sales Tax and State Tax Department An Importer Exporter Code or IE code Importers need to keep in mind certain points before importing from China into India. Businesses must make sure the products are compliant with relevant IS rules and regulations. In case of BIS certification - which was earlier only relevant for products made in India but has now been extended to include imports – importers need to submit samples of materials and components for pre-production recognition by a BIS certified laboratory. In certain cases, a BIS team may conduct an inspection of the Chinese manufacturer’s facility with costs borne by the importers. For compliance with any given standard, the supplier also needs to have access to applicable IS files that outline the technical specifications that products must have so as to receive certification. At the same time, many suppliers may not have the capability or agree to comply with IS standards. It is best to get manufacturers that have a good compliance history with Indian Standard (IS). Apart from BIS, IS certifications, importers are also required to comply with Restriction of Hazardous Substances (RoHS) as well as Waste Electrical and Electronic Equipment (WEEE) directives adopted by India. In terms of labelling requirements, Indian importers are expected to comply assiduously. Failure to do so leads to the seizing of the cargoes by custom officials. The labelling can be done either in English or Hindi. The following details have to be on display on products imported to the country: Product name Product description Net weight Manufacture date

2. Address of importer Maximum retail price (MRP) with taxes included Batch ID Month and year of import Country of Origin With regards to the documentation process, Indian importers can submit their documents through licensed customs agents. The different documents that importers would need for getting their cargoes cleared are the following: Bill of lading for sea shipment Air waybill for air cargo Commercial invoice Pro-forma invoice Packing List Letter of credit or purchase order Licenses like import and industrial (if required) Test reports of products as per IS standard Product description or product catalogue Insurance policy or note Health and Food Safety Certificate for food items Certificate of origin for application of reduced duty rate GATT and DGFT Declarations Like in other countries, taxes and duties on imported products are paid at the destination port. In India the average import duties is calculated to be around 12%. These are calculated based on the Cost, Freight and Insurance (CIF) price and are calculated as a fraction of the CIF price. Apart from making sure that important information including the FOB (Free on Board) are mentioned on the commercial invoice, businesses must also be aware of extra taxes that are usually imposed on imports from China. Some of these additional taxes are countervailing duty (CVD), landing charges and CESS. For more details visit us at: http://www.eximdesk.com/buzz/what-do-importers-need-to-know-before- importing-from-china-into-india?Channel=organic_doc