Points of Caution while Importing in to India

By | December 5, 2025
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Points to Take Care of while Importing in to India

Before importing one should take care of the below points for a fair and smooth import:

  1. Correct HS Code Classification

The HS code determines duty rates and compliance requirements. A wrong HS code can either increase your costs or lead to customs objections.
Example: Classifying mobile chargers under the wrong HS code may require unnecessary certifications.

  1. Check Import Policy (Free, Restricted, Prohibited)

Before placing an order, verify whether the product is freely importable or needs a DGFT license.
Example: Used medical equipment falls under the Restricted category and needs special approval.

  1. Mandatory Certifications

Many products require certifications from BIS, FSSAI, CDSCO, WPC, or Plant/Animal Quarantine.
Example: LED bulbs require mandatory BIS CRS registration.

  1. Pre-Shipment Inspection Requirements

Certain categories cannot be shipped without an inspection at the origin.
Example: Metal scrap requires a Pre-Shipment Inspection Certificate (PSIC).

  1. Declared Value & Customs Valuation

Customs may enhance the declared value if it appears under-invoiced.
Example: Low-priced T-shirt imports can trigger valuation disputes.

  1. Anti-Dumping & Safeguard Duties

Some items attract extra duties to protect Indian industries.
Example: Steel fasteners from China are subject to anti-dumping duty.

  1. Preferential Duty (FTA Benefits)

Using a valid Certificate of Origin can significantly reduce duty.
Example: Imports from ASEAN countries may qualify for reduced duty under the ASEAN-India FTA.

  1. Selection of Correct INCOTERMS

INCOTERMS decide who pays for freight, insurance, and risks.
Example: Under CIF, the seller pays for freight and insurance; under FOB, the importer must arrange them.

  1. Supplier Verification

Choosing the right supplier prevents fraud, delays, and quality issues.
Example: Very low-priced bearings may turn out to be refurbished unless verified.

  1. Packaging & Labeling Compliance

Some goods require specific labeling before clearance.
Example: Imported food items must have labels with ingredients, FSSAI number, and MRP.

  1. Complete & Correct Documentation

Missing or incorrect documents cause major delays.
Example: Without a Certificate of Origin, an importer may lose FTA duty benefits.

  1. Understanding Total Duty Structure

Importers must calculate the full landed cost including Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), Anti-Dumping Duty (ADD), Safeguard Duty, Protective duty, IGST, and port charges.
Example: A CIF value of $1,000 may end up costing ₹1,80,000+ after duties and charges.

  1. Licensing Requirements

Some items need prior DGFT approval.
Example: Drone components require an import license.

  1. Country-of-Origin Restrictions

Imports from certain countries face special rules or are not allowed.
Example: Imports from Pakistan are prohibited.

  1. Product Testing & Quality Compliance

Goods like cosmetics, food, and electronics may require testing before release.
Example: Cosmetic products often need CDSCO testing for compliance.

  1. Intellectual Property Rights (IPR) Compliance

Customs actively monitors for counterfeit goods.
Example: Branded handbags without authorization may be seized for IPR violations.

  1. Monitoring Duty Notifications

Import duty rates change through Customs and Budget notifications.
Example: Duty on textile machinery may be revised suddenly based on government policy.

  1. Port-Specific Restrictions

Not all ports allow clearance of all products.
Example: Certain medical devices can only be imported through designated ports.

  1. Insurance Coverage

Goods must be insured appropriately depending on the INCOTERMS.
Example: Under FOB, the importer must arrange marine transit insurance.

  1. Post-Import Compliance

Some products require registration or certification even after the import.
Example: Pharmaceutical equipment may need post-import CDSCO registration before sale.

The above needs to be cross-checked with DGFT and Indian Trade Portal.

Other important actions for risk mitigation:

  1. Before issuing a Purchase Order to the supplier, get a background verification of the Supplier through a Multinational Verification agency
    1. For Example: www.dnb.com
  2. Before shipment from the supplier, while the supplier gets a customs check, get Inspection done. Engage a Multinational Inspection Agency that will check and confirm the quality, quantity, products, packaging, documents etc.
    1. For Example www.sgs.com
  3. Negotiate with the supplier the below with business acumen:
    1. Incoterms
    2. Advance Payment
    3. Payment of balance payment
  4. Do a Research on Exporting Country – find out about the supplier’s country in terms of any civil unrest, political chaos, financial crisis, war situation, any natural calamity
    1. Example – Ukraine
    2. Example Sri Lanka (Cyclone and floods)