Importing into India
Small businesses ask the same ten questions before their first import: what to register, what the duty will be, what approvals the goods need and what to do if Customs raises a query. Here are plain answers.
Last checked: November 2026
Please note: Rules, schemes and procedures change. Duty rates, import policy and approvals change often. Check the position in force on the date of your shipment. We are consultants, not a law firm.
The import journey
The short answer
- Register first: IEC, GST and a bank that handles foreign exchange.
- Classify the goods and check the import policy and approvals before you order.
- Work out the landed cost, not just the invoice price.
- Keep the documents consistent, and reply to any Customs query quickly and fully.
The ten questions
1. Do I need an Importer-Exporter Code (IEC) to import?
For business imports, generally yes. The IEC is a 10-character code issued by the DGFT, and Customs asks for it when you file a Bill of Entry. Some small imports for personal use do not need one. You will also need a GST registration and a bank that handles foreign exchange. Check what applies to your case before you place the order.
Read: Step-by-step: obtain your Importer-Exporter Code (IEC).
2. How do I find the HS code and the duty on my product?
Every product is classified under an 8-digit ITC-HS code, which decides the rate of duty and the import policy. The duty is not one number: it usually includes basic customs duty, a surcharge and IGST, and sometimes other duties. A wrong code can mean the wrong duty, a query from Customs or a penalty, so classify before you order, not after the goods arrive.
3. Is my product free to import, or does it need approvals?
The import policy classifies goods as free, restricted or prohibited. Even free goods may need clearances that depend on what they are, for example FSSAI for food, BIS for products under quality control orders, WPC for radio and wireless equipment, CDSCO for medical devices and cosmetics, and Legal Metrology for packaged goods. Some approvals are needed before the goods ship, not at the port, so check first.
Read: Product rules and certifications before you export to India (useful for importers too).
4. What will my import really cost?
More than the price on the invoice. Add freight, insurance, duty and taxes, port and clearing charges, transport and any storage or detention charges. The Incoterm you agree with the supplier decides who pays for what. Work out the landed cost before you commit, so that your selling price still makes a profit.
Read: Landed cost and Incoterms: what an import really costs.
5. How do I pay an overseas supplier safely?
Pay through your bank, and match the payment term to how well you know the supplier: a Letter of Credit or a part-payment with the balance against documents for a new supplier, and open account only once there is a record. Banks have conditions for advance payments abroad, so ask yours before you remit. Never pay to a personal account or to bank details that changed at the last minute.
Read: Getting paid safely, and How to verify a buyer or supplier before you pay or ship.
6. Which documents does Customs ask for?
The usual set is the commercial invoice, packing list, bill of lading or airway bill, and the Bill of Entry, with your IEC and any licence, certificate or test report that your goods need. The values, descriptions and party names must match across all of them. Most Customs queries start with a mismatch or a missing document.
Read: Essential documents for smooth Customs clearance.
7. Do I need a Customs broker?
You can file your own Bill of Entry on ICEGATE if you are registered and have a Digital Signature, but most small importers use a licensed Customs broker (CHA) for filing, examination and delivery. Choose a registered one, and give them complete, matching documents. We work with registered Customs brokers and freight forwarders for the physical side of the clearance.
See: Door-to-door international shipments, with Customs handled properly.
8. Customs has sent a query or held my goods. What now?
Act quickly: while the goods wait, port and demurrage charges keep running. Read exactly what Customs asked, gather the documents, and reply point by point on the rules that apply to your goods, not only on what you think is fair. A wrong or half-answered reply can lead to a second query, a demand for duty or a penalty. This is the part of the work we do every day.
Read: How to reply to a Customs query on your shipment without losing time or money.
9. Can I legally reduce the duty I pay?
Often, yes, but only through routes the law allows: the correct classification, an exemption notification that applies to your goods, a preferential rate under a trade agreement with a valid certificate of origin, the Project Import scheme, or schemes for exporters such as Advance Authorisation and EPCG. Each has conditions and paperwork. If the classification is doubtful, a Customs Advance Ruling can settle it before you import.
Read: How to import duty-free in India.
10. Should I insure the cargo?
Yes. Under some Incoterms the risk passes to you while the goods are still at sea or in transit, and the supplier's insurance may not cover you. Marine cargo insurance covers loss or damage in transit as stated in the policy. Arrange it before the goods move, because cover cannot be bought after a loss.
Where we can help
Customs queries are our core work. We also help you with the registrations, the HS code and the rules for your goods, and the documents your clearance depends on. We are consultants, not a bank or an insurer, so we do not arrange finance or insurance cover.
Before you ship
Check your documents and registrations before the first order.
Shipment Readiness CheckSetting up
Adding imports to your business? Start with the registrations that apply.
Start-up EXIM DeskCommon questions
Can I import without an IEC?
For business imports, generally no. Some small imports for personal use do not need one. Check your case before you order.
Who pays the Customs duty on an import?
The importer of record pays it when the Bill of Entry is assessed. The Incoterm in your contract decides who pays freight and insurance, but the Indian duty is normally the importer's.
What should I do if Customs holds my shipment?
Read what Customs has asked, collect the documents, and reply quickly and point by point on the rules that apply to your goods. Delay adds port and demurrage charges.
Related on this site
- Which HS code is right for my product?
- Customs costs that bidders miss
- Customs Advance Ruling on classification
- Shipment Readiness Check
- Customs Query Reply
- Contact us
Talk to us
Send us two lines on WhatsApp: your goods, the country you sell to, and what you need. We tell you what we need from you and our fee, in writing, before any work starts. We reply within one working day (Monday to Saturday, 10 AM to 7 PM IST).
Multimodal Logistic Systems Pvt. Ltd., Pune, India. Written by Shankar Jha, Customs and EXIM consultant with 27+ years of experience. Rules and notifications change; we check those in force on the date of your query.