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How to Import Raw Materials to India Efficiently: Step-by-Step Guide for Businesses

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  • by MI September 16, 2025

Importing raw materials is a crucial part of many businesses in India, from manufacturing to pharmaceuticals and textiles. Efficient import practices can save time, reduce costs, and ensure timely production. This guide explains how to import raw materials to India efficiently, covering documentation, customs, logistics, and best practices.

Step 1: Identify the Raw Materials You Want to Import

  • Determine the exact type, quality, and quantity of raw materials needed.
  • Research international suppliers and verify their credibility.
  • Ensure compliance with Indian regulations for restricted or controlled goods.

Step 2: Obtain an Importer Exporter Code (IEC)

  • An IEC issued by DGFT is mandatory for importing goods to India.
  • Apply online on the DGFT portal.
  • Submit required documents such as PAN, bank details, and digital signatures.

Step 3: Classify Goods under HS Codes

  • Every imported product must have a Harmonized System (HS) code.
  • Correct HS code helps in determining import duty, GST, and customs clearance.
  • Use the official Customs Tariff for accurate classification.

Step 4: Understand Import Duty and Taxes

  • Import duty depends on the HS code and the value of goods.
  • GST, IGST, and other levies may apply.
  • Check the latest Customs Tariff and plan costs accordingly.

Step 5: Select a Reliable Supplier and Payment Terms

  • Verify supplier credentials, certifications, and past export history.
  • Negotiate payment terms: advance payment, Letter of Credit (LC), or open account.
  • Consider trade insurance to mitigate risks.

Step 6: Arrange Shipping and Logistics

  • Choose between air freight (fast, expensive) or sea freight (slower, cost-effective).
  • Hire experienced freight forwarders for smooth shipping and documentation.
  • Use proper packaging and insurance for the imported goods.

Step 7: Prepare and Submit Import Documents

  • Bill of Lading / Airway Bill
  • Commercial Invoice
  • Packing List
  • Insurance Certificate
  • Certificate of Origin
  • Import License (if applicable)

Step 8: Customs Clearance in India

  • Submit documents to Indian Customs for clearance.
  • Pay import duties and taxes online through ICEGATE portal.
  • Ensure compliance with regulatory authorities (FSSAI, DGFT, BIS) if applicable.

Step 9: Efficient Inventory and Supply Chain Management

  • Plan shipments to avoid production delays.
  • Use inventory management software to track imports.
  • Maintain good communication with suppliers and freight forwarders.

Conclusion

Efficient import of raw materials to India requires proper planning, compliance, and coordination between suppliers, freight forwarders, and customs authorities. By following these steps, businesses can reduce costs, avoid delays, and ensure uninterrupted production.

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