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Section 14

How to import into India: step by step

Get an IEC, check the ITC(HS) import policy and product rules (BIS, FSSAI, plant quarantine), file the bill of entry on ICEGATE before the goods arrive, pay BCD, SWS and IGST, label retail packs, and pay the supplier through your bank. Warehousing lets you pay duty later.

steps
12
documents
10
terms explained
15
  1. 01

    Get your Importer-Exporter Code (IEC)

    No business import can be cleared without an IEC, except for exempt categories such as personal-use imports. The same IEC works for both imports and exports.

    How to do itClose
    1. Apply on dgft.gov.in in form ANF-2A with a cancelled cheque or bank certificate and address proof.
    2. Update or confirm the IEC every year between April and June.
    Cost
    ₹500 application fee.
    Time
    Generated online as soon as the application is submitted.
    Sources (3)
    1. Handbook of Procedures 2023, Chapter 2 (version 07/2026), DGFT · 2026
    2. HBP 2023 Appendix 2K: Scale of application fee (DGFT) · 2023
    3. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
  2. 02

    Check the import policy for your item (ITC(HS))

    Imports are 'Free' unless the ITC(HS) Schedule I marks the item 'Restricted' (needs a DGFT licence), 'Prohibited', or 'STE' (only State Trading Enterprises may import). The policy is for new goods; second-hand goods have separate rules.

    How to do itClose
    1. Find the 8-digit tariff code of your item (it follows the Customs Tariff) and read Schedule I under 'Regulatory Updates' on dgft.gov.in.
    2. Read the policy condition written against the code; 'Free' items can still need a BIS, FSSAI, plant-quarantine or other clearance.
    3. For a 'Restricted' item, apply for an import authorisation on dgft.gov.in before you place the order.
    Cost
    Restricted-item import licence fee: ₹1 per ₹1,000 of CIF value, minimum ₹500, maximum ₹1 lakh.
    Sources (2)
    1. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
    2. HBP 2023 Appendix 2K: Scale of application fee (DGFT) · 2023
  3. 03

    Check product standards: BIS Quality Control Orders and other approvals

    If a product is under a BIS Quality Control Order (QCO), it cannot be imported without the BIS Standard Mark under a valid licence or certificate. The foreign factory must hold that BIS licence.

    How to do itClose
    1. Check the BIS lists of products under compulsory certification (ISI Mark scheme, Registration scheme, and others) and the list of upcoming QCOs.
    2. Ask your supplier for its BIS licence number under the Foreign Manufacturers Certification Scheme (FMCS) before you pay.
    3. Plants, seeds and plant products need an Import Release Order from plant quarantine (apply on PQMS or the National Single Window); some planting material also needs post-entry quarantine.
    4. Food needs FSSAI clearance (next step).
    Sources (3)
    1. BIS: Products under compulsory certification · 2026
    2. BIS: Guidance document on Quality Control Orders (QCOs) · 2021
    3. Directorate of Plant Protection, Quarantine & Storage: Import & Export Procedure · 2026
  4. 04

    Food imports: FSSAI licence and clearance

    No one may import food without an import licence from FSSAI's Central Licensing Authority. At the port, Customs may refer the bill of entry to FSSAI's Food Import Clearance System (FICS) for inspection and sampling.

    How to do itClose
    1. Get an FSSAI central licence as a food importer, in addition to your IEC.
    2. Register yourself or your customs broker on FICS.
    3. At clearance the food must have at least 60% of its shelf life left, or three months before expiry, whichever is less.
    4. If FSSAI inspects, two samples go to a notified lab; a No Objection Certificate (NOC) is issued if they pass.
    5. Some label gaps (importer's name and address, FSSAI logo and licence number, veg/non-veg mark) can be fixed with a single non-detachable sticker in the customs bonded warehouse.
    Sources (2)
    1. Food Safety and Standards (Import) Regulations, 2017 (consolidated Version V, 01.06.2022; FAOLEX copy) · 2022
    2. FSSAI: FAQs on food import clearance (FICS)
  5. 05

    Register on ICEGATE and appoint a customs broker

    Bills of entry are filed on ICEGATE. Most small importers use a licensed customs broker who files the papers and handles examination at the port.

    How to do itClose
    1. Register on ICEGATE with your IEC and digital signature, and link your GSTIN so that you can take credit of the IGST paid on import.
    2. Choose a licensed customs broker at your port; give them an authorisation letter and upload documents on e-Sanchit.
    Sources (2)
    1. ICEGATE (CBIC): Registration services page · 2026
    2. FSSAI: FAQs on food import clearance (FICS)
  6. 06

    File the bill of entry before the goods arrive

    The bill of entry is your import declaration. Since 2021 it must be filed in advance: any time from 30 days before the expected arrival up to the end of the day before arrival. It can be for home consumption (clear and pay duty now) or for warehousing (keep in a bonded warehouse and pay later).

    How to do itClose
    1. Sea cargo: file by the end of the day before the ship arrives; for goods consigned from Bangladesh, Maldives, Myanmar, Pakistan or Sri Lanka, by the end of the arrival day.
    2. Air cargo, Inland Container Depots and Land Customs Stations: file by the end of the arrival day.
    3. Upload the invoice, packing list, bill of lading or airway bill, and any licence or certificate on e-Sanchit.
    4. A late bill of entry attracts late-filing charges.
    Time
    From 30 days before arrival up to the deadline above.
    Sources (2)
    1. Bengaluru Air Customs Public Notice 12/2021: Changes in Section 46 of the Customs Act (advance filing of bill of entry), communicating CBIC Circular 08/2021-Customs · 2021
    2. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
  7. 07

    Work out and pay the import duty

    Import duty is built in layers: Basic Customs Duty (BCD) from the Customs Tariff; Social Welfare Surcharge (SWS) at 10% of the customs duties; IGST at the item's GST rate on the value plus these duties; and, for a few items, other duties such as anti-dumping duty.

    How to do itClose
    1. Find the BCD rate for your 8-digit code in the Customs Tariff on cbic.gov.in; check if a trade agreement gives a lower rate with a Certificate of Origin.
    2. SWS is 10% of the aggregate customs duties, not of the goods' value; if the customs duty is exempted to nil, SWS is nil too.
    3. IGST paid at import can be taken as input tax credit if your GSTIN is on the bill of entry.
    4. GST compensation cess is no longer charged on most goods since 22 September 2025, and reports say it ended on tobacco from 1 February 2026; confirm for your item in the tariff.
    5. Pay the duty online through ICEGATE e-payment.
    Cost
    SWS: 10% of aggregate customs duties. Other rates depend on the item.
    Sources (5)
    1. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
    2. Section 110, Finance Act 2018: Social Welfare Surcharge on imported goods (reproduced on taxheal.com) · 2018
    3. DHL India: Import duty in India (secondary source, worked example of the IGST base)
    4. ClearTax: GST compensation cess (secondary source) · 2025
    5. taxo.online (1 Jan 2026): GST compensation cess on tobacco to end on 1 Feb 2026 (news report) · 2026
  8. 08

    Label imported retail packs (Legal Metrology)

    Imported retail packs must carry all mandatory Legal Metrology declarations, including the importer's name and address, before they are sold. Companies that import packaged goods register under rule 27 of the Packaged Commodities Rules.

    How to do itClose
    1. Print or stick the importer's name and address and the other mandatory declarations (such as net quantity and retail sale price) on each retail pack.
    2. Register as an importer of packaged commodities with the Legal Metrology authority; since 29 May 2026 the certificate stays valid until cancelled, and details must be updated every year on the online portal.
    3. Importers using bonded warehouses of AEO Tier-2 or Tier-3 operators may put the declarations there, but packs must carry them before leaving the warehouse.
    Sources (1)
    1. Gazette of India G.S.R. 418(E), 29 May 2026: Legal Metrology (Packaged Commodities) Third Amendment Rules, 2026 (copy hosted on taxheal.com) · 2026
  9. 09

    Buying on high-seas sale

    In a high-seas sale, the goods are sold while still in transit, before they reach India. The last buyer files the bill of entry in their own name and pays duty and IGST once, at clearance.

    How to do itClose
    1. Sign a high-seas sale agreement with the original importer before the goods arrive and get the endorsed bill of lading.
    2. File the bill of entry with your own IEC; IGST is charged on the value including the value added in each high-seas sale.
    3. Keep the whole chain of documents: the original invoice, the high-seas sale contract and details of any commission paid.
    Sources (1)
    1. CBEC Circular 33/2017-Customs (1 Aug 2017): IGST on high sea sales of imported goods (reproduced on taxheal.com) · 2017
  10. 10

    Delay duty with a bonded warehouse or MOOWR

    You can file the bill of entry 'for warehousing' and keep goods in a customs bonded warehouse, paying duty only when you clear them. Under MOOWR (Section 65), a licensed unit can also make goods inside the warehouse; duty on imported inputs is not paid if the finished goods are exported.

    How to do itClose
    1. Use a public or private bonded warehouse near your port, or apply to Customs for a private warehouse licence.
    2. For MOOWR, apply for the warehouse licence and permission to manufacture; there is no investment threshold and no export obligation.
    3. When you sell into India, file an ex-bond bill of entry and pay the duty then.
    Sources (2)
    1. CHEMEXCIL circular: CBIC FAQs on Manufacture and Other Operations in Warehouse Regulations (MOOWR), 2019 · 2020
    2. Bengaluru Air Customs Public Notice 12/2021: Changes in Section 46 of the Customs Act (advance filing of bill of entry), communicating CBIC Circular 08/2021-Customs · 2021
  11. 11

    Pay the foreign supplier through your bank

    Import payments go through an Authorised Dealer bank, within the period in your contract. The bank may allow advance payment after checking the deal is genuine, but no advance is allowed for importing gold or silver.

    How to do itClose
    1. Give your bank the invoice and the bill of entry; the bank records the import in IDPMS.
    2. If you paid in advance and the goods never came, you must bring the advance back to India.
    Sources (1)
    1. RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, 13 Jan 2026, as amended by FEMA 23(R)/(1)/2026-RB, 22 Sep 2026) · 2026
  12. 12

    If you import to export: Advance Authorisation and EPCG

    Exporters can import inputs duty-free under Advance Authorisation (export within 18 months) and machinery duty-free under EPCG (export 6 times the duty saved within 6 years).

    How to do itClose
    1. Apply on dgft.gov.in: form ANF 4A for Advance Authorisation, ANF 5A for EPCG; you need IEC and RCMC.
    2. Imported inputs and machines are under 'Actual User' condition; you cannot sell them on.
    Cost
    Fee: ₹1 per ₹1,000 of CIF value or duty saved, minimum ₹500, maximum ₹1 lakh.
    Sources (3)
    1. FTP 2023 Chapter 4: Duty Exemption / Remission Schemes (DGFT) · 2023
    2. FTP 2023 Chapter 5: EPCG Scheme (DGFT) · 2023
    3. HBP 2023 Appendix 2K: Scale of application fee (DGFT) · 2023

Documents you will need

Bill of lading / airway bill / lorry or railway receipt / postal receipt (CN-22 or CN-23)Mandatory. The transport document you need to take delivery of the goods.Issued by Shipping line, airline, carrier or post office
Commercial invoice cum packing listMandatory. Supplier's invoice showing goods, quantity, price and packing. A separate invoice and packing list are also accepted.Issued by Foreign supplier
Bill of entryMandatory. Your import declaration to Customs, filed in advance on ICEGATE.Issued by Importer or customs broker
Certificate of OriginNeeded to claim a lower duty under a trade agreement.Issued by Authority in the supplier's country
Import licence or authorisationOnly for items marked 'Restricted' in ITC(HS), or when importing duty-free under Advance Authorisation or EPCG.Issued by DGFT
BIS licence or registration of the foreign manufacturerFor products under a Quality Control Order; the goods must carry the Standard Mark.Issued by Bureau of Indian Standards
FSSAI import licence and NOCFor food: the central licence before import, and the No Objection Certificate after inspection at the port.Issued by FSSAI
Import Release Order / phytosanitary certificateFor plants, seeds and plant products: plant-health certificate from the exporting country and release order from Indian plant quarantine.Issued by Exporting country's plant protection body; Indian plant quarantine station
Legal Metrology importer registrationFor importers of packaged commodities sold in retail packs.Issued by Legal Metrology authority
Insurance certificateNeeded when you buy on FOB, FCA, CFR or CPT and must insure the goods in transit yourself.Issued by Insurance company

Terms you will hear

EXW
Ex Works: the buyer collects from your premises and handles export clearance and all transport. Least work for you, but you lose control of the export papers.
FCA
Free Carrier: you clear the goods for export and hand them to the buyer's carrier at a named place. Works for any transport, including containers.
CPT
Carriage Paid To: you pay freight to the named destination, but the risk passes to the buyer when you hand the goods to the first carrier.
CIP
Carriage and Insurance Paid To: like CPT, and you also insure the goods. Incoterms 2020 asks for a higher level of insurance cover under CIP than under CIF.
DAP
Delivered at Place: you deliver to the named place in the buyer's country, ready for unloading. The buyer pays import duty.
DPU
Delivered at Place Unloaded: like DAP, but you also unload the goods at the named place. It replaced the older term DAT.
DDP
Delivered Duty Paid: you deliver and also pay the buyer's import duty and taxes. Most work and risk for you; avoid it unless you know the buyer's customs rules.
FAS
Free Alongside Ship (sea only): you place the goods next to the ship at the named port, cleared for export.
FOB
Free On Board (sea only): you clear the goods for export and load them on the buyer's ship at the named Indian port; the buyer pays sea freight and insurance.
CFR
Cost and Freight (sea only): you pay sea freight to the named destination port, but the risk passes to the buyer once goods are on board in India.
CIF
Cost, Insurance and Freight (sea only): like CFR, and you also buy minimum insurance for the buyer.
Advance payment
The buyer pays before shipment. Safest for you; common for first orders and small buyers. Advance must come through your Authorised Dealer bank.
Letter of Credit (LC)
The buyer's bank promises to pay when you present documents that exactly match the LC. Safe if the documents are perfect and the issuing bank is sound.
Documents against Payment (D/P)
Your bank sends the shipping documents to the buyer's bank, which releases them only when the buyer pays. If the buyer refuses, your goods are stuck abroad.
Documents against Acceptance (D/A)
The buyer gets the documents by signing a promise to pay on a future date. Riskiest bank route; take ECGC cover.

Mistakes to avoid

  • Placing an order before checking the BIS QCO list: goods without the BIS mark can be held or sent back at the port.
  • Filing the bill of entry late: late-filing charges apply, and demurrage and storage charges keep rising at the port.
  • Importing food with too little shelf life left: below 60% (or three months, whichever is less) it will not be cleared.
  • Wrong tariff classification to get a lower duty: Customs can reassess and demand duty with interest and penalty.
  • Not putting your GSTIN on the bill of entry: you may lose input credit of the IGST paid at import.
  • Selling imported retail packs without the importer's name, address and MRP on the label.
  • Paying a large advance to a new overseas supplier without checks; if goods do not arrive, the advance must still be brought back.
  • Selling goods imported under Advance Authorisation or EPCG in the local market: they are under 'Actual User' condition.
Sources (21)
  1. Handbook of Procedures 2023, Chapter 2 (version 07/2026), DGFT · 2026
  2. HBP 2023 Appendix 2K: Scale of application fee (DGFT) · 2023
  3. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
  4. BIS: Products under compulsory certification · 2026
  5. BIS: Guidance document on Quality Control Orders (QCOs) · 2021
  6. Directorate of Plant Protection, Quarantine & Storage: Import & Export Procedure · 2026
  7. Food Safety and Standards (Import) Regulations, 2017 (consolidated Version V, 01.06.2022; FAOLEX copy) · 2022
  8. FSSAI: FAQs on food import clearance (FICS)
  9. ICEGATE (CBIC): Registration services page · 2026
  10. Bengaluru Air Customs Public Notice 12/2021: Changes in Section 46 of the Customs Act (advance filing of bill of entry), communicating CBIC Circular 08/2021-Customs · 2021
  11. Section 110, Finance Act 2018: Social Welfare Surcharge on imported goods (reproduced on taxheal.com) · 2018
  12. DHL India: Import duty in India (secondary source, worked example of the IGST base)
  13. ClearTax: GST compensation cess (secondary source) · 2025
  14. taxo.online (1 Jan 2026): GST compensation cess on tobacco to end on 1 Feb 2026 (news report) · 2026
  15. Gazette of India G.S.R. 418(E), 29 May 2026: Legal Metrology (Packaged Commodities) Third Amendment Rules, 2026 (copy hosted on taxheal.com) · 2026
  16. CBEC Circular 33/2017-Customs (1 Aug 2017): IGST on high sea sales of imported goods (reproduced on taxheal.com) · 2017
  17. CHEMEXCIL circular: CBIC FAQs on Manufacture and Other Operations in Warehouse Regulations (MOOWR), 2019 · 2020
  18. RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, 13 Jan 2026, as amended by FEMA 23(R)/(1)/2026-RB, 22 Sep 2026) · 2026
  19. FTP 2023 Chapter 4: Duty Exemption / Remission Schemes (DGFT) · 2023
  20. FTP 2023 Chapter 5: EPCG Scheme (DGFT) · 2023
  21. International Chamber of Commerce: Incoterms 2020 · 2020

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