Importing is a real opportunity — if you do it right
Importing goods into India can open up better products, lower costs and new business models. But it also involves customs, duties, documentation and compliance that trip up many first-time importers. This guide explains the full process so you can import confidently and avoid costly delays at the border.
The key is preparation: getting your registrations, classifications and documents right before your goods arrive, rather than scrambling when a shipment is stuck at customs.
Step 1: Decide what to import and from where
Start by choosing your product and supplier carefully. Research demand and margins in India, verify your supplier's reliability, and understand whether your product faces any restrictions or special requirements. Some goods are freely importable, while others are restricted or require specific approvals.
Order samples and clarify quality, pricing, minimum quantities and shipping terms before committing to a large order.
Step 2: Get your Import Export Code (IEC)
Almost all importers need an Import Export Code (IEC) issued by the DGFT, linked to your PAN. Without it, customs and banks generally will not process your import. The IEC is effectively a one-time registration, though details should be kept current. Getting it is one of the first practical steps.
Step 3: Understand duties and IGST
Imported goods attract customs duties and, in most cases, IGST under GST. The total landed cost is not just the supplier's price — it includes these duties, IGST, freight, insurance and clearing charges. Estimating your landed cost accurately is essential to know whether importing is actually profitable.
The IGST paid on imports can generally be claimed as input tax credit by a GST-registered business, which is an important reason to be registered.
Step 4: Classify your goods correctly (HSN)
Every imported product is classified under an HSN code, which determines the applicable duty and IGST rate. Misclassification can lead to wrong duty payment, penalties and clearance delays. Getting the correct classification before import — and being consistent — is one of the most important compliance steps.
If you are unsure, it is worth confirming the classification rather than guessing, because the cost of getting it wrong can be high.
Step 5: Prepare your import documentation
Customs clearance depends on complete, accurate documents. The core set typically includes:
- Commercial invoice from the supplier
- Packing list
- Bill of lading or airway bill
- Bill of entry filed for customs
- Any product-specific certificates or licences required
Missing or inconsistent documents are the most common cause of clearance delays, so accuracy here pays off directly.
Step 6: The customs clearance process
When your goods arrive, a bill of entry is filed, duties and IGST are assessed and paid, and customs may examine the goods before releasing them. Working with a reliable customs broker or clearing agent can make this smoother, especially for first-time importers. Once cleared, your goods are released for delivery.
Step 7: Watch for restricted and prohibited goods
Not everything can be freely imported. Some goods are restricted and need specific licences or approvals, and a few are prohibited entirely. Certain categories — such as food, electronics or chemicals — carry additional standards or certifications. Always confirm your product's status before ordering to avoid seizures or penalties.
Step 8: Plan logistics and payment
Decide your shipping terms with the supplier, which determine who bears cost and risk at each stage. Arrange freight and insurance, and understand safe payment mechanisms such as advance payment or letters of credit. Your bank plays a key role in processing foreign payments, so coordinate with them early.
Step 9: Compliance after import
Importing is not the end of compliance. You will account for the goods, claim IGST credit where eligible, and meet ongoing GST and income-tax obligations on your trading. Keeping clean records of every import — invoices, bills of entry and duty payments — protects you in case of any query.
Common mistakes first-time importers make
- Importing without an IEC or GST registration
- Underestimating the true landed cost including duties and IGST
- Misclassifying goods under the wrong HSN code
- Ordering restricted goods without the required approvals
- Incomplete documentation causing clearance delays
Build reliable supplier and logistics partnerships
Your import business is only as strong as your partners. A dependable supplier who ships quality goods on time, and a reliable freight forwarder and customs broker, prevent most of the problems importers face. Build these relationships carefully, start with smaller orders to test reliability, and keep clear written terms with everyone you work with.
Over time, strong relationships can also mean better pricing, priority handling and smoother problem-solving when something goes wrong — which, in cross-border trade, it occasionally will. Treat your key partners as long-term collaborators rather than one-off transactions.
Scaling your import business
Once your first few imports go smoothly, you can scale — larger orders, more products, or new suppliers and markets. As volumes grow, tighten your systems for landed-cost calculation, inventory, GST credit and record-keeping. Many importers stumble not on their first shipment but when growth outpaces their processes.
Keeping your compliance and accounting organised as you scale protects your margins and keeps customs and tax queries easy to answer. It also positions you to negotiate better terms and to handle the occasional dispute or inspection without disruption.
A simple way to think about landed cost
The single most useful habit for an importer is calculating landed cost before every order. Landed cost is the true total of getting a product to your warehouse, not just the price the supplier quotes. It typically includes the product price, freight, insurance, customs duty, IGST, clearing charges, and any local transport. Only when you add all of these can you know your real cost per unit and whether your selling price leaves a healthy margin.
Many first-time importers look only at the supplier's attractive price and are shocked when duties, IGST and freight push the real cost much higher. Build a simple landed-cost sheet for each product, update it as rates or freight change, and use it to set prices that actually protect your profit. This one discipline prevents the most common and most painful importer mistake — selling at a loss without realising it.
How Aidwish helps
Aidwish sets up your IEC and GST, helps classify your goods correctly, guides you on duties, documentation and any product-specific approvals, and connects the whole process to your accounting and compliance — so your imports clear smoothly and remain profitable.
Note: Tax and compliance rules change through government notifications. Verify the current rules or consult a professional before acting. Aidwish can help you stay updated and compliant.