The complete guide to importing from China to India

India brought in $58.71 billion in imports from China in 2020. China is becoming India's largest import partner as a result. Consumer electronics, telecom equipment, computer hardware and peripherals, electrical equipment, fertilisers, and chemicals were among the top Chinese imports. Despite Covid-19, mounting border tensions with Beijing, and growing concerns that it will be inundated with cheap Chinese goods, India still imports from China. India listed the last as one of its justifications for choosing not to participate in the Regional Comprehensive Economic Partnership (RCEP), the largest free trade deal in history. India's reliance on Chinese commodities is mostly a result of both China's hegemony as a manufacturing and exporting country and its inability to close the production-to-demand gap at home.

This essay intends to inform you (the reader) about the requirements for importing from China to India given the significance of China in Indian trade. You'll discover details about: 

         ·   requirements for compliance with Indian Standards

         ·  Customs paperwork and duties

         ·   Labeling specifications

         ·   ecological conformity

Who is BIS and what does it do with imports?

India's national standards authority, the Bureau of Indian Standards (BIS), is in charge of ensuring the quality and security of goods intended for domestic consumption. It applies to both domestically produced goods and imported goods. It performs three main tasks: to test items, c) to authorise the use of the Standard Mark, also known as the ISI (Indian Requirements Institute) Mark, to show that a product complies with BIS standards. a) To establish uniform Indian Standards of quality for manufactured and agricultural goods. The bureau's product certification programmes permit the use of the ISI Mark. Although it is often optional, some product categories mandate certification. These products fall under two certification programmes in the case of imports:

·         Scheme for Compulsory Registration (CRS): It covers all products related to electronics and information technology (mobiles, laptops, smart watches, bluetooth speakers, televisions, LED lights, etc). A CRS product must be registered with BIS before an importer can purchase it from China (or any other country). Not the importer, but the product's maker receives certification. However, the importer is allowed to apply for the certificate on behalf of the Chinese manufacturer in India as their representative. Here is a link to the complete list of CRS products.

·         The FMCS (Foreign Manufacturers Certification Scheme) mandates an ISI mark for the sale of a number of product categories in India. Cement, batteries, automobile tyres, X-ray machines, iron and steel products, chemicals, fertilisers, toys, and food items are some of them (milk powder, packaged water, baby formula, etc). The Foreign Manufacturers Certification Scheme allows importers of these goods to register them with BIS. Manufacturers with facilities outside of India may apply for a licence under this programme as long as they guarantee BIS quality criteria are met and have on-site the necessary manufacturing infrastructure, production process, quality control, and testing capabilities. For a complete list of FMCS goods that require certification, click here. Under this programme, importers may also request optional certification for other products.

·         SCOMET items: The import of SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) products mentioned in Appendix 3 of Schedule I (Imports) of the ITC (HS) Classification, which is India's method for categorising commodities for import/export, is also required to be registered with the BIS. Controlled substances like nuclear material, poisons, and electronics are included on the SCOMET list. These could fall under CRS or FMCS as well. The following prerequisites must be met for SCOMET products to require registration:                   

                     ·         They must be intended for captive consumption, which is the use of goods produced by one division by another division of the same or related organisation to produce another good.

                     ·         They must be necessary continuously.

                     ·         They have to be purchased from pre-approved suppliers.

Application process for BIS certification

1.      Under the Scheme for Compulsory Registration

·         Import product samples for testing (up to five are permitted).

·         If the manufacturer is based outside of India, register as an Authorised Indian Representative (AIR) in accordance with BIS requirements.

·         Become a member of the BIS portal (www.crsbis.in/BIS), where you must present documentation of the manufacturer's name and address.

·         Create test requests, upload sample information, and choose an accredited BIS laboratory online.

·         sample submission to a chosen laboratory

·         Send in the appropriate application form, test results, and supporting documentation (more on this later). Test results must be more than 90 days old from the date of online application receipt.

·         At the expense of the application, BIS inspectors will go to the manufacturer's nation to inspect their factory. They might give the go-ahead for additional inspections by an outside inspector.

·         If all the necessary paperwork is in order, conformity with BIS criteria is established, and the money is paid, a licence is typically given in 20 working days. The applicant is given a special registration number to display on their goods. The licence can be renewed when two years have passed.

·         If there are any issues with the application, the importer will be notified and given 30 days to fix them.

2.      According to the Foreign Manufacturers Certification Scheme

·         The process for granting a licence under FMCS is identical to that for granting a licence under CRS, with the exception that the applicant must physically submit the applicable application form, along with the required fees and supporting documentation, to the BIS headquarters in Delhi. There isn't currently an online application option for the program.

DOCUMENTS NEEDED TO REGISTER WITH BIS

·         evidence of submitting an application

·         a pertinent application

·         evidence of address (business licence, other government-issued documents)

·         Proof of brand name (certificate of brand registration, copy of trademark application, letter of consent from brand owner, etc.)

·         If the manufacturer is based overseas, an affidavit and undertaking must be provided by the authorised Indian representative along with the application.

·         Test results

·         Assignment for Test Report

·         a bill of entry that includes a commercial invoice, a packing list, a cover letter for insurance, a bill of lading, and a certificate of origin

Customs paperwork for Chinese imports

The most frequent documents (both primary and secondary) you will need to create are as follows:

          ·         Air Waybill/Bill of Lading

          ·         Packing List and Commercial Invoice

          ·         Formal Bill of Sale

          ·         Purchase Request

          ·         Word of Credit

          ·         Insurance Document

          ·         Medical Certificate (for food products)

           ·         Certificate of Origin for a Country

Read our comprehensive guidance on the necessary paperwork for imports into India here.

IMPORT TAXES FOR GOODS COMING FROM CHINA TO INDIA

By sea, it takes 20 days to transport goods from China to India. According to some reports, a shipping line has at least one ship departing from China and arriving at an Indian port every day. What is the price to get a package past Indian customs?

The cost, insurance, and freight (CIF) value of the product is used to determine the import duty for ocean shipments, and it consists of three parts:

        ·         Fundamental Customs Duty (BCD) Rate varies depending on the goods. The government has the option to either waive this fee on some items or lower the rate of levy on others.

        ·         The Integrated Goods and Services Tax (IGST) is the total of the Central Goods and Services Tax and the State Goods and Services Tax. States are compensated for any losses brought on by the introduction of GST by the GST compensation cess.

         ·         The Social Welfare Surcharge (SWS) is a levy imposed by the Customs Act of 1962 that is 10% of the total duties, taxes, and cesses collected.

Your cargo from China may also be subject to additional duties, such as:

         ·         Anti-dumping Duty (ADD): Applied to imports with prices below those of the domestic market. India assesses ADD on select steel items and Chinese bottle-grade PET resin (used to create soft drink bottles).

          ·         Countervailing Charge (CVD): Introduced as a safeguard against imports that get subsidies, it is the equivalent of a central excise duty on comparable items made in India.

          ·         A precaution against potential harm to domestic producers brought about by an increase in imports is the safeguard duty. Solar cell imports from China (and other countries) are subject to a 14.5% safeguard duty.

          ·         Another duty that aims to safeguard domestic producers is the protective duty.

          ·         Education Cess: 1%–2% of the total amount of customs duties is levied as this tax.

          ·         For the handling, loading, and unloading of goods, there are handling fees.

What info should your label contain?

All imported items from outside must adhere to rigid labelling requirements, which may differ from those set forth by other countries. If you don't follow the rules, customs may hold or refuse your package.

‍ China ranked as the sixth-largest foreign provider of food to India in 2018. For imported packaged foods, the following labelling standards apply:

         ·         ‍ Brand name (common or generic)

         ·         Ingredients, ranked by weight or volume in descending order of composition

         ·         Net volume, weight, or number of contents

         ·         Code/Batch/Lot number

         ·         months and years of production, packing, and expiration

         ·         retail price cap

         ·         Information about the producer, importer, and packer

         ·         Country of origin, importer's name and address, and information on the packaging/bottling facility (if the product was made abroad but packaged/bottled in India).

         ·         Symbol designating a product as vegetarian or not (green for vegetarian, brown for not vegetarian)

         ·         a logo for the Food Safety and Standard Authority of India (FSSAI) and a licence number for the FSSAI

         ·         existing colouring agent (if present) ‍

The FSSAI also has specific requirements for the layout and font of labels:

         ·         Product information must be clear, legible, prominent, and available in Hindi or English.

         ·         The lettering' colours must contrast with the backdrop colour of the label.

         ·         Letters must be at least 1 mm in height and at least one-third their breadth.

         ·         False claims and illustrations concerning the product's nature, origin, and composition are prohibited.

          ·         No claims that seem to be advice from medical experts are permitted.

 The following labelling rules apply to imports of non-food items:

            ·         Name of the Good

            ·         Net amount

            ·         Manufacturing, packing, and import months and years

            ·         retail price cap

            ·         Name and location of the importer

Responsibility for the environment

Importing and environmental responsibility go hand in hand in a world that is becoming more ecologically aware. The Electronic Wastes (Management and Handling) Rules in India outline the duties of electrical and electronic equipment importers. It attempts to stop dangers from e-waste disposal practises that endanger human life and the environment. The Waste from Electrical and Electronic Equipment (WEEE) Directive and the Restriction of Hazardous Substances (RoHS) Directive, two European laws, are combined in the e-Waste Rules.

Lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls, polybrominated diphenyl ether, bis(2-ethylhexyl) phthalate, butyl benzyl phthalate, dibutyl phthalate, and diisobutyl phthalate are among the ten hazardous substances that are restricted by the ROHS Directive from being used in excess. There are just a few products that are exempt, for which there are no known substitutes for the prohibited ingredients. Many other nations have their own versions of the ROHS Directive, including India. According to the ROHS Directive, lessening the usage of hazardous compounds is mandated under India's e-Waste Rules.

The goal of the WEEE Directive is to stop the production of electrical and electronic waste. It establishes guidelines for its efficient recovery, recycling, and reuse wherever such trash is produced.

Only with the approval of the State Pollution Control Board is the import of electronic and electrical equipment permitted under India's e-Waste Rules. In accordance with the regulations, e-waste collection must account for 30% of self-estimated projected sales by 2018 and 70% by 2023. Fines would be assessed if you didn't comply. The rules define an importer's obligations, which is most important. (Importers are included in the definition of "producers" even though the rules don't specifically mention them.) Among the duties of an importer are:

         ·         collecting electronic waste produced during production or at the end of a product's life and ensuring its disposal or recycling through licenced recyclers and dismantlers

         ·         establishing collection points and giving customers their contact information

         ·         Publishing advertisements, posters, and pamphlets detailing product hazards, handling instructions, and the effects of poor handling

         ·         keeping track of all handled electronic waste and providing it to the state pollution control board

‍

ECO Marking System

             ·         ‍ The BIS has a programme for the certification and labelling of environmentally friendly goods, which includes electronics and electrical products and also includes food items, plastics, textiles, leather, paints, and cosmetics among others, even if it is not a necessity for compliance. Products are able to carry the ECO Mark in addition to the ISI Mark for a specific amount of time if they satisfy the pertinent BIS quality requirements and specific environmental conditions.

‍Also read: Top batteries packs in India

Certification approval