How to Source Products from China to India: A Complete Guide

Introduction

China is the world’s largest manufacturing hub, offering a vast range of products at competitive prices. For Indian businesses, importing from China can be a profitable venture if done correctly. However, it requires careful planning, sourcing the right suppliers, and fulfilling all legal requirements. In this blog, we’ll cover everything from finding suppliers to handling import documentation and logistics.

Step 1: Finding the Right Supplier in China

Best Websites for Sourcing Products from China

Alibaba (www.alibaba.com) – Largest B2B platform for bulk orders.
1688 (www.1688.com) – Cheaper than Alibaba but requires a Chinese agent.
Global Sources (www.globalsources.com) – Verified suppliers for wholesale.
Made-in-China (www.made-in-china.com) – Factory-direct sourcing.
DHgate (www.dhgate.com) – Good for small businesses and bulk orders.
Yiwu Market Online (www.yiwugo.com) – Ideal for small and affordable products.
CJ Dropshipping (www.cjdropshipping.com) – Great for dropshipping business models.

Tips for Choosing the Right Supplier

Verify supplier credentials on Alibaba and Made-in-China.
Check customer reviews and ratings.
Request product samples before placing bulk orders.
Negotiate pricing, shipping costs, and payment terms.

Step 2: Legal Documents & Certifications Required

To import goods from China to India, you must comply with Indian import laws. Here’s a list of necessary documents:

Import Export Code (IEC) Registration

Issued by DGFT (Directorate General of Foreign Trade), required for importing goods legally.
Apply online at dgft.gov.in.

Bill of Lading (BL) or Airway Bill

Provided by the shipping company as proof of shipment.

Commercial Invoice & Packing List

Details product description, quantity, value, and packaging.

Customs Clearance Documents

Bill of Entry – Required for customs clearance in India.
Import Duty Payment Receipt – Proof of payment for import duties.

Certificate of Origin (COO)

Required for some products to avail import duty benefits.

BIS Certification (For Specific Products)

Mandatory for importing electronics, toys, and other regulated items.

FSSAI License (For Food Products)

If importing food-related items, you need approval from the Food Safety and Standards Authority of India (FSSAI).

GST Registration

Required to sell imported goods in India legally.

Step 3: Shipping & Logistics Options

Shipping Methods

Sea Freight (Cheapest for bulk orders) – Takes 20-45 days.
Air Freight (Faster but expensive) – Takes 5-10 days.
Courier Services (DHL, FedEx, UPS) – Best for small shipments.

Understanding Import Duties & Taxes in India

Basic Customs Duty (BCD): Varies by product category.
Integrated GST (IGST): Applied on imported goods.
Anti-Dumping Duty (If Applicable): To prevent cheap imports harming Indian manufacturers.
Social Welfare Surcharge (SWS): 10% of BCD on some products.

Use the Indian Customs Duty Calculator available on icegate.gov.in to check applicable duties.

Step 4: Payment Methods for Chinese Suppliers

Alibaba Trade Assurance – Offers buyer protection for transactions.
Letter of Credit (LC) – Safe for large transactions.
Telegraphic Transfer (T/T) – Direct bank transfer, requires trust in the supplier.
PayPal & Escrow Services – Safer but not widely accepted.

Step 5: Selling Imported Goods in India

Once your products arrive, you can sell them via:
- Amazon India (Amazon Seller Central)
- Flipkart Seller Hub
- Your Shopify/WooCommerce Store
- Wholesale Distribution
- Retail Store or Local Markets

Conclusion

Importing products from China to India is a great business opportunity, but it requires careful planning. By choosing reliable suppliers, completing all documentation, and understanding shipping & customs procedures, you can successfully import and sell products profitably.

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