Import from China to India - Get started today with BWL
Table of Contents
Introduction
Over the last 6 years, Chinese imports to india have enhanced by 7.94%. In 2021, the nation’s trade with China will exceed $100 billion. The previous year, in 2020, India imported products worth $58.71 billion from China, a major nation’s biggest exporters.
Following China were the United States of America with goods worth $26.89 billion and the United Arab Emirates with goods worth $23.96 billion.
Reason for Importing Goods
The reason for such high values is that importing goods from other countries to India bridges the gap between domestic production and supply, as well as consumer and demand preferences for a variety of products.
Imports are essential to the economy since they enable a country to to provide its market with goods from other nations that are otherwise unavailable, scarce, expensive, or of low quality.
One of the leading nations is an import from China to India.
3 Primary Advantages of importing
Bringing new products to market
Cost-cutting measures
Developing into an industry leader
Getting accessibility to high quality goods
Some of the commonly imported products
To name a few, the most commonly products that import from China to India are telecommunication instruments, electronic components, computer hardware, heavy machinery, organic chemicals and drug intermediates, consumer electronics, pharmaceuticals, furniture, and textiles. Iron ore, cotton, as well as other raw-material-based goods and services are among India’s most important exports to China.
Multiple sectors in India, particularly the medical industry, rely heavily on Chinese products to produce instruments, medical tools, and machinery. India imports a lot of electrical and mechanical machinery, but also medical supplies imports have skyrocketed in the last two years. To get free consultancy on import from china, visit our website.
Moreover, because of border disputes, bilateral commerce between the two countries has reduced by 15% since 2018.
What are the top products in import from China to India?
Electronic and telecommunications equipment
According to the United Nations COMTRADE international trade database, electronic equipment was imported by India worth US$ 17.84 billion from China during 2020. Electronic goods, which also account for 32% of India’s total Chinese imports, are heavily reliant on Chinese suppliers. Moreover, because of border disputes, bilateral commerce between the two nations has reduced by 15% since 2018.
Vehicle Components
In 2019, China accounted for more than 25% of India’s auto part imports, totalling $4.2 billion. According to CAMAI-the Auto Component Manufacturers Association of India, these imports encompass engines and transmission parts (ACMA). Imported rims, front and rear spoilers, hubcaps, car lights, car sensors, rear view mirrors, and car cables are likewise popular import from China to India. Fuel tanks, helmets, mudguards, saddlebags & panniers, seats, and headlight assemblies are also popular on eBay.
Nuclear Machinery
Import from China to India of nuclear machinery was valued at $12.37 billion in 2020 and $13.87 billion in 2019.
Nuclear reactors, boilers, and other types of nuclear machinery were also discovered in the United Nations COMTRADE database on international trade. Nuclear machinery import from China to India at a 35% share, followed by Germany at 8.26% and the United States at 6.35%.
Medical Tools
China imports nearly 11% of India’s medical products, devices, and tools. The vast majority of these medical devices range from simple tools like thermometers, and cotton wool, as well as ECG machines to catheters.
Throughout the Covid-19 pandemic, critical medical supplies topped import from China to India to control the outbreak. Following the increase in Covid-19 cases in the nation, these N95 masks, and medical products included ventilators, as well as personal protective equipment (PPE).
According to GlobalData, the Asia-Pacific ventilator market accounted for 12% of the Indian ventilator market. Despite the severely disrupted supply chain caused by the pandemic, this figure is expected to rise significantly in the coming years.
Fertilizers
To increase its chrome yield, India imports fertilisers like diammonium phosphate. Other fertilisers include urea, a plant nutrient that is popular amongst Indian farmers. The trade route is also important for Indian exports because China is India’s primary supplier of sulphur.
Fertilisers worth US$1.67 billion in 2020 are import from China to India, based on the United Nations COMTRADE database on global trade. Following the Covid-19 pandemic, the supply of Chinese fertilisers in India was deemed critical. Its significance to the nation’s agricultural industry cannot be overstated.
Iron & Steel
Based on the United Nations COMTRADE database on global trade, India is expected to import $1.23 billion in steel and iron from China during 2020. Chinese steel imports encompass high-quality as well as high-grade ferroalloy goods, that are primarily used by Indian automobile as well as engineering goods manufacturers.
JSW Group, one of India’s largest conglomerates, imports $400 million from China each year. A few of these goods are crucial parts of engines as well as electronic devices in India, where no domestic supply exists.
Plastic & Electronic Toys
The Chinese industry currently has a monopoly on the Indian toy market. India currently continues to import over $600 million in toy products from China, with famous items including plastic as well as electronic toys. Almost half of India’s domestic toy demand is met by import from China, which is the world leader in toy exports.
When compared to toys domestically produced, the low-price level, variety, and accessibility of Chinese toys are significant selling points for both buyers and manufacturers, resulting in intense competition there in the toy market.
Dairy Products
Though India doesn’t quite import milk from China, a wide range of milk and dairy products are an import from China to India, including chocolate, food preparation products containing milk, skimmed milk powder, whey, whole milk powder, as well as lactose powder.
Because of increased demand from importing nations, China’s milk production is rising by 20-25%. Whilst also India is the largest global milk producer, this is also the world’s largest consumer of milk, which also explains the rise in milk products in China’s imports.
Different requirements to import from China to India
The BIS Act was enacted to allow goods to be imported into India. Let us look at some of the requirements for goods imports from China to India.
The Meaning of BIS and the Significant Role It Plays in Imports
The BIS Act of 2016 set up the National Standard Body of India to promote the concurrent growth of labelling, standardisation, and quality control of goods, as well as topics related to or ancillary to certain operations.
The BIS has provided a chain of custody as well as liquidity benefits to growth in the economy in several ways, such as providing trustworthy quality goods, safe, reducing health implications for consumers, trying to promote import-export of goods as a replacement, as well as controlling the spread of varieties, amongst many other things, via certification, standardisation, and testing.
As part of its efforts to stiffen restrictions on non-essential Chinese goods, the BIS certification is now required for an additional 400 imports.
Imported goods certification schemes
Electronic as well as data technologies are used in the Compulsory Registration Scheme (mobiles, TVs, laptops, smartwatches, lights and different other gadgets). An importer who obtains a CRS item from China (or another country) must have his or her item registered with BIS. The manufacturer receives certification notification instead of the importer. In contrast, the importer may represent the Chinese manufacturer in India as well as seek accreditation on their behalf.
Foreign Manufacturers Certification Scheme
Some product categories that are intended for sale in India and imported from China or other nations require an ISI mark. Importers can register such goods with BIS under the Foreign Manufacturers Certification scheme.
Manufacturers situated outside of India can obtain a license under the scheme’s rules when they meet BIS quality criteria as well as fulfil the required factors like manufacturing framework, quality maintenance, production process, and certification capabilities.
SCOMET
SCOMET (special chemicals, organisms, materials, equipment, and technologies) products are listed in the third appendix of Schedule I of the Indian Trade Classification, which is a system used in India to separate goods for export and import and requires BIS registration. The SCOMET list includes nuclear material, electronics, poisons, and other controlled substances.
Application Procedure for BIS Certification
Scheme of Compulsory Registration Method
Import product samples for testing.
If the manufacturer is located outside of India, sign up as an Authorised Indian Representative, as per BIS guidelines (AIR).
Sign up on the BIS portal and confirm the manufacturer’s address and name.
Make a test request online, submit sample information, as well as select a BIS laboratory.
Send a specimen to your preferred lab.
Send the suitable licence application form as well as related documentation, as well as test results.
Their inspectors would then travel to the manufacturer’s country to investigate their corresponding factories at their expense. Those who may choose to employ an inspector to perform additional inspections.
When all documentation is in order, the structure meets BIS criteria, and the fee is paid, a licence is usually issued within 20 business days. The applicant is provided with a one-of-a-kind registration number to use on their goods.
When there is any uncertainty in the process, the supplier would be notified and offered 30 days to correct the problem.
Method of Foreign Manufacturers Certification Scheme
The procedure for getting a license in this scheme is comparable to the first, with the exception that the applicant should physically submit the required form, together with all supporting documentation and fees, to the BIS head office in Delhi.
Documents Required for BIS Registration
Proof of application submission
A form of application
Address verification is required
Evidence of the brand’s name (copy of trademark application, certificate of brand registration, a letter from the owner)
The CEO of the production unit must sign the application or provide a letter of authorization.
If the manufacturer is located outside of India, an affidavit, as well as assurance from such an authorised Indian official, is needed.
Test results report
A task for a test report
The bill of entry includes commercial bills, packing lists, insurance cover letters, bills of lading, and certificates for the origin country.
Custom Documents required for Import from China
The following are the basic customs documents required for import from China:
Bill of Lading
Proforma Invoice
Commercial Invoice
Purchase Order
Certificate of Country of Origin
Insurance Certificate
Letter of Credit
Health Certificate
Customs Duties imposed on Imports from China
Customs taxes-These taxes are imposed on goods imported into India from China. Import duty is calculated on the basis of the CIF value of the item which includes cost, insurance, as well as freight, and it consists of 3 components for maritime shipments:
Basic Customs Duty –The rate of basic customs duty varies according to the commodity. The government has the authority to exempt certain goods from this tax.
GST Compensation Cess as well as Integrated Goods and Services Tax – This is the result of combining Central and State GST. If a loss is incurred as a result of GST implementation, the committee of GST compensation pays states it.
The Social Welfare Surcharge- It would be a 10% surcharge on all levied taxes, customs duties, as well as cesses collected under the Customs Act of 1962.
Additionally, your cargo imported from China could be subject to extra duties, for instance:
Anti-dumping Duty — This duty is levied on imports that are priced below the national market price. China’s bottle-grade plastic as well as some steel items are subject to an ADD in India.
Countervailing Duty – Introduced to protect domestic producers from low-cost imports, comparable to the equivalent of a central excise charge on comparable commodities produced within India.
Safeguard Duty – This safeguards domestic producers from the effects of increased imports. Imported solar cells from China are subject to a 14-15% safeguard tariff.
Protective Duty – Protective Duty is a duty which aims to safeguard local producers.
Education Cess – It is a tax of about 1-2% of the overall amount of customs taxes.
Handling Fees – Charges for handling products in addition to unloading and loading them. To know more about the fees, reach us.
Important information that must be included on the label
Imported items from China (or other countries) must meet stringent labelling needs that may vary from global standards.
When impacting packaged foods:
The product’s name
Ingredients in descending order of product composition.
Net weight or volume of contents
The batch/lot/code number
Manufacturing, expiration dates and packing are all included.
Maximum retail price
Names and addresses of the manufacturer, packer
Country of origin, importer, name as well as address of the importer, and packaging data (when the product is made somewhere but bottled within India).
Indicate whether the product is vegetarian or non-vegetarian using a logo.
The FSSAI logo is accompanied by its licence number.
Emphasizing the colouring agent
Non-food products import:
Product name
Importer’s name and address
Date of manufacture & packaging and import
Net quantity
Maximum Retail Price
Environmental Responsibility
In a progressively environmentally conscious world, importing as well as environmental obligations are related. The responsibilities of electronics and electrical equipment importers are defined through India’s electronic waste norms. Its objective is to safeguard people and the environment from the hazards of improper e-waste disposal.
The e-waste regulations incorporate two practises the Restriction of Certain Hazardous Substances (RoHS) directive as well as the Waste Electrical and Electronic Equipment Recycling Directive (WEEE).
The RoHS directive forbids the use of ten hazardous substances in the manufacture of electrical equipment after the recommended limit. The WEEE Directive aims to reduce electronic waste production. It establishes rules for the successful recycling, recovery, and re-use of such garbage wherever it is produced.
FAQs
How much have Chinese imports to India has increased in the last six years?
Over the last 6 years, China’s imports to India have enhanced by 7.94%.
What is the volume of trade between India and China?
In 2021, the nation’s trade with China will exceed $100 billion.
Which Chinese products are imported?
China exports countries such as India products such as vehicle parts, nuclear machinery, electronics and telecommunications parts, fertiliser tools, and many more.
Conclusion
The import of Chinese products, goods, and raw materials helps India produce many goods locally. If manufacturing were to halt, it could have ramifications for a variety of industries as well as businesses, as well as disrupt the India-China supply network. To know more about the logistics of import from China, contact us today.
