Import Export Guide for India: Process, Documents, Customs & Freight

Import and export are business processes—not only cargo movement

Exporting means supplying goods or services from India to a customer outside India. Importing means bringing goods or services into India from another country. In both directions, the commercial sale and the physical shipment must match: the buyer and seller names, product description, quantity, value, currency, country of origin, HS classification, packing, transport document and payment record should tell the same story.

A freight forwarder coordinates transport, carrier bookings and shipment milestones. A customs broker handles customs declarations and clearance formalities within the scope of its licence. Banks manage foreign-exchange and payment controls. DGFT, Customs, GST and product regulators set different parts of the compliance framework. Strong import-export execution connects all of them before the cargo reaches the port.

How to export goods from India: step-by-step process

1. Set up the business and banking base

   Choose an appropriate legal structure, obtain PAN, open a current account with an authorised dealer bank and complete GST registration where applicable. Keep the legal name and address consistent across PAN, GST, bank, DGFT, invoices and shipping records.

2. Obtain and maintain the Importer Exporter Code

   IEC is generally required for commercial import or export of goods unless a notified exemption applies. DGFT issues it online and links the identity to PAN. Keep IEC details current and complete any confirmation or update required by the current DGFT procedure.

3. Classify the product under ITC(HS)

   Identify the correct tariff classification, technical description and unit of measurement. The classification influences export policy, incentives, licences, certificates, statistics and customs declarations. Do not select a code only because another seller uses it; classification must match the actual product.

4. Check export policy and product controls

   Confirm whether the item is free, restricted, prohibited, state-trading or covered by special controls such as SCOMET. Food, agricultural goods, pharmaceuticals, chemicals, wildlife products, waste, dual-use goods and culturally sensitive items may need additional approvals.

5. Research the buyer and destination market

   Verify the customer, beneficial ownership, sanctions exposure, destination-country import rules, labelling, testing, packaging, language and safety standards. A product that is exportable from India may still be blocked or costly to import at destination.

6. Agree the commercial contract

   Write the product specification, quantity tolerance, currency, price, Incoterm with named place, payment method, delivery window, inspection standard, warranty, dispute terms and responsibility for documents. A vague purchase order creates operational arguments later.

7. Plan freight, packing and cargo readiness

   Choose ocean FCL, ocean LCL, air or multimodal transport. Confirm cargo-ready date, package count, dimensions, gross and net weight, stackability, dangerous-goods status, temperature needs and stuffing location. Packaging should protect cargo and comply with destination rules such as wood-packaging treatment where relevant.

8. Prepare the export document set

   Create a clear commercial invoice and packing list. Arrange certificate of origin, inspection, insurance, licence, test report or other documents if required by the contract, product or destination. Give the forwarder and customs broker consistent instructions before cut-off.

9. Book cargo and file the Shipping Bill

   The exporter or authorised customs broker submits export particulars through the customs system. Supporting documents can be uploaded and linked electronically where applicable. Customs may assess, query or examine the cargo before granting Let Export Order.

10. Complete port, carrier and departure formalities

    Move cargo to the designated terminal or freight station, complete gate-in and stuffing formalities, meet vessel or flight cut-offs and verify the transport document draft. After departure, the carrier files the relevant manifest and issues the final bill of lading or air waybill.

11. Send documents and track payment

    Present documents under the agreed payment method—directly, through banks, or under a letter of credit. Monitor shipment milestones, buyer acceptance, export proceeds, bank realisation records, GST reporting and any eligible refund or incentive claim.

12. Close and audit the shipment file

    Reconcile invoice value, freight, charges, customs data, tax returns, bank receipts, claims and customer account. Retain records for the applicable legal period. A complete file makes audits, refunds and future pricing easier.

How to import goods into India: step-by-step process

1. Define the product precisely

   Collect composition, function, model, catalogue, technical literature, brand, country of origin and end use. These details drive HS classification, duty, licensing and product-regulator checks.

2. Check import policy before ordering

   Verify ITC(HS) policy and whether BIS, FSSAI, WPC, CDSCO, plant quarantine, animal quarantine, legal metrology, environmental, textile, chemical or other controls apply. Do this before paying the supplier or booking cargo.

3. Confirm IEC, GST and authorised parties

   Keep IEC, GSTIN, bank details and registered address aligned. Decide whether the importer will file directly where permitted or appoint a licensed customs broker. Share authorisations and KYC early.

4. Vet the overseas supplier

   Verify legal identity, factory or trading status, quality systems, references and banking details. Request samples or third-party inspection where risk justifies it. Independently confirm any change in bank account to reduce payment fraud.

5. Negotiate price, Incoterm and payment protection

   Compare EXW, FCA, FOB, CFR, CIF, CPT, CIP, DAP and other suitable terms based on logistics control and risk. Make clear who arranges origin haulage, export clearance, main freight, insurance, destination charges, import clearance and delivery.

6. Estimate total landed cost

   Build a pre-import cost sheet using supplier value, assists where applicable, freight, insurance, exchange rate, duties and taxes, port charges, clearance, detention risk, warehousing and local delivery. A cheap unit price can become an expensive landed product.

7. Review documents before shipment

   Approve the invoice, packing list, certificate and transport-document instructions before cargo departs. Correct product descriptions, values, package counts, marks, weights and consignee details at origin whenever possible.

8. Track arrival and collect the delivery order

   Monitor the vessel or flight, transhipment and expected arrival. Arrange original or surrendered transport documents, carrier charges, delivery order and terminal requirements so clearance does not wait for paperwork.

9. File the Bill of Entry and supporting documents

   Import particulars are filed electronically for home consumption or warehousing, as applicable. Customs assesses classification, valuation, exemption claims and compliance. Queries, examination or partner-government-agency review may follow.

10. Pay duties and obtain Out of Charge

    Pay the assessed amount through the approved channel, complete examination or sampling if ordered and obtain customs release. Do not arrange final pickup until customs and terminal release conditions are satisfied.

11. Move cargo and control free time

    Coordinate container pickup, de-stuffing, empty return and delivery. Track demurrage, detention and storage free time separately. Delays after customs release can still create large logistics charges.

12. Reconcile import records

    Match purchase order, invoice, Bill of Entry, duty payment, goods receipt, bank remittance, input-tax records and supplier account. Record shortages, damage or quality issues immediately for insurance and commercial claims.

Import export documents: complete practical checklist

The exact document set depends on cargo, country, contract and transport mode. The following list covers the documents most frequently encountered in Indian import-export operations.

HS code and ITC(HS): why classification controls the shipment

The Harmonized System groups traded products under internationally recognised headings and subheadings. India extends this framework through ITC(HS) classifications for trade policy and customs purposes. The selected code can affect import or export policy, duty rate, exemption, anti-dumping duty, incentive eligibility, certificate requirements, statistical reporting and government-agency intervention.

A practical classification method

• Start with the product’s objective characteristics: material, function, form, composition and degree of manufacture.
• Read the relevant section notes, chapter notes and legal descriptions—not only a keyword search result.
• Use technical literature, drawings, ingredient sheets, model data and intended use where relevant.
• Check whether a more specific heading exists before using a broad “other” category.
• Review customs notifications, explanatory material, rulings and specialist advice for uncertain or high-value classifications.
• Maintain a classification file showing why the chosen code is defensible.

A supplier’s foreign HS code is a useful clue but not a final Indian classification. National tariff extensions and interpretations can differ after the common international digits.

Incoterms for import export: cost, risk and control

Incoterms rules allocate selected delivery obligations, costs and risk between seller and buyer. They do not by themselves decide ownership, payment timing, product quality, breach remedies or every customs issue. State the rule, named place or port and edition clearly—for example, “FCA Nhava Sheva CFS, Incoterms 2020.”

Questions to settle before choosing an Incoterm

• Who can negotiate the best freight and destination charges?
• Who controls routing, carrier, insurance and shipment visibility?
• Where exactly does risk transfer?
• Who files export and import declarations?
• Who pays terminal handling, documentation, examination, storage and delivery?
• Can the responsible party legally perform customs obligations in that country?

Ocean FCL, ocean LCL, air freight and multimodal transport

FCL versus LCL: compare total shipment economics

Do not choose only by ocean freight. Compare origin pickup, CFS handling, documentation, minimum volume, destination deconsolidation, delivery, transit time, cargo exposure and schedule reliability. A slightly higher freight option may deliver a lower landed cost or lower damage risk.

Container and equipment options

Common equipment includes 20-foot and 40-foot dry containers, high-cube containers, refrigerated containers, open-top containers and flat racks. Cargo weight, internal dimensions, door opening, centre of gravity, securing, temperature range and road restrictions should be checked before booking.

Export quotation and import landed cost calculation

Export price build-up

The formula changes with the delivery term. An FCA price is not comparable with a CIF or DAP price unless the missing cost layers are added. Quote validity should reflect freight validity, exchange-rate exposure, commodity volatility and equipment availability.

Import landed cost build-up

For customs, assessable value and duty calculation follow legal valuation and tariff rules—not simply the amount paid to the supplier. Related-party transactions, royalties, assists, commissions, freight and insurance can require specific treatment.

Common import duty components

• Basic Customs Duty (BCD): rate depends on tariff classification and applicable notification.
• Social Welfare Surcharge: can apply to specified customs-duty components, subject to current law and exemptions.
• Integrated GST: generally calculated at import according to the applicable valuation base and GST rate.
• Compensation cess: may apply to notified goods.
• Trade-remedy duties: anti-dumping, safeguard or countervailing measures can apply to specific goods, origins and producers.

Never assume the duty from a generic online calculator is final. Confirm the exact HS code, origin, date, notification, exemption conditions, end-use requirements and trade-remedy coverage.

GST on exports, foreign payments and payment risk

GST treatment of exports

Exports are treated as zero-rated supplies under the GST framework, but zero-rated does not mean “no procedure.” Exporters may need correct invoice declarations, LUT or the applicable tax-payment route, Shipping Bill data, return reporting, bank realisation evidence for relevant cases and refund documentation. Data mismatches between invoice, customs and GST returns can delay a refund.

Importers generally pay applicable IGST and other import levies through customs. Eligibility and timing of input-tax credit depend on the law, documentation and return conditions. Reconcile Bill of Entry data with books and portal records.

International payment methods

Route foreign-exchange transactions through an authorised dealer bank and follow current FEMA, RBI, sanctions and KYC requirements. Build payment follow-up, credit limits and overdue escalation into the shipment workflow.

Import export compliance checklist for India

Dangerous goods and controlled cargo

Chemicals, batteries, aerosols, gases, flammable liquids and other regulated cargo require accurate classification, safety data, approved packaging, marks, labels and carrier acceptance. Never hide dangerous-goods information to obtain a booking; misdeclaration can cause fire, penalties, cargo rejection and severe liability.

Wood packaging and fumigation

Solid-wood pallets, crates and dunnage used in international trade may need approved treatment and marking under destination plant-health rules. Engineered wood products can be treated differently. Confirm the destination requirement before packing.

Customs clearance workflow: what happens after filing?

Good clearance begins before filing. Send the broker technical literature, licence details, valuation background and complete documents early. Late corrections can affect cut-offs, duty, storage and customer commitments.

Common import export mistakes and how to prevent them

Example: planning an ocean export shipment from India

Assume an Indian manufacturer is selling 18 pallets of non-hazardous engineering components to an overseas distributor. The exporter should first confirm ITC(HS) classification, export policy, buyer requirements and origin criteria. The parties then agree product specifications, an Incoterm with named location, payment terms and shipment window.

The forwarder compares FCL and LCL based on cubic volume, gross weight, handling risk, transit and total destination cost. After booking, the exporter finalises invoice, packing list, shipping instructions and any certificate of origin. The customs broker files the Shipping Bill using matching values and descriptions. Cargo is packed, marked, weighed and delivered before terminal cut-off. After Let Export Order and vessel departure, the exporter checks the bill of lading draft, sends the agreed documents, tracks payment and reconciles customs, GST and bank records.

This example looks linear, but several activities run in parallel. That is why a shared checklist, named owner and milestone tracker are more reliable than scattered messages.

Import export glossary: essential shipping terms

AD bank

Authorised dealer bank handling permitted foreign-exchange transactions.

AWB

Air waybill used for air cargo carriage.

BCD

Basic Customs Duty on applicable imported goods.

Bill of Entry

Customs declaration for imported goods.

Bill of Lading

Ocean-carriage receipt and contract document; some forms also operate as documents of title.

CFS

Container Freight Station used for cargo handling, stuffing or de-stuffing and related operations.

CHA / Customs Broker

Licensed intermediary authorised to conduct customs business for clients.

COO

Certificate of Origin supporting the origin status of goods.

Demurrage

Charge linked to cargo or container remaining within a terminal beyond allowed free time, subject to tariff.

Detention

Charge commonly linked to keeping carrier equipment outside the terminal beyond allowed free time.

DG cargo

Dangerous goods regulated for transport due to their hazards.

EGM

Export General Manifest filed after export loading/departure as applicable.

FCL

Full Container Load movement under a shipper’s container booking.

HS code

Harmonized System classification used for internationally traded products.

IEC

Importer Exporter Code issued through DGFT for eligible trade activity.

IGM

Import General Manifest containing arriving cargo details.

Incoterms

ICC rules defining selected delivery obligations, costs and risk between seller and buyer.

ITC(HS)

India’s trade classification and policy schedule based on the Harmonized System.

LCL

Less than Container Load cargo consolidated with other shipments.

LEO

Let Export Order permitting export after customs requirements are met.

LUT

Letter of Undertaking used under the applicable GST export procedure.

NVOCC

Non-vessel operating common carrier that contracts ocean carriage without operating the vessel.

OOC

Out of Charge order releasing imported cargo after customs requirements are satisfied.

POL / POD

Port of Loading and Port of Discharge.

RoDTEP

Export-remission scheme subject to current eligibility, rates and conditions.

SCOMET

India’s control list for specified special chemicals, organisms, materials, equipment and technologies.

Shipping Bill

Customs declaration for export goods.

SI

Shipping Instructions provided for preparation of the carrier transport document.

TEU

Twenty-foot equivalent unit used to express container capacity.

VGM

Verified Gross Mass of a packed export container.

Import export FAQs