A guide to shipping from the USA to India

The United States of America (USA) has long been a key trading partner for India for numerous types of goods, with an all-time high of 407.35 INR Billion worth of imports brought into India in December 2022 alone¹. However, importing these goods comes with its own share of complexities, with various regulatory requirements, logistics considerations, and customs procedures to navigate.

This comprehensive guide will provide Indian businesses with the essential knowledge and strategies to successfully import goods from the USA. We'll explore the key requirements, potential challenges, and best practices for streamlining the import process, maximizing efficiency, and ensuring a smooth and successful experience.

Essential requirements for importing from the USA

Importing goods from the USA to India requires careful attention to various regulatory requirements, to ensure compliance and to avoid potential delays or penalties. Here's a breakdown of these necessities:

Import licenses

Most products are freely importable without an import license, unless they are regulated by the provisions of the policy or applicable laws. However, some products still require specific import licenses depending on their nature and intended use. These include:

• General license: Covers most commonly imported goods into India.
• Special license: Required for restricted items, such as certain chemicals, pharmaceuticals, or agricultural products.

Businesses can apply for the necessary import licenses through the Director General of Foreign Trade (DGFT) online portal or through authorized agencies. The application process typically involves submitting the relevant documents, such as company registration details, product information, and import invoices.

For certain products, you may also need an "Advance License²" to import them to India without paying duties (taxes). This license is especially helpful for businesses that import materials to make products in India that they will then export. Things like fuel, oil, and catalysts used in manufacturing for export are also covered. To get an Advance License, you'll need to show how the imported materials will be used in your export production, either by following standard guidelines or by providing your own explanation.

Product compliance with safety and quality standards

• Importance of compliance: Imported products must comply with Indian safety and quality standards to ensure consumer protection and fair trade practices. This is particularly important for sensitive categories like electronics, food, and pharmaceuticals.
• Bureau of Indian Standards (BIS): The BIS plays a crucial role in ensuring the quality and safety of imported and exported goods. It sets standards, conducts conformity assessments, and issues certifications to ensure that products meet the required specifications.
• Compliance procedures: Businesses should familiarize themselves with the relevant BIS standards for their imported products, and ensure that their suppliers provide necessary compliance documentation. Products may at times be subject to testing and certification by BIS-recognized laboratories to verify compliance.

Mandatory labeling requirements

Imported products must comply with mandatory labeling requirements³, including specifications for language, content, and format. These regulations aim to provide consumers with clear and accurate information about the products they purchase. Labels typically need to include the following information:

• Importer's name and address: This helps consumers identify the source of the product and contact the importer if needed.
• Generic or common name of the commodity packed: This ensures that consumers understand what the product is.
• Net quantity in terms of standard unit of weights and measurement: This provides accurate information about the quantity of the product, with all units in the metric system.
• Month and year of packing/manufacturing/importing: This helps consumers determine the freshness and shelf life of the product.
• Maximum Retail Sales Price (MRP): This indicates the maximum price at which the product can be sold to the end consumer, including all taxes and charges.
• Additional declarations (where applicable): This may include information about irradiation, added coloring, or vegetarian/non-vegetarian status.

Accurate and clear labeling is essential to avoid customs delays or rejections. Businesses should ensure that their imported products are labeled correctly and comply with all relevant regulations. Inaccurate or incomplete labeling can lead to penalties, fines, or even the seizure of goods by customs officials.

Before shipping: Strategies for successful importing

Find the right supplier

Finding a reliable and reputable supplier is crucial for successful importing from the USA. Here are some tips for identifying and evaluating potential suppliers:

• Conduct thorough research: Start by utilizing online resources, industry directories, and trade platforms to identify potential suppliers in the USA. Check supplier websites, online reviews, and testimonials to get a sense of their reputation and track record. Consider attending industry events and trade shows to connect with potential suppliers in person and establish direct relationships.
• Verify credentials: Check the supplier's business registration, licenses, and certifications to ensure they are legitimate and operate legally. Consider requesting references from other businesses that have worked with the supplier to gain further confidence in their reliability and track record.
• Evaluate supplier capabilities: Request product samples and conduct quality checks to ensure they meet your requirements and comply with Indian standards. Inquire about production capacity, lead times, and minimum order quantities to assess their ability to fulfill your orders reliably. Discuss their quality control processes, certifications, and compliance with relevant standards to ensure they meet your expectations.
• Communicate effectively: Establish clear communication channels with potential suppliers and maintain regular contact to address any concerns and ensure smooth collaboration. Discuss your specific requirements, expectations, and any potential challenges to ensure alignment and avoid misunderstandings. Negotiate pricing, payment terms, and delivery schedules to establish mutually beneficial agreements.

Choose the right shipping method

Selecting the right shipping method is crucial for ensuring that your imports from the USA arrive in India efficiently, reliably, and on time. For businesses dealing with time-sensitive shipments or those that prioritize speed and reliability, express shipping is often the ideal choice, offering expedited delivery within 1-3 business days, depending on the origin and destination. 

It involves using dedicated air freight services and streamlined customs clearance processes to ensure fast and reliable transit times. This can be particularly beneficial for businesses importing perishable goods, high-value items, or those with tight deadlines. Some benefits of this method include:

• Faster delivery: Receive your imports sooner, reducing lead times and enabling quicker turnaround for your business operations.
• Enhanced reliability: Benefit from higher reliability and on-time delivery rates, minimizing the risk of delays and disruptions to your supply chain.
• End-to-end tracking: Many shipping partners offer online shipment tracking services, providing visibility and peace of mind throughout the entire shipping process.
• Prioritized handling: Express shipments often receive prioritized handling and expedited customs clearance, ensuring faster processing and delivery.

Obtain the necessary documents

Accurate and complete documentation is essential for smooth customs clearance and timely delivery of your imports from the USA. Here's a list of essential import documents to keep in mind:

• Import Export Code (IEC)⁴: This is a primary document necessary for commencing import-export activities. It is mandatory for any business involved in importing or exporting goods or services.
• Bill of Lading / Air Waybill: This document serves as a contract between the shipper and the carrier, acknowledging receipt of the goods and outlining the terms of transportation. It also provides key details about the shipment, such as the origin, destination, and routing information.
• Commercial invoice-cum-packing list: This document combines the commercial invoice and packing list into a single document. It provides a detailed description of the goods being imported, including their value, quantity, origin, and packaging details.
• Bill of Entry: This is a legal document filed by the importer or a customs agent on the arrival of goods. It is submitted to the customs department and forms an essential part of the customs clearance procedure.
• In addition to the above documents, you may also need to provide:
• Foreign Exchange Control Form (Form A-1): This form is required for all imports and exports to track foreign exchange transactions.
• Terminal handling receipt: The receipt is issued by the terminal operator and acknowledges the receipt of goods at the port or airport.
• Certified engineer's report: This may be required for certain types of machinery or equipment to ensure they meet safety and quality standards.
• Cargo release order: The order is issued by customs authorities after the completion of customs clearance procedures and authorizes the release of goods to the importer.
• Product manual: This manual provides instructions and information about the imported product.
• Inspection report: The inspection report may be required for certain products to verify their quality and compliance with Indian standards.

Navigating customs clearances and costs

Customs clearance is a critical step in importing goods from the USA to India. The process involves several key stages:

• Document submission: Importers need to submit the necessary documentation to customs authorities for verification and assessment.
• Inspection and valuation: Customs officials will examine the goods and the accompanying documents to verify their declared value, quantity, and nature, as well as the applicable customs duties and taxes.
• Duty and tax calculation: Customs duties and taxes are levied on imported goods based on their value, type, and origin. The calculation of these duties and taxes can be complex, involving various factors such as the Harmonized System (HS) code of the goods, the applicable tariffs, and any preferential trade agreements.
• Payment and release: Once the duties and taxes have been calculated, importers need to make the necessary payments to customs authorities. Upon payment, the goods will be released for delivery to the importer.

To help businesses navigate this process and estimate the total cost of importing, DHL Express offers the MyGTS landed cost feature. This online tool allows businesses to calculate the estimated landed cost of their shipments, including the shipping costs from the USA to India, customs duties, and taxes. By providing a clear picture of the import costs, MyGTS empowers businesses to plan their imports effectively and manage their budgets efficiently.

Your gateway to efficient importing: DHL Express India

Importing from the USA to India can be a complex process, fraught with regulatory hurdles, logistical challenges, and potential delays. However, with a reliable commodity shipping partner like DHL Express, businesses can navigate these complexities with confidence, with their comprehensive suite of solutions designed to simplify the entire import journey, from pickup in the USA to final delivery in India.

With its extensive global network, international courier and pickup services, and dedicated customer support, DHL Express acts as a trusted guide, ensuring smooth and efficient movement of goods. Their expertise in customs clearance procedures helps businesses avoid potential pitfalls and delays, while the user-friendly MyGTS landed cost tool provides valuable insights into the total import charges, empowering businesses to make informed decisions and optimize their budgets.

By partnering with DHL Express, businesses can focus on what they do best: growing their business. Ready to unlock seamless importing from the USA? Open a DHL Express business account today and let DHL handle all your shipping needs!