Anyone importing into or exporting from India needs an Importer-Exporter Code from the DGFT, which is the business's PAN. Imports carry basic customs duty, generally 7.5% or 10%, plus a social welfare surcharge and IGST, so landed cost must be modelled by tariff line; preferential rates are available under agreements now in force with partners including the UAE, Australia, the EFTA states and, since 15 July 2026, the United Kingdom. Many products need BIS certification under Quality Control Orders before they can be imported or sold, and SCOMET items need a DGFT export licence.
Registering to trade
No import or export may be made without an Importer-Exporter Code granted by the DGFT. Companies, LLPs, partnerships, proprietorships and trusts can all hold one, and since GST was introduced the IEC number is the same as the business's PAN, though it is still issued separately.
The DGFT formulates and implements the Foreign Trade Policy and issues export licences for restricted and SCOMET items. Preferential certificates of origin for all free trade and preferential agreements are issued through the DGFT's common digital platform.12345
Import duties
Basic customs duty is generally levied at 7.5% or 10%. On top of it sit a social welfare surcharge of up to 10% of the basic duty, IGST (with any compensation cess) and, for some products, further levies such as a 5% health cess on imported medical devices.
IGST paid on import is generally creditable for a GST-registered importer, so the cash cost of duty differs from the accounting cost. Confirm the tariff line for each product, because rates vary widely by item.6789
Trade agreements in force
India's agreement with Australia has applied since 29 December 2022, its agreement with the EFTA states since 1 October 2025, and its agreement with the United Kingdom since 15 July 2026; all three cover goods and services. The WTO also lists agreements in force with the UAE, Japan, Korea, Singapore, Malaysia, Mauritius and ASEAN, among others.
Preferential duty depends on meeting each agreement's rules of origin and holding a valid certificate of origin, so check the agreement schedule for each product rather than assuming a zero rate.101112135
Product conformity and trading models
BIS certification is voluntary in principle, but where the Central Government has issued a Quality Control Order the product must carry the BIS Standard Mark under a licence or certificate of conformity. Foreign factories apply under the Foreign Manufacturers Certification Scheme, separately for each product and factory. Notified electronics and IT goods need BIS registration under the Compulsory Registration Scheme and cannot be imported or sold without it.
Cash and carry wholesale trading, e-commerce and single-brand retail are open to 100% foreign investment under the automatic route subject to conditions, while multi-brand retail is capped at 51% under the government route. Under the Finance Act, 2026, foreign suppliers of capital equipment or tooling to contract manufacturers in bonded zones are exempt from income tax up to tax year 2030/31, and buying goods in India solely for export does not create a significant economic presence.14151617181920
| Component | Rate | Notes |
|---|---|---|
| Basic customs duty | Generally 7.5% or 10% | Varies by tariff line; may be reduced under a trade agreement |
| Social welfare surcharge | Up to 10% of basic customs duty | |
| IGST | GST rate for the product | Generally creditable for registered importers |
| Health cess on medical devices | 5% | Imported medical devices |
How it works, step by step
- Obtain an Importer-Exporter Code linked to the business's PAN12Directorate General of Foreign Trade
- Classify each product and confirm basic customs duty, surcharge and IGST, and any preferential rate under a trade agreement67813Central Board of Indirect Taxes and Customs
- Check whether a Quality Control Order or the Compulsory Registration Scheme covers the product and obtain BIS certification before shipping141516Bureau of Indian Standards
- Register for GST to recover IGST paid on imports821GST authorities
- Check the FDI conditions for the chosen trading model17DPIIT
- For exports of SCOMET or restricted items, obtain a DGFT export licence4Directorate General of Foreign Trade
No timings or fees are shown unless an official source states them.
Documents usually needed
- Importer-Exporter Code
- Commercial invoice, packing list and bill of lading or airway bill
- Product classification and duty analysis
- Certificate of origin for preferential duty claims
- BIS licence, certificate of conformity or CRS registration for covered products
- GST registration for import credit
Common mistakes
- Shipping before obtaining an IEC, or using a code that does not match the importer's PAN.
- Shipping goods covered by a Quality Control Order or the Compulsory Registration Scheme without BIS certification.
- Claiming preferential duty without checking the rules of origin and obtaining a valid certificate of origin.
- Pricing on basic customs duty alone and ignoring the surcharge and IGST.
- Selling directly to consumers through a structure that the FDI trading conditions do not allow.
When the business crosses borders
- UK exporters can claim preferences under the UK-India agreement from 15 July 2026, and EFTA exporters under the EFTA-India agreement from 1 October 2025, subject to rules of origin.
- Foreign factories supplying products under a Quality Control Order need their own BIS licence under the Foreign Manufacturers Certification Scheme.
- Foreign equipment suppliers to bonded-zone contract manufacturers should review the Finance Act, 2026 exemption.
- Sourcing goods in India purely for export does not, on its own, create a significant economic presence.
Questions businesses ask
Does a foreign company need an IEC to sell into India?
The IEC requirement applies to whoever makes the import or export, so an Indian subsidiary importing in its own name needs its own IEC. Which entity acts as importer of record is a structuring point to confirm.1
What is the usual duty on imports into India?
Basic customs duty is generally 7.5% or 10%, plus a social welfare surcharge of up to 10% of that duty and IGST. Rates vary by tariff line and may be lower under a trade agreement.678
Is the UK-India trade agreement in force?
Yes. The WTO records it as signed on 24 July 2025 and in force since 15 July 2026, covering goods and services.12
Can a foreign brand sell online to Indian consumers through its own subsidiary?
E-commerce and single-brand retail are open to 100% foreign investment under the automatic route subject to conditions that limit some models; check the conditions for your structure.17
What this guide does not yet confirm
These points need checking with a qualified local professional in India before you rely on them.
- The Foreign Trade Policy 2023 (effective date, duration and schemes) and the Handbook of Procedures could not yet be checked; DGFT policy pages could not be fetched.
- IEC annual updating, fees and any exemptions from the IEC requirement were not confirmed.
- The India-UAE agreement's dates and coverage were not confirmed, and tariff schedules and rules of origin under each agreement were not reviewed.
- The SCOMET list, licensing procedure and catch-all controls were not reviewed.
- The current list of products under Quality Control Orders and the Authorized Indian Representative requirement under FMCS were not reviewed; legal metrology labelling was not covered.
- Customs duty points rely on a secondary source (PwC, last reviewed 11 May 2026) rather than the customs tariff.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
No person may make any import into or export from India except under an Importer-Exporter Code (IEC) granted by the DGFT. Applies to proprietorships, partnerships, LLPs, companies, trusts, HUFs and societies. Exemptions, if any, were not confirmed. Central rule.
Since GST was introduced, the IEC number is the same as the business's PAN, although the DGFT still issues the IEC separately. Central rule.
The DGFT is responsible for formulating and implementing India's Foreign Trade Policy. Central authority under the Ministry of Commerce and Industry.
The page does not name the current policy; the Foreign Trade Policy 2023 text could not yet be checked.
Exports of SCOMET items, and of restricted items, require an export licence issued by the DGFT. SCOMET: special chemicals, organisms, materials, equipment and technologies. Central rule.
The SCOMET list and licensing procedure could not yet be checked.
The DGFT's common digital platform gives single-point access to certificates of origin for all free trade and preferential trade agreements, for all issuing agencies and products. Preferential certificates of origin. Non-preferential certificates are filed through the eCoO 2.0 portal. Central system.
Basic customs duty on imports is generally levied at 7.5% or 10%. Rates vary by tariff line; central levy under the Customs Tariff.
Secondary source (last reviewed 11 May 2026); the customs tariff could not yet be checked.
A social welfare surcharge of up to 10% of basic customs duty applies on imports. Central levy.
Secondary source.
IGST, and any applicable compensation cess, is levied on imports in addition to customs duty. Central levy.
Secondary source; recovery of import IGST as input tax credit depends on GST registration and conditions not confirmed here.
A 5% health cess applies to imported medical devices. Applies from 2 February 2020. Central levy.
Secondary source.
The India-Australia free trade agreement, covering goods and services, was signed on 2 April 2022 and entered into force on 29 December 2022. Bilateral agreement.
The EFTA-India free trade agreement, covering goods and services, was signed on 10 March 2024 and entered into force on 1 October 2025. Agreement between India and the EFTA states.
The United Kingdom-India free trade agreement, covering goods and services, was signed on 24 July 2025 and entered into force on 15 July 2026. Bilateral agreement.
The WTO lists among India's regional trade agreements in force its agreements with the United Arab Emirates, Japan, the Republic of Korea, Singapore, Malaysia, Mauritius, Thailand, Chile and MERCOSUR, the ASEAN-India agreement and the South Asian Free Trade Agreement. As listed on the WTO database page for India; dates and coverage of each agreement are on individual cards.
The India-UAE card could not yet be checked, so its signature and entry-into-force dates were not confirmed. The scope and coverage of each listed agreement were not checked.
BIS product certification is voluntary in principle, but for products where the Central Government issues a Quality Control Order, use of the BIS Standard Mark under a BIS licence or Certificate of Conformity is mandatory. Grounds include public interest, health, safety, environment, prevention of unfair trade practices and national security. Central rule.
The list of products under compulsory certification (page updated 24 September 2026) was not reviewed product by product.
Manufacturers with factories outside India can obtain a BIS licence to use the Standard Mark under the Foreign Manufacturers Certification Scheme, with a separate application for each product or Indian Standard and each factory location. Operated since 2000 under the BIS Act 2016; electronics and IT goods notified by MeitY fall under the Compulsory Registration Scheme instead. Central scheme.
Scope and exclusion. The requirement to nominate an Authorized Indian Representative is listed in navigation but its page could not yet be checked.
Electronics and IT goods notified under MeitY's Compulsory Registration Order of 2012 may not be manufactured or stored for sale, imported, sold or distributed unless they conform to the Indian Standard and bear the Standard Mark with a BIS registration number. Compulsory Registration Scheme, operated by BIS under the BIS (Conformity Assessment) Regulations 2018; registration is based on self-declaration of conformity. Central rule.
The page gives two dates for the 2012 order (7 September and 3 October 2012). Whether testing in a BIS-recognised laboratory is required was not stated on the page opened.
Cash and carry wholesale trading, e-commerce and single-brand retail trading are open to 100% foreign investment under the automatic route, subject to the conditions in the FDI Policy. Conditions limit some e-commerce and single-brand models. Central rule.
The sector table extract was hard to read; confirm against Chapter 5 of the Consolidated FDI Policy, including the e-commerce marketplace and inventory conditions.
Multi-brand retail trading is capped at 51% foreign investment under the government route. Central rule; additional sector conditions apply.
Undated FAQ; confirm against the current Consolidated FDI Policy.
Foreign companies supplying capital equipment or tooling to Indian contract manufacturers in bonded customs zones are exempt from income tax on that supply up to tax year 2030/31. Finance Act, 2026; conditions apply. Central tax.
Secondary source.
Purchases of goods in India solely for export do not create a significant economic presence for a non-resident. Introduced by the Finance Act, 2025. Central tax.
Secondary source (last reviewed 11 May 2026).
GST registration is required where annual aggregate turnover exceeds INR 2 million (INR 1 million in special category states), with a threshold of INR 4 million for persons making only intra-state supplies of goods, subject to exceptions. Composition scheme available up to INR 15 million turnover without input tax credit. Thresholds differ by state category.
Secondary source; some categories (for example non-resident taxable persons and inter-state suppliers) must register regardless of turnover under GST law, which was not confirmed here.
Questions on this topic
19 statements on customs, trade and supply chain in India
