Importing from India: a six-step guide for UK businesses
From finding a supplier to receiving your goods, the steps that matter and the mistakes to avoid.
1. Define exactly what you need
Write a clear specification: materials, dimensions, quality standard, packaging, labelling and target price. The more precise the brief, the better the quotes you receive.
2. Find and vet suppliers
Shortlist manufacturers with proven export experience. Check company registration, export history, capacity and references, and visit or inspect the factory where you can.
3. Agree commercial terms
Confirm price, minimum order quantity, lead time, payment terms and the Incoterm. The Incoterm decides who pays for freight and insurance and where risk passes to you.
4. Check duties and compliance
Classify the product under the correct HS code to confirm duty and VAT, and check UK product-safety, labelling and any licensing rules before production starts.
5. Inspect before shipment
A pre-shipment inspection is the cheapest point to catch problems. Approve the report before the goods leave India.
6. Ship, clear and receive
Book transport, prepare the commercial invoice, packing list and certificate of origin, and arrange UK customs clearance and delivery.
Incoterms in practice: who pays, and who carries the risk
FOB, CIF, EXW, DAP and DDP explained in plain English for India trade.
Why Incoterms matter
Incoterms are standard trade terms that set out who arranges and pays for each part of the journey, and the point at which risk passes from seller to buyer. Getting them wrong is one of the most common causes of surprise costs.
EXW: Ex Works
The buyer collects from the seller’s premises and handles everything, including export clearance in India. Maximum control for the buyer, but also maximum responsibility.
FOB: Free On Board
The Indian supplier delivers the goods on board the vessel at the Indian port and clears them for export. The buyer arranges and pays for the sea freight and insurance.
CIF: Cost, Insurance & Freight
The supplier pays freight and minimum insurance to the destination port, but risk passes to the buyer once goods are loaded in India.
DAP and DDP
Under DAP the seller delivers to an agreed destination, ready for unloading; the buyer clears import customs. Under DDP the seller also pays import duties and taxes.
Our advice
Choose the term that matches who has the best control and pricing for each stage. We can compare landed costs under different terms before you agree the contract.
Balancing cost, speed, cargo type and cash flow when shipping from India.
Start with the cargo
Heavy, bulky and lower-value goods almost always suit sea freight. Small, light, high-value or urgent goods often justify air.
Compare the full cost
Air freight costs more per kilo, but faster delivery can reduce stock holding and free up cash sooner. Compare the landed cost, not just the freight rate.
FCL or LCL?
If your shipment fills most of a container, a full container (FCL) is usually better value and handled less. Smaller volumes travel as shared container (LCL).
Plan around the calendar
Festival seasons in India and peak shipping periods can affect factory output and vessel space. Book early and build in buffer time.
Mix modes
Many importers split orders: a small air shipment to launch, followed by the main volume by sea.
Landed cost explained: the real price of every import
Why the supplier’s price is only the start, and how to calculate your true margin.
What landed cost includes
Product price, packaging, inland transport in India, export clearance, freight, insurance, import duty, import VAT, port and handling charges, customs brokerage and delivery to your warehouse.
Currency matters
Movements between the rupee and sterling can change your cost between order and payment. Agree the currency and timing of payment up front.
Build a model
Calculate landed cost per unit for each product and route. It shows which products, suppliers and shipping options are truly profitable.
Measure it
Compare your forecast landed cost with the actual cost for every shipment, and refine the model over time.
The number that sets your duty rate, your paperwork and your compliance checks.
What an HS code is
The Harmonized System is an international product-classification system. The first six digits are shared worldwide; countries add further digits for their own tariffs.
Why it matters
The code decides the import duty rate, whether licences or extra checks apply, and whether a trade agreement can reduce the duty.
Get it right first time
Misclassification can lead to underpaid duty, penalties and delays. Classify the product before you agree a price, not when the goods arrive.
We can help
We review product details and supporting documents to confirm the classification and the duty position for your destination market.
