Importing Raw Materials from China to Indian Factories: The Complete B2B Logistics Guide

Importing raw materials from China to Indian factories

To import raw materials from China to Indian factories, you’ll need an active Import Export Code (IEC), GST registration, and full compliance with BIS/MSDS requirements. Air freight moves urgent components in 7–12 days; sea freight handles bulk materials in 25–40 days. The real difference between a smooth import and a stalled production line usually comes down to how well the paperwork, logistics planning, and customs clearance are handled from day one.

Key Takeaways: Importing raw materials from China to Indian factories

  • Compliance handled end-to-end — BIS and MSDS documentation prepared and checked before your cargo ever leaves China.
  • Deep route experience — years of working the China-India corridor means faster clearance and fewer detention charges.
  • Freight matched to your budget — FCL, LCL, and air freight options built around SME and large-manufacturer needs alike.
  • One point of contact — from the supplier’s factory floor in China to your production floor in India.

Why the China-India Supply Chain Isn’t as Simple as It Looks

Indian manufacturers rely on China for one simple reason: no other market matches its combination of scale, variety, and price on raw materials and semi-finished components. But sourcing from China isn’t just a matter of placing an order and waiting for a container to show up. It’s a chain of regulatory checkpoints, financial risk points, and logistics decisions — and a weak link anywhere in that chain shows up on your factory floor.

At SCIC Group, we’ve seen what a delayed shipment actually costs a manufacturer: idle assembly lines, blown delivery deadlines, and revenue that doesn’t come back. This guide walks through what it actually takes to import raw materials from China to Indian factories — the registrations, the paperwork, the freight decisions, and the customs process — so your operation keeps running the way it’s supposed to.

Where Most Importers Get Stuck

Factories that try to manage China-India imports without an experienced partner tend to run into the same handful of problems, over and over:

  • Customs holds and demurrage. A wrong HS code or a missing BIS certificate is often all it takes for a shipment to get held at Nhava Sheva, Chennai, or another major port — and demurrage fees pile up daily while it sits there.
  • Supplier shortcuts. Paying in full upfront, without verifying the supplier first, is one of the most common ways factories end up with off-spec material they can’t actually use in production.
  • Vessel space that isn’t guaranteed. Budget freight forwarders sometimes get cargo “rolled” — bumped from the vessel — during peak shipping season, which can derail a production schedule with almost no warning.

SCIC Group’s approach is built specifically to close these gaps. Our China-India trade team runs pre-shipment document audits, checks supplier readiness before goods move, and locks in vessel space in advance. The goal is straightforward: turn an unpredictable process into one you can actually plan a production schedule around.

The Paperwork You Need Before You Contact a Supplier

Before any conversation with a Chinese supplier gets serious, your company needs its legal and regulatory foundation in place.

Import Export Code (IEC)

The IEC is a 10-digit business ID issued by the Directorate General of Foreign Trade (DGFT), and no commercial import happens without one. The application process is now fully digital and tied directly to your company’s PAN, which has made it considerably faster to obtain than it used to be.

GST and PAN

An active GST registration is non-negotiable. When your shipment clears an Indian port, Customs will levy Integrated GST (IGST) on the value of the raw materials. Having a valid GSTIN also means you can claim Input Tax Credit (ITC) afterward — which matters more for your working capital than most first-time importers expect.

Core Shipping Documents

SCIC Group works directly with your Chinese suppliers to make sure these are done correctly the first time:

DocumentWhat It Must Include
Commercial InvoiceDeclared shipment value, currency, applicable Incoterms (e.g., FOB Shenzhen or CIF Mumbai), and accurate HS codes for customs classification.
Packing ListPackage weights, dimensions, quantity, and packaging type (such as pallets, cartons, or drums).
Bill of Lading (B/L) or Air Waybill (AWB)Official transport document serving as the contract of carriage and evidence of goods ownership. The original document or telex release should be processed in advance to prevent customs clearance delays at the destination.

BIS and MSDS Certification

This is where a lot of importers stumble.

  • Bureau of Indian Standards (BIS): Mandatory for electronics, chemicals, steel, and machinery parts. Your Chinese manufacturer needs to be registered under the BIS scheme, and the products need to carry the ISI mark.
  • Material Safety Data Sheet (MSDS): Required if you’re importing chemicals, resins, or solvents. It determines how the shipping line and customs will handle the cargo, since it’s classified as potentially hazardous.

Vetting Suppliers and Protecting Your Money

Finding a Chinese supplier is easy. Finding one you can actually trust with your production schedule takes more work.

Verify before you commit. Don’t rely only on B2B portal listings — check the factory’s business licenses, export permits, and ISO certifications directly. Trade fairs like the Canton Fair, or industry-specific expos, remain one of the more reliable ways to vet a long-term supplier relationship in person.

Test before you scale. Never place a full container load order without testing samples first. Have your QA/QC team stress-test the material against your actual manufacturing tolerances before committing to volume.

Structure your payments. Wiring 100% upfront is a common way to lose money to an unreliable supplier. Two safer structures:

  • Telegraphic Transfer (T/T): typically 30% advance to start production, 70% due once the Bill of Lading copy is issued.
  • Letter of Credit (L/C): for higher-value orders, your bank guarantees payment to the supplier’s bank only once all shipping documents check out — the strongest protection available.

Choosing Your Freight: Sea vs. Air

Your freight choice affects both cash flow and how fast material reaches your production line. SCIC Group moves cargo between Chinese hubs (Shanghai, Ningbo, Shenzhen) and Indian gateways (Nhava Sheva, Mundra, Chennai, Delhi).

Sea freight is the standard choice for bulk, heavy raw materials, and by far the more cost-effective option.

  • FCL (Full Container Load): You book an entire 20ft or 40ft container, sealed from the factory floor in China to your warehouse in India. Transit runs roughly 25–35 days.
  • LCL (Less than Container Load): A better fit if your shipment doesn’t fill a container (typically under 15 CBM). Cargo shares space with other shipments, which adds time for consolidation and deconsolidation — usually 30–40 days.

Air freight is the answer when a shortage of high-value components — electronic microchips, specialized lightweight parts — threatens to stop production. It costs significantly more, but it skips port congestion entirely and gets goods from China to India in 7–12 days.

Understanding Volumetric Weight (Where Most Freight Bills Go Wrong)

One of the more common billing surprises for first-time importers is volumetric weight. Carriers charge based on whichever is greater — the actual weight of your cargo, or the space it occupies.

How air freight volumetric weight is calculated (industry-standard divisor of 6000):

  1. Measure the carton in centimeters — Length × Width × Height.
  2. Multiply to get the volume in cubic centimeters.
  3. Divide by 6000.

Example: A carton of lightweight foam insulation weighs 10 kg but measures 80cm × 60cm × 50cm. (80 × 60 × 50) ÷ 6000 = 40 kg. The airline bills you for 40 kg — the volumetric weight — not the actual 10 kg.

For LCL sea freight, billing runs per Cubic Meter (CBM) or per 1,000 kg, whichever is higher. SCIC Group reviews your packing lists in advance specifically to avoid paying for space you don’t need.

⚠️ Restricted Items and Hazardous Materials Checklist

Failing to declare a restricted item isn’t a minor paperwork slip — it can mean confiscated cargo, heavy fines, and an IEC blacklist. If your raw materials fall into any of these categories, flag it with SCIC Group early so we can prepare the right DG declarations, secure UN-approved packaging, and obtain the necessary NOCs:

  • Lithium batteries (Class 9 DG) — require UN38.3 testing certificates and careful carrier selection.
  • Industrial chemicals and solvents — require detailed MSDS and often specialized hazmat warehousing.
  • Pharmaceutical precursors (APIs) — require clearance from CDSCO.
  • Scrap metal or plastics — require a Pre-Shipment Inspection Certificate (PSIC) confirming no radioactive or explosive material is present.

What Happens at Indian Customs

The last checkpoint is Indian Customs, and this is where documentation errors get expensive. SCIC Group manages the process through ICEGATE (Indian Customs Electronic Gateway) to keep clearance moving.

Expect these charges when your goods land:

Charge Typical Rate Calculated On
Basic Customs Duty (BCD) 0%–20%+ (depending on the HS code) Assessable value of the imported goods.
Social Welfare Surcharge (SWS) 10% Calculated on the amount of Basic Customs Duty (BCD).
Integrated GST (IGST) Approximately 18% for most industrial materials Calculated on the total of the goods value, BCD, and SWS.
SCIC Group runs pre-clearance HS code audits before shipment, so duties are calculated correctly the first time — no surprise reassessments at the port.

Frequently Asked Questions (FAQ)

A: You’ll need an active IEC as the importer of record, but our team can guide you through the digital DGFT application so shipping can start as soon as it’s issued.

A: Avoid paying 100% upfront. Use milestone payments (30% advance, 70% against the B/L copy) or a Letter of Credit. SCIC Group can also help verify a supplier’s logistics credentials before you send funds.

A: Customs will hold the cargo — it can’t clear for home consumption. Check with SCIC Group before you purchase to confirm whether your specific HS codes require BIS compliance.

A: We generally recommend FOB (or EXW). Under FOB, SCIC Group controls the ocean freight directly, which means transparent pricing and no hidden destination charges — something that can quietly inflate the cost of CIF shipments arranged by the Chinese seller.

Building a Supply Chain You Can Actually Rely On

Importing raw materials from China to Indian factories isn’t a process that rewards shortcuts. Between supplier verification, BIS compliance, and getting freight right, every step either protects your production schedule or puts it at risk.

SCIC Group works as your logistics partner on this route — handling the parts of the process that are easy to get wrong, so your team can focus on manufacturing.

Ready to build a logistics plan for your factory? 👉 Get a Free Logistics Consultation & Quote for China to India Routes

Contact

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India Office:

SCIC TRADEX INDIA PVT., LTD.
Ground floor, E-44/3, OkhlaPhase-ll, Delhi 110020, India 110020
Tel: +91 9319510127
Email: scictradex.india@gmail.com

Bangkok, Thailand  Office:

SCIC THAILAND CO., LTD.
PNS BUILDING, 747 Ratchadanivate Prachauthit Road, Samsennok Huaikwang, Bangkok
10310
Tel: +66638602304
Email: scic.thailand@gmail.com

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