Want to Import Goods in India?
- Importing goods into India requires you to have a few basic documents
- A business entity registered in India.
- A Permanent Account No. (PAN)
- An Import Export License (IEC Code)
- A registered office for your entity
- Note: Depending on the goods you plan to import, there may be a requirement to procure further licenses. Please check whether the said goods are freely importable in India. Call us for any queries.
What is an Importer of Record?
- An importer of record is an entity that
- Imports goods into India on your behalf & (depending on scope of work) delivers them to your desired location.
- Ensure complete compliance of Indian law for Import
- Files all required documents related to the Import
- Procures all necessary licenses and certifications for the goods being imported
- Ensures timely payment of various duties and taxes
Need for IOR services?
- Need of IOR for Foreign Companies:
- If a foreign company wishes to test it’s product in the Indian Market by itself, it must
- Appoint an Indian Director
- Set up a subsidiary in India
- Build a team in India
- Comply with Indian laws
- This setup requires huge investment for a market that may or may not work out for the foreign company.
- Using an Importer of Record the foreign company can get its product imported into India and test the Indian market.
- It allows the foreign company to understand whether their product sells in India, which inturn mitigates risk of not achieving product market fit.
- It also allows them to test their product much faster as an IOR service provider like JPARKS INDIA Pvt Ltd already has the general licenses & can easily obtain the product specific licenses.
- Thus hiring an Importer of Record service provider allows the foreign company to enter the Indian markets without having to invest much time and capital.
- Need of IOR for Indian Companies
- The reason why an Indian company may prefer to import goods via an Importer of Record is
- To outsource burden & responsibility of compliance
- To avoid delays in Import as the IOR has basic licenses
- Lack of experience with Import compliances
- If they don’t plan to import regularly
- Thus It’s much cheaper & less of a headache for first time importers to hire an IOR.
Do you need IOR Services? 4 Questions to Consider
- Inorder to determine whether you should hire an IOR services provider or carry out import yourself, consider the following questions
- Do you plan to Import goods regularly?
- Do you have a team to handle the compliance work?
- Are you well informed about the various licenses & certification required to Import your product?
- Are you aware about the process of Importing & clearing your goods in India?
- If you plan to import regularly, but are uncertain about any of the above questions, speaking to a professional import export consultant like JPARKS INDIA will help you gain clarity.
Ownership of goods?
- The ownership of goods must be transferred to your entity by executing a sales transaction between the Importer of Record services provider and your entity.
Responsibilities of an Importer of Record?
An IOR has various duties & responsibilities and they may vary depending on the scope of work agreed upon by you.
- Responsibilities of an Importer of Record:
- Assessment & payment of duties & taxes correctly
- Valuation of goods based on Indian laws
- Accurate classification of goods
- Ensure timely filing of Import documents with required declarations under various laws
- Procurement of required licenses & certifications for the goods (guide to refrain from importing prohibited goods & ensure regulatory compliances for restricted goods)
- Complying to State & Central laws
- Clearing the goods from customs through a good reputed snf informed Custom Brokers
- Appointing a valid Power of Attorney if Importer or Indian representative is not available
- Preparation & record of all necessary documents incase audits and inspections
- Maintain all import records for at least 8 years after being imported into India for future queries from governmental agencies
- Availing relevant benefits from the Foreign Trade Policy to benefit the client
- JPARKS INDIA provides an end to end IOR service, right from Import to delivery to your destination. To provide a complete hand holding experience we include services like
- Freight, Logistics & warehousing
- Local Transport
- Packing, etc.
Risk of Non Compliance in Import
Importing goods into India without proper compliance could have extreme financial & business consequences.
- Imported goods can be seized by Customs
- You may be forced to re export the goods back to the seller
- Fines & penalties can be levied along with the duties based on valuation of goods
A lack of due diligence prior to importing may lead to numerous issues that would sideline your business goals. If you are unaware about the process & compliance of Import, it is highly advisable to hire professional import consultants like JPARKS INDIA to help you safely import your goods into India.
10 Point Guide to Choose the Right IOR
When you look for an Importer of Record, ideally you should talk to at least a few service providers. Consider the following points before you select an Importer of Record for your business:
- Years of experience : more years = better knowledge of laws
- Expertise in your industry & previous experience
- Product knowledge
- Do they provide a fair market rate?
- Quality of work – this can be gauged through systems & processes you encounter at the time of initial discussion.
- Do they have a good & sizable team that can handle your volume?
- Is the IOR covering all the details and regulations in their scope of work or are you or your end customer still liable to do some legal work on their own.
- Will they provide a Power of Attorney, in case you need one?
- Do they provide a one stop solution for logistics, storage, packing & delivery too? An end to end service equals less headache for you!
- Most Importantly, do you like working with them or see yourself working with them in the long term? Having an IOR you can trust will save you a lot of time & effort in the long run.