Import Duty from China to India: Taxes, Customs, and Calculation Explained
Import duty is a tax imposed by the Indian government on goods imported from other countries, including China. It's calculated as a percentage of your goods' value (FOB + freight + insurance) and must be paid before customs releases your shipment. Importing from China to India requires understanding duty rates, anti-dumping duties, and regulatory requirements. Most products from China face 10-40% Basic Customs Duty, plus 10% Social Welfare Surcharge and 18% GST. This guide explains everything you need to know about importing from China and calculating your actual costs.
What Is Import Duty?
Understanding Import Duty Basics
Import duty is a tax collected by the Indian government on all imported goods. When you bring any product into India, whether from China, USA, Germany, or anywhere else, you must pay this tax before customs releases the shipment.
If you import ₹1,00,000 worth of goods, you might pay an additional ₹15,000-40,000 in import duties depending on what product it is and where it's from.
Who Pays Import Duty?
The importer (person or company bringing goods into India) pays import duty. If you're importing from Alibaba, AliExpress, or buying wholesale from China, YOU are responsible for paying this duty.
India-China Trade Dynamics
India and China share a massive but imbalanced bilateral trade relationship valued at USD 155.62 billion in 2025. Chinese exports to India surged 12.8% to USD 135.87 billion, while Indian exports rose 9.7% to USD 19.75 billion, marking rare growth but unable to offset the record trade deficit of USD 116.12 billion.
This imbalance reflects India's heavy reliance on Chinese imports of electronics, machinery, chemicals, and raw materials for manufacturing. To counter cheap Chinese imports, India imposes aggressive anti-dumping duties on many products, making imports from China 40-60% more expensive than FOB prices.
What India Imports from China
India's massive import bill from China reflects structural imbalances in manufacturing capability:
- Electronics & Semiconductors: USD 40-50 billion annually
- Machinery & Equipment: USD 30-35 billion
- Chemicals & Plastics: USD 20-25 billion
- Textiles & Apparel: USD 10-15 billion
- Metals & Minerals: USD 10-12 billion
Import Duty Calculation Formula
Total Duty = BCD + SWS + IGST + ADD (if applicable)
Step 1: Assessable Value = FOB + Freight + Insurance
Step 2: BCD Amount = BCD Rate % × Assessable Value
Step 3: SWS = 10% × BCD Amount
Step 4: Taxable for IGST = Assessable Value + BCD + SWS
Step 5: IGST = 18% × Taxable for IGST
Step 6: ADD (if applicable) = ADD Rate % × Assessable Value
Step 7: TOTAL DUTY = BCD + SWS + IGST + ADD
Step 8: FINAL COST = Assessable Value + Total Duty
How to Import Goods from China to India: Step-by-Step Process
Step 1: Find Your Supplier (Alibaba, AliExpress, etc.)
Best platforms for importing from China:
Step 2: Confirm Price & Terms (FOB vs CIF)
Step 3: Arrange Shipping
Step 4: Prepare Documentation
Required documents from supplier:
- Invoice
- Packing List
- Certificate of Origin
- Bill of Lading
Your documentation:
- IEC Certificate
- GST Registration
- AD Code
Step 5: File Customs Declaration (Bill of Entry)
Step 6: Pay Customs Duty via ICEGATE
Step 7: Customs Clearance & Container Release
FAQ: Common Questions About Importing from China to India
What is the basic import duty rate from China?
Varies by product (5-40% BCD), plus 10% SWS, plus 18% IGST. Chinese goods typically face higher duties due to anti-dumping duties.
How to import goods from China to India without paying duty?
Customs duty cannot cannot be avoided, its illegal
Duty can be minimized:
- Use Carnet permits (6-month temporary import)
- Import under trade agreements (zero-duty items)
- Source from FTA countries with lower duties
- Negotiate better FOB prices to offset duty costs
Is it cheaper to import from China or other countries?
Depends on the product. FTA countries (UAE, UK, Australia, Vietnam, Taiwan) often have lower duties
Do I need IEC to import from Alibaba?
Yes, IEC is mandatory for every Import
Do I need BIS approval to import from China?
For products like electronics, toys, etc. BIS certification may be required to comply with Indian safety standards
