Importing chemicals into India: documents and compliance

India imports a very wide range of chemicals, from bulk solvents and petrochemicals to APIs, specialty additives and laboratory reagents. The basic customs process is the same for all of them, but many chemicals also need a licence, registration or clearance from a specific regulator. This guide sets out the general process, the documents you need and the product specific rules to check before you place an order.

It is general information for buyers and suppliers, not legal advice. Rules and notifications change often, so confirm the current position with your customs broker and the relevant authority before each new product.

Before your first import#

Make sure your business has the basics in place:

• Importer Exporter Code (IEC). Issued online by the Directorate General of Foreign Trade (DGFT) and linked to your PAN. It is needed for almost all commercial imports and must be updated on the DGFT portal once a year.
• GST registration. Import GST (IGST) is paid at customs. With a GSTIN on the bill of entry you can usually claim it as input tax credit.
• A customs broker. Most importers use a licensed customs broker to file declarations on ICEGATE, the customs electronic platform, and to deal with examination and clearance.
• A freight forwarder, especially for dangerous goods, who can handle the delivery order, terminal and transport arrangements.

Step 1. Classify the product#

Every import is declared under an eight digit ITC(HS) code. The code decides the duty rates, the import policy and which other regulators may need to clear the goods. Our guide to HS codes for chemicals explains how to find it. For important or new products, an advance ruling from the Customs Authority for Advance Rulings gives certainty.

Step 2. Check the import policy#

The DGFT's ITC(HS) import schedule states for each code whether imports are:

• Free, with no import licence needed under foreign trade policy (other laws may still apply),
• Restricted, needing an authorisation from DGFT or meeting stated conditions, or
• Prohibited.

Many chemical codes are free, but policy conditions are common. For example, ozone depleting substances are controlled under the Ozone Depleting Substances rules and need a licence, and some items can only be imported by registered users. Always read the policy conditions for your exact code, not just the "free" label.

Step 3. Check product specific regulators#

This is where most chemical imports get complicated. Depending on the product and its use, one or more of these may apply.

A few points worth stressing:

• BIS quality control orders. Several chemicals and polymers have been brought under mandatory BIS certification in recent years, and some orders have later been deferred, amended or withdrawn. Imports of a covered product need the foreign plant to hold a BIS licence. Check the current list on the BIS website before you finalise a supplier.
• APIs. Importing a drug substance is not like importing an industrial chemical. Without the right registration and licence the consignment will not be cleared, regardless of its quality.
• Controlled substances. Chemicals such as acetic anhydride, ephedrine, pseudoephedrine and potassium permanganate are drug precursors. Handling them without the required registration is a serious offence.

India's customs single window (SWIFT) routes the bill of entry to participating agencies such as FSSAI, plant quarantine and the drug controller, so their clearances happen as part of the customs process.

Step 4. Understand the duties#

The landed cost of an import typically includes:

• Basic customs duty (BCD) at the tariff rate for the code, or a lower preferential rate under a trade agreement
• Surcharges and cesses that apply to the code, such as the social welfare surcharge where applicable
• IGST on the assessable value plus customs duties, usually claimable as input tax credit
• Anti dumping duty or safeguard duty if the product and origin are covered by a current notification

Anti dumping duties are common on chemicals in India and can be large. They usually depend on the country of origin and sometimes on the named exporter. Check the current notifications for your product before agreeing a price.

To claim a preferential rate under a free trade agreement, you need a valid certificate of origin, and under India's rules of origin administration rules the importer must be able to show that the product meets the origin criteria. Ask your supplier for the origin information before shipment, not after.

Step 5. Collect the documents#

A standard chemical import needs:

• Commercial invoice with the correct description, ITC(HS) code, Incoterm and value
• Packing list with batch numbers, net and gross weights and package details
• Bill of lading or airway bill
• Certificate of origin, preferential if you claim a lower duty
• Insurance certificate where the Incoterm requires it
• Safety data sheet and certificate of analysis for the batch
• Licences, registrations and permits that apply to the product
• For dangerous goods, the dangerous goods declaration from the shipper

Check that names, quantities and batch numbers match across all documents. Small mismatches cause queries, delays and demurrage.

Step 6. Clear the goods#

The usual sequence is:

1. The shipping line or airline files the import manifest.
2. Your customs broker files the bill of entry on ICEGATE. Filing in advance, before the vessel arrives, is allowed and speeds things up.
3. Customs assesses the declaration through its risk management system. Some consignments are cleared on the declaration, others are sent for document checks, examination or sampling.
4. Participating agencies give their clearances where needed.
5. You pay the duty electronically.
6. Customs issues the out of charge order.
7. You collect the delivery order from the shipping line, pay terminal or CFS charges and take delivery.

For dangerous goods, ports and container freight stations may have their own rules on how long cargo can stay and where it is stored, so plan transport from the port in advance.

Labelling and packaging#

Hazardous chemicals should arrive with labels and an SDS that your staff can use, and in UN approved packaging if they are dangerous goods. Pre packed goods for retail sale must carry the declarations required under India's legal metrology rules for packaged commodities, while packages for industrial and institutional buyers have lighter requirements. Agree label language and content with the supplier before shipment.

Practical tips#

• Start with a small trial shipment for a new product or supplier to test classification, documents and clearance.
• Share your import requirements in the RFQ. Tell suppliers which licences you hold and which documents you need with the shipment. Our RFQ guide has a template.
• Avoid DDP from foreign suppliers unless they have an Indian entity that can import. See Incoterms 2020 for chemical buyers.
• Keep records of classification decisions, origin evidence and regulator approvals. They will be needed in audits and for repeat imports.
• Check trade data. CompoundList's trade pages show which countries supply India for each HS code, based on official trade statistics, which helps you find alternative sources.

Finding suppliers#

You can search CompoundList by chemical name or CAS number and filter suppliers by country, then send one request for quote to several of them. State your destination port, Incoterm and required documents so the quotes you receive are ready for Indian import.