Top 15 Best Products to Import from Vietnam to India 2026 | BEFACH International
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15 Best Products to Import from Vietnam to India in 2025
February 19, 2026
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15 Best Products to Import from Vietnam to India in 2025
Best Products to Import from Vietnam to India 2026: Industrial Machinery Import Guide & Compliance
Best Products to Import from Vietnam to India 2026: Industrial Machinery Import Guide & Compliance
Vietnam has emerged as a leading manufacturing hub for high-quality equipment, making industrial machinery one of the best products to import from Vietnam to India 2026. Importing industrial machinery into India offers significant opportunities for manufacturers looking to upgrade their capabilities. However, navigating the complex duty structure and regulatory requirements can be challenging.
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This guide provides you with the exact duty calculations, HS codes, and compliance steps you need to import machinery legally and cost-effectively in 2026. Whether you're sourcing CNC machines, injection moulding equipment, or precision instruments, understanding the Vietnam-India trade corridor is essential for optimizing your import costs.
Why Industrial Machinery Ranks Among the Best Products to Import from Vietnam to India 2026
Vietnam's manufacturing sector has matured significantly, offering competitive pricing on industrial machinery without compromising on quality. When you import from Vietnam to India, you benefit from the ASEAN Free Trade Agreement, which provides preferential duty rates compared to sourcing from non-FTA countries. This makes Vietnamese machinery particularly attractive for Indian MSMEs and large manufacturers alike.
The strategic location of Vietnam ensures shorter shipping times compared to European or American suppliers. Additionally, Vietnamese manufacturers increasingly comply with international standards like ISO and BIS requirements, making their products reliable for Indian industrial applications. For businesses exploring the best products to import from Vietnam to India 2026, machinery categories under HS Chapters 84 and 85 consistently offer the strongest value proposition.
Understanding the Import Duty Structure for Machinery
When you import industrial machinery into India, you face a three-layered duty structure. Understanding each component helps you calculate your exact landed cost before placing orders with overseas suppliers.
Basic Customs Duty (BCD)
Basic Customs Duty is the primary tariff applied to imported goods. For industrial machinery, BCD rates vary significantly based on the specific type of equipment:
Machinery Category
HS Code Chapter
BCD Rate
General Industrial Machinery
84
7.5% - 15%
Electrical Machinery & Equipment
85
7.5% - 15%
Nuclear Reactors & Boilers
84
7.5% - 10%
Precision Measuring Instruments
90
7.5% - 10%
Key Update: The Finance Ministry periodically reviews BCD rates through annual budget notifications. Always verify current rates on the CBIC website before finalizing import contracts.
Social Welfare Surcharge (SWS)
The Social Welfare Surcharge is calculated on the BCD amount (not on the assessable value). Currently, SWS is levied at 10% of the BCD amount.
Calculation Example:
Assessable Value: ₹10,00,000
BCD (10%): ₹1,00,000
SWS (10% of BCD): ₹10,000
Integrated GST (IGST) on Imports
IGST is the most significant component of your import duty burden. Unlike domestic purchases where you can claim input tax credit immediately, IGST on imports requires careful cash flow planning.
Current IGST Rates for Machinery:
18% for most industrial machinery (HS Chapters 84, 85)
28% for specific high-end equipment and accessories
12% for certain renewable energy machinery
Pro Tip: IGST is calculated on the total of assessable value + BCD + SWS + any other applicable duties. This compounded calculation significantly impacts your final landed cost.
Step-by-Step Import Process for Industrial Machinery
Step 1: Obtain Import Export Code (IEC)
Before you can import any machinery, you must have a valid Import Export Code (IEC) issued by the Directorate General of Foreign Trade (DGFT).
Requirements:
PAN card of the business entity
GST registration certificate
Bank account details
Digital signature (for online application)
Apply through the DGFT website. Processing typically takes 3-5 working days.
Step 2: Identify Correct HS Classification
Accurate HS code classification determines your duty liability. Misclassification can result in penalties, confiscation, and legal proceedings.
Common Machinery HS Codes:
Equipment Type
HS Code
Description
CNC Machining Centers
8457.10
Machining centers for working metal
Injection Moulding Machines
8477.10
Injection-moulding machines for rubber/plastic
Industrial Robots
8479.50
Industrial robots for multiple uses
Transformers
8504.22
Liquid dielectric transformers
AC Motors
8501.52
AC motors, multi-phase, output > 750W but ≤ 75kW
Watch Out: If you're unsure about classification, file an Advance Ruling application with the Customs Authority. The fee is ₹10,000 for Indian applicants, but it provides legal certainty on classification and applicable duty rates.
Step 3: Arrange Shipping and Insurance
Industrial machinery requires specialized handling. Choose between:
FCL (Full Container Load): For machinery fitting into standard containers
Break Bulk/OOG (Out of Gauge): For oversized equipment requiring special vessels
Air Freight: For urgent, high-value, or lightweight machinery
Insurance Requirements:
Marine insurance is mandatory and should cover 110% of the CIF value. All-risk coverage is recommended for high-value machinery.
Step 4: File Bill of Entry and Pay Duties
Once your shipment arrives at the Indian port, you must file a Bill of Entry (BOE) through ICEGATE, the customs electronic data interchange system.
Required Documents:
Commercial Invoice
Packing List
Bill of Lading/Airway Bill
Import License (if applicable)
Certificate of Origin
Technical literature/specifications
Insurance certificate
Duty Payment Timeline:
Prior Entry: File BOE before arrival, pay duty within 2 days of arrival
Regular Entry: File within 24 hours of arrival, pay duty immediately upon assessment
Pro Tip: Set up an Electronic Cash Ledger (ECL) on ICEGATE. This allows you to deposit funds in advance and enables faster clearance without waiting for bank transfers during critical clearance windows.
Step 5: Customs Examination and Clearance
Customs may conduct physical examination of machinery to verify:
Description matches declared HS code
Quantity and specifications match documents
No contraband or restricted items concealed
Country of origin markings present
For high-value or complex machinery, customs may engage external experts for technical evaluation. This can extend clearance time by 3-7 days.
Step 6: Post-Clearance Compliance
After clearance, maintain records for:
5 years: All import documents, duty payment proofs, correspondence
Claim IGST paid on imports as input tax credit in your GSTR-3B return. Ensure the IGST amount reflects in your GSTR-2B auto-populated statement from ICEGATE.
Cost Calculation Example: Importing a CNC Machine
Let me walk you through a real cost calculation for importing a CNC machining center worth $50,000 CIF Mumbai.
Assumptions:
Exchange Rate: 1 USD = ₹83.50
CIF Value: $50,000 = ₹41,75,000
HS Code: 8457.10 (Machining centers)
BCD Rate: 7.5%
IGST Rate: 18%
Duty Calculation:
Component
Calculation Base
Rate
Amount (₹)
Assessable Value (CIF)
-
-
41,75,000
Basic Customs Duty (BCD)
₹41,75,000
7.5%
3,13,125
Social Welfare Surcharge
₹3,13,125
10%
31,313
**Total Dutiable Value**
-
-
**45,19,438**
IGST
₹45,19,438
18%
8,13,499
**Total Landed Cost**
-
-
**53,32,937**
Key Insight: Your total duty burden is ₹11,57,937 (27.7% of CIF value), making your effective landed cost significantly higher than the purchase price. Factor this into your pricing strategy and cash flow planning.
Regulatory Updates for 2026
DGFT Notification on Machinery Imports
The Directorate General of Foreign Trade has issued notifications updating the Import Policy for certain categories of used machinery. Key changes include:
Prohibition on used machinery over 10 years old for specific HS codes in Chapter 84
Mandatory BIS certification for electrical machinery components under Chapter 85
Enhanced documentation requirements for second-hand capital goods
Note: Always verify current DGFT notifications on the DGFT website as policies are subject to periodic updates.
CBIC Circular on IGST Calculation
The Central Board of Indirect Taxes and Customs has issued circulars clarifying the computation of IGST on imports where goods are exempt from BCD under trade agreements. The circulars confirm that IGST is payable on the value after adding exempted BCD amounts, ensuring no duty leakage.
Free Trade Agreement Updates
India's Free Trade Agreements with UAE, Australia, and Mauritius now offer preferential BCD rates on specific machinery imports. For businesses exploring the best products to import from Vietnam to India 2026, the ASEAN FTA remains particularly advantageous:
India-UAE CEPA: Zero BCD on CNC machines (HS 8457) with 40% value addition requirement
India-Australia ECTA: Reduced 5% BCD on mining machinery (HS 8429)
ASEAN FTA: Preferential rates on electrical machinery with Form D certificate of origin
Vietnamese suppliers can provide Form D certificates of origin, qualifying your imports for reduced BCD rates under the ASEAN-India Free Trade Agreement. This significantly enhances the competitiveness of Vietnamese machinery compared to non-ASEAN sources.
Common Compliance Pitfalls to Avoid
Pitfall 1: Incorrect Country of Origin Declaration
Many importers assume that the country of export is the country of origin. This is incorrect. Country of origin is where the machinery underwent substantial transformation. For machinery assembled from components sourced globally, origin determination requires careful analysis of value addition percentages.
Compliance Action: Obtain a Certificate of Origin from the manufacturer, not just the exporter. Maintain bills of materials showing component sourcing. For Vietnamese imports, ensure the Form D certificate specifically lists the factory location and value addition details.
Pitfall 2: Missing BIS Certification for Electrical Components
The Bureau of Indian Standards mandates compulsory registration for electrical machinery under the Compulsory Registration Scheme (CRS). Importing without valid BIS registration numbers results in port detention and potential rejection.
Compliance Action: Verify BIS requirements on the BIS website before placing orders. Ensure suppliers provide test reports from BIS-recognized labs.
Pitfall 3: Undervaluation to Reduce Duty Burden
Customs authorities actively scrutinize machinery valuations using transaction value analysis, identical/similar goods valuation, and computed value methods. Undervaluation detected post-clearance attracts penalties up to 5 times the duty shortfall plus interest.
Compliance Action: Maintain comprehensive price documentation including manufacturer's invoices, price lists, and correspondence. Be prepared to justify any discounts received.
Frequently Asked Questions (FAQ)
Q1: Why is industrial machinery considered among the best products to import from Vietnam to India 2026?
A: Industrial machinery ranks among the best products to import from Vietnam to India 2026 due to competitive pricing under the ASEAN FTA, shorter lead times compared to Western suppliers, and increasing compliance with international quality standards. Vietnamese manufacturers offer significant cost advantages on CNC machines, injection moulding equipment, and electronic components while maintaining quality suitable for Indian industrial applications.
Q2: What specific duty benefits apply when importing machinery from Vietnam compared to other countries?
A: Under the ASEAN-India Free Trade Agreement, machinery imports from Vietnam qualify for preferential BCD rates when accompanied by a valid Form D certificate of origin. While standard BCD rates for machinery range from 7.5% to 15%, Vietnamese origin goods may qualify for reduced rates or exemptions depending on the specific HS code and value addition criteria. This makes importing from Vietnam to India more cost-effective than sourcing from non-FTA countries.
Q3: How do I verify that machinery from Vietnam qualifies for preferential duty rates?
A: To claim preferential rates under the ASEAN FTA, you must obtain a Form D certificate of origin from the Vietnamese supplier, certified by the Vietnam Chamber of Commerce and Industry (VCCI). The certificate must verify that the product undergoes substantial transformation in Vietnam with at least 40% value addition. Additionally, ensure the HS code classification matches the description in the certificate to avoid disputes during customs clearance.
Q4: What are the specific documentation requirements for importing used machinery from Vietnam?
A: For used machinery imports from Vietnam, you must provide the standard import documents plus additional compliance paperwork. This includes a depreciation certificate, pre-shipment inspection report from a recognized agency, and compliance with DGFT notifications regarding age restrictions (prohibition on machinery over 10 years old for specific HS codes). Ensure the Vietnamese supplier provides detailed technical specifications and maintenance history to facilitate customs examination.
Q5: Are there any restrictions on importing electrical machinery from Vietnam to India?
A: While there are no country-specific restrictions on Vietnamese electrical machinery, all electrical equipment under the Compulsory Registration Scheme (CRS) must have valid BIS registration numbers. Before importing from Vietnam, verify that the manufacturer has obtained BIS certification for the specific product category. The importer must also ensure that voltage specifications and safety standards comply with Indian regulations (IS standards).
Internal Resources and Next Steps
Importing industrial machinery requires expertise across customs classification, valuation, documentation, and post-clearance compliance. The cost of errors—detention charges, penalties, and delayed production schedules—far exceeds professional consultation fees.
Explore our detailed guides:
Understanding HS Code Classification for Capital Goods
How to Claim Input Tax Credit on Import IGST
Documentation Checklist for Machinery Imports
Need professional support?
Our Import Compliance Services provide end-to-end assistance from IEC registration to customs clearance. For complex machinery valuation and classification disputes, our Customs Advisory Services offer expert representation before customs authorities.
This article was last updated on 2026-02-19. Import duty rates and regulations change frequently. Always verify current rates on the [CBIC website](https://www.cbic.gov.in/) or consult a licensed customs broker before importing.
TARGET KEYWORD: best products to import from Vietnam to India 2026
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