Import from Vietnam vs China Cost Comparison 2026 | Sourcing Guide | BEFACH International
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Import from Vietnam vs China: Cost Comparison Guide 2025
February 24, 2026
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Import from Vietnam vs China: Cost Comparison Guide 2025
Complete Guide to Importing Goods into India: Compliance, Costs & Clearance Procedures (2026)
Complete Guide to Importing Goods into India: Compliance, Costs & Clearance Procedures (2026)
Importing goods into India offers tremendous opportunities for business growth, but navigating the regulatory landscape requires precision. With the Directorate General of Foreign Trade (DGFT) tightening compliance norms and the Central Board of Indirect Taxes and Customs (CBIC) implementing stricter verification protocols in 2026, understanding the complete import framework has become non-negotiable.
This guide breaks down the exact procedures, costs in INR, duty structures, and compliance requirements you need to successfully import into India.
Step 1: Obtain Your Import Export Code (IEC)
Before placing any international order, you must secure a valid Import Export Code (IEC) from DGFT. This 10-digit number is your permanent business identification for all import-export transactions.
Key Requirements:
PAN card of the business entity
Digital signature certificate (DSC)
Current bank account details
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Cost: ₹250 application fee (online through DGFT portal)
Processing Time: 3-5 working days for digital IEC
> Pro Tip: Ensure your IEC details match exactly with your PAN records. Discrepancies in name, address, or constitution type trigger automatic rejection or delays in customs clearance.
Step 2: Classify Your Product with Correct HS Code
Accurate Harmonized System (HS) Code classification determines your duty liability, licensing requirements, and regulatory restrictions. India uses 8-digit HS codes, with the first 6 digits harmonized internationally.
End-use specifications (industrial vs. consumer grade)
Functional vs. decorative items (different duty rates)
> Watch Out: Misclassification attracts penalties under Section 114 of the Customs Act, 1962. CBIC's 2026 enforcement drive specifically targets undervaluation and wrong classification through data analytics.
Step 3: Determine Duty Structure and Calculate Landed Cost
Understanding India's multi-layered duty structure is essential for pricing decisions. Here's the complete breakdown:
#### Basic Customs Duty (BCD)
Varies by product: 0% to 150%
Most industrial raw materials: 0-5%
Consumer electronics: 15-20%
Luxury items: 35-150%
#### Social Welfare Surcharge (SWS)
10% of BCD amount (not the assessable value)
Calculated as: BCD × 10%
#### Integrated Goods and Services Tax (IGST)
Rates: 5%, 12%, 18%, or 28%
Calculated on: Assessable Value + BCD + SWS + Other Duties
#### Additional Duties (if applicable)
Agriculture Infrastructure and Development Cess (AIDC)
Road and Infrastructure Cess (RIC)
Health Cess
Countervailing Duty (CVD) - for specific countries
Exchange rate assumed: ₹83.50 per USD. Actual rates fluctuate daily.
> Pro Tip: Always maintain a 5-10% buffer in your costing for exchange rate fluctuations, demurrage charges, and examination fees. ICE GATE payments must be made within 2 working days of bill of entry filing to avoid late payment penalties.
Step 4: Arrange Shipping and Insurance
International Shipping Terms (Incoterms 2020):
FOB (Free On Board): Seller delivers goods to port; buyer pays freight and insurance
CIF (Cost, Insurance, Freight): Seller arranges shipping and insurance to destination port
DAP (Delivered at Place): Seller delivers to buyer's premises; buyer handles import clearance
Documentation Required:
Commercial Invoice (original + copies)
Packing List (detailed weight and dimensions)
Bill of Lading (B/L) or Airway Bill (AWB)
Certificate of Origin (for preferential duty rates under FTAs)
Insurance Certificate (if CIF value doesn't include insurance)
Upon arrival at Indian ports (JNPT, Chennai, Kolkata, Visakhapatnam, Mundra, etc.), your customs broker must file the Bill of Entry (BOE) through ICEGATE.
Types of Examination:
Green Channel: No physical inspection; documents verified electronically
Yellow Channel: Document verification by customs officer
Value discrepancies flagged by RMS (Risk Management System)
Country of origin from sensitive jurisdictions
Post-Clearance Compliance:
Maintain import records for 5 years
File Bill of Entry within 30 days of arrival (or face warehousing charges)
Submit supporting documents if requested by customs post-clearance audit
> Watch Out: Demurrage charges at major ports range from ₹4,000 to ₹15,000 per day after free time expires (typically 3-7 days). Always pre-arrange customs broker appointments before vessel arrival to avoid storage penalties.
Step 6: Post-Import Compliance and Record Maintenance
Your obligations don't end at customs clearance. DGFT and CBIC mandate strict post-import compliance:
Maintain records of imports against export obligations
Submit annual progress reports to DGFT
File redemption applications after fulfilling export commitments
GST Input Tax Credit:
Claim IGST paid at import as input tax credit
Ensure GSTR-2B/2A reconciliation
Maintain e-way bills for interstate movement from port
Regulatory Updates for 2026
Stay compliant with these recent changes:
Budget 2026-27 Provisions:
Revised BCD rates on select electronic components
Enhanced SWS calculation methodology for certain luxury goods
New IGST exemptions for imports by SEZ units (subject to conditions)
DGFT Notifications:
Updated ITC (HS) 2022 Schedule 1 with 8-digit level amendments
Mandatory registration for steel imports under Steel Import Monitoring System (SIMS)
Enhanced scrutiny for imports from sensitive jurisdictions
CBIC Circulars:
Revised guidelines for valuation of second-hand machinery
Updated RMS risk parameters for 2026
New procedures for e-invoicing integration with customs declarations
Conclusion
Importing into India in 2026 demands meticulous attention to HS code classification, duty calculations, and compliance documentation. With total landed costs often exceeding CIF values by 25-45% due to BCD, SWS, and IGST, accurate costing is essential for pricing strategy.
The shift toward digital customs processing through ICEGATE and Risk Management System means faster clearance for compliant importers but stricter scrutiny for high-risk categories. Maintaining impeccable records and staying updated with DGFT notifications isn't optional—it's a business necessity.
Ready to import? Ensure you have your IEC, accurate HS classification, and a reliable customs broker before placing your first order. The Indian market rewards prepared importers with access to 1.4 billion consumers—but only if you navigate the regulatory framework correctly.
