7 Steps to Import Without BIS Certificate in India
If you want to import products into India, you may need to obtain a BIS certificate from the Bureau of Indian Standards. BIS is the national standardization body of India that regulates the quality and safety of various goods and services. However, not all products require a BIS certificate to be imported. In this article, we will explain how to import without BIS certificate in India and what are the benefits and risks of doing so.
Step 1: Check the list of products that require BIS certification
The first step to import without BIS certificate in India is to check whether your product falls under the mandatory certification scheme of BIS or not. BIS has published a list of products that require compulsory registration or certification before they can be imported or sold in India. You can find the list on the official website of BIS or download it from here.
Some of the products that require BIS certification are:
- Electronics and IT goods
- Household appliances
- Medical devices
- Steel products
- Cement
- Tyres
- Toys
- Food products
If your product is not on the list, you can proceed to the next step. If your product is on the list, you will need to apply for a BIS certificate or look for an alternative product that does not require one.
Step 2: Find a reliable supplier and negotiate the terms of trade
The next step to import without BIS certificate in India is to find a reliable supplier who can provide you with the product you want at a reasonable price and quality. You can use online platforms like Alibaba, Global Sources, TradeIndia, etc. to search for potential suppliers and compare their offers. You can also contact trade associations, chambers of commerce, embassies, or trade fairs to get referrals or recommendations.
Once you have shortlisted a few suppliers, you should contact them and negotiate the terms of trade, such as:
- Price
- Payment method
- Delivery time
- Shipping mode
- Warranty
- Inspection
- Customs clearance
You should also ask for samples or certificates of analysis to verify the quality and specifications of the product. You should also check the reputation and credibility of the supplier by asking for references, testimonials, or reviews from previous customers.
Step 3: Obtain an import-export code (IEC) and register with GST
The third step to import without BIS certificate in India is to obtain an import-export code (IEC) and register with GST. An IEC is a 10-digit number that is issued by the Directorate General of Foreign Trade (DGFT) and is mandatory for any person or entity who wants to import or export goods or services from or to India. You can apply for an IEC online through the DGFT website or through an authorized agent.
GST is a value-added tax that is levied on the supply of goods and services in India. It has replaced various indirect taxes like excise duty, service tax, VAT, etc. If you are importing goods into India, you will have to pay GST at the time of customs clearance. To do so, you will need to register with GST and obtain a GSTIN (GST identification number). You can register with GST online through the GST portal or through an authorized agent.
Step 4: Place your order and make the payment
The fourth step to import without BIS certificate in India is to place your order and make the payment. You should confirm your order with your supplier by sending them a purchase order (PO) or a proforma invoice (PI) that contains all the details of the transaction, such as:
- Product name, description, quantity, unit price, total amount
- Shipping terms (Incoterms), mode, carrier, destination port
- Payment terms, method, currency, bank details
- Delivery date, inspection clause, warranty clause
- Other special instructions or conditions
You should also make the payment as per the agreed terms. The most common methods of payment for international trade are:
- Advance payment: You pay the full amount or a part of it before the shipment of goods.
- Letter of credit (LC): You open a LC with your bank that guarantees the payment to the supplier upon presentation of certain documents.
- Documentary collection: You authorize your bank to collect the payment from the supplier upon presentation of certain documents.
- Open account: You pay the supplier after receiving the goods or within a specified period.
Each method has its own advantages and disadvantages in terms of cost, risk, and convenience. You should choose the one that suits your needs and preferences.
Step 5: Arrange for shipping and insurance
The fifth step to import without BIS certificate in India is to arrange for shipping and insurance. You should coordinate with your supplier and your shipping agent to ensure that your goods are packed properly, labeled correctly, and shipped on time. You should also obtain a bill of lading (BL) or an air waybill (AWB) from the carrier that serves as a proof of shipment and a contract of carriage.
You should also arrange for insurance to cover the risk of loss or damage to your goods during transit. You can either buy insurance from your supplier, your shipping agent, or a third-party insurer. You should choose the type and level of coverage that suits your needs and preferences.
Step 6: Clear customs and pay duties and taxes
The sixth step to import without BIS certificate in India is to clear customs and pay duties and taxes. You should hire a customs broker or a clearing agent who can handle the customs formalities and documentation on your behalf. You should also provide them with all the necessary documents, such as:
- Invoice
- Packing list
- BL or AWB
- IEC
- GSTIN
- Certificate of origin
- Certificate of conformity (if applicable)
- Other relevant documents
Your customs broker or clearing agent will submit these documents to the customs authorities and obtain a bill of entry (BOE) that shows the assessment of duties and taxes. You will have to pay these duties and taxes either online or offline before you can take delivery of your goods. The amount of duties and taxes will depend on the product, its value, its origin, and other factors.
Step 7: Take delivery of your goods and inspect them
The final step to import without BIS certificate in India is to take delivery of your goods and inspect them. You should arrange for transportation from the port or airport to your warehouse or premises. You should also inspect your goods for any defects, damages, or discrepancies. If you find any, you should report them to your supplier, your shipping agent, or your insurer and claim for compensation or replacement.
You should also keep all the records and receipts of your import transaction for future reference or audit purposes.
Benefits and risks of importing without BIS certificate in India
Importing without BIS certificate in India can have some benefits and risks, such as:
Benefits:
- You can save time and money by avoiding the hassle of applying for a BIS certificate.
- You can access a wider range of products that may not be available or certified in India.
- You can gain a competitive edge by offering unique or innovative products to your customers.
Risks:
- You may face legal action or penalties from BIS if you import products that require mandatory certification without obtaining one.
- You may face quality issues or customer complaints if your products do not meet the standards or expectations of the Indian market.
- You may face liability issues or lawsuits if your products cause any harm or damage to the users or the environment.
Therefore, you should weigh the pros and cons of importing without BIS certificate in India and make an informed decision based on your business goals and risk appetite.
How to Import Without BIS Certificate: A Guide for Importers
If you are an importer of goods into India, you may be wondering how to import without a BIS certificate. BIS stands for Bureau of Indian Standards, which is the national standards body of India. BIS issues certificates for certain product categories to ensure that they meet the quality and safety standards of the Indian market.
However, not all products require a BIS certificate to be imported into India. There are some exceptions and exemptions that allow you to import without a BIS certificate, depending on the nature and purpose of your import. In this article, we will explain how to import without a BIS certificate, what are the product categories that require BIS certification, and what are the implications and challenges of importing without a BIS certificate.
Product Categories that Require BIS Certification:
According to the Indian government, there are 49 product categories that require mandatory BIS certification for import. These include electronics and IT goods, machinery and industrial equipment, chemicals and petrochemicals, automobile components, building materials, medical devices, household and electrical appliances, and toys.
These product categories are subject to BIS registration, which is a process of obtaining a certificate from BIS after testing the product samples at a designated laboratory. The BIS registration is valid for two years and can be renewed thereafter. The list of product categories that require BIS registration can be found here: https://bis.gov.in/wp-content/uploads/2019/10/List-of-Electronics-and-IT-Goods-under-CRO.pdf
Exceptions and Exemptions for Importing Without BIS Certificate:
There are some situations where you can import products without a BIS certificate, even if they fall under the mandatory product categories. These include:
Importing product samples for testing purposes
You can import up to 5 pieces of product samples without a BIS certificate for testing, research and development purposes. You have to declare to the customs that the imported goods are for testing purposes only and not for sale or distribution. You can import the same model only once for testing purposes .
Importing products for personal use
You can import products without a BIS certificate for your personal use, provided that they are not meant for resale or distribution. You have to declare to the customs that the imported goods are for personal use only and not for commercial purposes .
Importing products under special schemes or notifications
You can import products without a BIS certificate under certain special schemes or notifications issued by the government, such as Advance Authorization Scheme, Export Promotion Capital Goods Scheme, Duty Free Import Authorization Scheme, etc. These schemes allow you to import raw materials, components, capital goods, etc. without a BIS certificate for export-oriented units or projects .
Implications and Challenges of Importing Without BIS Certificate:
Importing products without a BIS certificate can have some implications and challenges, such as:
Delay in customs clearance
If you import products without a BIS certificate, you may face delays in customs clearance, as the customs officials may ask you to provide additional documents or proofs to justify your import. You may also have to pay additional fees or charges for customs clearance .
Penalty or confiscation of goods
If you import products without a BIS certificate and fail to comply with the customs regulations or declarations, you may face penalties or confiscation of your goods. The penalties may vary depending on the nature and value of your import .
Risk of substandard or unsafe products
If you import products without a BIS certificate, you may run the risk of importing substandard or unsafe products that do not meet the quality and safety standards of the Indian market. This may affect your reputation and customer satisfaction .
Process of Obtaining BIS Registration for Imported Products:
If you want to avoid the implications and challenges of importing without a BIS certificate, you can opt for obtaining a BIS registration for your imported products. The process of obtaining a BIS registration is as follows:
Identify the product category and standard
You have to identify the product category and standard that applies to your imported product. You can refer to the list of product categories and standards on the BIS website: https://bis.gov.in/index.php/product-certification/
Apply online on the BIS portal
You have to apply online on the BIS portal (https://manakonline.in/) by filling up an application form and uploading the required documents, such as test reports, invoices, declarations, etc.
Pay the application fee
You have to pay an application fee of Rs. 50,000 per model per standard online through net banking or credit/debit card.
Submit product samples for testing
You have to submit two pieces of product samples per model per standard to a designated laboratory for testing. The testing fee varies depending on the product and standard.
Receive the BIS registration certificate
If your product samples pass the testing, you will receive a BIS registration certificate online within 15 days of testing. The certificate is valid for two years and can be renewed thereafter.
Importing without a BIS certificate is possible in some cases, but it can also have some implications and challenges. Therefore, it is advisable to obtain a BIS registration for your imported products to ensure their quality and safety and to avoid any delays or penalties in customs clearance. BIS registration is a simple and quick process that can help you import products smoothly and legally into India.
References:
https://en.wikipedia.org/wiki/Special:BookSources/0-19-568909-7
http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Economic_territory
https://www.youtube.com/watch?v=DIoBODqYc2k
https://www.legalraasta.com/blog/import-without-bis/
https://alephindia.in/blog/bis-certification-for-import.php
https://indiancustoms.info/bureau-of-indian-standards/
https://bis.gov.in/wp-content/uploads/2019/10/List-of-Electronics-and-IT-Goods-under-CRO.pdf
https://bis.gov.in/index.php/product-certification/
https://bis.gov.in/index.php/product-certification/
https://dgft.gov.in/services/importer-exporter-code
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