Raw Material Imports

There are several important reasons why getting raw materials from other countries is an important part of a contemporary manufacturing strategy:

• Cost Efficiency: Global sourcing can help organizations save a lot of money on important supplies, which lowers their overall production costs and raises their profit margins.
• Access to Quality and Variety: Importing gives you access to a greater range of materials and specific grades that may be necessary to improve product quality, meet technical requirements, and encourage new ideas.
• Supply Chain Continuity: A solid import pipeline is essential for keeping manufacturing going, even when there are shortages or problems in the local supply chain.
• Diversifying suppliers: Keeping in touch with overseas suppliers makes you less reliant on one domestic market, which lowers risks and makes your supply chain stronger.

A well-organized and well-managed process is needed for the effective and ongoing importation of raw materials:

• Finding the Raw Material Needs: Clearly stating the exact technical requirements, grade, purity, and amount of materials needed for production.
• Finding and negotiating with suppliers: Finding trustworthy foreign suppliers and working out good arrangements for prices, delivery times, and payment.
• HS Code Classification: Putting each raw material in the right category under the Harmonized System (HS) Code is important because it tells you what the right customs tax is and what the rules are for bringing it into the country.
• Purchase Agreement and Documentation: Making sure that the purchase contract is signed and that all the relevant business papers, like invoices and packing lists, are correct.
• Import Licenses and Compliance Checks: Checking to see if the individual raw materials need import licenses or certifications from regulatory authorities like BIS or FSSAI.
• Customs Clearance: Submitting the Bill of Entry (BoE) to customs, together with all the necessary paperwork, and paying the appropriate duties and taxes.
• Inspection and Certification: Following any required customs checks or lab tests of the items when they get to India.
• Transportation to the Facility: Taking care of the details of getting the cleared products from the port to the right manufacturing or production facility.
• Inventory Management: Making sure that the imported supplies are properly added to the company's inventory system so they may be used in production.

Customs needs a full and correct set of paperwork for every cargo. The main documents are:

• Invoice and Purchase Order Form
• List of Items and Commercial Invoice
• Certificate of Origin (needed to get benefits from Free Trade Agreements)
• Information about the right HS Code Classification
• Bill of Lading for marine freight or Airway Bill for air freight
• The filed Bill of Entry (BoE)
• Any needed import licenses or certificates of compliance, like BIS or FSSAI

There are many rules that control the import of raw materials, and they often include more than one government agency:

• Customs Duty and GST: All materials are subject to customs duties based on their HS Code, as well as the Integrated Goods and Services Tax (IGST). There are duty exemption programs, including Advance Authorization, for materials that are used to make goods that will be sent outside.
• Import Licenses: The Directorate General of Foreign Trade (DGFT) issues special import licenses for certain items, such as chemicals, minerals, and some agricultural products.
• BIS and FSSAI Rules: The Bureau of Indian Standards (BIS) sets standards for industrial goods, and the Food Safety and Standards Authority of India (FSSAI) sets standards for food-related commodities.
• Requirements for Packaging and Labeling: When raw materials are brought into India, they must meet Indian standards for packaging and labeling. These rules are especially severe for chemicals and other dangerous commodities.
• Pre-shipment Inspections: For some sensitive goods, an approved agency may have to check them in the nation of origin before they may be brought into the country.

Arrow offers specialist services that help manufacturers import raw materials more quickly and keep their supply chains running smoothly. Some of the things we know how to do are:

• Compliance and Classification: We make sure that your items are correctly classified with HS codes and that you have all the licenses and certificates you need.
• Management of Customs Clearance: We take care of the whole customs process, from completing the Bill of Entry correctly to working with customs officials to schedule any inspections or tests that are needed.
• Logistics Coordination: We take care of getting your materials from the port to your production plant, making sure that they are handled quickly and efficiently.

What are raw material imports?

When a country imports raw materials, it buys basic, unprocessed, or semi-processed items from other countries to utilize as inputs in its own manufacturing or production processes.

What do I need to do to bring raw materials into India?

Finding trustworthy suppliers, making sure the paperwork is proper and the HS code is valid, filing for customs clearance, and paying all the necessary fees and taxes are all part of the procedure. Every shipping needs to be done in a consistent and compliant way for efficiency.

What papers do you need to bring in raw materials?

The Commercial Invoice, Packing List, Bill of Lading, Certificate of Origin, and filed Bill of Entry are all important documents. Import licenses and compliance certificates are also very important, but only for certain materials.

Are there any rules on bringing in raw materials?

Yes, many raw materials have limits on them and may need special import licenses, pre-shipment inspections, or certificates from organizations like BIS or FSSAI in order to be legally brought into the country.

Are there ways to avoid paying duties on raw materials that are brought into the country?

Yes, raw materials that are brought in to be utilized to make things that will be sent out of the country can qualify for duty exemption programs like Advance Authorization.

How long does it take for customs to let raw materials into the country?

The time it takes to clear changes. It can take a few days for regular materials with all the right paperwork. The process will take longer if the shipment needs to go through customs, be sampled, or be tested in a lab.

Are there rules against bringing dangerous raw materials into the country?

Yes, there are very rigorous rules for hazardous raw materials. These include having to get specific import permissions, following strict safety and packaging rules, and being more likely to be inspected.

For every manufacturing business to be successful, it needs to have a dependable and efficient way to bring in raw materials. To avoid expensive manufacturing delays and manage supply chain risks, you need to be proactive about following the rules and have competent logistics management. Arrow has the knowledge and skills to help you create a strong and affordable import supply chain.
Get in touch with us to talk about how we can make your raw material purchasing process better.