How to import products from India to the USA?
With such a sizable population, India's economy is rapidly expanding, making it one of the major trading nations in the world. India is well known for its precious and semi precious stones, pearls and precious metals that are exported to the USA in abundance.
In addition to this, the USA also imports goods like mineral oils and substances, machinery, pharmaceuticals, nuclear reactors, boilers, etc.
Importing goods from India is undoubtedly a wise decision if you do business in the USA as India is one of the country's most active trading partners.
The economic ties between the USA and India have been for decades and the USA has been the biggest importer of Indian products for more than a decade. India is thus a fantastic and cost-effective option for importing goods into the USA.
India has been the largest contributor to US imports for many recent years. Since 2015, India's share of US imports has increased by more than 28%, and despite suffering significant setbacks in 2020, the USA's appetite for Indian goods has grown.
In this blog, we describe how to import products from India to the USA, including the required documentation and the products that are exported the most from India to the USA.
Trade between India and USA
Trade between India and the USA has significantly grown in recent years. The United States is India's largest trading partner, and India is the tenth-largest trading partner for the United States.
Economic cooperation has helped both countries; since 2014, the US and India's bilateral commerce in goods and services have nearly doubled, reaching $146.1 billion in FY20 and crossing $191 billion in FY22.
Major Products Imported From India To The USA
The USA imports various goods and products from India on a large scale including gems and jewelry, pharmaceuticals, light crude oil and petroleum, electrical and electronic products, engineering products, machinery, organic chemicals, textiles, clothing, frozen marine products, and many others.
What are India's top export items to the US?
The most popular goods and products that India exports to the US are-
- Precious metals and diamonds
- Pharmaceuticals
- Mineral fuels
- Textile articles
- Machinery
[ Read How to import steel products from India? ]
What steps to take for importing products from India to the USA?
Identify the product category you wish to import and get the required permits
Depending on the products being imported in the USA, corresponding agencies could need a permit, license, or other certification.
You won't require a license to import items into the United States, however, some organizations may demand a license, authorization, or other validation for specific imported goods, such as agricultural or pharmaceutical products.
Also, your importer number, which is either your IRS business registration number or your social security number if you do not have a business or are not registered with the IRS, is required on CBP entry forms during customs clearance.
Find a reliable supplier from India
Considering aspects like pricing, quality, reliability, and shipping alternatives, you must find a reliable supplier in India who can offer you the products you want to import. Remember to negotiate with your supplier on price, payment terms, delivery schedule, etc.
Make shipment and customs clearance arrangements
You will need to make arrangements for the shipping of your goods from India to the USA. Directly importing from manufacturers might be a risky and demanding undertaking because they don't have much expertise in exporting.
Working with a merchant exporter will allow you to simplify the procedure because they are experienced professionals and can handle the logistics of transportation and customs clearance.
Paying import duties and taxes
When your goods arrive in the USA, you'll need to pay any costs that may be due, such as customs duty, port charges, and taxes. Depending on the value of your cargo and the particular product category, the charges will vary in cost.
Receiving your shipment
Your goods will be handed over to you once they pass through customs. Once that is done, you can plan the last part of the journey to your warehouse or store.
US customs clearance in simple steps
The customs clearance procedure is easy to understand. Here, we'll walk you through the procedure for customs clearance when you import goods from India to US in simple steps:
- Making preparations with the CBP port of entry where the consignment will arrive before shipping the items to the US.
- Declaring the entry of your goods and transporting them in-bond to another port of entry if needed.
- Filing a cargo release request, within 15 days of your goods arriving at the CBP port of entry.
- Paying your import taxes and duties.
- Filling the entry summary form, within ten days of your items being released from CBP custody.
- Making sure that your entry documentation is correct and properly filed.
- Sending the merchandise to your warehouse or retail location after the release of your goods from CBP custody, which is the last step in the import process.
Remember that for imports valued at less than the de minimis level, which is set at US$800 in the US, you do not need to go through customs clearance. Also, every product has a 10-digit descriptive code called the HTS.
To make the customs clearance process simpler, you must be aware of the HTS code of the goods you are importing.
Necessary documentation required for importing from India to the USA
For imports from India to the USA, importers need to have the following paperwork done:
- Invoice from supplier (unless it's a free sample valued at less than $25)
- Packing order or list of items
- A certificate of origin
- Air waybill (air freight), inland bill of lading, ocean bill of lading, and through bill of lading
- A Letter of Credit (depending upon payment terms)
- CBP form 7501 ‘Entry Summary’
- Evidence of Insurance
- Bill for transportation
- Miscellaneous paperwork, including copies of certificates and permits, as well as cargo control paperwork for goods that need special permits. (if necessary)
How Can ExFrO Help In Importing Goods From India To The USA?
ExFrO is a versatile merchant exporter, offering an extensive range of goods from multiple categories. Our unique business model involves procuring products directly from local manufacturers and producers and exporting them to our esteemed clients across the world.
By eliminating intermediaries and cutting supply chain margins, we are able to offer highly competitive prices, saving our clients a considerable amount of money.
Importing goods from India to the USA can be a complex process, however, at ExFrO, we simplify it for you by managing all documentation, and legalities and guaranteeing a seamless and efficient supply chain.
Our transparent and reliable export process guarantees complete customer satisfaction, so our clients can be sure that their goods will be delivered safely and on time.
ExFrO can help you find the best suppliers and products to meet your import needs, whether you're looking to source raw materials, finished goods, or specialized equipment.
Get in touch with us right now to find out more about our export services and let us know how we can assist you!
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