Globalization has allowed world trade to become faster and more efficient. Our generation has had the opportunity to see this in the number of multinational companies that are being created. Transactions between parties from different countries are now commonplace. However, if you want to establish operations with a new country and remain competitive, you must be familiar with all the processes and regulations. This guide will help you understand all the options available to you for moving your goods.
The different methods of transportation between China and India?
When transporting between China and India, you have 3 major methods of transports as methods whiche are the Sea Freight, the Rail Freight, and the Air Freight. In this guide, three of them are going to be explained entirely, and we'll analyse their advantages and disadvantages. After reading this guide, you'll only have to find the one that corresponds to you.
Sea freight from China to India
DocShipper Tips: Your best option will be sea freight in this cases
- You're shipping more than 2 m³ (CBM) of goods
- Your inquiry is not urging
Note DocShipper: If you're looking advices and sea freight services for your shipment, contact our team via our online form so that a dedicated expert will be in charge of contacting you in 24 hours !
Overview - Bilateral relations between China and India
The rapid expansion of India-China bilateral trade since the turn of the century resulted in China becoming India's largest trading partner since 2008, a position it still holds to this day. Since the beginning of the current decade, there has been exponential growth in bilateral trade between the two countries. In 2017 and 2018, bilateral trade grew at a robust rate of double digits. During the 2019 year, India was China's 12th largest trading partner. There was a 2.93% year-on-year reduction in total bilateral trade to US$92.89 billion.
The exports from India to China declined by 4.55% y-o-y to US$17.97 billion, and India's imports from China also saw a decline of 2.54% to US$74.92 billion. As a result of the impact of COVID also, overall trade with China saw a 13.1% reduction in January-September 2020 (US$60.5 billion) compared to the same period in 2019 (US$69.7 billion).
Bilateral investment has not kept pace with the expanding trade volumes between the two countries. While for the rest of the world, both countries have emerged as top investment destinations, mutual investment flows have yet to catch up. As reported by China's Ministry of Commerce, the total Chinese investment in India between January and September 2019 was US$0.19 billion, and the cumulative Chinese investment in India until the end of September 2019 was US$5.08 billion. The Indian cumulative investments in China through September 2019 amounted to US$0.92 billion.
The main shipping seaports in India
Port of Kandla
Kandla Port, located 90 kilometers from the Gulf of Kutch, was built in the 1950s in the Kandla Creek area as India's first export processing port. Today it is India's largest container port in terms of value and quantity of cargo moving through it each year. It also has the reputation of being the most profitable port in terms of grain exports and oil imports and the busiest. Today, it is used to import oil, salt, textiles and chemicals, among other things.
Website: Kandla's port
Port of Mumbai
The port of Mumbai is the largest port in India this time if we take into account its size and traffic. It occupies a central position on the west coast of India, with water depths of 10 to 12 meters, allowing large cargo ships to dock and move easily. One-fifth of India's foreign trade passes through the port, making it a key part of the country's economy and commercial operations. Its four main jetties receive and ship goods for import and export, including crude oil, chemicals, tobacco, leather manganese and other essential materials.
Website: Mumbai's port
Port of Chennai
Following closely behind the two previous major ports of India, the port of Chennai, also known as the port of Madras, handles more than 100 million metric tons of cargo every year. Since its opening in 1881 on the Bay of Bengal and more precisely on the Coromandel coast it is the third largest port in India. It is this position that makes it another key location contributing largely to the local economy. In addition to its economic role and its activity of transporting goods and containers, it is a tourist place attracting a good number of visitors every year because of the lighthouses surrounding it.
Website: Chennai's port
Port of Kolkata
Port kolkata is one of the newest ports in India with a depth of 13 meters and has been awarded the official status of a shipping port by the Indian government due to its significant contribution to the economy. The largest ships it hosts are nearly 500 feet long. It is the direct link between the Bay of Bengal and the Andaman Sea.
Website : Kolkata's port
Transit time between China and India ports
Check below the average time (in days) from India to China in different areas.
This time is an average estimation which can varies according to extern conditions. That is why you should definitely consider more time to not be running out of time.
What container can I choose for shipment from China to India?
There is different kind of containers, so you will find them below :
- 20'GP, 33 cm3 capacity, 20 feet container for general purpose
- 40'GP, 67 cm3 capacity, 40 feet container for general purpose
- 40'HC, 76 cm3 capacity, 40 feet high cube container
There will talk about the different containers modes of operation that you can use for your transportation.
We should know the different types of container modes when it comes to transportation:
LCL: Less than Container Load
If you cargo is only a small volume of goods.
LCL is segmented into transfer LCL or straight LCL which refers to LCL container cargo being LCL in the same port of loading and unloading, which means that the merchandise is not touched before the goods are reaching the destination. This kind of LCL is usually transiting in a small period when the company has the strength to provide such services. In opposition the transfer LCL means that the cargo will not have the same destination port of cargo containers and that a part of the goods will be unloaded to be loaded on another ship. This kind of cargo needs a longer waiting time because of the loading operations.
DocShipper advice: LCL is suitable with all of our handover mode: Door to CFS; Door to Door; Door to CY; CFS to CFS; CFS to Door; CFS to CY; CY to CFS; CY to Door; CY to CY.
- CY: Container Yard: Referring to the Carrier’s port or terminal where goods are dispatched and the delivery port or terminal where a consignee accepts the goods.
- CFS: Container Freight Station: A CFS (container freight station) is a warehouse that specializes in the consolidation and deconsolidation of cargo.
FCL: Full Container Load
FCL refer to a full loaded container or when you reserve the all the space of it.
If you use this method it still needs to be well packed by the consignor which has the responsibility of counting, sealing the goods by customs, filling of the shipping documents. At the arrival the consignee can proceed to the unpacking of the goods carried in the container. Consignee can't be taken for responsible for a loss, of boxes or damages unless something shows that it is the consignee fault. Unless there is evidence of the container's appearance that it has been damaged, then the carrier has fulfilled his responsability. The "principal packing, counting and sealing" clause has to figure on the Bill of lading.
DocShipper tips: Most of the companies are proposing degressive prices when the volume of the shipment increase. For example, if three containers are shipped the prices per container will be inferior in comparison to the price of one container.
What you should be paid attention to when choosing LCL
The clearance of goods can be influenced in certain cases, for example when certain restrictions concerning types of goods are valid in a country but not the other. It can be either in the terms of trades either in policies or regulations of these products in the exporting country as much as in the importing country. This is something needing a lot of care because if it is in the LCL container, the other goods can be also affected.
These are aspects of what you have to declare to the customs before or during an inspection, and other points needing to be treated with attention during the import and export of goods:
- Customs clearance: If for any reasons, some documents are missing, as for an omission of inspection, the goods transported in the same container will be affected if the container is held in customs, and it will disturb the clearance process for the whole container.
- Complete documents: The consignor should make sure that the port of destination, packaging, quantity, weight, size, the name of the goods, specifications etc should be correct with the situation and on the documents.
- Consistency of goods: The correct information has to be given from the beginning, because if the weight is incorrect and a cargo is over weighted, there will have consequences on the container such as cargo damages or even accidents.
- Temporary changes: The real conditions of the cargo have to be checked in real time by traders and shippers because it can need adjustment between the loading and the sailing of the ship. So that the shippers will have to contact each parties to guarantee the smoothness of the process.
Professional LCL companies have the duty to check the cargoes conditions before they get packed. They also have to judge the necessity to make changes and to anticipate the matters that could be influenced by various factors after the cargo reaches the port. If there are any potential problems, Parties should be contacted to arrange the concerns.
Though we have many ways, door to door will be the best and most convenient way for you.
How much does sea freight between China and India cost?
The transit time between China and India depends on the shipment starting date but also on various factors and this is why we can't guarantee a fixed-cost for you.
You can benefits from a specialized quoting team which would free quote for you, so don't lose time and fill in our online form, with the maximum information on your shipment, we will give you a quick response about the quotation.
Air freight from China to India
DocShipper Tips: Air freight is the best option if you are in one of these situations :
- Your cargo is not filling 2 m³
- If you have an urgent shipping
DocShipper Note: You're interested in our air freight services ? Click on the button so that a dedicated expert will contact you within 24 hours!
There are 2 categories of Air Freight
After mentioning Sea Freight, which is the cheapest shipping solution, but also the slowest, it's time to mention Air freight. More expensive, it is the faster and more accurate transport mode.
We are going to present both air freight solutions, which vary a bit from one to another :
In price and speed, but also in quality of service :
Main Chinese airports
- SHA – Shanghai Hongqiao International Airport
- CTU – Chengdu Shuangliu International Airport
- SZX – Shenzhen Baoan International Airport
- KMG – Kunming Changshui International Airport
- PEK – Beijing Capital International Airport
- CAN – Guangzhou Baiyun International Airport
- PVG – Shanghai Pudong International Airport
Main India airports
Why do we choose air transport?
The air freight present few advantages that sea freight cannot offer such as its accuracy, the simplicity and low costs of international air transportation are its accuracy, the simplicity and low cost of the packaging, its rapidity and these are facts that no other transportation can match. (usually takes 3 days as transit time).
International air freight uses the volumetric ratio which means W/M is 6000 cubic centimeters to 1 kilogram, the actual freight calculated in kilograms. Although air freight is generally higher, international air freight has advantages for large volumes that no other transportation can match.
What is volumetric weight ?
The airlines price calculation reveals that when a cargo volume is small, but the weight is high, it will be calculated according to the weight. In opposition if the cargo volume is high it will be calculated according to this factor.
Volumetric weight = (length cm * width cm * height cm) / 6000
The gross weight and the volume weight are used to calculate the chargeable weight for a determined cargo. The highest one is chosen.
The minimum freight is similar to the minimum order quantity for the sourcing. It is the minimum charge that commercial airlines are accepting to handle regarding or the amount of the value, the size or the weight. Fill out our online form for a quick response about the quotation.
Rail freight from China to India
DocShipper Tips: Rail freight will be the best option if :
- The volume of your cargo is important
- If you have a deadline requirement
DocShipper Note: Looking for prices or advice for your rail freight shipment? Click on our button to fill out our online form, a dedicated expert will contact you within 24 hours!
Rail transport from China to India
Rail freight is an interesting option to consider for your shipments. It represents an alternative between the speed of air freight and the loadable volume possible by sea. This makes it the third most used shipping option for goods between China and India. However, for this option to be cost effective, you need to ship a minimum of 2CBM and your destination must be close to a railway station. Otherwise, the transportation costs between the station and the unloading place added to the import costs and fees charged in both China and India will make your bill much higher. If this is not the case, we advise you to opt for sea freight.
How long does it take to ship by rail from China to India?
It takes 11-16 days for a rail shipment from China to India, depending on the exact location of the goods in China and their final destination in India.
How much does it cost to ship rail freight from China to India?
The cost of rail freight depends of course on the cargo but it is often more expensive than sea freight. Nevertheless it is the fastest way to ship your goods in large quantities from China to India.
Door-to-door delivery between China and India
If you're already bored by these steps you will like this part. Between having to choose the transportation method, then the right container option between LCL or FCL, if it is by air which one between traditional or express... I mean, how should you focus on your business ? Docshipper proposes a Door-to-door delivery service. Literally, we will come to your door to pick up your cargo and prepare the necessary documents and take care of the delivery until your door including customs procedures.
Didn't we say we would save your time and money ? We can give you a professional and customized service so let's make it simple. Have a look at our website for any information you're looking for, andcontact us through our online form.
Why is door-to-door service useful?
Docshipper door-to-door's service includes all the steps you would have to go through if you were alone such as measuring, packaging, loading, documents, customs clearance, shipment, unloading, unpacking,...
We are sure this service will suit you. Check here to know more: Door-to-door service
Customs clearance in India for goods imported from China
Customs clearance, refers to that products imported, exported and in transit must be proclaimed to the customs authorities when entering or leaving the customs territory of a country territory ; it is only after fulfilling their obligations and going through the formalities of customs declaration, inspection, taxation and release that the goods can be released and the owner or declarant takes delivery of them. Similarly, all means of transport carrying imported and exported goods for entry, exit or transhipment must be declared to customs, go through customs formalities and obtain authorization from customs.
At the time of customs clearance, whether for import, export or transhipment, the goods are under customs control and are not allowed to move freely.
Categories of tariffs
It is a tax levied by the State on goods and articles entering or leaving the customs territory under the authority of the customs. In each country, tariffs are generally high-level taxes at a rate specified by the highest administrative unit of the State, and for countries with advanced foreign trade, tariffs are often the main source of revenue for the State and even for the State Treasury.
Tariff classification based on commodity flow
Import duties: Import duties are taxes levied by the customs authorities of the importing country on foreign goods entering the customs territory in accordance with the customs tariff code.
Export tariff: An export tariff is a tax levied by the customs of the exporting country on the exported goods when the products of the country are exported abroad, and is paid by the exporter.
Transit Tariff: A transit tariff is also known as a pass-through tariff. It refers to the tariffs imposed by a country on foreign goods passing through its customs territory.
Most countries in the world today have policies of export incentives and import restrictions so that export tariffs are reduced, import tariffs predominate and most countries do not levy transit tariffs. Most countries now levy only a small number of permit fees, stamp fees, registration fees, and statistical fees on the passage of foreign goods through their territory.
Tariff classification based on tariff purpose
Fiscal Tariffs: Fiscal tariffs, also known as revenue tariffs, are tariffs that are levied with the primary purpose of increasing a country's revenue.
With the development of the economy and the increase in other sources of taxation, the importance of fiscal tariffs in fiscal revenue has relatively decreased, and the proportion of tariff revenue in the country's fiscal revenue has generally tended to decline.
Protective Tariff: A protective tariff is a tariff levied with the primary purpose of protecting the country's industrial and agricultural development. Protection tariffs are higher than fiscal tariffs and increase with the degree of processing of the product, and are usually capped at the taxed price of the imported goods above the domestic price of similar products. However, if the protective tariff exceeds this limit too much, it will instead affect the competitiveness of the protected enterprise.
Punitive or retaliatory tariff: An import surcharge imposed by a country on goods imported from another country because it discriminates against it in trade and breaches agreements.
Tariff classification based on tariff treatment
Ordinary tariffs: Ordinary tariffs, also known as general tariffs, are non-preferential tariffs on goods originating from countries with which the country has no friendly agreements, such as trade or economic reciprocity. Such tariff rates are generally set by the importing country autonomously and are used over a long period of time at higher rates as long as conditions at home and abroad do not change.
Preferential tariffs: Preferential tariffs are preferential tariff treatment given to goods imported from specific countries at a rate lower than the general tariff rate. You should check this one when doing business, maybe some of the products can be beneficial of this type of tariff
What are Preferential tariffs?
Most-favoured-nation treatment tariffs
Most-favored-nation (MFN) tariffs are tariff treatment granted between contracting parties that have signed up for MFN treatment, and the tariffs applied between WTO members are MFN tariffs. Their tariff rates are lower than ordinary tariff rates but higher than preferential tariff rates.
It means that the importing country gives special preferential low-duty or duty-free treatment to all or part of the goods imported from a particular country or region. However, such preferential treatment cannot be claimed by other countries or regions under the most-favored-nation principle. The rate of the EFN duty is generally lower than the MFN rate and the treaty rate. There are both reciprocal and unilateral (non-reciprocal) forms of ex gratia payments.
Generalized System of Preferences tariffs
In 1964, the GSP scheme was adopted at the first United Nations Conference on Trade and Development. By the end of 1999, a total of 190 developing countries or areas had become GSP beneficiaries of developed countries. Still, the proposed tariffs are lower than MFN tariff rates.
It is generally implemented between countries that have signed international agreements or treaties, such as friendship agreements and trade agreements, in order to increase friendly trade exchanges and strengthen economic cooperation between the signatory countries. If you desire to do business and import goods from China, contact us, we will solve your problem: online form
How to calculate customs duties and taxes?
Here are three perspectives we should take consideration into when we are going to calculate the customs duties and taxes: Tariff type, origin, and Customs value.
As now, we use the same system in the all world, you should have first a look at tariff type.
The Harmonized Commodity Description and Coding System: HS code
The HS code System has been created in order to be a international trade commodity classification catalog,which is set by Customs Cooperation Council's Commodity Classification and according to the Standard International Trade Classification List. In reality, when importing or exporting goods the HS code is necessary for the appliance to custom supervision, taxation, statistics. To classify the commodities, the system use a classification based on the function, nature, purpose..
Commodity code is a scientific and is working for any needs linked to international business including statistics, production, transport, customs... It could also be called "standard language" of international trade commodity classification.
The composition of an HS Code is as follows
How do I find the HS Code?
You have two choices. First, you can check naturally the database of the "Harmonized System" then there is a simple way which is to directly ask the supplier.
Customs vs. Customs clearance: Does Docshipper charge them?
At Docshipper, we are used to taking the all custom clearance process in charge by helping you in the documents collection and guaranteeing the smoothness of the process.
However, your customs charges are given by the government of your products. Please note this: No agent has the right to charge you duty!!
Procedure and customs contact
Bill of Lading
The bill of lading is issued by the carrier or the carrier's agent, certifying that the receipt of specific goods, allowing the goods to be transported to a specific destination and delivered to the consignee of the document. The bill of lading is evidence of the contract of carriage and a receipt for the goods. What does it contain? The content includes shipper, consignee, notify party, place of receipt, the port of loading, the port of discharge, place of delivery, gross weight, measurement, place, and date of issue, signed for the carrier.
A packing list is supposed to give information on the Issuer, invoice number, number, description of goods and kind of packages, and should correspond to the declared bill of lading.
In addition, the letter of the credit is supposed to be given by the export enterprises because of its purpose of document for the foreign exchange settlement. It takes part of the supplementary documents added to the weight list and measurement list linked to the invoice. They list the totality of the packaging and their specifications, and different weights. The buyer will use these documents to check the variety, size of the goods and customs acceptance for the goods reception.
Certificate of Origin
This document can only be delivered by the government or a notary agency or the exporter to prove the origin of the goods. The certificate of origin gives informations on : name and address of the importer/exporter; commodity mark and number; mode of transport and route; commodity name; quantity; and weight, etc.
Restricted and prohibited products
As a successful importer that you want to be, you shouldn't forget to check the following details unles you want to lose time money and energy.
- Non-Perishable Food
- Alcohol products
- Agricultural products; i.e., cheeses
- CITES (Convention on International Trade in Endangered Species of Wild Flora and Fauna) goods
- Drugs, Prescription and Non-Prescription
- Narcotic drugs
- Pornographic and obscene
- Indian ancient coins
- Maps and litterature with incorrect Indian boundaries
- Chemicals mentionned in Schedule1 of the Chemical weapons convention of UN 1993
- Wildlife products
Don't hesitate to check with our professional team if you need any help from this perspective.
Cooperation relationship between China and India
India is now China's ninth-largest trading partner. According to Chinese customs statistics, the bilateral trade volume between China and India reached $66.7 billion in 2018.China is unsurprisingly India's largest trading partner, and has been since 2008. The bilateral trade of the two countries has undergone an explosive growth since the beginning of the decade. The bilateral economic activities have undergone a reduction of 2.93% compared to the previous year recorded at 92.89 billion US dollars. This is mainly due to the fact that India's exports to China decreased by 4.55% to 17.97 billion US dollars, while India reduced its import rate from China by 2.54%.
Other logistics services
Warehousing and storage
Meaning store and handle goods in warehouses before to distribute them. As your clients are expecting their goods to be delivered the soonest, you need a competent agent. As a mature company, we own warehouses both in China close to each biggest ports but also in India. It will allow you to check the products in real time and not being cheated. Check our page: Warehousing services
Packaging and repackaging
Packaging is the process referring to the totality of materials used to protect the products such as containers which make the circulation process smoother. Our compay propose a packaging service thanks to our experience in packing ourselves the goods of our customers.
Check here : Packing Services
Transport insurance that covers the good during the transport which is different from most other insurance that are needing the goods to be stored in a static place. Prevention is better than cure and that is why considering the value of your goods, we would suggest you to take an insurance. That prevention is better than cure, so our suggestion is that you should be really aware of this part. If you have any questions, please contact us directly.
More info on our dedicated page: Insurance services
Supplier Management in China
How to be aware of the total diversity of suppliers? How to find the best suppliers which good quality but less costs ? How to avoid a fraud ? The sourcing agents are the best solution for you if you want to respond to these questions. Our staff has the advantage to be native speaker in Chinese and the ability to use both perfectly French as well as English. Thanks to our ISO certification, we guarantee working with the best suppliers. More than just a sourcing agent, Docshipper guides you through your all process.
Check here : Sourcing Services
3PLs refers to the company to provide all or part of the logistics services of external suppliers such as warehouse, distribution and inventory management. In this process, the 3PL company takes care of all the process from the warehousing to the last mile delivery. DocShipper as a revolutionary 3PL manage your entire process, and let you concentrate on your sales and marketing. We save you both time and money.
Check here to know more information: 3PL Services
Shipment of personal effects
We perfectly know how to deal with personal effects. Indeed, we are providing special service for personal moving. If there are any belongings that are needing a special care or that you are scared to move yourself our movers will do it with the maximum precaution. We have overcome and encountered many situations with movement. We will estimate and quote your moving for free according to your needs and budget. we provide door to door service so that you don't need to do anything.
Check here : Moving services
FAQ - Transport from China to India
What is India's rank in China's export partners ?
During the 2019 year, India was China's 12th largest trading partner. There was a 2.93% year-on-year reduction in total bilateral trade to US$92.89 billion.
What is China's rank in India's export partners ?
The rapid expansion of India-China bilateral trade since the turn of the century resulted in China becoming India's largest trading partner since 2008, a position it still holds to this day.
What are the main ports in India ?
There are two main ports in India : Kandla and Mumbai. Kandla's port today is India's largest container port in terms of value and quantity of cargo moving through it each year. It also has the reputation of being the most profitable port in terms of grain exports and oil imports and the busiest. Today, it is used to import oil, salt, textiles and chemicals, among other things. The port of Mumbai is the largest port in India this time if we take into account its size and traffic. It occupies a central position on the west coast of India, with water depths of 10 to 12 meters, allowing large cargo ships to dock and move easily.
What are Docshippers options in helping you ?
Docshipper expert team is able to provide you warehousing and storage services worldwide. Thanks to our warehouses placed both in China and India, it will be a game for you to checkon your products and avoid bad surprises. Packaging and Repackaging are also part of our potential services. We are experts in helping our clients with these two services as sometimes, the packaging an repackaging norms are hard to satisfy. Also our team has the advantage of speaking many languages and that is why, we offer you supplier management in China. Concentrate on your other business aspects, let us take care of the rest.
DocShipper China | Procurement - Quality control - Logistics
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