How to manage import logistics without a dedicated team

Importing raw materials or components is essential for many Indian manufacturers, but the logistics, compliance, and documentation overhead can consume significant management time. Companies without a dedicated import team often lose money through delays, duty miscalculations, and compliance errors.

Understand your total landed cost, not just the CIF price. Landed cost includes: CIF (cost + insurance + freight), basic customs duty, IGST, any anti-dumping or safeguard duties, customs handling charges, port charges, CHA (customs house agent) fees, inland freight to your factory, and bank charges for LC or foreign currency. Most SMEs underestimate landed cost by 8–15% and discover it at the time of clearance.

Use a reliable CHA (Customs House Agent). Your CHA is your most important import partner — they file your bills of entry, handle customs, and manage port documentation. A good CHA saves you time and money; a bad one causes delays and compliance issues. Interview at least three before appointing one. Ask for references from clients in your industry.

Classify your imports correctly. HS (Harmonised System) code classification determines your duty rate. Misclassification — even unintentional — can result in excess duty payment or, worse, undervaluation notices. Have your CA or CHA verify your HS codes and the applicable duty rates before your first shipment.

Track advance authorisation and EPCG schemes if you're an exporter. These government schemes allow you to import raw materials or capital goods at zero or reduced duty against export commitments. Many eligible SMEs don't use them because the paperwork feels complex — but the duty savings are substantial.

Maintain an import register. For each shipment: invoice number, supplier, HS code, quantity, CIF value, duties paid, and clearance date. This is necessary for your CA, for IGST credit claims, and for any customs audit.