Is your UK business ready to expand? Shipping from the UK to India could be an excellent opportunity for growth. With a population of over 1.2 billion and projections to become the world’s 3rd largest economy by 2030, India offers significant potential for British exporters.
We’ve worked with many British businesses, guiding them through how to export from the UK to India – from big cities like Mumbai and Delhi to up-and-coming areas across the country. We know the ins and outs of UK export requirements and Indian import laws, so we can help your business succeed in a diverse, fast-growing market.
Indian Market
India’s rapidly growing economy and expanding middle class are creating new markets in technology, healthcare, and consumer goods. The long-standing relationship between India and the UK, combined with the widespread use of English in Indian business, gives British companies a head start. With a substantial, young population with increasing purchasing power, India has significant opportunities for UK exporters, especially if they are targeting the under-25 demographic.
India is a vast and diverse market with different languages, cultures, and buying habits across its regions. What works in one part of India might not work in another, making it important to understand these differences for success. Thorough market research is essential to be aware of competitors, potential demand, and the profile of your target customers in each region. Resources like the UK India Business Council and UK Trade & Investment (UKTI) can provide valuable insights and support to help you navigate India’s varied and changing market.
Preparing for Export to India
What documents are required for exporting to India?
Exporting products from the UK to India involves a significant amount of paperwork. You’ll usually need about 11 documents. The most important ones are:
- A written contract covering delivery terms, transport arrangements, and payment methods
- Know Your Customer (KYC) papers
- GATT/DGFT declaration
- Purchase order or Letter of Credit
- Bill of Lading or Airway bill
- Invoice and packing list
- Technical details for specific goods (if needed)
Here at SLG, we have years of experience in handling this paperwork so if you partner with us, we’d be happy to support you through this process.
UK Export Procedures
You need to give UK customs accurate details about your goods and where they are going. You must also follow UK export rules, including getting any required licences or permits for certain goods. You can find these rules on the gov.uk website.
Goods exported from the UK to India are not subject to VAT. You can apply a zero rate to the sale if you obtain and keep evidence of the export and comply with all conditions. Make sure the goods are exported and gather the evidence within 3 months of the sale, though this period may be extended if they require processing before export. This applies to goods exported from Great Britain to destinations outside the UK or from Northern Ireland to destinations outside the UK and EU.
India Import Procedures
When importing goods into India, you need to be aware of the specific procedures and regulations that apply. This includes getting the necessary import licences and following Indian customs regulations.
You will need to:
- Prepare Documentation: Ensure all required documents are complete and accurate.
- Customs Clearance: Submit the necessary documents to the Indian authorities for customs clearance.
- Comply with Regulations: Make sure your goods comply with Indian standards and regulations.
- Pay of Duties and Taxes: Pay any applicable import duties and taxes.
Trade Laws and Regulations
India has specific trade laws and regulations that govern the import and export of goods. It is essential to stay informed about these laws to ensure compliance and avoid legal issues. Consulting with legal experts or trade advisors can help you navigate these regulations effectively.
There is no current trade agreement between the UK and India. Negotiations to establish the India-UK Free Trade Agreement (FTA) began in January 2022 and are still ongoing.
Packaging Requirements
Your product’s journey from the UK border to consumers in India involves various challenges, including different weather conditions and rough handling during transport. The goods may face high humidity and monsoon rains in India, as well as multiple loading and unloading processes. Therefore, robust packaging is important. It should be designed to withstand long-distance transport, moisture, temperature changes, and potential impacts to make sure your products arrive in India in the same condition they left the UK.
To reduce the likelihood of loss to your business, you should consider freight cargo insurance which will cover your cargo for risks such as natural disasters, damages (including from the weather), piracy, theft and lost goods.
Labelling and Documentation
While most goods can be shipped to India without an export license, certain products require special import permissions from the Indian government. Indian quality standards generally follow in line with international norms, but around 109 products require certification from the Bureau of Indian Standards (BIS) before they can be exported to India. You’ll need to check if your products need a BIS certificate and, if they do, whether they meet its standards.
If your products will be sold directly to consumers, you’ll need to abide by India’s pre-packaged commodities labelling requirements. These standards insist that you display the following clearly:
- Name and address of the registered importer
- Generic or common name of the commodity
- Net quantity in metric units
- Month and year of packaging
- Maximum retail sales price (MRP)
Export Process from UK to India
1. Choose a Shipping Method
When choosing a shipping method, you’ll need to consider the nature and value of goods, how quickly they need to arrive, overall cost-effectiveness, and your customer’s preferences or requirements. For large shipments or less time-sensitive goods, sea freight often proves to be the most economical option. However, if you’re dealing with high-value items or products that need to reach the market quickly, air freight might be more suitable.
2. Use a Freight Forwarder
Choosing the right freight forwarder is important to the success of your export process. Here at SLG Logistics, we are experienced freight forwarders who specialise in handling the logistics of transporting goods from the UK to India. We provide thorough services, including booking cargo space, preparing shipping documents, and ensuring that your shipment complies with international regulations. Our expertise and attention to detail can significantly simplify the export process, making SLG Logistics an excellent choice for your shipping needs.
3. Export Clearance
Before your goods can leave the UK, you need to obtain export clearance from UK customs. This involves submitting the necessary documentation, such as the export declaration, and ensuring that your shipment meets all regulatory requirements.
4. Transportation
Once your goods have been cleared for export, they can be transported to India. This involves coordinating with shipping companies to ensure timely and efficient delivery. Monitoring the shipment’s progress is essential so you can deal with any issues that may come up during transit.
5. Import Clearance in India
When your goods arrive in India, they must go through customs clearance. This involves submitting the necessary documents to Indian customs, paying any applicable taxes and duties, and ensuring compliance with Indian import regulations.
6. Delivery to Final Destination
After clearing customs, your goods can be transported to their final destination within India. This may involve coordinating with local transport companies to guarantee timely and efficient delivery to your customers.
Start Exporting Your Products From the UK to India
Exporting goods from the UK to India offers great opportunities for growing your business. By learning about the Indian market, getting the right paperwork ready, and following the export steps, you can overcome the challenges and expand into this exciting market.
Choose SLG Logistics to help you start exporting your products from the UK to India. Our expertise and experience will guide you through each step, making sure your export journey is smooth and successful. Get in touch today to get a quote.