Infius Cerebro
Excellence in Motion
+91 788 897 8730 md@infiuscerebro.com Ludhiana, Punjab
Knowledge Center

China Sourcing Guide

Complete guide to sourcing products from China for Indian importers. From supplier verification to landed cost calculation, customs clearance, and the China+1 strategy.

Overview

What is China Sourcing?

China sourcing is the process of finding, vetting, and procuring products from Chinese manufacturers for international markets. It involves supplier verification, price negotiation, quality control, and logistics coordination from factory to doorstep.

India's imports from China exceeded USD 100 billion in FY 2024-25, covering everything from electronics and machinery to chemicals and consumer goods. With our door-to-door logistics services, we help Indian businesses navigate the complexities of China sourcing.

Manufacturing scale & capacity
Competitive pricing & variety
Established supply chains
India's China+1 opportunity
China Sourcing & Supply Chain
Global Sourcing
Agent Types

Types of China Sourcing Agents

Different business sizes need different sourcing approaches. Understanding who does what is critical.

CHA (Customs House Agent)

Cost: ₹3,500-8,000 per Bill of Entry

Only files customs documentation in India. Does NOT handle freight or transport. Purely customs paperwork.

Freight Forwarder

Moves cargo internationally

Coordinates vessel space, port operations, and cross-border movement. Works on logistics only — does not find suppliers.

Sourcing Agent (China-based)

Commission: 5-8% of supplier invoice

Sits in China (Yiwu, Shenzhen, Guangzhou). Finds suppliers, negotiates, runs quality inspections. Does NOT handle freight or customs.

Door-to-Door Logistics Partner

Single quote, single tracking

Does everything: sourcing, freight, customs, delivery. Single point of accountability. Answers in your timezone. Recommended for small to medium businesses.

Process

China Sourcing Step-by-Step Process

1

Get Registrations

Obtain IEC from DGFT (mandatory), GST registration, PAN card linked to business, and bank account for forex transactions.

2

Find & Verify Supplier

Use platforms like Alibaba, HKTDC, Canton Fair Online. Verify business license, check export experience, request factory photos/videos, verify product certifications, get references — and always order samples first.

3

Calculate Landed Cost

Total landed cost = 1.4x to 1.6x of CIF value. Breakdown includes Basic Customs Duty (varies by HS code), Social Welfare Surcharge (10% of BCD), IGST (5%, 12%, 18%, or 28%), port charges (₹8,000-15,000 per container), and freight/insurance.

4

Choose Shipping Method

Sea FCL (18-25 days, $1,500-2,500 per 20ft) for large volumes. Sea LCL (22-30 days, $80-150 per CBM) for small orders. Air Freight (5-8 days, ₹400-650 per kg) for urgent shipments.

5

BIS Certification Check

109 product categories require BIS certification in India — mandatory for electronics, IT goods, LED lights. Must be obtained BEFORE goods leave China or shipment will be rejected at customs.

6

Customs Clearance in India

Bill of Entry filed via ICEGATE with correct HS code classification. Hire a customs broker (₹15,000-25,000 per shipment). File before vessel arrival, pay duties promptly to avoid demurrage.

Verification

Supplier Verification Checklist

Avoid costly mistakes with this comprehensive supplier verification checklist

Chinese Business License verified
Manufacturing capability confirmed
Export experience confirmed
Factory address physically verified
Product certifications (CE, RoHS, BIS)
Production photos/videos received
Independent factory audit completed
Product samples ordered & tested
Strategy

The China+1 Strategy: What Indian Businesses Need to Know

China+1 is a deliberate decision to retain production in China while establishing parallel manufacturing in another country — reducing concentration risk amid geopolitical tensions and supply chain disruptions.

India's Advantages as China+1 Destination

  • Large domestic market of 1.4 billion consumers
  • Competitive labor costs with strong engineering talent
  • Government support via PLI schemes (Production Linked Incentive)
  • Geopolitical alignment with Western economies
Key Stat: India's share of global iPhone production reached 25% by 2025, and electronics exports have tripled since 2018 as firms diversify supply chains away from China.
China+1 Trade Strategy
Global Strategy
Mistakes to Avoid

Common China Sourcing Mistakes

1

Not having IEC before ordering — delays customs clearance by weeks

2

Wrong HS code classification leading to duty disputes at customs

3

Missing BIS certification — goods rejected at Indian customs

4

Paying to personal bank accounts — no recourse if supplier disappears

5

Not ordering samples first — leading to quality mismatches

6

Not calculating total landed cost — hidden costs erode margins

Sourcing from China?

Let Us Handle Your China Sourcing

From supplier verification to door-to-door delivery, our end-to-end China sourcing service makes importing simple and cost-effective.