New import business- help needed

1338 views 5 replies

franklin

26 Points Joined April 2011

Hi,

I am a young entrapraneur, I am about to start a sole propreitorship firm.I wish to import protein/bodybuilding supplements from abroad in bulk and resell them here in smaller packs.

I have a few queries.

I will open a current account with a bank and get a IEC code for importing. Is there anything else that I need to do?

My imports will be in small quanities and the total value will not exceed 2-3 lacs/yr initially.

Now, I beleive proteins supplements attract 33.4% excise +other taxes, r there any other taxes?Also, will the customs create problems for me? Ive heard that there is a lot of red tapism involved.

Your replies would definitely help me.

Warm Regards,

Franklin

Replies (5)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

Originally posted by : franklin

Hi,

I am a young entrapraneur, I am about to start a sole propreitorship firm.I wish to import protein/bodybuilding supplements from abroad in bulk and resell them here in smaller packs.

I have a few queries.

I will open a current account with a bank and get a IEC code for importing. Is there anything else that I need to do?

- for establishment, u need trade licence, Profession Tax Enrollment, VAT/CST registration

- as these are drugs / foods , u need police clearence, premission of drug controller

- if the item is under excise then repacking will amount manufacture and u will be levied excise duty .( 150 Lacs exemption u can avail every year)

My imports will be in small quanities and the total value will not exceed 2-3 lacs/yr initially.

Now, I beleive proteins supplements attract 33.4% excise +other taxes, r there any other taxes?Also, will the customs create problems for me? Ive heard that there is a lot of red tapism involved.

- on mere belive dont calculate the duty + taxes, get a proforma invoice from the vendor ( exporter) and visit the PRO of customs house in your city, he will furnish u clear idea of duties from customs side,

- apart from customs, u need to pay CVD+ VAT+ port charges+ C&F

- if the valuation is lower after the customs , with indian market value more than 30% than anti dumping duty will get imposed by customs.

- customs works for safeguard of indian market, so that nobody can dump the sub standard materials to indian market, so they rationalize the imported goods with indna market with reasonable trade practice.

Your replies would definitely help me.

Warm Regards,

Franklin

franklin

26 Points Joined April 2011

Thank you Sir.

Now are there any agents/companies that I can approach I can approach that will help me get all these clearance? Like approaching the drug controller etc.

Also, I didnt understand what you meant by policy clearance. Also are there any documents that I can read specifically to whey protein imports or BCAA's imports?

I am currently looking to do this from home- will I still need a trade license?

And for VAT, according to the maharashtra govt, I need to register for VAT only if I import goods mroe than 1 lac rupees.

Any other assistance would be greatly appreciated.

Warm Regards,

Franklin

Originally posted by : U S Sharma

Originally posted by : franklin

Hi,

I am a young entrapraneur, I am about to start a sole propreitorship firm.I wish to import protein/bodybuilding supplements from abroad in bulk and resell them here in smaller packs.

I have a few queries.

I will open a current account with a bank and get a IEC code for importing. Is there anything else that I need to do?

- for establishment, u need trade licence, Profession Tax Enrollment, VAT/CST registration

- as these are drugs / foods , u need police clearence, premission of drug controller

- if the item is under excise then repacking will amount manufacture and u will be levied excise duty .( 150 Lacs exemption u can avail every year)

My imports will be in small quanities and the total value will not exceed 2-3 lacs/yr initially.

Now, I beleive proteins supplements attract 33.4% excise +other taxes, r there any other taxes?Also, will the customs create problems for me? Ive heard that there is a lot of red tapism involved.

- on mere belive dont calculate the duty + taxes, get a proforma invoice from the vendor ( exporter) and visit the PRO of customs house in your city, he will furnish u clear idea of duties from customs side,

- apart from customs, u need to pay CVD+ VAT+ port charges+ C&F

- if the valuation is lower after the customs , with indian market value more than 30% than anti dumping duty will get imposed by customs.

- customs works for safeguard of indian market, so that nobody can dump the sub standard materials to indian market, so they rationalize the imported goods with indna market with reasonable trade practice.

Your replies would definitely help me.

Warm Regards,

Franklin

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

for any edible product where the packing is done other than manufacturer, police licence is must ( its not policy clearence), coz if any health damaging element is found in it, or anybody get sick by consuming it, then who would be liable for it?

for agents you have to get in touch with local chemist shops they have such licences and they would surely help u.

franklin

26 Points Joined April 2011

Originally posted by : U S Sharma
	for any edible product where the packing is done other than manufacturer, police licence is must ( its not policy clearence), coz if any health damaging element is found in it, or anybody get sick by consuming it, then who would be liable for it? for agents you have to get in touch with local chemist shops they have such licences and they would surely help u.