How to Ship Electronics from the USA to India: A Guide for Businesses

There are several things to consider when shipping electronics from the USA to India, including:

• The restrictions or complications on importing various electronic items in India (e.g., protected brands, used equipment, and end-use restrictions are all relevant when shipping from the USA to India).

• The shipping options available to you, from a transportation perspective, such as using hub-and-spoke courier companies like FedEx or DHL or using direct freight methods.

• How to properly declare exports in the US.

• How to properly declare imports in India.

Many multinational enterprises trust our team at FGX to deliver best-in-class, seamless, global IT shipping solutions for their infrastructure. We provide coverage to 174 countries with a 99.98% customs clearance and delivery success rate, even to challenging countries like India, Brazil, and China. We enable your business to:

• Export from a centralized location, meaning you can order from different distributors and value added resellers and consolidate all of your shipments with us so you have just one point of contact.

• Ensure your shipments are compliant with international shipping regulations and incur the lowest costs in duties and fees.

• Be hands-off. FGX manages your entire shipment for you, from documentation to ensuring compliance and secure transportation.

• Structure your shipments to drive optimal business outcomes for your company, such as being able to act as your own Importer of Record so that you can reclaim import tax wherever eligible.

Please reach out if you’re interested in learning more, or continue reading to learn how to ship electronics from the USA to India.

How to Ship Electronics from the USA to India (Key Things to Consider)

Are Your Products Brand Protected?

Some manufacturers (brands) have arrangements with Indian customs to create stricter controls around the import of their products. Basically, this means that Indian customs won’t allow you to import the brand’s products without authorization from the brand.

This is especially important for large shipments of branded products. If you’re only importing a few items (especially if they’re personal items for personal use), Indian customs may just let it go through — though it depends entirely on the situation and how fastidious the India customs officer inspecting your shipment is.

But large shipments of products from a protected brand will get flagged. We’ve seen this issue come up frequently with Apple products, such as iPhones and Macbook laptops.

If you’re shipping a protected brand, you’ll need a letter of authorization from the manufacturer. But this is not always possible or feasible to get, as the process of getting one means more time without the equipment you need.

At FGX, we help our clients figure out if the brands they’re looking to ship have potential permission issues prior to export. If they are, we can help them get a letter of authorization from the manufacturer or help them find an alternative device with fewer restrictions.

Is the Equipment New or Used?

Often our clients ask about the potential to ship their used or refurbished equipment into India. While importing used electronic devices into India isn’t banned outright, the process is so tedious and is ridden with rules that we consider it to be “effectively banned.”

The Indian government places tight restrictions on second-hand equipment and capital goods (a broad term that encompasses many different types of physical assets and parts of machinery). In some cases, these restrictions are designed to promote growth in various sectors of the Indian economy — for example, India is considering using heavy customs duties and bans on second-hand medical devices to quadruple the size of India’s medical device industry by 2030.

Regardless of the reason, many categories of second-hand goods are classified as restricted items. To import these products for commercial purposes, you must:

• Submit a petition to the Ministry of Environment and Forests for the specific type of import authorization required for your used goods. They review what you’re importing and why, then grant approval based on their review. Receiving approval is rare — for reference, only 10 shipments have been granted this approval in the past 20 years.

• Complete/provide the other paperwork required to import second-hand electronic gadgets, such as a Foreign Exchange control form, Bill of Lading, Certified Engineers Report, Inspection Report, product manual, and more.

Bottom line: The process and requirements for importing used electronics is so complex and restrictive that it is effectively not an option.

What Logistics Solutions Will You Use?

When you’re shipping electronics from the USA to India, there are three broad categories of solutions you can use:

• Hub-and-spoke couriers

• Freight forwarders

• Direct shipping with a logistics company like FGX

Hub-And-Spoke Courier Services

Hub-and-spoke couriers — such as traditional shipping providers like FedEx, Parcel Monkey, DHL, USPS, etc. — have a shipping infrastructure in place that they use to ship all types of goods internationally.

Couriers use a hub-and-spoke system because it’s incredibly efficient and cost-effective – it lets companies and individuals send goods across the globe. 

But there are multiple drawbacks for businesses that are shipping high-value electronics. With a hub-and-spoke model, your shipment will be just one of many other shipments along their routes, which introduces opportunities for your equipment to get lost or damaged. Also, from a customs clearance perspective, you have very little control over how it’s managed and what happens when issues come up.

Couriers also limit your flexibility in terms of how and when your products are delivered. You can’t give them any special instructions for your shipments (such as inside delivery vs. loading dock delivery). And they may not declare your equipment properly, which can lead to heavier import duties and other charges.

Freight Forwarders

Freight forwarders can offer a bit more specialization when it comes to shipping, but you have to provide the details and blueprint. 

When it comes to crafting a global IT logistics solution, they serve more as a tool instead of a solution.  You instruct a freight forwarder on how you want your products to be shipped, and they put the shipment together according to your specifications. You have to tell them exactly what to do and how, which is a non-starter for shipping IT products globally, as you likely don’t know what to tell them. Even if you’re savvy enough to use them as a tool, working with a provider that doesn’t have global IT logistics expertise creates many operational problems. See our article on whether you should use an IT specific logistics company.

Shipping and Logistics with FGX

At FGX, our premier solution is our global IT shipping service.  We provide a streamlined shipping service to efficiently (and cost-effectively) get your electronics from the USA to India.

Unlike couriers and freight forwarders, we send all of our shipments using direct airfreight. Your shipment won’t be placed in a stack of other deliveries, which reduces transit time and minimizes the risks of loss or damage.

We have a private global supply chain that’s streamlined and optimized for fast, cost-effective deliveries. You can order equipment from multiple resellers, have them deliver the equipment to us to consolidate your equipment, and then ship the hardware whenever is best for your team.

Clearing Customs in India: 7 Export and Import Compliance Requirements You Should Know

When shipping electronics from the USA to India, clearing customs isn’t straightforward. And incorrectly declaring your shipments can lead to:

• Fines

• Extra duties being levied on your goods

• Delays or rejection of your shipment

• (For repeat/egregious offenses) Your export license being revoked

In this section, we’ll cover 7 major compliance requirements you need to know when exporting your goods from the US and importing them into India. But please that this is not an exhaustive list – and it’s a list that can change. 

1. Automated Export System Filing

The Automated Export System is the US system for collecting, processing, and storing Electronic Export Information (EEI) from people or entities who export goods from the United States, Puerto Rico, or the Virgin Islands.

If the value of your shipment is greater than $2,500 [by Schedule B number] or if the equipment falls into a “controlled product” category, then you will need to file your EEI with the AES and get an Internal Transaction Number for your shipment.

When preparing your shipment, start by answering the following questions:

• Is the value of the shipment greater than $2,500 [by Schedule B number]?

  • Schedule B number is the US export “HS Code” or tariff classification for each item in your shipment. Once the items have been classified you’ll need to subtotal the item values by Schedule B number to see if any subtotals are greater than $2,500

• Are the products I’m shipping considered “controlled products”?

  • You will need the ECCN number of the items in your shipment or any other identifying control number that may apply

There are certain products that the US government classifies as controlled products. These are products that the government wants to keep track of, especially if they’re being delivered to certain destinations, to ensure they’re not being used for nefarious purposes or fall into the hands of sanctioned parties.

If your answer is no to both questions, then you can proceed with your shipment (but we recommend contacting FGX for help as there are many factors to consider). If your products are controlled, then you may need to get a license (which is discussed next) or a license exemption for the shipment (where applicable).

2. Export Control Classification Number [ECCN]

Encrypted devices are one of the classes of products the US government likes to keep eyes on, as these devices can potentially be used by bad actors to engage in and conceal bad conduct.

Most encrypted equipment will have an Export Control Classification Number, which you must include in your export declaration. Whether or not you need a license to ship the product (and what kind of license you need) will be determined by the product’s ECCN, the delivery destination, and the intended use. For example, when delivering laptops to most countries, you do not need an export license.

There are several ways to get the ECCN for your equipment:

• Ask the manufacturer: If you don’t know your product’s ECCN, you can reach out to the manufacturer.

• Use a database: At FGX, we have a database of ECCNs for controlled equipment. This saves time and enables you to avoid reaching out to manufacturers yourself to obtain it from them.

3. Harmonized System Code

The Harmonized System is a standardized method for classifying traded products that customs authorities use to identify products for the purposes of assessing duties and gathering statistics. While the World Customs Organization administers and updates the HS system, the HS code for your products may be different in the US and India.

You must identify the HS code for your products (according to the category that’s closest to your products) and declare it in your shipment. It’s important that you select the correct HS code according to India’s system, as they use the HS code is used to determine:

• How much you must pay in import duties

• Whether your product requires a BIS certificate (discussed further in the next section) or another compliance certification

• Whether your product is subject to any other regulations

If you don’t provide the correct HS code, you’ll leave the shipment open to interpretation at Indian customs. In other words, the Indian customs clearance  officers will determine where your shipment falls in the HS Code category, which can result in you paying more in import duties (potentially thousands of dollars more) or having your shipment rejected for noncompliance.

4. Bureau of Indian Standards Certification

The Bureau of Indian Standards is the governing body in India that determines the compliance standards for anything that plugs into the Indian power grid (among other things). For most electronic equipment, certification with the BIS is compulsory.

Before sending out your shipment, you should:

• Check to ensure your products are BIS certified

• Apply for BIS certification if the products are not certified (however typically only the device manufacturer is in a position to do this)

If certification with BIS is compulsory for your products and they do not have a BIS certificate (which is determined by the product's HS code), then Indian customs will not allow the shipment to clear.

5. Telecom and Wireless Certifications

Telecom and wireless devices require  certifications to clear Indian customs. If your shipment includes any device that connects to a wired LAN, WAN or wireless network, you must ensure each product has the  appropriate certification in place, in advance of shipping. Devices such as switches, routers, and firewalls will typically require a TEC Certification, issued by the MTCTE department. Any device with WiFi or Bluetooth capability will also need a certificate issued by the WPS department.

6. Choosing/Assigning Incoterms

Incoterms are a set of 11 internationally recognized rules which define the responsibilities of sellers and buyers in international transactions — i.e., who is responsible for:

• Paying for and managing the shipment

• Insurance

• Documentation

• Customs clearance

• Other logistical activities

7. Packaging, Labeling, and Commercial Invoices

To ensure your shipment clears customs as quickly and cost-effectively as possible, you must optimize how it’s packaged and labeled.

During the FGX Manifest we inspect your shipment as if we were a customs officer at the delivery destination to get ahead of any potential issues. Given our decade plus experience importing IT globally, we’ll often know the majority of what they’re looking for (customs rules and regulations are always in flux.) For example, as we discussed earlier, India places heavy restrictions on used equipment. If you’ve opened or damaged the packaging for the products you’re shipping, an Indian customs officer might flag your shipment for further inspection — which will delay your delivery or have it held indefinitely.

To help customs officers verify your shipment, you should also make sure the commercial invoice clearly and properly lists the:

• HS code(s)

• ECCN or other control numbers (where applicable)

• Incoterms

• Exporter of Record (Seller)

• Importer of Record (Buyer)

• Fair market product value

• Shipment dimensions & weight

Even from a tactical documentation level, many businesses don’t know how to properly construct a commercial invoice, such as what templates to use and where to place information. After handling thousands of shipments to India and other countries, we’ve become experts at managing the overall project while executing the details.

Use FGX as Your Holistic Shipping and Logistics Partner

As this guide demonstrates, shipping electronics to India requires navigating a complex web of compliance requirements and shipping processes. Rather than handling this yourself or outsourcing to inefficient couriers and freight forwarders, you can work with FGX on a shipment-by-shipment basis.

FGX provides a turnkey, door-to-door IT shipping service that manages every aspect of the international logistics process. Our shipping expertise and private supply chain enables us to navigate the international shipping process as quickly and seamlessly as possible on your behalf.

When it comes to shipping electronics to India, we can provide you with:

• Consultation: Working with FGX begins with a consultation where we work to understand exactly what outcome you want to accomplish and present you with the best options for doing so.
  
  

• Providing accurate shipping options, quotes, and timelines: We’ll help you determine the best method for delivering your shipment to its destination, with accurate quotes and low variance timelines on the cost and timeline of delivery. We provide quotes on a shipment-by-shipment basis, so you’re not locked into any contracts and you can scale up or down as needed.
  
  

• Exporter of Record services: Due to US laws that require exporters to have a fiduciary or monetary connection with the goods being exported, we can’t act as the EOR for your shipment. But we can help you ensure that you’re EOR compliant — such as understanding the rules for EOR compliance, filing under your name with your tax ID, and obtaining any primary source info (e.g., reaching out to manufacturers or speaking with compliance attorneys).
  
  

• Preparing your shipment: Before we send anything out, we ensure we understand all of the rules and requirements for exporting your products. We acquire and prepare all of the documentation and licenses needed, perform all of the necessary compliance work (as described in this article), and act as the Importer of Record for your shipment. This ensures your shipment clears customs as quickly and seamlessly as possible, while reducing risks, shipping costs, and uncertainty.
  
  

• Dedicated shipments through our private supply chain: We’ve developed a streamlined private supply chain that’s optimized to ship products to their destination as quickly and seamlessly as possible. We ship your equipment to its destination’s port of entry via direct air-freight, and ship it to the final destination via direct drive (providing you with proof of delivery).
  
  

• Structuring the transaction: We can help you structure your purchase and shipping transaction exactly as you want it to occur , and employ cost-savings measures wherever possible.

And while we provide you with excellent customer support and full insight into everything we do on your behalf, we can perform all of these services with minimal input and effort required from you. In 99% of shipments, FGX is able to manage the entire process with zero interaction from our clients.

Many multinational enterprises trust FGX to deliver a best-in-class, seamless, global IT shipping experience for their IT hardware. Please reach out if you’re interested in learning more.