Import Industrial Machinery From China

To import industrial machinery from China to India, you have to get four things right before the machine is even built: whether the machine is lawful to import in the form you want, whether it meets the Indian safety standards that now apply to machines, how you will pay for it within the Reserve Bank's rules and how it will be packed and moved. A machine is not like a carton of goods. It costs more, takes longer to build, needs installing and commissioning, and a mistake can strand an expensive asset at a port. This guide sets out ten steps, a table of payment milestones and a document list, using official Indian sources throughout.

For the broader choice of shipping solutions, see international shipping solutions for manufacturing companies. For heavy and oversized loads, see shipping heavy machinery internationally.

Step 1: Define the Machine and Its Classification

Write a precise specification: type, model, capacity, power supply, dimensions, weight and the parts and tooling that come with it. Classify it under the tariff, because the classification decides the duty, the import policy and the standards that apply. Our guide to how product classification affects import duties and compliance explains why.

Step 2: Decide Between New and Second-Hand

India's Foreign Trade Policy 2023 says the import policy in Schedule 1 covers new goods, while second-hand goods are dealt with under para 2.31. Under that paragraph, second-hand desktop computers, air conditioners and diesel generating sets can be imported only against an authorisation. A refurbished or re-conditioned spare for capital goods needs a Chartered Engineer's certificate showing at least 80% residual life of the original spare, and all other second-hand capital goods are free. Electronics and IT goods notified under the 2012 Compulsory Registration Order are restricted, and those that are unregistered or non-compliant are prohibited. Look up the entry for your machine before you negotiate a price.

Step 3: Check the Safety Standards

A PIB release of 19 August 2025 says the Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024, as amended, applies from 1 September 2026 to all machines and electrical equipment listed in its first Schedule. Machines must conform to the corresponding Indian Standards, beginning with IS 16819:2018/ISO 12100:2010 on the safety of machinery, together with the Type B and Type C standards in the Order's schedules. The Bureau of Indian Standards is the certifying and enforcement authority. A PIB release of December 2024 describes the Order as covering over 444 products with 90 safety standards and as intended to discourage substandard imports. Exemptions include goods made domestically for export, construction equipment covered by the Central Motor Vehicles Rules and products covered by other BIS Act orders.

That date has now passed, so ask your supplier and BIS whether your machine is listed and what evidence is needed, and check the Ministry of Heavy Industries page for later changes. Paragraph 2.03 of the Foreign Trade Policy also applies domestic technical specifications and safety norms to imports generally.

Step 4: Plan the Duty and Any Scheme

Customs duty and IGST apply to machinery as to other goods, with the value built as our guide to import duties and taxes in India explains. Three provisions can change the picture:

DGFT's page on the EPCG scheme describes zero customs duty on capital goods for pre-production, production and post-production, and requires an IEC. It lists an installation certificate among the services attached to an authorisation, so plan for it.
Para 2.35 of the Foreign Trade Policy requires a legal undertaking, bank guarantee or bond with Customs before clearance wherever duty-free import is allowed.
Para 2.34 says that lease-financed capital goods do not need any specific permission from DGFT.

Take advice on whether a scheme suits you before you sign the contract, because the conditions bind you afterwards.

Step 5: Verify the Supplier and Write the Contract

The Embassy of India in Beijing's advisory for Indian SMEs recommends verifying the credentials of the Chinese entity, using a letter of credit, escrow or bank guarantee for high-value contracts, appointing an independent inspection agency, carrying out a physical inspection at the point of loading, naming the clearance documents in the contract and including an arbitration clause. For machinery, add terms of your own: a factory acceptance test with agreed criteria, the spares and tooling list, the warranty, the installation and commissioning support and what happens if the machine fails the test. See how to find reliable suppliers in China.

Step 6: Structure the Payments Within RBI Rules

The Reserve Bank's Master Direction on Import of Goods and Services matters more for machines than for small goods. For an advance remittance above USD 200,000 or its equivalent, it asks for a standby letter of credit or bank guarantee, with a waiver up to USD 5,000,000 for an importer other than a public sector body that cannot obtain a guarantee from the supplier and satisfies the bank about its track record. For advances, physical import is expected within six months, or three years for capital goods, from the date of remittance, and where payment is made in milestones the date of the last remittance is the reference. Deferred payment arrangements of up to three years for capital goods are treated as trade credits under a separate direction. After import, the bank needs the bill of entry details as evidence of import.

A made-up milestone plan shows how the terms fit together.

Milestone	Share of price	Protection
Contract signed	20%	Bank guarantee or standby letter of credit if the advance is large
Factory acceptance test passed	40%	Inspection report from an independent agency
Shipment, against documents	30%	Transport document and certificates
After commissioning	10%	Held until the machine performs as agreed

Step 7: Plan the Packing and the Move

Heavy machines are packed, lifted and secured, not simply loaded. The CTU Code asks for a packing plan where needed, securing suited to the cargo and the mode, loads within payload limits and the centre of gravity correctly located. Compare the machine's dimensions with the container. A Maersk equipment specification sheet lists a 20-foot standard dry container with a maximum payload of 28,200 kg, an internal width of 2,350 mm, an internal height to load line of 2,393 mm and a door opening 2,274 mm high, so a machine taller than that needs an open top or flat rack or a breakbulk shipment. Our guide to what breakbulk shipping is explains the alternative.

Step 8: Clear Customs Correctly

You need an active IEC. The bill of entry is presented under Section 46 of the Customs Act, 1962, and Section 46(4A) makes the importer responsible for the accuracy of the declaration. Prepare the documents in Step 10 early, and describe the machine precisely, including its model, capacity and accessories. See customs clearance in India step by step.

Step 9: Prepare the Site and the Inland Move

A machine that arrives at the port is not yet in production. Confirm the route from the port to the plant, the lifting equipment on arrival, the foundation, the power supply and the access for the delivery vehicle before the vessel sails. Ask your forwarder about any permission needed for an oversize or overweight road move.

Container yard with stacks of colourful containers and a truck carrying a container — The move does not end at the quay: the inland leg and the plant need planning before the vessel sails. Photo: 雙 film on Unsplash

Step 10: Install, Commission and Keep Records

Inspect the machine on arrival, note damage on the paperwork and photograph it. Install under the supplier's supervision, run the commissioning tests against the contract and sign off only when they pass. Keep the installation certificate, the test records, the standards evidence and the customs papers, which any scheme or authority may later ask for.

A Machinery Import Document List

Commercial invoice and packing list, including accessories, spares and tooling.
Bill of lading or air waybill.
The specification, the contract and the factory acceptance test report.
Evidence of conformity with the applicable Indian standards.
Any authorisation or scheme documents.
The IEC and the bank's evidence-of-import requirements.
Insurance for the full value.

Import Machinery With RR Brothers and Logistics

RR Brothers and Logistics handles machinery from China by sea freight, with project cargo planning and customs clearance in India. Send us the machine's specification and we will plan the route and the documents with you.

Frequently Asked Questions

Imports are free unless the ITC (HS) prohibits or restricts the item, and second-hand goods follow para 2.31 of the Foreign Trade Policy, which restricts some items. Check the policy entry and the safety standards for your machine.

The Machinery and Electrical Equipment Safety Order applies from 1 September 2026 to machines and electrical equipment in its first Schedule, with BIS as the certifying authority. Confirm whether your machine is listed and what evidence BIS requires.

Under the EPCG scheme, DGFT says capital goods can be imported at zero customs duty, subject to conditions in Chapter 5 of the Foreign Trade Policy and the Handbook of Procedures. An IEC is required.

The Embassy of India advises a letter of credit, escrow or bank guarantee for high-value contracts. The RBI Master Direction asks for a guarantee for advances above USD 200,000, with a waiver for eligible importers, and expects physical import within three years for capital goods advances.

Use an open top or flat rack container or a breakbulk shipment. Compare the machine's dimensions and weight with the container specification and plan the lifting and securing with your forwarder.

The invoice, packing list, transport document and bill of entry, plus evidence of conformity with Indian standards, any authorisation and the specification, with an active IEC.

Sources

This article is general information, not legal, tax or customs advice. Rules, rates and procedures change; confirm current requirements with the relevant authority or a licensed customs professional before you ship. Regulatory references were checked against the official sources listed above on 26 October 2026.

Image credits: header photo by Sam Moghadam on Unsplash; photo by 雙 film on Unsplash. Used under the Unsplash License.

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How to Import Industrial Machinery from China to India