India is one of the most extensive and rapidly growing cosmetic markets in the world, with increasing demand for cosmetics products from global brands. If you want to import cosmetics in India, it’s necessary to understand the step-by-step process, legal requirements, and competitive market to ensure your success.
This article covers everything you need to know, including the licensing process, necessary documentation, customs clearance, costs, and more.
Step-by-Step Importing Process Of Cosmetics In India
There are several steps to import cosmetics in India and understanding these steps becomes necessary. Here we have simplified these key steps to import beauty products.
1) Obtain Importer Exporter Code (IEC)
2) Register With CDSCO To Import Cosmetics In India
3) Product Registration with CDSCO
4) Labeling And Packaging Compliance
5) Customs Clearance And Duties
6) Distribution And Marketing
For better understanding we have explained each step below:
Obtain Importer Exporter Code (IEC)
To import cosmetics in India, it is mandatory to have an Import Export Code(IEC) that is issued by the Directorate General of Foreign Trade(DGFT). Obtaining this 10-digit code is required for international transactions.
Register With CDSCO To Import Cosmetics In India
You need to apply for a cosmetics import license to legally import beauty products in India. Central Drugs Standards Control Organization regulates the importation of cosmetics to ensure the quality and safety of beauty products. This process involves applying mandatory documentation to CDSCO. There is a CDSCO cosmetic registration fee associated with the process, that varies depending on the product category. Here are the steps you need to follow to register with CDSCO:
Register as an importer on the SUGAM portal
Fill out the COS-1 form online
Upload the required documents
Pay the government fee and upload the challan
Upload the signed COS-1 form
Submit the COS-1 and other documents to the Drugs Controller General (I), CDSCO, New Delhi
Obtain the COS-2 registration certificate
Product Registration with CDSCO
Each cosmetic product needs to be registered with central drugs standard control organization before importing. This step ensures that the products meet the safety and quality standards. You need to submit a cosmetic product information file, which includes details like manufacturing process, safety data, and product formulation.
Labeling And Packaging Compliance
Make sure that the information such as ingredients, manufacturing date, expiry date, and batch numbers should be mentioned on the label.
Ensure that the product complies with BIS standards and labeling norms
Ensure that the product’s label includes the correct ingredients
Customs Clearance And Duties
Once the beauty products reach India, they need to clear customs. Custom duties, GST, and other taxes must be paid. The customs process can be complicated, so it is recommended to consult with a legal service provider. ELT Corporate Pvt. Ltd. is one of the leading service providers to import cosmetics in India. We empower businesses by handling legal matters on their behalf.
Ensure that the product goes through customs clearance
Pay any import duties
Distribution And Marketing
After customs clearance, your products can be distributed in India. You’ll need a well-defined marketing plan and distribution strategy based on demand and market trends.
Documents Required To Import Cosmetics In India
You’ll need to submit form COS 1 for cosmetic import registration & COS 2 to import cosmetics in India. To fill out these forms you may require the following documents:
- Covering Letter
- Authorisation from the Manufacturer as per the First Schedule
- List of Ingredients/Composition
- Labels of proposed productsÂ
- Specification and testing method for testing of cosmetics.
- Manufacturing LicensesÂ
- Free Sale Certificate
- Non-Animal Testing Declaration
- Application in Form COS-1
- Fee: (Bharatkosh Online Payment)
- Importer Exporter Code (IEC)
- Declaration for Heavy Metal and Hexachlorophene contentÂ
Costs and Taxes Involved in Importing Cosmetics
The cost to import cosmetics in India varies depending on the product type, value, and volume. The key costs involved are as follows:
- Customs Duties: Customs duties are calculated based on the Harmonized System Code of the product. Cosmetics generally fall under a specific category that determines the applicable rate.
- Integrated Goods and Services Tax (IGST): Imported goods are subject to IGST, which is currently set at 18% for cosmetics. This tax is paid upon clearance of the goods.
- Additional Charges: There may be additional charges like customs handling fees, port charges, and storage fees. These costs should be factored into your total import budget.
- Freight and Shipping Costs: Depending on the shipping method (air, sea, or land), shipping costs can significantly impact the overall import costs. It’s essential to choose the most cost-effective and reliable shipping method.
4 Common Mistakes To Avoid When Importing Cosmetics In India
Avoid these common mistakes while importing cosmetics in India:
- Incorrect Labeling: Ensure that product labels comply with Indian regulations. Incorrect labels may cause customs delays and serious fines.
- Lack of Proper Documentation: Omission of necessaNeglecting to provide necessary documents, such as CPIF, test reports, and customs invoices, can hinder your import process.
- Not Understanding Local Regulations: Every country has specific regulations. To prevent compliance issues, get acquainted with India’s cosmetic laws, safety standards, and customs duties.
- Inadequate Market Research: Importing products without assessing market demand can result in excess unsold inventory. Perform comprehensive market research to understand customer interest and purchasing behavior patterns.
Can You Import Cosmetics In India Without License?
No, It is illegal to import cosmetics in India without a license, doing so is not recommended as it may lead to legal and financial consequences. Importing cosmetics products in India without a Cosmetics Importer License from CDSCO can result in product seizures, fines, or penalties for non-compliance.
For those who want to import cosmetics in India online, it is crucial to comply with CDSCO regulations and obtain the required licenses. Online importers must adhere to the same rules as traditional businesses and ensure their products are safe and meet labeling standards.
Who Can Import Cosmetics Into India?
According to the CDSCO regulations an authorized importer, manufacturer, distributor, or Indian entity can import cosmetics into India. It is regulated under the Ministry of Health and Family Welfare. As per the regulations, any individual or entity that wishes to import cosmetics into India must meet certain requirements.
Do I Need A License To Sell Cosmetics In India?
Yes, to sell cosmetics in India you may require a license. It is illegal to operate a cosmetic business without a proper license in India.
How Do I Import Cosmetic Products?
To import cosmetic products, first obtain an import license, ensure labeling & packaging compliance, conduct product testing, register products, and customs clearance.
What Is The Cost Of Cosmetic License In India?
Obtaining a cosmetic license can cost you $10k to $50k, depending on the type of cosmetic license you are applying for.
