Supply ChainIndia
AMLEGALS / Services / Supply Chain
Supply Chain

India supply chain and procurement compliance

Vendor qualification and agreement structuring, supply chain due diligence, ESG compliance, customs and export control, quality control and contractual risk allocation for foreign companies sourcing goods and services from India.

Counsel that connects the technical, the commercial, and the legal, across ten offices in India.
BIS
Quality Standards
Customs
Compliance
ESG
Due Diligence
10
India Offices
01

Vendor qualification and agreement structuring

  • Vendor due diligence: corporate status, financial health, litigation history and regulatory compliance verification.
  • Supply agreement: Incoterms selection, quality specifications, inspection and rejection rights, warranty and indemnity.
  • Payment terms: letter of credit, advance payment security, FEMA compliance for outward remittance by Indian vendor.
  • Intellectual property protection: tooling ownership, mould custody, design confidentiality and NDA framework.
02

ESG and sustainability compliance

  • EU Corporate Sustainability Due Diligence Directive (CSDDD) and German Supply Chain Act implications for India vendors.
  • Child labour, forced labour and working conditions audit requirements.
  • Environmental compliance: Pollution Control Board consent, hazardous waste management and environmental clearance verification.
  • BRSR (Business Responsibility and Sustainability Reporting) framework for listed Indian suppliers.
03

Export control and customs compliance

  • Export control classification: SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) list compliance.
  • Customs classification and export duty (where applicable) for goods sourced from India.
  • Certificate of origin for FTA preferential tariff utilisation.
  • Quality Control Order (QCO) and BIS certification for imported inputs used in Indian manufacturing.
04

How AMLEGALS assists

  • Supply agreement drafting and negotiation for India sourcing.
  • Vendor due diligence and ESG supply chain compliance advisory.
  • Export control and customs compliance for India exports.
  • Supply chain dispute resolution and contractual enforcement.
Answers

What clients ask before they commit.

Short, direct, on the record.

01What due diligence should a foreign company conduct on Indian suppliers?

Due diligence should cover corporate status (MCA records, ROC filings), financial health (audited statements, credit reports), regulatory compliance (GST, FSSAI, BIS, pollution control), litigation history (court records, arbitration), labour compliance (EPF, ESI, contractor licensing), IP capability and past export performance. For ESG sensitive supply chains, social and environmental audits are essential.

02Does the EU CSDDD apply to Indian suppliers?

The EU CSDDD applies to large EU companies and their value chains, which includes Indian suppliers in the chain. While Indian suppliers are not directly subject to the Directive, EU buyers will require contractual compliance with human rights and environmental due diligence standards. Non compliant Indian suppliers risk losing EU business.

03What Incoterms are commonly used for India sourcing?

FOB (Free On Board) is common for sea freight where the buyer arranges shipping. CIF (Cost, Insurance and Freight) is used when the Indian supplier handles logistics. For air freight, FCA (Free Carrier) is preferred. EXW (Ex Works) is less common as it places customs and export clearance burden on the foreign buyer. DAP and DDP are used for door to door deliveries.

04How can a foreign company protect its IP when sourcing from India?

Key measures include comprehensive NDA and IP assignment agreements, trademark and design registration in India, tooling and mould ownership agreements with custody clauses, restricted access to technical drawings, source code protection for software components, and periodic IP audit rights. Indian courts grant effective relief for IP violations including Anton Piller and John Doe orders.

Engage AMLEGALS

Discuss supply chain or procurement compliance in India

Share the sourcing type, product category and the compliance concern for a preliminary assessment.

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