business connection is not determined by nature of transaction, but it is determined by, amongst other factors, presence of the foreign entity, in india.
Now, if it happens that the foreign entity has business connection or place of business in india, and through that it carries out business in india, than situation will be tricky.
Because next question to be determined is, whether the profit arising to that foreign entity from the transaction of import of goods by your client, can be said to be "attributable" to indian location? if yes, than even in case of plain transaction of import - principal to principal basis, one will have to visit AO for determination of attribuatable profit to Biz connection / PE and accordingly determine appropriate rate of tax for Deduction.
so it will of vital importance to determine, whether the foreign entity has nay biz connection / PE in india or not. Taxability and Deductability can be looked at thereafter.