import documentation · an enquiry is a written request from the intending buyer or its agent for...

IMPORT

DOCUMENTATION

Dr.S.Thilaga/BA5060/EXIM Management/Unit III

Import trade refers to the purchase of

goods from the foreign country.

The procedure for import trade differs

from country to country, depending upon the

import policy, the statutory requirements

and customs of different countries.

In almost all the countries of the world

import trade is controlled by the government

.


TRADE ENQUIRY

PROCUEMENT OF IMPORT LICENCE

OBTAINING FOREGIN EXCHANGE

PLACING THE INDENT

DISPATCHING A LETTER OF CREDIT

OBTAINING NECESSARY DEOCUMENTS

CUSTOMS FORMALITIES AND CLEARING OF

GOODS

MAKING THE PAYMENT


An enquiry is a written request from the intending buyer or its agent for information regarding the price and terms on which the exporter will be able to supply goods.

-quantity

Price

Trade Terms

Payment Terms etc


A person or a firm cannot import goods into India without a valid import license.

10 digit

General or specific license.

Custom Coy & Foreign Exchange Copy


Freely imported

Restricted Item

Prohibited Item

Cannalised Item


Importer has to make payment for imports in the

currency of exporting country.

The foreign exchange reserves of any country are

controlled by Government and are released through

its central bank.

In India, the exchange control department of

Reserves Bank of India deals with the foreign

exchange.


The importers has to submit an application in the prescribed form along with the import licence to any exchange bank as per the provisions of exchange control act.

Scrutinizing the application on the basis of exchangepolicy of government of India in force at the time ofapplication.

Reserve Bank of India sanctions or reject the release offoreign exchange.


The order is known as Indent. It contains the instructions from the importer so as to the quantity and quality of goods required, methods for forwarding them.


Exporter wants to be sure that there is no risk of non-payment. Usually for this purpose he asks the importer to send a letter of credit to him. A letter of credit is popularly known as L/C.

. Parties..Applicant, Issuing Bank, Beneficiary,Advising Bank, Confirming Bank, NegotiatingBank etc.


On the receipt of letter of credit the exporter arrange for shipment of goods and sends an advice note to the importer immediately after the shipment of goods.

The exporter then draws a bill of exchange on the importer for the invoice value of goods.

The shipping documents such as the bill of lading, e, insurance policy certificate, certificate of origin, customer invoice etc. also attached to the bill of exchange.


Such bill of exchange with all these attached documents is called documentary bill.

Documentary bill of exchange is forwarded to the importer through a foreign exchange bank which has a branch or an agent in the importers country for collecting payments of the bill.


1. File Bill of Entry with Business Identification

Number.

2. Determine Rate of Duty for Clearance from

Warehouse

3. File Requisite Documents with Custom

Department.

4. Submit Import Report/ Manifest

5. Receive Permission to import Goods


Original and Duplicate to Custom

One copy for importer

One copy for bank

One for Remmitance


Bill of Entry for Home Consumption

Bill of Entry for Housing

Bill of Entry for Ex Bond Clearance


Commercial Invoice cum Pack List

Bill of Lading/ Airway Bill

Import Licence

Insurance Certificate

Purchase order/ Letter of Credit

Technical Write up/Literature for special Goods


Industrial License, if any

Registration cum Membership Certificate

Test Report ,if required

Central Excise Document

DEPB/ECGC or other document


The mode and time of making the payment is determined according to the terms and conditions as agreed to earlier between the importer and exporter, usually 30 to90 days are allowed to the importer for making the payment of D/A and D/P bills.


Last step in import procedure is closing the

transaction. But if he is not satisfied with the quality

of goods he will write to the exporter and settle the

matters.

Incase the goods have been damaged in transit the

insurance company will pay him the compensation

under an advice to the exporters.

….It is done by submitting the relevant documents to

Custom


Basic Duty

Preferential and standard

. Countervailing Duty /Additional Custom Duty (Equal to Excise) (Highest)

. Aditional Duty (Equal to VAT)

. Anti- Dumping Duty

. Countervailing Duty on Subsidies Items (No in case of Research )

.


Safeguard Duty

Protective Duties

Education Cess and Higher Education Cess on Custom Duty


Commission and brokerage;

Cost of container;

Cost of packing

labour or materials;

Materials, components, tools, etc.

Royalties and license fees;

Subsequent sales;

Other payment; Cost of transport up to place of importation;

Landing charges – Insurance
