Anupam Ashish

LNMI, Patna

Corporate Trainer, Safeducate Learning Pvt Ltd

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 exchange policy of government of India in force at the time of application.

Reserve Bank of India sanctions or reject the release of foreign 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, Negotiating Bank 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/ Manifest5. 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

Thankyou