Import is a very important function of our economy. It is one of the most regulated sectors of our economy. Let us understand the in-depth import procedures and their important documentation.
- The initial step engaged in importing a product is to accumulate information about the nations and firms which send out the item required by the exporter. It can be accumulated from trade directories, trade organizations, and associations. The exporter readies a quotation otherwise called Performa Invoice and sends it to the importer.
- The Importer Consults the export-import (EXIM) Policy in power, all together to know whether the merchandise that he/she needs to import are subjected to import licensing or not.
- In the situation of an import transaction, the provider resides in a foreign nation and subsequently requests the installment of foreign cash. This includes the trade of Indian Currency into foreign money. The Exchange Control Department of the Reserve Bank of India (RBI) manages foreign trade exchange in India. According to rules, each merchant needs to secure the sanction of foreign trade.
- The importer puts in an import request or indents with the exporter for the supply of merchandise. The request contains information with respect to cost, quality, quantity, size and grade of goods instructions with respect to packaging, delivery shipping, a method of payment and so on.
- At the point when the payment terms concur between the importer and the overseas provider, the importer gets the letter of credit from its banker and forwards it to the overseas provider.
- The importer arranges for money in advance to pay the exporter on arrival of goods at the port this empowers the importer to avoid huge penalties on the imported goods lying uncleared at the port for the need of payment.
- The overseas supplier after loading the merchandise on the ship dispatches the “Shipment Advice” to the importer. It gives information with respect to the shipment of goods like receipt number, bill of lading/airway bill, the name of the ship with date description of merchandise and amount and so forth.
8. After dispatching the merchandise, the abroad exporter hands over the different documentation like an invoice, bill of lading, insurance certificate of origin to his banker for their forward transactions to the importer when he receives the bill of exchange drawn by the provider. The acknowledgment of a bill of exchange by the importer to get a confirmation of delivery is known as the retirement of import documents.
9. At the point when the sent merchandise comes in the importer’s nation, the individual accountable for the merchandise conveys the officer in control at the dock or the airport about it. The individual responsible for the ship or airway gives the report with respect to import.
10. Imported merchandise are subjected to customs which is an exceptionally extensive process and includes a considerable time to complete. The importer more often than not appoints a C&F operator for completing these customs.
Essentially, the merchant acquires a delivery order which is otherwise called an endorsement for delivery. This order allows the importer to take to take the delivery of merchandise subsequent to pay the cargo charges.
Importer likewise needs to pay dock dues for getting port trust dues receipts for which he submits two duplicates filled in the form is known as “application to import” to the Landing and “Delivering Dues Office”. Subsequent to paying dock dues the importer gets back one copy of the application as a receipt which is called as ‘port trust levy receipts’.
At long last, the importer fills in a frame known as ‘bill of entry’ for appraisal of customs import duty. An inspector inspects the merchandise and gives his report regarding the bill of entry. This bill is then introduced to the port administration which on getting the important charges, issues the discharge arrangements.
Browse more Topics under International Business
- Introduction to International Business and its Benefits
- Contract Manufacturing, Licensing and Franchising
- Importing and Exporting
- India’s Involvement in World Business
- Joint Ventures and Wholly Owned Subsidiaries
- Export Procedures and Documentation
- Foreign Trade Promotions: Incentives and Organisational Support
- International Monetary Fund (IMF) and World Trade Organisation (WTO)
- International Trade Institutions and Trade Agreements
Documents Used in an Import Transaction
- Proforma Invoice: It is a record that contains points of interest with regards to the quality, review, design, mass, weight, and cost of the exported merchandise and the terms and conditions on which their transportation will occur.
- Import order or Indent: It is a documentation in which the importer orders for supply of imperative merchandise to the supplier. The order containing the data, for example, amount and nature of merchandise value, a technique for sending the merchandise, packing process, method of payment and so forth.
- Shipment counsel:– The exporter sends shipment advice to the importer for telling him that the merchandise has been dispatched. It contains invoice number, bill of lading/airway bill number and date, the name of the vessel to date, the port of export, description of products and amount and the date of cruising of the vessel.
- Bill of lading:– It is readied and marked by the captain of the ship recognizing the receipt of merchandise on board. It contains terms and conditions on which the products are to be taken to the destination.
- Bill of entry:– It is a form provided by the customs office to the importer who filled it at the duration of getting the merchandise. It must be in triplicate and is to be submitted to the customs office.
- Letter of credit:- It is a document that contains a certification from the importer bank to the exporter’s bank that it is attempted to respect the payment up to a specific sum of the bills issued by the exporter for transportation of the products to the importer.
- Trade Enquiry: It is a written request made by a logistic firm to the abroad provider for giving data in regards to the cost and different terms and conditions for trading merchandise.
Solved Question for You
Q: Which one of the following is not a part of the export documents?
(a) Commercial invoice
(b) Certificate of origin
(c) Bill of entry
(d) Mate’s receipt
Answer: (c) The importer fills ‘bill of entry’ form for the assessment of customs import duty.