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
PROCUEMENT OF IMPORT LICENCE
OBTAINING FOREGIN EXCHANGE
PLACING THE INDENT
DISPATCHING A LETTER OF CREDIT
OBTAINING NECESSARY DEOCUMENTS
CUSTOMS FORMALITIES AND CLEARING OF
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.
Payment Terms etc
A person or a firm cannot import goods into
India without a valid import license.
General or specific license.
Custom Coy & Foreign Exchange Copy
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
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
Scrutinizing the application on the basis of exchange
policy of government of India in force at the time of
Reserve Bank of India sanctions or reject the release of
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
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
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
2. Determine Rate of Duty for Clearance from
3. File Requisite Documents with Custom
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
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
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
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
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 )
Education Cess and Higher Education Cess on
Commission and brokerage;
Cost of container;
Cost of packing
labour or materials;
Materials, components, tools, etc.
Royalties and license fees;
Cost of transport up to place of importation;
Landing charges –