5. 4.Placing order or indent
The importer places an order with the
exporter for the supply of specified goods
Order contains
price,quality,quantity,packing,delivery,mode
of payment etc,
6. 5.Obtaining letter of credit
A letter of credit is a guarantee issued by
the importer’s bank that it will honour up
to a certain amount of export bills to the
bank of the exporter.
7. 6.Arranging for finance
The importer arranges for the funds in
advance to pay the exporter on arrival
of goods at the port.
8. 7.Receipts of shipment advice
The overseas supplier after loading the goods
on the ship dispatches the “shipment advice”
to the importer
9. 8.Retirement of import documents
The various documents delivered to importer along
with bill of exchange known as the documentary bill
of exchange.
10. 9.Arrival of goods
• When the goods arrive in the
importer’s country, the person in
charge of the carrier informs the
officer in charge at the dock about it.
11. 10.Customs clearance and
release of goods
Imported goods are subjected to
customs clearance.
The importer appoints a carrying and
forwarding agent for fulfilling these
formalities.
