2. Import trade refers to purchase of
goods from a foreign country.
Import procedure differs from country
to country depending upon the
country import and custom policies.
3.
4. 1.Trade inquiry
2.Procurement of import license
3.Obtaining foreign exchange
4.Placing order or indent
5.Obtaining letter of credit
5. 6.Arranging for finance
7.Receipt of shipment
advise
8.Retirement of import
documents
9.Arrival of goods
10.Custom clearance and
release of goods
6.
7. •Trade directories
•Trade
associations and
organizations
Gather information
about the countries
and firms which
export the given
product
• Trade enquiry: A trade
enquiry is a written request
by an importing firm to the
exporter for supply of
information regarding the
price and various terms and
conditions
The importing firm
approaches exporting
firm with the help of
trade enquiry
8.
9. A Performa invoice is a document that
contains details as to the quality,
grade , design, size,
weight and price of the
export product and the
term and conditions on which
their export will take place.
10. Certain goods can be imported
free while other need licensing
For this the importer need to
consult the Import Export policy.
In case goods can be imported
only against the license , then the
Importer needs to procure an
import license
11. In India , it is obligatory
for every importer
/Exporter to get
registered with the
Directorate General
Foreign Trade
(DGFT)/Regional import
Export Licensing
Authority.
It is also obligatory
to obtain an Import
Export Code (IEC)
number. This
number is required
to be mentioned on
most of the import
documents.
12. In India all foreign exchange
transactions are regulated by the
Exchange Control Department of
the RBI
Every importer is required to
secure the sanction of foreign
exchange.
13. For obtaining such a sanction ,
the importer has to make an
application to a bank
authorized by RBI to issue
Foreign Exchange
After proper scrutiny of the
application, the bank sanctions
the necessary foreign exchange
for the import transaction.
14. The import order should be carefully drafted to avoid
any conflict between the importer and exporter.
The import order contains information about the price, size, grade and the
quality of goods ordered and the instructions relating to packing , shipping,
ports of shipment and destination, delivery schedule , insurance and mode
of payment.
Import order or Indent:
After obtaining the import license , the importer
places an import order or Indent .
15. If the payment terms agreed between
the importer and the overseas supplier is
a letter of credit, then the importer
should obtain the letter of credit from its
bank and forward it to the overseas
supplier.
Letter of Credit: A letter of
credit is a guarantee issued by the
importer’s bank that it will honour
payment up to a certain amount of
the Export bills to the exporter.
The exporter wants this
document to be sure that
there is no risk of non
payment.
16. 1.Trade inquiry
2.Procurement of import license
3.Obtaining foreign exchange
4.Placing order or indent
5.Obtaining letter of credit
17. The importer should make arrangements
in advance to pay to the exporter on
arrival of goods at the port.
Advanced planning for financing imports is
necessary so as to avoid huge penalties on
the imported goods lying uncleared at
the port for want to payments
18. After loading the goods on the
vessel, exporter dispatches the
shipment advice to the
importer.
A shipment advice contains
information provided in the
shipment of goods.
The information provided in the shipment
advice includes details such as invoice
number, bill of lading/airway bill number and
date , name of the vessel with date, the port
of export, description of goods and quantity
and the date of sailing of vessel.
20. • The bill of exchange accompanying
the above documents is known as
the documentary bill of Exchange.
Documentary
Bill of
Exchange
• Documents against payment (Sight
Draft)
• Documents against acceptance
(Usance Draft)
Types
•The drawer instructs the bank
to hand over the relevant
documents to the importer
only against payment.
Sight Draft
21. • The drawer instructs the
bank to hand over the
relevant documents to the
importer against acceptance
of bill of exchange.
Usance Draft
• The acceptance of bill of
exchange for the purpose
of getting delivery of the
documents is known as
Retirement of import
Documents
Retirement
of import
documents
• Once the Retirement is over ,
the banks hands over the import
documents to the exporter.
22. The person in charge of the carrier
(ship/Airway) informs the dock officer
or the airport about the arrival of
goods in the importing country
Import general manifest is a document
that contains the details of the
imported goods. It is the document on
the basis of which unloading of cargo
takes place
The person in charge of the carrier
provides the document called import
general manifest to dock officer.
23. 1
• The importer has to obtain delivery order
2
• This order entitles the importer to take the
delivery of goods. Shipping company give the
delivery order on the back of bill of lading.
3
• The importer has to first pay the freight
charges (If not paid by exporter) before he or
she can take possession of goods.
24. 4 Payment of
dock dues and
obtain port trust
dues receipt
• The “landing and Shipping
Dues Offices” levies a
charge for services of dock
authorities which has to be
borne by the importer.
25. 5
• The importer then fills in a
form ‘bill of entry’ for the
assessment of customs
import duty.
6
• The importer procures the
said document prepared
by the Custom officer and
pays the duty. If any
26. 7
• After payment of import duty ,
the bill of entry to be
represented to the dock
superintendent.
8
• The importer or his agent
presents the bill of entry to
the port authority.
• After receiving necessary
charges, the port authority
issues the release order.
27. Trade Enquiry
Performa invoice
Import Order Or Indent
Letter of Credit
Shipment Advice
Bill of Entry
Bill of Exchange
Sight Draft
Usance Draft
Import General Manifest
35. This Document is
prepared by the
importer and it shows
the details of goods
imported and is used
by the custom
authorities to
determine import duty
37. It is a written request by
the importer to the
exporter to provide
information regarding the
price, terms and
conditions on which the
exporter will be able to
supply goods.