The document outlines the import procedure, which involves several stages including obtaining licenses and foreign exchange, and arranging payment. Key components of international trade, such as letters of credit and bills of lading, are explained as essential financial instruments that facilitate secure transactions. The process concludes with the payment of customs duties and the delivery of goods.

1. TOPIC: IMPORT PROCEDURE
SUBMITTED TO: MS. MAMATHA . K
ASSISTANT PROFESSOR
DEPT. OF PG STUDIES & RESEARCH IN COMMERCE
SUBMITTED BY: SHREYAS
223878
II nd MCOM

2. IMPORT
PROCEDURES
Here is where your presentation begins

3. IMPORTING :-
Importing refers to purchase of foreign
products for the consumption or sale in
the home country

4. Stages of import process
Preparing documentation and customs processing to
facilitate movement arising countries and organisation

5. Institution which imports goods and services from
foreign country
Private industrialists
Government agencies
Facilitating agencies
End users

6. Stages in import procedure
1.PRELIMINARIES:-
The importing firm or an individual has to obtain a license and
Importer-exporter Code Number from the Controller of Exports and
Imports. The firm can become an established importer by importing
the goods it intends to import during the prescribed period. The
import licenses are usually issued for a period of one year at a time.

8. 2.ENQUIRING AND PLACING THE INDENT :-
After obtaining the import license, the importer has to enquire with various
exporters of exporting countries regarding the goods, he would like to import. Importer
at this stage asks the exporter to send the invoice. The importers may accept the invoice
and send the indent directly to the exporter. Otherwise, they may send the indent through
specialized intermediaries called indent houses.
Indent may be open or closed Open indent does not specify the price and other details of
the goods. The closed indent specifies the brand, price, number, packing. shipping mode,
insurance

9. 3.OBTAINING FOREIGN EXCHANGE
The importer, after sending the indent, has to procure the required foreign
exchange from the Exchange Control Department of the Reserve Bank of India.
He/she has to produce the license and the prescribed forms for securing foreign
exchange which is needed to pay for the import of goods.
Reserve Bank releases the foreign exchange based on the strength of the application,
availability of foreign exchange and foreign exchange policy of the government.

10. 4.ARRANGEMENT FOR PAYMENT
The importer has to make arrangements for paying for imports after obtaining the
foreign exchange.
Documents
Letter of credit indicates that the bank will pay the value of imports to the exporter.
1.Letter of credit
A letter of credit is a financial document issued by a bank on behalf of a buyer
(importer) to guarantee payment to a seller (exporter) for goods or services, provided
the seller meets the conditions specified in the letter. It serves as a secure method of
facilitating international trade, assuring the seller that they will receive payment as
long as they fulfill the terms outlined in the letter of credit, such as delivering the
goods in accordance with agreed-upon instructions.

11. 2.Documentary bill
A documentary bill, often referred to as a documentary draft or bill of exchange, is a
financial instrument used in international trade transactions. It is a written order from
the exporter (seller) to the importer (buyer), demanding payment for the goods or
services specified in the accompanying documents. The term "documentary" indicates
that the bill is linked to specific documents, such as invoices, shipping documents, and
certificates, which provide evidence that the agreed-upon goods or services have been
delivered. The use of documentary bills helps ensure a secure and verifiable method of
payment in international trade.

12. 3.Bill of Exchange /Draft
A bill of exchange is a written directive from an exporter to an importer, outlining
the payment details for goods or services. It ensures transparency and serves as a
formal agreement, offering legal significance in potential disputes. The document's
flexibility in payment terms facilitates negotiations, contributing to the efficiency of
international trade transactions. It functions as a formal agreement, ensuring
transparency in the financial transaction between the exporting and importing parties

14. 4.Bill of Lading :-
In the world of international trade, a Bill of Lading (B/L) acts like a receipt
and a contract. It's given by the shipping company to the exporter, confirming they've
received the goods. The importer's bank, according to the Letter of Credit, collects
documents from the exporter's bank. The importer then gets these documents and waits
for news about the shipping details. If the exporter hasn't paid the freight, the importer
settles it with the shipping company and gets an 'Endorsement for Delivery' on the B/L.
To clear dock dues, the importer presents 'Port Trust Dues Receipts' and the 'Bill of
Entry' to the Port Trust Office. The Bill of Entry is crucial as it officially declares the
specifics of the goods entering the country. So, these documents play a vital role in
ensuring a smooth and transparent international trade process.

15. 5.PAYMENT OF CUSTOMS DUTIES AND TAKING
DELIVERY OF GOODS
When importing goods, the importer needs to pay customs duties, which can
be calculated based on the weight, size, or value of the goods. There's also an option
called the 'Permanent Deposit System,' where the importer keeps an account with the
customs office. They deposit money periodically, and this money is used to cover
the duty when needed. After paying the customs duties, the importer can then
receive the delivery of the goods. It's like settling a bill before getting the purchased
items.

16. THANK YOU