The document outlines the typical steps involved in an import transaction in India, which include obtaining an import license, foreign exchange, placing an order, obtaining a letter of credit, receiving shipment advice, retiring import documents, customs clearance, and releasing the goods. Key documents include the import license, letter of credit, invoice, bill of lading, packing list, certificate of origin, import manifest, and customs clearance documents. Regulations and procedures can vary by country depending on import and customs policies.

2. 

3.  It refers to the purchase of goods from a foreign
country.
 Import procedure differs from country to country
depending upon the country’s import and custom
policies and other statutory requirements.

4.  Following are the various steps involved in a typical import
transaction for bringing goods into INDIAN territory
 Trade enquiry
 Procurement of import license
 Obtaining foreign exchange
 Placing order/incent
 Obtaining letter of credit
 Arranging for finance
 Receipt of shipment advice
 Retirement of import documents
 Arrival of goods
 Customs clearance and release of goods

5.  The first thing that the importing firm has to do is
to gather information about the countries and firms
which export the given product.
After receiving the trade enquiry, the exporter
prepares a quotation and sends it to the importer.
The quotation is known as the porforma invoice. It
is a document that contains details as to the quality,
grade, design, size, weight and price of the export
product, and the terms of conditions on which their
export will take place

6. • Documents related to goods
a) Export invoice
b) Packing list
c) Certificate of origin
d) Certificate of inspection
• Documents related to shipment
a) Mate’s receipt
b) Shipping bill
c) Bill of lading
d) Airway bill
e) Cart ticket
• Documents related to payment
a) Letter of credit
b) Bill of exchange
c) Bank certificate of payment

7. An Import license is essential to import goods from
a foreign country. A license is issued under import
policy announced every year by the government.
In INDIA, it is obligatory for importer and also
exporter, to get registered with the Directorate
General Foreign Trade (DGFT) or Regional Import
Export Licensing Authority, and obtain an Import
Export Code (IEC) number.

8.  After getting import license, foreign exchange is obtained
from RBI. An application in a prescribed form is submitted
giving details of exchange required.
 In INDIA, all the foreign exchange transactions are regulated
by the Exchange Control Department of the reserve bank of
INDIA (RBI) .
 The application is made in a prescribed form along with the
import license as per the provision of Exchange control Act.
After proper scrutiny of the application, the bank sanctions
the necessary foreign exchange for the import transaction.

9.  After obtaining the import lisence, the importer places an
import order or indent with the exporter for supply of the
specified products.
a) The import order contains
b) information about the price
c) quantity size,
d) grade and quality of goods ordered
e) the instructions relating to packing,
f) Shipping
g) Ports of shipment and destination
h) Delivery schedule
i) Insurance
j) Mode of payment

10.  If the payment terms agreed between the importer
and the overseas supplier is a letter of credit, then
the importer should obtain a letter of credit from its
bank and forward it to the overseas supplier.
 Letter of credit . It is a guarantee issued by the
importer’s bank that will honor payment up to a
certain amount exporter bills to the bank of the
exporter. It is the most appropriate and secured
method of payment adopted to settle international
transactions.

11.  The importer should make the arrangements in
advance to pay to the exporter on the arrival of
goods at the port.
 Advanced planning for financing imports is
necessary so as to avoid huge penalties on the
imported goods lying un cleared at the port for
wants of payment.

12. RECEIPT OF SHIPMENT ADVICE
 After loading the goods on the vessel, the overseas supplier
dispatches the shipment advice to the importer.
 What a shipment advice contains?
 About the shipment of the goods.
Details such as
a) invoice number
b) bill of lading/airways bill number and date
c) name of the vessel with the date
d) the port of export
e) description of goods and quality
f) Date of sailing the vessel

13.  Having shipped the goods, the overseas supplier prepares a
set of necessary documents as per the terms of contract and
letter of credit and hands it over to his/her banker for their
onward transmission and negotiation to the importer in the
manner as specified in the letter of credit
The set of documents contains
a) Bills of exchange
b) Commercial invoice
c) Bill of lading/airways bill
d) Packing list
e) Certificate of origin
f) Marine insurance policy etc.

14. The bill of exchange accompanying the documents
listed above is known as the documentary bills of
exchange.
• Documentary bill of exchange are
of 2 types
a) Documents against payment (sight draft)
b) Documents against acceptance (unsence
draft)

15. Goods are shipped by the overseas supplier as per
the contract. The person in charge of the carrier
(ship or airway) informs the officer in charge at the
dock or the airport about the arrival of goods in the
importing country.
He provides the documents called import general
manifest. It 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.

16. All the goods imported into India have to pass
through customs clearance after they cross the
Indian borders
 Custom clearance is a tedious process and calls for
completing a number of formalities. It is advised
that importers appoint C&F agents who are well
versed with such formalities and play an important
role in getting the goods customs cleared.