IMPORT PROCEDURESININDIA

HOW TO START AN IMPORTThe word import means bringing the goods to India from outside the India.In order to start an Imports is to obtain the Import & Export Code Number(IEC) by making application to DGFT regional office through the website www.dgft.gov.in

PLACING THE ORDERBefore placing the order the importer should ensure the following terms and condition.Name of the Buyer & Seller.Description of the product.Price per unit and Total value.Delivery date of shipment.Terms & Method of payment.

PLACING THE ORDERDocumentation.Arbitration clause.Force merger clause.Claims clause.

PLACING THE ORDERINCOTERMS.Port of shipment.Port of destination.Place of discharge.Taxes & Duties etc.Packing, labelling & marking.Insurance policy.

Commercial Documents(1) Certificate Of Origin:This document serves as a proof of the country of origin of goods for the importer in his country.Imported countries usually require this to be produced at the time customs clearance of import cargo.It also plays an important part in computing the liability and the rate of import duty in the country of import.This certificate declares the details of goods to be shipped and the country where these goods are grown, manufactured or produced.Such goods needs to have substantial value addition so as to become eligible to certification of this nature.

Commercial Documents2) LETTER OF CREDIT 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.OBTAINING NECESSARY DOCUMENTSOn 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.

Commercial DocumentsOn 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, invoice insurance policy, certificate or origin, customer invoice etc. also attached to the bill of exchange.

Commercial DocumentsSuch 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.

Commercial DocumentsAfter receiving documents of title of the goods, the importers only concern is to take the delivery of goods when the ship arrive at the port and to bring them to his own place of business.3.MAKING THE PAYMENTThe 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 bills.

Commercial Documents4.CLOSING THE TRANSACTIONLast 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 matters. Incase the goods have been damaged in transit the insurance company will pay him the compensation under an advice to the exporters.

Risk Management in mport Business 1)Assess the reliability of overseas suppliers 2)Ensure imported goods meet your requirements3) Minimise the impact of import delivery problems 4)Avoid payment problems with imports 5) Manage foreign exchange risk for imports

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