CONTENTS

Definition
Categories of Imports
Types of Import Licenses
Import Trade Governing Bodies
Procedure for obtaining import license
Import Procedure
Documents used in Import

DEFINITION
An import license is a document issued by a national
government authorizing the importation of certain goods into
its territory.

Permit that allows an importer to bring in a specified quantity
of certain goods during a specified period (usually one year).
Import License Issuing Authority

In India, Import License is issued by the Director General of
Foreign Trade. DGFT Delhi office is situated in Udyog Bhawan,
New Delhi 110011.
Validity of Import License

Import Licenses are valid for 24 months for capital goods and
18 months for raw materials components, consumable and
spares, with the license term renewable.
Sample of Import License

A typical sample of import license consists of two copies-
A).Foreign Exchange Control Copy: To be utilized for
effecting remittance to foreign seller or for opening letter of
credit
B).Customs Copy: To be utilized for presenting to Customs
authority enabling them to clear the goods. In the absence of
custom copy, import will be declared as an unauthorized
import, liable for confiscation and or penalty.
CATEGORIES OF IMPORT
Freely Importable Items: Most capital goods fall into this category.
Any product declared as Freely Importable Item does not require import
licenses.
Licensed Imports: There are number of goods that are classified as
consumer goods; precious and semi-precious stones; products related
to safety and security; seeds, plants and animals; some insecticides,
pharmaceuticals and chemicals; some electronically items.
Canalized Items: There are certain canalized items that can
only be importer in India through specified channels or
government agencies. These include petroleum products,
nitrogenous phosphatic, potassic and complex chemical
fertilizers, a drugs, oils and seeds etc.
Prohibited Items: Only four items-tallow fat, animal rennet, wild
animals and unprocessed ivory-are completely banned from
importation.

TYPES OF LICENSES
Industrial license

Commercial license

Consulting and Service license

Commercial General Trading license
Category of Importer
Importers categories are divided into three groups for the
purpose of obtaining import licensing:
Actual Users- An actual user applies for and receives a license
to import of any item for personal use rather than for business
or trade purpose.
Registered exporters; defined as those who have a valid
registration certificate issued by an export promotion council,
commodity board or other registered authority designated by
the Government for purposes of export-promotion.
Others
Two types of actual user license are:
General Licenses : This license can be used for the imports of
goods from all countries, except those countries from which
imports are prohibited;
Specific Licenses: This license can only be used for imports
from a specific country.
IMPORT PROCEDURE
Trade Enquiry
Procurement of Import License
Placing the Order
Sending Letter of Credit
Receiving Shipping Documents
Clearance of Goods
Making Payment
DOCUMENTS USED IN IMPORT
Import License and Quota Certificate:

Indent: Order for goods (placed often through a local or foreign agent of a
foreign supplier) under specified conditions of sale, the acceptance of which by
the supplier (or the agent) constitutes a contract of sale.

Letter of Credit: A letter from a bank guaranteeing that a buyer's payment to
a seller will be received on time and for the correct amount. In the event that
the buyer is unable to make payment on the purchase, the bank will be required
to cover the full or remaining amount of the purchase.

Bill of Lading : A legal document between the shipper of a particular good and the
carrier detailing the type, quantity and destination of the good being carried. The bill
of lading also serves as a receipt of shipment when the good is delivered to the
predetermined destination.

Documentary Bill : In international trading, a bill of exchange or commercial
draft that is presented for payment with the required documents such as a clean
bill of lading, certificate of insurance, certificate of origin. Also
called documentary draft.

Dock Warrant : A document used by a shipping port authority that
certifies title of goods to a consignee or consignor while a shipment is stored in
a warehouse or storage lot.

Delivery Order: According to the Uniform Commercial Code (UCC) a delivery order
refers to an "order given by an owner of goods to a person in possession of them (the
carrier or warehouseman) directing that person to deliver the goods to a person named
in the order."

Bill of Entry: A declaration by an importer or exporter of the exact
nature, precise quantity and value of goods that have landed or are being shipped out.
Prepared by a qualified customs clerk or broker, it is examined by
customs authorities for its accuracy and conformity with the tariff and regulations.


Import of New Vehicles

The import of vehicles shall be subject to the following guidelines of the
Government of India:

A new imported vehicle shall mean a vehicle that:-
has not been manufactured/assembled in India; and
has not been sold, leased or loaned prior to importation into India; or
has not been registered for use in any country according to the laws of that
country, prior to importation into India.
The import of new vehicles shall be subject to the following conditions:
The new vehicle shall-
have a speedometer indicating the speed in km / h;
have right hand steering,
have photometry of the headlamps to suit "keep-left" traffic; and be
imported from the country of manufacture.

In addition, the new vehicle shall conform to the provisions of the Central
Motor Vehicles Act, 1988 and the rules made thereunder, as applicable, on
the date of import.

The import of new vehicles shall be permitted only through the Indian
Customs Port at Nhava Sheva (Mumbai), Calcutta and Chennai.