IMPORT PROCEDURES

IN
INDIA

HOW TO START AN IMPORT

The 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 ORDER

Before 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 ORDER

Documentation.
Arbitration clause.
Force merger clause.
Claims clause.

PLACING THE ORDER

INCOTERMS.
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 Documents
2) 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 DOCUMENTS
On 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 Documents

On 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 Documents

Such 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 Documents

After 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 PAYMENT
The 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 Documents
4.CLOSING THE TRANSACTION
Last 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 requirements
3) Minimise the impact of import delivery
problems
4)Avoid payment problems with imports
5) Manage foreign exchange risk for imports

THANKING
YOU