Import Procedure IN INDIA

Import Procedure
• Procedure of importing goods means the

orderly steps to be taken for importing goods
from aboard. This import procedure is quite
lengthy and time consuming as various
formalities are required to be completed.
Steps
Step 1. Obtaining import license and quota
In all countries there are many government regulations to be
followed. Sanction of government is necessary. Importer has to
apply to the controller of imports for getting necessary permission.
Importer has to attach the following documents to his application

form :-
• Receipt which shows that import license fee has been paid.
• Certificate from a Chartered Accountant showing the total value of
goods to be imported.
• Verification Certificate for income tax.
• An import license may be general or specific. A general license
allows imports from any country. But specific license allows imports
from specific country only.
• The importer also has to obtain import quota certificate from the
concerned authority. It mentions the maximum quantity of goods
which can be imported
• Step 2. Obtaining foreign exchange
Before placing any order, the importer must
apply to the Exchange Control Department
(ECD) of RBI (India's Central Bank) for the
release of requisite foreign exchange. The
importer should forward the application
through his bank. The ECD verifies the
application of the importer, and if found valid,
sanctions the foreign exchange for the
particular transaction.
• Step 3. Placing an order
The importer may either place the order directly
or through the indent house (Agent). In case of
canalized items, he obtains the imports through
the canalizing agency. (Canalisation means
channelization of goods through a government
agency like MMTC). The importer cannot directly
import such canalized items. They have to place
an order with the canalizing agency who shall
import and supply the same.
Intend House
• The import of goods can take place directly or through a
middleman. The import of goods through an intermediary is called
an Indent House. Indent houses are of two types. They may be
representative or agents of foreign producers or exporters or they
may be independent firms engaged in foreign trade. At the time of
securing order, the indent firm request the merchant to sign an
Indent Form which services as a letter of authority by the merchant
to the indent house to go for order of the specified items stated in
the form. The indent house brings the following advantages:
• It helps the small dealers to participate in foreign trade.
• The bargaining is done by the indent forms and therefore helps in
getting the goods at a cheaper rate.
• The financing of import trade is facilitated by the indent house.
• Step 4. Despatching letter of credit
After getting the confirmation from the
supplier regarding the supply of goods, the
importer requests his bank to issue a Letter of
credit in favour of supplier. It can be defied as
"an undertaking by importer's bank stating
that payment will be made to the exporter if
the required documents are presented to the
bank".
• Step 5. Appointing clearing and forwarding
agents
The importer makes arrangement to appoint
clearing and forwarding agents to clear the
goods from the customs. Since clearing of
goods is a specialized job, it is better to
appoint C & F agents.
• Step 6. Receipt of shipment advice
The importer receives the shipment advice
from the exporter. The shipment advice states
the date on which the goods are loaded on
the ship. The shipment advice helps the
importer to make arrangement for clearance
of goods.
• Step 7. Receipts of documents
The importer's bank receives the documents from the
exporter's bank. The documents include bill of exchange, a
copy of bill of lading(a detailed list of a ship's cargo in the
form of a receipt given by the master of the ship to the
person consigning the goods.), certificate of origin,
commercial invoice, consular invoice(A consular invoice is a
document, often in triplicate, submitted to the consul or
embassy of a country to which goods are to be exported
before the goods are sent abroad.), packing list, and other
relevant documents. The importer makes payment to the
bank (if not paid earlier) and collects the documents.
• Step 8. Bill of entry
This is a document required in case of import of
goods. It is like shipping bill in case of exports. A
Bill of Entry is the document testifying the fact
that goods of the stated value and description in
specified quantity are entering into the country
from abroad. The customs office supplies this
form which is prepared in triplicate. Three
different colours are used to prepare bill of entry.
One copy is retained by custom department,
other is retained by port trust and the third is
kept by the importer.
• Step 9. Delivary order
The clearing agents obtains the delivery order
from the office of the shipping company. The
shipping company gives the delivery order
only after payment of freight, if any.
• Step 10. Clearing of goods
The clearing agent pays the necessary dock or port trust
dues and obtains the port Trust Receipt in two copies.
• He then approaches the Customs House and presents one
copy of Port Trust Receipt, and two copies of Bill of. Entry to
the customs authorities. The customs officer endorses the
Bill of Entry Forms and one copy of Bill of Entry is handed
back to the importer. The importer then pays the customs
duty and clears the goods. In case, the customs duty is not
paid, then the goods are stored in the bonded warehouses.
As and when the duty is paid, the goods are cleared from
the docks.
• Step 11. Payment to clearing and forwarding
agent
The importer then makes the necessary
payment to the clearing agent for his various
expenses and fees.
• Step 12. Payment to exporter
The importer has to make payment to
exporter. Usually, the exporter draws a bill of
exchange. The importer has to accept the bill
and make payment.
• Step 13. Follow up
The importer then informs the exporter about
the receipt of goods. If there are any
discrepancies or damages to the goods, he
should inform the exporter.

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Import Procedure

• Procedure of importing goods means the

Importer has to attach the following documents to his application

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