Step by Step Procedure of Import Procedures and Documentations
A very important role is played by the Import and Customs authorities in all countries of the world when it comes to the entry of goods into the country. The era of globalization ushered in more and more interactions between different countries of the world, leading to an increase in the masses of imports and exports. In order to effectively manage all this, having a trained body of officials and rules is very important.
Import procedures and documentation are required for any good that crosses the international borders and enters the country. This can range from mere gifts to big shipments.
Steps for the Process of Import Procedure
The following steps can adequately explain the process of import procedure and documentation:
First and foremost, before anything can enter the country, a comprehensive list of what item is being imported and for what purpose needs to be updated and registered. Data like this can be obtained from trade associations and trade organisations.
The EXIM Policy is then consulted by the Importer to make sure that all rules and regulations are followed and standards are met.
Then the request of the instalment of foreign cash takes place which includes the trading of Indian Currency into foreign notes. In this matter, The Exchange Control Department of the Reserve Bank of India (RBI) manages foreign trade exchange in India.
The importer then puts in an import request with the exporter for the supply of merchandise.
Once the payments are settled between the importer and the seller, a letter of credit is issued to the importer.
The importer arranges for the payment of the advance money on arrival of the goods at the port. This saves the importer from the high penalties.
The overseas supplier after in-loading the merchandise on the ship dispatches the “Shipment Advice” to the importer to give information with respect to the shipment of goods.
Dock charges are also paid out by the importer once the goods are received and all inspections are completed.
In India, the procedure of imports usually follows this outline, unless the goods are otherwise specified as hazardous or are specially requested by the government of the country. A number of documents are required to make sure that this process takes place seamlessly, which is important for the importer to have quick access to.
These Documentations Include
All invoices, packing lists, certificates specifying the origins of the product and its description, GATT declaration, IET documents and any other document that the government specifies.
Catalogue, Technical Write ups – required for import of machinery and equipment.
Chemical Composition, Test bond required by the respective customs – all are needed in case of Chemical Import.
Phytosanitary Certificate with Fumigation, Certificate of Origin – required for un-processed food, plant products, wood imprints, fruits and seeds import.
Test Report and Composition – for processed food product import.
Azo Dye Inspection Certificate – in Import of Fabric.
PLAT T essential for valuation – In case of import of Plastic Granules.
Registered EPCG License, Panelised Undertaking by Importer, Bond com BG Bank Covering Letter, Signature Attestation from Bank, Copy of Board of Regulation, Particles of Memorandum, and Detail of Previous License – Import under EPCG license.
Form necessary from Supplier for customs duty advantage – Import of Ceramic Tiles.
Test Certificate – Import of Wine and Whiskey.
Explain Import Procedure
Import procedure means all the steps involved in purchase of goods from any foreign country. The procedural steps involved in import trade differ from country to country in respect of their import policy, statutory requirements. In majority of the countries import trade is being controlled by the government. The objective of empowering the government in the import trade is to keep a strict restriction policy in regards of foreign exchange, protection of Indigenous industries etc. For importing goods, a specified and regulated procedure is to be followed. The procedure is summed into quick steps as below:
Trade Enquiry
Procurement of Import License and Quota
Obtaining Foreign Exchange
Placing the Order
Dispatching a letter of Credit
Obtaining Necessary Documents
Customs Formalities and Clearing of Goods
Making the Payment
Closing the transactions
FAQs on Import Procedures and Documentations
1. Are the procedures mandatory to follow?
The Procedures are fixed by the Central Government, which checks the legal perspective of the trade in each step. It is the duty of the business owner willing to import goods or services from the foreign countries to comply with the procedures as already set up, this will smoothen the function and will avoid sub-standard trade.
2. What is PAN and BIN?
PAN – Permanent Account Number is a ten-digit alpha-numeric number allotted by the tax department in order to keep a track on the tax formalities of the business.
BIN – Business Identification Number, which is mandatory required in export formalities.
3. What is the full form of EXIM?
The full form of EXIM is Export and Import. The EXIM Bank and also the EXIM policies are related in this chapter. Export-Import Bank of India (EXIM Bank) is a financial institution, which is also specialised and is wholly owned by the Government of India. This was set up in 1982, for finance facility and to promote foreign trade of India.
4. What is LPG?
LPG is the acronym for Liberalization, Privatization, and Globalization which was adopted by the Government to push the nation in the growth of economic development which was occurring world-wide. This policy relaxed all the strict entry barriers and promoted free trades among different countries and also it took an initiative to privatize the sick government companies.
5. What is an Import Order?
This refers to particular documentation which is required to be possessed by the importer at the time of accepting his/her items. This is a comprehensive list that specifies what items are being imported, their composition and descriptions and possible applications. In addition to this, this also contains information about the foreign supplier, the manufacturing unit and everything that is to know about the items being imported. The market value and unit price of the items are also specified here.
6. What is Shipment Counsel?
This refers to the notes that are sent over by the supplier to the importer which specifies all details with reference to tracking of the purchased items. This contains a detailed list of all the items that are being sent, their prices, the date they were dispatched, the tracking details of the item and the carrier that is bringing them to the importer. This may be required as proof by the Import authorities at the time of receiving the parcel to determine what the products are.
7. What is the main point of difference between a Bill of Lading and a Bill of Entry with reference to Import Procedures?
The Bill of lading is prepared by the captain of the vessel who is in charge of transporting the items from the supplier to the importer. This acts as a proof that the item was boarded onto the vessel and also describes the products. In comparison to this, a Bill of entry is a form that needs to be filled and given to the Customs agency. It acts as another source of reception that the goods have been received safely by the importer.
8. Are these procedures compulsorily meant to be followed by all individuals?
These rules are set by the government, hence they need to be followed by all entities and people as long as they are importing goods from abroad. Following these procedures makes sure that the government has a track of what has been entering the country and through which channels. In case these are not followed, damages can be extorted from the people who refuse to follow the procedures. It is to be noted that no one as such is exempted from following import regulations.
9. What is EXIM?
This stands for Export and Import, and is called EXIM in short. The EXIM Bank is a governmental body that was set up in the year 1982 to properly facilitate the movement of all imported and exported goods. This is not like any other bank, it only performs very specific functions that relate to the financial aspect of imports and exports. A huge volume of goods enter and leave the country every day, and having a centralised institution to oversee it leaves lesser room for error.
