Import Trade - Procedure of Import Trade

1. Registration:

• Obtain Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT)
• Get PAN (Permanent Account Number) from the Income Tax Department
• Register with the Goods and Services Tax (GST) Department

2. Negotiation: Discuss prices, delivery schedules, payment terms, and quality standards with the overseas supplier.

1. Quota Certificate: For restricted items, acquire a government quota certificate.
2. Foreign Exchange Clearance: Secure approval from the Reserve Bank of India (RBI) for payment in foreign currency.
3. Indent (Order Placement): Place a formal order, known as an indent, in agreement with the exporter.
4. Letter of Credit: Obtain a bank's guarantee, promising payment to the exporter, which improves trust and security.
5. C&F Agent Appointment: Hire Clearing and Forwarding agents to manage documentation and port procedures.
6. Shipment Advice: Receive notification from the exporter about the dispatched goods.

1. Receipt of Documents: Collect essential documents through the bank:

• Bill of Lading (transport document)
• Packing List (details of packed items)
• Commercial Invoice (bill for the goods)
• Certificate of Origin (country where goods were made)
• Certificate of Inspection (proof of quality check)

2. Bill of Entry: The C&F agent prepares this form for customs clearance, declaring imported goods.

3. Delivery Order: Obtain this after paying freight, allowing the retrieval of goods from the carrier.

4. Customs Clearance: Customs authorities verify documents, inspect goods, and grant permission to release the shipment.

1. Port Trust Dues: Pay charges for storage and handling of goods at the port.
2. Custom Duty: Settle government taxes on imported goods.
3. Insurance Premium: Pay insurance fees if goods are shipped under a Free on Board (FOB) contract.
4. Payment of Freight: Cover transportation costs as per the contract.
5. Exporter’s Payment: Pay the exporter via the agreed method, often using a bill of exchange.
6. Follow-up: Inspect goods for any damages or shortages and inform the exporter if problems are found.

• Registered for DGFT, PAN, and GST.
• Negotiated with the exporter.
• Secured quota and foreign exchange approval.
• Placed the order and arranged the Letter of Credit.
• Appointed a C&F agent, received shipment advice.
• Obtained the necessary documents and delivery order.
• Completed customs clearance and paid dues.
• Received goods, checked them, and released payment.