Importing to India: Process and Requisites

1. Importing to India: Process and Requisites Here are the steps required to carry out the procedure of import to India: 1.Obtaining import license and quota: Download the application form available for IEC application form (Importer Exporter Code). Attach the required documents (Applicant PAN card, photograph, bank certificate), furnish the additional company documents including list of partners/directors, memorandum, articles of association, company's letterhead if the application is sought for partnership of private limited company. Also, the bank fee receipt for obtaining license, certificate from a Chartered Accountant denoting the total import value, income tax verification certificate- are to be furnished along with the above mentioned documents. Procedure for online application through step by step procedure is in detail discussed in this article- All that you need to know about IEC code and how to obtain it. Quota certificate from the concerned authority has t be kept ready which indicates the upper cap to the quantity of imports. 2.Obtaining foreign exchange: Required foreign exchange is to be applied before the execution of the import order. The importer needs to apply to the Exchange Control Department (EDC) of RBI. The request needs to be forwarded through the importer's bank. Upon validation, the EDC releases the essential foreign exchange. 3.Placing an order: Placing order can be either direct or through canalisation for specified products like metals and minerals need channelisation through government agency like MMTC. In the case of canalisation, the importer needs to place the order with the facilitating agency and the agency will place the order for the importer. 4.Dispatching Letter of Credit: Once the importer receives the confirmation from the exporter about the products ordered for, the importer needs to give a request letter to his bank to issue a Letter of Credit (LC) in favouring the exporter. This is a payment confirmation for the seller meaning that his payment is confirmed by the importer's bank upon the receipt of documents regarding receipt of imports. 5.Appointing C and F Agents: Clearing and forwarding agents are required to be appointed by the importer to ensure the hassle-free clearance of imports from customs department. 6.Receipt of Shipment advice: Bill of Exchange, a copy of Bill of Lading, Certificate of Origin, consular invoice, packing list reaches the importer's bank from the exporter's bank. (Other documents that may include- Signed invoice, Packing list, Bill of lading or delivery order/air waybill, GATT declaration form, Importer/CHA declaration, Import license wherever necessary, Letter of credit/bank draft, Insurance document, Industrial license, if required Test

2. report in case of chemicals, Adhoc exemption order, DEEC Book/DEPB in original, Catalogue where applicable, technical write up, literature in case of machineries etc). The importer needs to collect the documents after payment if he has not paid while dispatching the Letter of Credit. 7.Bill of Entry: Bill of Entry is as important in import as the shipping bill is, during every export. The document is the proof that the specified goods have entered the country in the mentioned quantities with specified quality parameters fulfilled. The customs office gives Bill of Entry in triplicate. Each copy carries different color to be distinguished easily. A copy each is retained by customs department, port trust and given to the importer. 8.Delivery Order: The delivery order is given by the shipping company to the clearing agents after the payment of freight is settled, if any. 9.Clearing of goods: The clearing agent obtains port trust receipt after settling the dock/port trust dues. Then, the clearing agent approaches the Customs House to present the copy of Port Trust receipt and two copies of Bill of Entry. He then receives a copy of Bill of Entry to be given to the importer and also, the Customs House endorses the Trust receipt and gives it back to the agent. The goods are stored in bonded warehouses if the duty is not paid. Otherwise, they are released to be taken inside the country, post which, the Clearance and Forwarding agents receive the payment from the importer. 10.Follow-up: The importer needs to inform the exporter about the receipt of goods and their condition of import. This completes the import procedure.