Import Procedure in India
The import trade is regulated by the government bodies in every nation around the world. The purchasing of products from a foreign country is known as import trade. Different countries have different import procedures based on import regulations, legal requirements, and customs procedures.
The first step in importing a product is to have an office, make necessary registrations in the relevant government office, and arrange tax numbers and Import Export Code (IEC). Subsequently, do the market research to understand the demand for the products you intend to import. Product distribution network. You must collect all necessary data about the market and the industries and organizations that manufacture or export such products in foreign soil.
For example, EXIM Anything is a versatile, credible organization that offers “SMART” comprehensive services for Importers and Exporters. These services include identifying the market, products, assistance in documentation, freight forwarding, insurance, and quality-quantity inspection reports by an authentic body at the place of origin or port.
Understanding Import nuances
- The importer has to understand the current export-import policy to see if the products the importer intends to bring into the country are eligible for a license or not. They must ask the exporter to create and submit a quote, also known as a Proforma Invoice, to the importer. Moreover, the following information and actions must be taken.
- Choose the country
- Find out the supplier
- Research on duty and taxes
- Get a reliable freight forwarder
- Contact a customs broker
- Consider currency risks
- Arrange shipment insurance
- Arrange quality and quantity inspection in the country of origin
What to expect from an Exporter?
The seller/exporter in the country of origin will demand the payment in foreign currency for the import transaction. This may include the exchange of local currency into the acceptable foreign currency as required by the exporter/seller. An importer is required to arrange approval of foreign trade license.
An import request or indents with the exporter must state the product details including the price, quality, numbers, sizes, and quality of products, product specifications, packaging instructions, and payment options.
There are multiple options of payment terms and conditions. However, the exporter usually has the last word in this regard. Once the importer and the foreign suppliers agree to the terms, the exporter raises a letter of credit (LC) through the bank. The importer prepares for money to pay the exporter in advance of the goods arriving at the port. It helps the importer claim significant penalties on imported goods unmarked at the port due to a lack of payment.
Logistics may include packing, transportation at the local level at the country of origin as well as the destination, customs clearance, shipping, insurance, quality, and quantity checks, track n trace of the shipment.
The supplier sends the importer the “Shipment Advice” after loading the merchandise onto the ship, which includes information about the shipment of products, like the receipt number, bills of lading/airway bill, ship name, date, description of products, amount, etc.
Whenever the international exporter gets the bill of lading issued by the supplier, he sends over the various documentation, including an invoice, bill of lading, and security receipt, to his banker to send transactions to an importer.
When the shipped product gets in the importer’s country, the man in charge of the shipment informs the officer in order of a dock or airport. In the case of trade, the person in charge of the ship or airway makes a report.
Import of goods process to customs, which is a long import procedure that takes a considerable amount of time. Generally, the exporter engages a C&F operator to complete these customs procedures. In essence, the merchant gets a delivery order, also known as approval for delivery.
Required import documents:
- Proforma Invoice
- Import order or Indent
- Shipment counsel
- Bill of lading
- Bill of entry
- Letter of Credit
- Trade Inquiry
What to expect from a comprehensive service provider?
Import business is profitable but a complex business as well. It is important to hire services of an organization that can take care of all the procedures leaving you free to concentrate on identifying the product and its sales after arrival. EXIM Anything promises to offer SMART comprehensive services to all importers and exporters. The service may include:
- Sellers’ Market research in foreign soil
- Quality and quantity checks at the port of origin
- Secure financial transactions
- Complete logistics
It is wise to avail 3rd party services like EXIM Anything who are experienced, tech-enabled B2B service providers with a global network.
S M Faredie