What is import? Explain import process and import
documents.
An import refers to a foreign-produced product or service
obtained in your home country. Countries are more likely to import goods or
services which cannot be produced as easily or cheaply as the exporting country
through their domestic factories. Tariff schedules and free trade deals also
determine which products and materials are less costly to import.
Import process:
Explanation of import process:
- The initial move in importing a commodity is to accumulate data on
the nations and companies that send the exporter's necessary products.
Through trade directories, trade unions, and alliances it can be
collected. The exporter shall prepare and give to the importer a quote
otherwise referred to as the Performa Invoice. The importer consults the
Export-Import (EXIM) Regime in place to decide whether or not the products
he/she wants to import are subject to import licensing.
- In the case of an import trade, the seller remains in a foreign
country and consequently demands foreign cash payments. It entails the
trading of Indian currency with foreign capital. The Reserve Bank of India
(RBIExchange )'s Control Department oversees foreign trade exchanges in
India. Under the laws, each trader must ensure that international trade is
sanctioned.
- The importer shall make an import order or an indent to the
exporter for the delivery of products. The request includes information
about the cost, consistency, quantity, size and grade of the instructions
for products with regard to pricing, delivery, payment methods and so on.
- The importer receives the letter of credit from its banker at the
point when the payment terms are negotiated between the importer and the
overseas provider and transfers it to the overseas provider.
- Upon delivery of goods at the port, the importer arranges for
money in advance to pay the exporter, allowing the importer to escape
immense fines for manufactured goods remaining uncleared at the port for
the need for payment.
- The overseas supplier after loading the merchandise on the ship
dispatches the “Shipment Advice” to the importer. It gives information
with respect to the shipment of goods like receipt number, bill of
lading/airway bill, the name of the ship with date description of
merchandise and amount and so forth.
Furthermore,
7. The overseas seller ships the "Shipment
Advice" to the importer after washing the goods at the pier. Which
contains information such as the receipt number, the lading/airway bill bill
bill, the name of the ship with the description and amount of the merchandise
date, etc., on the shipping of goods.
8. The agent responsible for the product
transmits the officer in charge of it to the dock or the airport at the point
where the delivered goods arrive in the country of the importer. The person
responsible for the ship or airway shall submit a report with respect to
imports.
9. Imported items are subject to a customs
protocol which is extremely comprehensive and takes significant time to
complete. More frequently than not, the importer appoints a C&F operator to
finalize these customs.
Essentially, a shipping order that is otherwise
considered an endorsement for delivery is received by the retailer. This order
requires the importer to accept the arrival of the goods in order to pay the
freight costs later.
The importer must also pay dock dues for receipts
of port trust dues for which he submits two duplicates done in the manner known
to the Landing and "Delivering Dues Office" as "application to
import". The importer receives one copy of the application as a receipt
called 'port trust levy receipts' after the payment of dock dues.
Finally, the importer fills up a system known as
the 'bill of entry' for the customs import duty determination. An auditor
inspects the merchandise and presents his report on the admission bill. This
bill is then presented to the port administration, which issues the discharge
agreements upon collecting the essential charges.
Import documents
Proforma
Invoice: It is a record
containing points of concern with respect to the quality, analysis, design,
mass, weight and cost of the products shipped and the terms and conditions in
which they will be transported.
Import
order or Indent: That
is the paperwork under which the importer directs the seller to deliver
imperative merchandise. Order containing the details, such as the number and
existence of the valuation of the goods, the procedure of sending the goods,
the process of packaging, the mode of payment, etc.
Shipment
counsel: The
exporter sends the consignment advice to the importer to remind him that the
items have been shipped. It includes the invoice number, the number and date of
the lading/airway bill, the name of the vessel to date, the port of export, the
summary of the merchandise and the quantity and the date of the vessel's cruise.
Bill
of lading: It is
prepared and labelled by the ship's master, who accepts the reception of goods
on board. It provides the terms and conditions on which the goods can be
brought to the destination.
Bill
of entry: It is a
document issued by the customs office to the importer who has completed the
form during the time of reception of the goods. It shall be in triplicate and
shall be presented to the customs office.
Letter
of credit: A paper
bearing a certificate from the importer's bank to the exporter's bank is meant
to conform with the payment of up to a certain amount of the bills provided by
the exporter for the transport of the goods to the importer.
Trade
Enquiry: It is a formal offer submitted by a distribution corporation to an
overseas contractor for the supply of cost details and various terms and
conditions for the exchanging of products.
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