Import Procedure
With the globalisation of Indian economy and consequent upon comfortable balance of payment position Government of India has liberalised the Import Policy and practically all Controls on imports have been lifted.Imports may be made freely except to the extent they are regulated by the provisions of Import Policy or by any other law for the time being in force.
Tthe process of finding suppliers has become more easier and more dynamic with B2B websites which are offering supplier company profiles, and also online catalogs and other necessary details with the help of internet.
Foreign Trade (Development & Regulation) Act 1992 governs the import in to India. Under this Act, imports of all goods is Free except for the items regulated by the policy or any other law for the time being in force.
Import Export Policy
The present import policy and procedures regarding various commodities/category of importers, are, inter alia, contained in the following publications issued by the Ministry of Commerce and revised from time to time:
Import - Export Policy, 1997-2002 as modified upto 31.03.1999
Handbook of Import - Export Procedures(Volume 1), 1997-2002 as modified upto 31.03.2000.
Handbook of Import - Export Procedures: (Volume 2) Duty Exemption Scheme:
Input - Output and Value Addition Norms, 1997-2002.
ITC(HS) Classification of Import and Export Items.
Select the product to be imported
Always check out the commercial viability and imort potential of product before importing it.
Be aware of Restricted list of ITC(HS) Classifications of Exports & Imports items. For example some items are strictly prohibited to import like
Tallow, Fat or Oils rendered, unrendered or otherwise of any animal origin, animal rennet and wild animals including their parts and products and ivory any part and products, including ivory.
Registration
1.Registration with regional licensing authority
Registration with Regional Licensing Authority is a pre-requisite for import of goods. The Customs will not allow clearance of goods unless:
The importer has obtained IE Code Number from Regional Licensing Authority. However, no such registration is necessary for persons importing goods from/ to Nepal provided Value of a single Consignment does not exceed Rs. 25000/=
2.Having IEC code number
An application for grant of IEC Code Number should be made with Bank Receipt (in duplicate)/demand draft for payment of the fee of Rs.1000/- Certificate from the Banker of the applicant firm and A copy of Permanent Account Number issued by Income Tax Authorities, if PAN has not been allotted, a copy of the letter of legal authority may be furnished and
Declaration by the applicant that the proprietors/partners/directors of the applicant firm/company, as the case may be, are not associated as proprietor/partners/directors with any other firm/company the IEC No. is allotted with a condition that be can export only with the prior approval of the RBI.
Selecting the supplier
Imports can be made from any country of the world except Fiji and Iraq. The detailed information regarding overseas supplier can be obtained from the trade directories, trade shows, advertisements in foreign papers, Internet etc.
For seleting the right supplier some following tips will help you:
- If possible, buy goods from those suppliers who have been certified by the International Standardization Organization (ISO) criteria or by any renowned certification organisation.
- Make it mandatory of asking for and checking business references from the supplier.
- Check out the financial strength and infrastructure so that the supplier can handle the bulk order easily.
- Payment mode which suits your comfortablility.
Finalizing the terms of Import
It is advisable that before finalising the terms of Import Order, you should call for the samples or catalogue and other relevant literatures and the specification of the items to be imported. Quality sampling of the products made during the production runs, or the final random product inspections are frequently used tools of the quality control. It can be easily undertaken by an independent third party.
Once you are satisfied with the samples and the creditworthiness of the overseas supplier, you can proceed to finalise the term of the contract to be entered into.The different aspects of an import contract are enumerated as follows:
Product, Standards and specifications.
Quantity.
Inspection.
Total value of the Contract.
Terms of Delivery.
Taxes, Duties and Charges payable at Exporting Country and payable in India on importation.
Period of Delivery/Shipment.
Packing, Labelling and Marking.
Terms of Payment-Amount, Mode & Currency.
Discounts and Commissions.
Licenses and Permits.
Insurance.
Documentary Requirements.
Guarantee.
Force Majeure or Excuse for Non-performance of Contract.
Remedies.
Arbitration.
Customs Clearance of imported goods
All goods imported into India have to pass through the procedure of Customs clearance as they cross Indian border. The goods are examined, appraised, assessed, evaluated and then allowed to be taken out of charge of the Customs for use by the importer.
Warehousing of Imported goods
An importer may not like to clear or may have certain problems in clearing the imported goods immediately on payment of duty for home consumption. In that case the importer can deposit the goods in a Public or Private Bonded Warehouse, provided he is satisfied with the arrangement. Thus, the importer can avail the facility of deferring payment of duty on imported goods pending their actual clearance. Towards this the importer should file a set of yellow coloured B/E known as warehousing B/E.
And lastly maintaining the good relationship with suppliers is very important.
Add comment May 14th, 2007