Step By Step Procedures Of Import & Documents Used In Importing
Step By Step Procedures Of Import & Documents Used In Importing
Sunday, July 12, 2020
In import of a good from a foreign country the following steps are taken:
1. Trade Inquiries First importers carry out correspondence with the exporter shipping him to send the details about price, quality, time and mode of delivery, shipping agency etc.
2. Registration Import trade is subject to several restrictions by the government. First the importer has to get himself registered with the chief controller of imports and export. To get a registration, the importer has to submit the following documents: National I.D card or passport, income tax certificate, certificate of membership of the chamber of commerce etc.
3. Obtaining an Import License No goods can be imported in a country without a valid license. After getting registered with the controller of imports and exports, the importer has to apply for obtaining license for the goods.
4. Determination of Import Quota Import trade is subject to several restrictions one of them is determination of import quota. It means how much goods he can import from foreign country.
1. Trade Inquiries First importers carry out correspondence with the exporter shipping him to send the details about price, quality, time and mode of delivery, shipping agency etc.
2. Registration Import trade is subject to several restrictions by the government. First the importer has to get himself registered with the chief controller of imports and export. To get a registration, the importer has to submit the following documents: National I.D card or passport, income tax certificate, certificate of membership of the chamber of commerce etc.
3. Obtaining an Import License No goods can be imported in a country without a valid license. After getting registered with the controller of imports and exports, the importer has to apply for obtaining license for the goods.
4. Determination of Import Quota Import trade is subject to several restrictions one of them is determination of import quota. It means how much goods he can import from foreign country.
5. Application of Foreign Exchange To import any goods from foreign country need foreign exchange. Importer submits an application to the authorities for foreign exchange.
6. Placing The Order After these steps the importer places an order for the goods that he requires. The order is called indent.
7. Letter Of Credit Now the importer will contact his banker along with the import license, perform invoice and insurance cover note in order to open letter of credit (L/C) in favor of the supplier (exporter) at this stage a license fees has to be paid. The L/C on the prescribed from shows the license number, name of the supplier, name of the insurance company, details of the goods being imported, mode of shipment & delivery, mode of payment etc.
8. Getting the Necessary Document
6. Placing The Order After these steps the importer places an order for the goods that he requires. The order is called indent.
7. Letter Of Credit Now the importer will contact his banker along with the import license, perform invoice and insurance cover note in order to open letter of credit (L/C) in favor of the supplier (exporter) at this stage a license fees has to be paid. The L/C on the prescribed from shows the license number, name of the supplier, name of the insurance company, details of the goods being imported, mode of shipment & delivery, mode of payment etc.
8. Getting the Necessary Document
• Advice Note It is document, which is sent to the importer to inform that goods have been sent.
• Bill of Exchange The exporter makes out of a bill of exchange in the name of importer and does the bank of the importer accept it. Then he receives the advice of the L/C and hands over to it the shipping documents which include invoice, certificate of origin, certificate of measurement and weight, bill of lading, mate the receipt.
9. Insurance Cover The importers gets insurance cover note from a local insurance company for the value of goods being imported to cover risk of theft, pilferage, fire, short deliveries and ship mishaps etc.
10. Clearing Agent The importers hands over these documents to the clearing agent. These documents include VBF form 6-A or 6-B on the receipts of which, the clearing agent starts his proceeding to clear the goods which may have reached the port.
11. Custom Formalities
• Inspection of the Goods On reaching of the goods on the port, the authorities inspect the goods to determine whether they are n conformity with the invoice are not.
• Payment Of Duck Charges On reaching of the goods on the port, dock charges are paid to use the port.
• Payment Of Custom Duty & Sales Tax Then the amount of the custom duty, sales tax, iqra tax etc, will be worked out and imposed.
• Bill OF Entry After obtaining the delivery order, the importer fills three copies of bill of entry in which he stated and describes the goods that are imported. It is delivering to the custom authorities. • Bill Of Sight Sometimes the importer may not receive full particulars of goods imported. In such cases, he fills bill of sight. After paying the government dues, the goods will released and handed over to the importer.
12. Payment of the Bill The importer pays the amount of the bill exchange to his banker and then receives all documents shipped from the exporting country.
• Bill of Exchange The exporter makes out of a bill of exchange in the name of importer and does the bank of the importer accept it. Then he receives the advice of the L/C and hands over to it the shipping documents which include invoice, certificate of origin, certificate of measurement and weight, bill of lading, mate the receipt.
9. Insurance Cover The importers gets insurance cover note from a local insurance company for the value of goods being imported to cover risk of theft, pilferage, fire, short deliveries and ship mishaps etc.
10. Clearing Agent The importers hands over these documents to the clearing agent. These documents include VBF form 6-A or 6-B on the receipts of which, the clearing agent starts his proceeding to clear the goods which may have reached the port.
11. Custom Formalities
• Inspection of the Goods On reaching of the goods on the port, the authorities inspect the goods to determine whether they are n conformity with the invoice are not.
• Payment Of Duck Charges On reaching of the goods on the port, dock charges are paid to use the port.
• Payment Of Custom Duty & Sales Tax Then the amount of the custom duty, sales tax, iqra tax etc, will be worked out and imposed.
• Bill OF Entry After obtaining the delivery order, the importer fills three copies of bill of entry in which he stated and describes the goods that are imported. It is delivering to the custom authorities. • Bill Of Sight Sometimes the importer may not receive full particulars of goods imported. In such cases, he fills bill of sight. After paying the government dues, the goods will released and handed over to the importer.
12. Payment of the Bill The importer pays the amount of the bill exchange to his banker and then receives all documents shipped from the exporting country.
DOCUMENTS USED IN IMPORTING THE GOODS
1. Import license
2. Performa invoice
3. Insurance cover note
4. Letters of credit
5. Bill of exchange
6. Certificate of origin
7. Certificate of measurement and weight
8. Bill of lading
9. Mate receipt
10. Packing list
11. VBF form 6-A or 6-B
12. Registration certificate as an importer
13. Certificate from the chambers of commerce
14. Income tax certificate showing GIR
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