page 1 import documentation. page 2 page 3 types of import freely importable items licensed...
TRANSCRIPT
Page 1
IMPORT DOCUMENTATION
Page 2
Page 3
Types of import
Freely importable items
Licensed imports
Canalized items
Prohibited items
Page 4
Terminology
Technical terminology used by importers:
Ex-work
Free on Rail (FOR)/Free on Truck (FOT)
Free Alongside Ship (FAS)
Free on Board (FOB)
Cost and Freight (C & F)
Cost Insurance Freight (CIF)
Page 5
REGISTRATION OF IMPORTERS
To import or export in India, IEC Code is mandatory
An application for grant of IEC number from Regional
Authority of Directorate General Foreign Trade.
IEC Code Online Application Form
Application Fee
Profile of Importer
Page 6
Requirements for IEC Code Number
PAN Number
Current Bank Account
Bankers Certificate
IEC Code Number Application Fee Rs 250.00
The physical application containing required documents
should reach DGFT RLA concerned within 15 days of its
online submission.
E-mail is not mandatory.
Page 7
Check List of Documents for IEC Code
Covering Letter
Two copies of Aayaat Niryaat NF form
Part 1 & Part 4 to be filled by applicants.
Self certified copy of PAN issuing letter or PAN
(Permanent Account Number) Card issued by Income
Tax Authority.
Self addresses envelope with Rs.25/- postal stamp
Page 8
Documents to be submitted by Importer –
Invoice
Packing list
Bill of lading/ Delivery Order
GATT declaration.
Letter of credit
Certificate of Origin
Import license, etc.
Page 9
Proforma invoice
• A Proforma invoice is a quote in an invoice format that may be required by the buyer to apply :
ø for an import license,
ø contract for pre-shipment inspection,
ø open a letter of credit or
ø arrange for transfer of hard currency.
Page 10
Importers must apply for an import license using the
exporter's pro-forma invoice.
Issued by the 'Office of Chief Controller of imports &
exports
Validity of Import License
sample of Import License
€ Foreign Exchange Control Copy
€ Customs Copy
Page 11
Preshipment inspection
It is the practice of employing specialized private
companies to check shipment details
PSI helps to:
ŧ detect over-invoicing to prevent unjustified transfer of
foreign exchange abroad;
ŧ determine the classification and valuation of goods; and
ŧ ensure the correct collection of import duties and taxes
by Customs authorities
Page 12
Letter of Credit
It is a term used for a letter issued by a bank on behalf of a
client to pay a beneficiary the stated amount of money under
specified conditions.
Parties of L/C:
Beneficiary
Issuing Bank
Confirming Bank
Page 13
Shipping documents:
₫ Commercial invoice:
₫ A document prepared by the seller to inform the buyer
how much he knows for the goods and services being
supplied.
₫ Packing list:
₫ The packing list is an extension of the commercial
invoice, as such it looks like a commercial invoice.
Page 14
Manufacturers certificate
CERTIFICATE OF ORIGIN
CERTIFICATE OF WEIGHT
CERTIFICATE OF QUALITY
CERTIFICATE OF INSPECTION
Page 15
Clearance Documents
• AIR WAYBILL
The air waybill is used for the air shipment which serves as:
documentary evidence of the conclusion of a contract of
carriage
proof of receipt of the goods for shipment
an invoice for the freight
a certificate of insurance
guide to airline staff for the handling, dispatch and delivery of
the consignment. .
Page 16
‽ A bill of lading is used for the sea shipment.
It is:
¥ A certificate of ownership to the goods.
¥ A contract
¥ A formal, signed receipt
¥ Clean bill of lading
‽ A bill of lading is used for the sea shipment.
It is:
¥ A certificate of ownership to the goods.
¥ A contract
¥ A formal, signed receipt
¥ Clean bill of lading
Page 17
IMPORT GENERAL MANIFEST NUMBER
The shipping line has to give a detailed report
of all the goods on board in a report known as
"Import General Manifest“
Import manifest is required to be submitted
before arrival of aircraft or vessel
Grant of Entry Inwards by Customs Officer
Page 18
BILL OF ENTRY
It is a document certifying that the goods of
specified description and value are entering into the
country from abroad.
The Bill of entry-different copy meant for different
purposes with different colour.
Bill of Entry for home consumption:
Bill of Entry for Warehouses
Bill of Entry for Ex-Bond Clearance
Page 19
IMPORT DECLARATION:
• Importers must provide an Import
Declaration in the prescribed bill of entry
format, disclosing the value of the imported
goods.
Page 20
VARIOUS OCTROI FORMS USED
A-B /FORM'S
C & CC FORM
N – FORM
R-FORM
X-FORM
Page 21
IMPORT RISK
Various types of risks:
Transport Risk –loss of goods during
transportation.
Quality Risk –final quality of the products.
Delivery Risk –goods are not delivered on time.
Exchange Risk –the change in the value of currency.
Page 22
Do’s• Open L/C only if the party has got sanction limit.
• Import of restricted items as per procedure laid down in the Exim Policy.
• Handover import documents only to drawee or his PA holder.
• Allow payment for import by debit to customer’s account.
• Allow payment for the bills beyond six months
• Allow payment to local agents on commission basis. In case of overseas agent, allow commission as per FEMA guidelines.
• Verify the imported items under the LC.
• Verify whether the payment method is done as per FEMA guidelines or not.
Page 23
Dont’s Issue the Letter of Credit if the customer doesn’t have IEC
number.
Open LC without proper transport documents.
Allow advance payment without proper documentation.
Forward the documents to third party without permission from the importer.
Import prohibited or restricted items without import license. Allow direct remittance of import bills beyond the limit.
Open revolving LC without safety clause.