IMPORT PROCEDURE

"Importer" means a person who imports or intends to import and holds an Importer-Exporter Code number unless otherwise specifically exempted. A business man or a manufacture may import commodities directly from abroad or contact an agent or an indent firm. In any case the following procedures are to be followed:
Import license: first of all, an importer is to procure a license from the Trade controller. If the commodities to be imported are listed under open general license, permit or license is not required to be obtained.
Issuing order or Indent: the next task of the importer is to issue order or indent to the foreign exporter specifying there in the quantity, quality, prices of goods, mode of payment, shipping procedure, date of deliver etc. in the case of closed indent, quality, brands and price of goods are specified. But in the case of open indent, sources of purchase and prices are not mentioned.
Letter of credit: If the importer is unknown or not an established firm arrangement is made with an exchange bank having branch in the exporting country so that the bank can issue a letter of credit in favor of the exporter. By this arrangement, the bank undertakes to honor bills drawn on the importer by the exporter. An importer may sometimes be required to pay full amount and in the case of an established or reputed firm a mere bank reference may be sufficient.
Booking of Exchange: Importer must secure foreign currencies, as he is to pay for the goods. Exchange rates very often fluctuate and hence a prudent importer always fixes exchange rates before hand so that he may not suffer from unfavorable rates in times of payment.
Advice Note from Exporter: after this the importer waits for the advice in respect of shipping from the exporter. The exporter send information or advice note intimating that the goods have been dispatched and also furnishes documentary bills through the bank.
Paying for Bills: the importer will not get the documents until he accepts or pays for the bill. In the case of D/A bill documents are handed over to the importer when he accepts the bills and in the case of D/P bill documents are given on payment.
Customs Formalities: after getting the documents the importer proceeds to take delivery of the goods. Before that he is to observe certain formalities required by the customs authority. After arrival of the ship, the captain submits a ship’s report to the customs authority. And the importer fills in bill of entry in triplicate incorporating there in every detail in respect of the goods. In case the importer is not in a position to give detailed information concerning goods, he is required to fill in bill of sight declaring his inability to furnish any thing about the goods.
Again, if the goods are not free from duties, the importer is to pay for import duties after getting the goods appraised by an appraising officer. He examines the documents and determines the value of the import duty. Te importer fills in a memo and pays for the import duty. Then the Bill of writes the word “Appraise and pass” and signs the bill of entry. This is the permit for unloading the goods. Then all the documents are sent to the jetty and the appraiser of the jetty examines the goods and writes on the document that duty has been appraised.
Closing the Transaction: when the importer is satisfied as to the quantity and quality of goods, the transaction is closed. On the other hand, if he is dissatisfied on account of inferior quality or shortage of goods, the transaction is closed after further negotiation between the exporter and importer.