Transcript IMPORT DOCUMENTATION - ManagementParadise.com

IMPORT
DOCUMENTATION
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Types of import
Freely importable items
Licensed imports
Canalized items
Prohibited items
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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)
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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
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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.
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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
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Documents to be submitted by
Invoice
Importer –
Packing list
Bill of lading/ Delivery Order
GATT declaration.
Letter of credit
Certificate of Origin
Import license, etc.
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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.
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 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
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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
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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
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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.
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Manufacturers certificate
CERTIFICATE OF ORIGIN
CERTIFICATE OF WEIGHT
CERTIFICATE OF QUALITY
CERTIFICATE OF INSPECTION
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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. .
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‽ 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
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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
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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
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IMPORT DECLARATION:
• Importers must provide an Import
Declaration in the prescribed bill of entry
format, disclosing the value of the imported
goods.
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VARIOUS OCTROI FORMS
USED
A-B /FORM'S
C & CC FORM
N – FORM
 R-FORM
X-FORM
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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.
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•
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.
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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.

Open revolving LC without safety clause.
Allow direct remittance of import bills beyond the limit.
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