IMPORT%20DOCUMENTATION

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IMPORT DOCUMENTATION
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INTRODUCTION
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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 Importer

• Invoice
• 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
  
• for an import license,
• contract for pre-shipment inspection,
• open a letter of credit or
• arrange for transfer of hard currency. 

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IMPORT LICENSE 

• 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
• detect over-invoicing to prevent unjustified
  transfer of foreign exchange abroad
• determine the classification and valuation of
  goods and
• 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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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

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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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Dos

• 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 customers
  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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Donts

• Issue the Letter of Credit if the customer
  doesnt 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.