Import Procedure Essay Example

The procedure for import trade varies from country to country and is influenced by the import policy, statutory requirements, and customs of different nations. Import trade is regulated by the Government in most countries worldwide. The main aims of these regulations are the appropriate utilization of foreign exchange, limitations on imports of non-essential and luxury items, and the advancement of domestic industries. In India, there are specific steps involved in importing goods from foreign countries.

Steps in Import Trade

Following steps are taken in import trade:

1. Trade Enquiry: First step in import trade is to make trade inquiries asking for details of goods, price, terms of sales etc.
2. Procurement of Import license and quota: An Import license is essen
   ...

   tial to import goods from a foreign country. A license is issued under import policy announced every year by the government.

3. Obtaining foreign exchange: After getting import license, foreign exchange is obtained from RBI. An application in a prescribed form is submitted giving details of exchange required.
4. Placing the indent or order: An order is placed with the exporter for the supply of goods.
5. Dispatching a letter of Credit: To ensure payment the exporter asks for a letter of credit from the importer. The issuer of this letter guarantees the payment as per terms.
6. Obtaining necessary documents: The exporter sends necessary documents giving details of goods dispatched.
7. Customs formalities and clearing of goods: After receiving the necessary