Q 21) Explain Importation cycle ?.

Ans:- This section briefly defines each of the stages in the global trade import cycle, which this wiki-paper
has defined as:

Supplier Selection This stage would utilize Strategic Sourcing Purchase Order Generation Via the buyer's e-Procurement system. Transport Insurance rd Preferably by way of a 3 party. Financing Either through a letter of credit, open account, or other form of an acceptable promisory note. Carrier Selection Who is going to ship the product and how are they going to ship it? Document Creation Foreign Customs, affected Government Bodies, Ports of Exit, and Carriers, to name a few, are going to require the proper documents before the goods will be allowed to move. Goods Departure Once the paperwork is in order, the goods are loaded and they leave the supplier's warehouse. Shipment Tracking Probably using RFID and an on-line web-portal that lets the buyer know when their goods reach certain checkpoints. Importation Assuming the buyer created the appropriate documents for Customs, affected Government Bodies, Ports of Entry, and local carriers, and, gave appropriate notice, the goods clear customs and begin the final stage of their journey to the warehouse. Goods Receipt The goods are received and a receipt is sent to the supplier's system. Invoice Receipt An invoice, generated by the supplier's system, arrives in the buyer's e-Procurement system. Reconciliation 3-way matching is performed against the purchase order, goods receipt, and invoice and, if everything checks out, the purchase is approved for payment. Payment An electronic payment is sent to the supplier through an e-Payment system or gateway. Tax Reclamation If the purchases included refundable value added tax, for example, the appropriate data is collected and documentation created for tax reclamation.