BUSINESS STUDIES

PROJECT
Name :
Jayesh Songara
Class : XI
Sec : E
Submitted to :
Mrs Sonali Joshi

&
Port Of New York . USA
Praduman singh
IMPORT PROCEDURE
TOPICS COVERED

Trade Enquiry. Arranging a Letter of

Credit.
procurement of
Arranging Finance.
lisence.
Obtain foreign retirement of import
exchange. documents.
Placing an order. Custom clerance and
relase of goods
TRADE ENQUIRY

The first stage in an import

transaction is to conduct enquiry
and collect information about the
countries and firms which can
export the required
goods.
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 • Importer can get such information from trade directories, trade
associations and organisations.
After identifying a suitable exporter, the importer sends a 'Trade
Enquiry'.
• Trade enquiry is a written request from the importer to the
exporter to provide information regarding the price, terms and
conditions on which the exporter will be able to supply goods.
• In response to the enquiry, the exporter sends a reply in the form
of a quotation known as
'Proforma Invoice.
• The proforma invoice contains detailed information regarding price,
quality, grade, size, weight and all other relevant conditions regarding
sale.

Trade Enquiry
PROCUREMENT OF In India, certain goods can be imported freely,
while for others, it is compulsory to obtain import
IMPORT LICENSE: license.

• Moreover, every importer (whether he needs

import license or not) is under an obligation to
get registered with Directorate General
Foreign Trade (DGFT) or Regional Import
Export Licensing Authority (RIELA) and
obtain an Import Export Code (IEC) number.

• IEC number is required to be mentioned on

Back to Agenda Page most of the import documents.
 After obtaining the license (if needed), every importer has to procure
foreign exchange as payment for imports has to be made in the currency
of exporting country.
• In India, all foreign exchange transactions are regulated and
sanctioned by the Exchange Control Department of RBI.
• To obtain the sanction for release of foreign currency, importer has
to submit an application to a bank authorised by RBI along with the
copy of import license.
• If the application meets approval of RBI, the necessary amount of
foreign exchange is released through the importers bank.

OBTAINING FOREIGN EXCHANGE Back to Agenda Page

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48.5% INDIAN IMPORT DUTY

25.15% INDIA IMPORT PERCENTAGE

$911.39B INDIA IMPORT IN YEAR 2021-22

PLACING ORDER
ON INDENT
ORDER ON INDENT
After obtaining the required foreign exchange, the importer places the
order for the goods to be imported. This order is known as the Indent.
The order contains details regarding price, quantity, grade, packing and
marking details and delivery instructions, etc. The indent should be
carefully drafted in order to avoid any misunderstanding.

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 Generally, the foreign exporter wants to be sure about the credit
worthiness of the importer. For this purpose, importer obtains letter
of credit from its bank and forwards it to the exporter. Letter of credit
is a guarantee issued by the importer's bank that it will honour
payment up to a certain amount of export bills to the exporter's bank.
It must be noted that importer's bank issues 'Letter of Credit' only
when it is sure about the financial soundness of the importer.

OBTAINING LETTER OF CREDIT Back to Agenda Page

ARRANGING
FINANCE
ARRANGING FINANCE
• The importer should make arrangements to pay in advance to the
exporter. Advance payment saves the importer from heavy
penalties, which would have to be paid on imported goods lying
uncleared at the port.

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 • AFTER SHIPMENT OF GOODS, THE EXPORTER PREPARES AND
SUBMITS NECESSARY DOCUMENTS TO HIS BANKER, SUCH AS
COMMERCIAL INVOICE, BILL OF LADING, PACKING LIST,
CERTIFICATE OF ORIGIN, MARINE INSURANCE POLICY, ETC. THESE
RETIREMENT OF DOCUMENTS ARE DELIVERED TO IMPORTER ONLY WHEN HE
ACCEPTS THE 'BILL OF EXCHANGE', WHICH IS ALSO SENT ALONG

IMPORT DOCUMENT. WITH THE ABOVE MENTIONED DOCUMENTS.

• (1) Document against sight (Sight draft): In this case,

documents are handed over only against payment, i.e. to
deliver the documents to importer only against

• (2) Document against acceptance (Usance draft): In

this case, documents are delivered to the importer when
he accepts the bill of exchange and agrees to make
payment on maturity.
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 CUSTOM CLEARANCE AND RELASE
OF GOODS.

In India, the delivery of imported goods can be taken only after customs clearance. The clearance involves the
following steps:
(1) Delivery Order: When the ship arrives at the port of destination, the importer will either obtain
'Endorsement of Delivery' on the back of bill of lading or 'Delivery Order' from the shipping company.
(2) Payment of Dock Charges: The importer is required to submit two copies of a duly filled in form, known
as application to import to the Landing and Shipping Dues Office.
(3) Bill of Entry: The importer then fills in a form bill of entry' in triplicate for assessment of customs import
duty. Complete details of the goods imported are to be declared in it.
(4) Payment of Import Duty: The importer is required to submit one copy of Port Trust Dues Receipt and two
copies of Bill of Entry along with other required documents to the Custom Authorities and make payment of
import duty.
(5) Release order: After payment of the import duty, the bill of entry has to be market od the dock
superintendent and an examiner is asked to physically examine the imported goods.

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THANK
YOU!

A project made by Jayesh

Songara.