IMPORT DOCUMENTATION

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

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.

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

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.

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.

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

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

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

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.

Manufacturers certificate • CERTIFICATE OF ORIGIN • CERTIFICATE OF WEIGHT • CERTIFICATE OF QUALITY • CERTIFICATE OF INSPECTION

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. .

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

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

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

IMPORT DECLARATION: • Importers must provide an Import Declaration in the prescribed bill of entry format, disclosing the value of the imported goods.

VARIOUS OCTROI FORMS USED • A-B /FORM'S • C & CC FORM • N – FORM • R-FORM • X-FORM

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.

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.

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. • Allow direct remittance of import bills beyond the limit. • Open revolving LC without safety clause.

IMPORT DOCUMENTATION