IMPORT DOCUMENTATION Page 1 Page 2

IMPORT DOCUMENTATION Page 1

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Types of import Freely importable items Licensed imports Canalized items Prohibited items Page 3

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) Page 4

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 Page 5

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. Page 6

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 Page 7

Documents to be submitted by Invoice Importer – Packing list Bill of lading/ Delivery Order GATT declaration. Letter of credit Certificate of Origin Import license, etc. Page 8

Proforma invoice • A Proforma invoice is a quote in an invoice format that may be required by the buyer to apply : ø for an import license, ø contract for pre-shipment inspection, ø open a letter of credit or ø arrange for transfer of hard currency. Page 9

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 Ø Validity of Import License Ø sample of Import License € Foreign Exchange Control Copy € Customs Copy Page 10

Preshipment inspection It is the practice of employing specialized private companies to check shipment details PSI helps to: ŧ detect over-invoicing to prevent unjustified transfer of foreign exchange abroad; ŧ determine the classification and valuation of goods; and ŧ ensure the correct collection of import duties and taxes by Customs authorities Page 11

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 Page 12

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. Page 13

Manufacturers certificate Ø CERTIFICATE OF ORIGIN Ø CERTIFICATE OF WEIGHT Ø CERTIFICATE OF QUALITY Ø CERTIFICATE OF INSPECTION Page 14

Clearance Documents • AIR WAYBILL v The air waybill is used for the air shipment which serves as: v documentary evidence of the conclusion of a contract of carriage v proof of receipt of the goods for shipment v an invoice for the freight v a certificate of insurance v guide to airline staff for the handling, dispatch and delivery of the consignment. . Page 15

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 Page 16

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 Page 17

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 Page 18

IMPORT DECLARATION: • Importers must provide an Import Declaration in the prescribed bill of entry format, disclosing the value of the imported goods. Page 19

VARIOUS OCTROI FORMS USED A-B /FORM'S C & CC FORM N – FORM R-FORM X-FORM Page 20

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. Page 21

• 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. Page 22

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. Page 23