So we have already discussed about the procedures of export shipments in details.
In this article we will discuss about Import shipments procedures point wise.
1. Obtain IEC code
As we discussed in last article (EXPORT SHIPMENT PROCEDURES) the process of obtaining IEC & AD code is same.
Please go through EXPORT SHIPMENT PROCEDURES.
2. Ensure legal compliances for selected commodity
Once you decide the commodity for import you have to be ensured that your commodity is allowed to import in India.
The business has to comply with section 11 of the Customs Act of 1962, Foreign Trade Development and Regulation Act (1992) and also it should comply with the Foreign Trade Policy.
As per this you will get to know your product is free to import or restricted or prohibited. If your good comes under restricted category you have to take permission for import from DGFT.
3. Procurement of Import license
Majority of goods can be freely imported in India but some special special goods are restricted or conditional for import, in this case an importer has to procure the import license which is issued by Director General of Foreign Trade (DGFT).
Whether the selected good needs import license or not that can be decided by it's HS code.
Types of imported goods:
(A) Freely importable items: Majority of items are freely importable, any product falls under this category does not require import license.
(B) Licensed items: Several goods fall under this category. Precious stones, plants, seeds, animal, chemical, pharmaceutical products etc., importer has to procure import license in order to import these goods.
(C) Canalized items: Some items are permitted for import but only government agencies or specified channels approved by government can import. Petroleum products, few drugs, few chemical etc. fall under this category.
(D) Prohibited items: Prohibited items can be called as banned items, these items are not permitted to import.
4. Find seller/supplier/exporter
Once all arrangements are done and commodity is decided you need to research your product is available for export in which countries and then you need to search for a genuine supplier or seller who can export you that product in sufficient quantity. Finding seller is quite same as finding buyer in case f export, you need to do market research, approach government agencies for past data and analyze the data, attend international seminars.
Once you find a genuine seller ask them to send samples and quotations.
5. Decide a payment & delivery terms
In order to prepare the purchase order/contract you have to decide the payment and delivery terms.
Payment terms & Delivery terms are briefly disused in last article (EXPORT SHIPMENT PROCEDURES), please go through that.
6. Packing
Packing plays a vital role in international shipments, we have already disused about packing in last article (EXPORT SHIPMENT PROCEDURES), please go through that.
7. Shipment (operation & documentation)
Let's assume the the delivery term is CIF/CFR/FOB, in this case supplier(exporter) will complete all the activities related to export shipment and will hand over the goods on the vessel. If you want to get the idea of export shipments go through the article EXPORT SHIPMENT PROCEDURES.
Once vessel is departed supplier will share scanned copies of post shipment documents to importer/buyer which is called as pre alert documents.
And then supplier will send the original documents as per decided payment term (CAD/TT/DA/LC), if you paid the amount in advance or the payment term is Open account you can ask them to send original documents through courier directly and share AWB details.
If payment term is Ex-works - Supplier/ exporter will pack the goods and keep ready at their loading bay, after that importer/buyer has to arrange all activities. Importer will appoint a freight forwarder (agent) at the country of origin who will take care of loading, primary transportation, custom clearance(export), ocean freight (on boarding at vessel) and post shipment documents.
8. Appointment of CHA
Importer will appoint a Custom house agent (CHA) for import clearance.
Once post shipment documents are ready and importer received scan copies on email, importer will share the documents to it's CHA so that CHA will be ready with all necessary arrangements.
CFS - Importer needs to discuss with CHA and finalize the CFS where the shipment will be cleared and then Importer will advise the CFS name to liner or freight forwarder so that the associated containers can be moved to advised CFS after vessel berthing.
9. Import General manifest (IGM)
Before vessel arrival liner/carrier has to file details of all the shipments loaded on that vessel at customs and generates a IGM no. Filling of details like importers, exporters, bill of lading/ AWB, description of cargo, package, vessel/flight called as IGM.
Once IGM is filed & IGM no is generated carrier sends the IGM details along with Cargo arrival notice (CAN) to all freight forwarders/ importers involved in that shipment. IGM no. needs to be mentioned at the time of filing Bill of entry and the BOE will be automatically linked with that IGM.
10. Bill of entry (BOE/BE)
Bill of entry is is similar to Shipping bill (in case of export). The details of supplier, buyer, place of origin, destination, invoice value, freight, insurance, other charges, description of cargo, HS code, quantity etc. are mentioned in BOE, BOE is submitted to custom department by importer through it's agent (CHA), BOE is the main document used for custom clearance of imported goods.
Once IGM is filed CHA will create a Bill of entry checklist on their system (software) and they will share the checklist to importer for approval, importer will check all the details and approve if all details are ok. Once checklist is approved CHA will submit the file on ICEGATE (www.icegate.gov.in) after digitally sign. After some time ICEGATE will show Bill of entry number, other post shipment documents e.g. Bill of lading, Invoice, Packing list, Certificate of origin, inspection certificate etc. also to be uploaded in e-Sanchit.
11. Custom clearance
Once BOE no. is generated the data of that BOE will be sent to concerned custom office by system software, that officer will check all the data and raise query online if he/she finds anything doubtful, CHA has to answer that query online(ICEGATE) with appropriate explanation or document, if everything found ok custom officer will pass the BOE, this is called as assessment. Once assessment is completed cargo will go for examination.
Simultaneously after vessel arrival containers will be offloaded at port and the those containers will be sent to the nominated CFS as per IGM.
Once assessment is completed and all containers/ loose cargo arrives at CFS some custom officer will do the inspection and submit inspection report online, concerned custom officer will verify the inspection report and approve if everything is ok.
If duty is not involved the BOE will be released for delivery (Out of charge issued). If duty is involved importer has to pay the duty at ICEGATE website and generate a payment copy which needs to be submitted to custom.
Once payment proof is submitted at customs and it is verified Out of charge will be issued, once out of charge is issued importer can take the cargo out of CFS for delivery.
0 Comments