Basic Import Process
IEC : First obtains importer exporter code number from DGFT ( Directorate General of Foreign Trade) is mandatory 10 digit code document than can start import or Export in India.
Exporter/Importer
Want to get any goods from overseas, then have to find exporter and it also necessary that the name of the exporter should be good in market.We can find good products by having at least 2 or 3 exporter in our list . It should also be our endeavor that if the exporter are from different countries, then it would be better for comparative information.
Item
We need to have technical specifications to select our item . Having an after sale service or guarantee is a must for sending a product from one country to another country .
Rate/unit price
Our effort should be to have a price list of 2 or 3 exporter for an item so that compare it .Shipping terms in the unit price is required . Some of the more frequently used terms are as follows.
FOB : Which we call Free on Board means that after dispatching the shipment from the nearest dispatch port, the entire cost has to be paid by importer including freight and insurance.
Ex works : This means that after the importer purchase the goods from shipper the expense like pre carriage transport, custom clearance, sea/air freight , Insurance etc for the nearest dispatch port will have to be borne by importer
FCA This means the shipper will only bear transport to the nearest dispatch port and all other expenses will have to be paid by importer
C & F Cost & Freight This means that the importer will get his consignment to the nearest arrival port without insurance . Freight part will bear by the shipper .
C.I.F :Cost+Insurance +Freight This means That the importer will get his consignment to the nearest arrival port with Insurance & freight etc.
DDP : This means that exporter will bear all the charges including custom taxes to the destination & deliver at consignee door step.
DDU : This means that exporter will deliver the shipment at consignee door step but destination custom duty will bear by the recipient. All other charges will be paid by exporter.
And many more
Packing
Packing matters a lot for import & Export if the packing is good then the goods can avoid spoilage and shipping cost will also come down. Packing specified by the IATA( International Air Transport Association) for air shipment.
Pro-forma Invoice Definition
Means checking items and other terms before final invoice. Pro forms invoices as preliminary invoices with weight, terms of payment, unit price etc. Commercial Invoice -cum- packing list or a separate commercial invoice & packing list accompany all documents with shipment.
Purchase Order
When our pro forms invoice is correct, we should send our purchase order to the shipper . It is important to keep in mind that whatever item we want to get ordered should be according to pro forms invoice .It should also be ensured that we need its approval by e-mail or fax so that we can plan the future production without interruption. After the order approval,we have to keep watching manufacturing our items equally from the shipper .
Appointment of International freight company
We have to appoint the international freight company to get our goods/consignments from one country to another country.As soon as we send purchase order to the shipper,we must also appoint the freight company that they can bring the consignments to their final nearest port of delivery.We need to approve the freight and destination charges before appointing a well experienced company. We must maintain equal contact with our freight company after the shipment is booked with the shipper.At the final delivery port it is necessary to have file a IGM ( Inward Gate Memo) before reaching the vessel/consignment.We also
Need to check with the approved freight company .
Bill of Entry for Home consumption
Now immediately after arrival of the consignments we need to file bill of entry in custom department.Ground rent is free for 2 or 3 days, you can immediately release your shipments by paying custom duty and freight.
After the custom release , you can take the goods to your warehouse/Factory.
IEC : First obtains importer exporter code number from DGFT ( Directorate General of Foreign Trade) is mandatory 10 digit code document than can start import or Export in India.
Exporter/Importer
Want to get any goods from overseas, then have to find exporter and it also necessary that the name of the exporter should be good in market.We can find good products by having at least 2 or 3 exporter in our list . It should also be our endeavor that if the exporter are from different countries, then it would be better for comparative information.
Item
We need to have technical specifications to select our item . Having an after sale service or guarantee is a must for sending a product from one country to another country .
Rate/unit price
Our effort should be to have a price list of 2 or 3 exporter for an item so that compare it .Shipping terms in the unit price is required . Some of the more frequently used terms are as follows.
FOB : Which we call Free on Board means that after dispatching the shipment from the nearest dispatch port, the entire cost has to be paid by importer including freight and insurance.
Ex works : This means that after the importer purchase the goods from shipper the expense like pre carriage transport, custom clearance, sea/air freight , Insurance etc for the nearest dispatch port will have to be borne by importer
FCA This means the shipper will only bear transport to the nearest dispatch port and all other expenses will have to be paid by importer
C & F Cost & Freight This means that the importer will get his consignment to the nearest arrival port without insurance . Freight part will bear by the shipper .
C.I.F :Cost+Insurance +Freight This means That the importer will get his consignment to the nearest arrival port with Insurance & freight etc.
DDP : This means that exporter will bear all the charges including custom taxes to the destination & deliver at consignee door step.
DDU : This means that exporter will deliver the shipment at consignee door step but destination custom duty will bear by the recipient. All other charges will be paid by exporter.
And many more
Packing
Packing matters a lot for import & Export if the packing is good then the goods can avoid spoilage and shipping cost will also come down. Packing specified by the IATA( International Air Transport Association) for air shipment.
Pro-forma Invoice Definition
Means checking items and other terms before final invoice. Pro forms invoices as preliminary invoices with weight, terms of payment, unit price etc. Commercial Invoice -cum- packing list or a separate commercial invoice & packing list accompany all documents with shipment.
Purchase Order
When our pro forms invoice is correct, we should send our purchase order to the shipper . It is important to keep in mind that whatever item we want to get ordered should be according to pro forms invoice .It should also be ensured that we need its approval by e-mail or fax so that we can plan the future production without interruption. After the order approval,we have to keep watching manufacturing our items equally from the shipper .
Appointment of International freight company
We have to appoint the international freight company to get our goods/consignments from one country to another country.As soon as we send purchase order to the shipper,we must also appoint the freight company that they can bring the consignments to their final nearest port of delivery.We need to approve the freight and destination charges before appointing a well experienced company. We must maintain equal contact with our freight company after the shipment is booked with the shipper.At the final delivery port it is necessary to have file a IGM ( Inward Gate Memo) before reaching the vessel/consignment.We also
Need to check with the approved freight company .
Bill of Entry for Home consumption
Now immediately after arrival of the consignments we need to file bill of entry in custom department.Ground rent is free for 2 or 3 days, you can immediately release your shipments by paying custom duty and freight.
After the custom release , you can take the goods to your warehouse/Factory.
Comments
Post a Comment