Outline the various stages in import …

(1) Trade Enquiry and Sending Quotations

• The domestic buyer who wishes to buy the goods from the other country sends an inquiry relating to price, desired quality, terms, and conditions for the export of goods.
• The exporter sends a reply to the inquiry in the form of ‘Quotation’.
• The quotation is also known as ‘Proforma Invoice’ which contains information about the selling price, quantity, quality, mode of delivery, etc.

(2) Procurement of Import License

• Goods can be imported only upon the license, the importer requires to obtain an import license.

(3) Obtaining Foreign Exchange

• The overseas supplier asks payment in a foreign currency.
• Payment requires the exchange of Indian currency into foreign currency.
• In India, transaction related to foreign exchange are governed by Reserve Bank of India (RBI) under the Exchange Control Department.

(4) Placing Order or Indent

• After the receipt of the ‘Quotation’, if the prospective buyer finds the information suitable to him, he places the ‘Order/Indent’ for the import of goods.

(5) Obtaining Letter of Credit

• The importer must get the receipt of credit from his concerned bank and send it to the foreign supplier.

(6) Arrangement of Finance

• The importer makes the finance settlements in advance to remunerate to the exporter when the shipment arrives at the destination.

(7) Receipt of Shipment Advice

• After storing the consignment on the ship, the foreign supplier sends the shipment advice to the importer.
• The shipment advice includes data about the shipment of products such as:
  • Invoice number
  • The landing or airways bill date and number
  • Name of the ship with date
  • Port or Destination of export
  • Classification of goods and quantity
  • Date of the sailing of the vessel.

(8) Arrival of Goods

• The overseas supplier dispatches the Goods as per the contract.

(9) Customs Clearance and Release of Goods

• In India, all the imported goods have to have a clearance from customs after they pass the Indian borders.
• When the ship arrives at the port, the importer has to obtain a delivery order/endorsement for delivery on the back of the bill of lading from the concerned shipping company.