Export Import Procedure

Question 1

Export procedure:

3 stages: preliminary, second and third

Answer 1

Preliminary- activities to taken by exporter within his own country
- Registration of Trade and Opening Bank Account
- getting import export code number
- obtaining export license, Export Control act, 1962
- declaration under exchange control
Free price- CIF+all expenses up to importer’s warehouse
- Conditions of payment
Documents against Acceptance bills - when importer accepts bill of exchange
Documents against Payment bills - when importer makes immediate payment
-Indent contains all information of the goods
Closed indent- full description of goods
Open indent- importer specifies quantity and kind of goods
-Letter of credit- issued by bank on behalf of the importer

Second stage;

• confirmation of the order
• collection, packing and marketing of goods
• quality control check- 4 copies are given by Export Goods inspection council
• appointment of forwarding agent
• sending documents

Third stage:
-obtaining certificate of origin
issued by Chamber of Commerce which provides the  origin of goods
-preparation of invoice
-dispatch of documents to importer
-receipt of payment

Question 2

Import procedure

preliminary, second and third stage

Answer 2

1. preliminary stage
   - trade inquiry
   - obtaining quotations
   - obtains import license- open general license and special license
   - permit for Foreign exchange- by RBI
2. Second stage
   - placing the indent
   - sending letter of credit
   - receiving advice note- sender sends advice note to buyer mentioning probable date of delivery
   - making payment
   - receiving documents of titles
3. Third stage
   - appointment of clearing agent- for getting delivery of goods and getting it cleared from customs, buyer appoints clearing agent at importer’s port of country
   - endorsement of document of title