Import Trade Flashcards
Define import trade.
0.1
Ans.
When goods are received in home country after purchasing them from other countries is called import trade.
0.2
What is meant by F.A.S price.
Ans.
F.A.S (free alongside ship) is a price which includes cost of goods plus expenses to deliver goods on the vessel (c.g.) freight charges, packing charges, export duty and dock charges etc.
FAS stands for “Free Alongside Ship.” This is a shipping term that means the seller’s responsibility is to deliver the goods to a port, placing them next to the ship that will carry them. Once the goods are alongside the ship, all the risk and costs (like loading, shipping, insurance, and customs) shift to the buyer.
What is meant by ex-ship price.
Ans.
Ex-ship price includes cost of goods plus delivery charges, dock charges, ship freight, export duty and loading charges etc.
Q.4.
What are the import sources of importing goods.
Ans. Normally goods are imported through following means:
(i) Wholesalers (ii) Indent firms (iii) Foreign purchase office
Q.5
State the procedure or steps of importing goods.
Ans. (i Registration and import license
(ii) Placing the order (li) Acceptance letter
(iv) Opening of letter of credit
(v) Intimation of sending goods (vi) Dispatch of documents
(vii) Payment of the bill and custom formalities (viii) Collecting the goods
What is meant by the bill of sight.
If the importer cannot provide the information for goods then he requests the custom authorities for the inspection of goods with the help of this bill.
What is meant by delivery order.
If any person other than owner of goods wants to collect goods from warehouse of port warehouse then he has to present the delivery order endorsed by the importer of goods in his favour.
What is meant by consular invoice.
Consular invoice is a certificate which shows that the value of the exported goods mentioned therein is correct. This certificate is issued by consular office situated in exporting country.
A consular invoice is a special type of invoice required by some countries for imported goods. It is certified by the consulate (official office) of the destination country, usually in the exporter’s country.
Why is it needed?
• To verify the value, quantity, and nature of goods.
• To prevent fraud and ensure accurate taxation.
• To help the destination country control imports and apply correct duties/tariffs.
How it works:
1. The exporter fills out the invoice with details like product type, value, and origin.
2. The consulate of the importing country reviews and stamps it.
3. The importer presents it to customs for clearance.
Not all countries require a consular invoice, but those that do use it for trade regulation and security.
Imagine you’re sending a package to a friend in another country. Usually, you’d include a bill (an invoice) that lists what’s inside and how much it costs. For some countries, however, this isn’t enough. They want the invoice to be checked and approved by one of their official offices, called a consulate, which is located in the sender’s country.
In simpler words, a consular invoice is like a regular invoice but with an extra “official stamp.” This stamp confirms that the information on the invoice—such as what the goods are, how many there are, and their value—is correct. The consulate’s approval helps the country receiving the goods know exactly what’s coming in, ensures that any taxes or fees are calculated correctly, and helps prevent mistakes or fraud during the shipping process.
