Import Procedure and Formalities

Hi

Today I discussion to Import procedure & formalities. Lot of procedure have present now here mentioned basic concept which as below : -

What is Import in Procurement of Garment sector ?

Import trade refers to the purchase of goods from a foreign country. The procedure for import trade differs from country to country depending upon the import policy, statutory requirements and customs policies of different countries. In almost all countries of the world import trade is controlled by the government. The objectives of these controls are proper use of foreign exchange restrictions, protection of indigenous industries etc. The imports of goods have to follow a procedure. This procedure involves a number of steps.

What is the procedure for Import ?

Importer always follows some of key which details mentioned below:

1. Trade Inquiry 

2. Procurement foreign License.

3. Obtaining foreign exchange 

4. Placing the indent or  order.

5. Dispatching letter of credit (L/C)

6.Obtaining necessary documents in import procedure.

7. Customs formalities and clearing of goods in procedure.

8. Making the payment in import procedure.

9. Closing the transaction.

All the necessary matter mentioned below for understanding: 

1. Trade Inquiry :

Preliminary response from prospective customers, generally following an advertisement or sales promotion campaign. Number of inquiries (and their conversion into sales revenue) is a measure of the effectiveness of a firm's marketing efforts. Also spelled as inquiry.

2. Import Procurement of Import License.

The import trade in Bangladesh is controlled under the Imports and Exports (Control) Act, 1947. A person or a firm cannot import goods into India without a valid import license. An import license may be either general license or specific licence. Under a general license goods can be imported from any country, whereas a specific or individual license authorizes to import only from specific countries.

The Government of Bangladesh declares its import policy in the Import Trade Control Policy Book called the Red Book. Every importer must first find out whether he can import the goods he wants or not, and how much of a certain class of goods he can import during the period covered by the relevant Red Book.

The Importer are divided into three categories for the purpose of issuing license which item mentioned below for understanding - 

1. Established Importer 
2. Registered Exporter
3. Actual Users

Who is Established Importer ?

Established importer is a person, imported goods or materials of the class in which he is interested during the basic period prescribe which showing below:-

Who is Registered Exporter ?

Registered exporter importing against export made under a scheme of export promotion and others have to obtain license from the chief controller of export and import.

Who is actual User ?

If the person importer where import goods for his own use in industrial manufacturing process is know as actual users. 

3. Obtaining Foreign Exchange :
Its most necessary part of Import points procedure where importer has to make payment for imports in the currency of exporting country. The foreign exchange reserves of any country are controlled by government and are released through its central bank.

4. Necessary Steps to Obtain Foreign Exchange :
In Bangladesh the importers have to submit an application in the prescribed from along with the import license to any exchange bank as per the provisions of exchange act. Scrutinizing the application on the basis of exchange policy of government of Bangladesh in force time of application. Bangladesh Bank sanctions or rejects the release of foreign exchange.

5. Placing Indent or Order :
This order is known as Indent. It contains the instruction from the importer so as to the quantity and quality of goods required methods for forwarding agent them. All the required particular of goods, prices etc, are not mentioned Indent. A confirmatory indent is one where an order s placed subject to the confirmation by the importers agent.

6. Dispatching Letter of Credit (L/C)
Exporter want to be sure that there is no risk of non-payment . Usually for this purpose he asks the importer to send a letter of credit (L/C) to him. A letter of credit (l/C) is popularity known as L/C.

7. Obtaining Necessary Documents :
On the received of Letter of Credit (L/C) the exporter arrange for shipment of goods and sends and advice note to the importer immediately after the shipment of goods. After that the exporter draws a bill of exchange on the importer for the invoice value of goods. Here, the shipping documents like as the bill of lading, certificate of origin, invoice insurance policy., customer invoice etc, also attached to the bill of exchange. These types of attached exchange documents are known as documentary bill. Then all customs doc sent to authorized person for clearing the goods.

Import Formalities 
Its along most necessary part of importing goods. But for importing goods need particulars matter mentioned below for understanding :-

7. Customs Formalities & Clearing of Goods. 
After receiving the necessary documents. Then concern to submit to port clearing agent for releasing the goods. In this stage the importers only concern is to take he delivery of goods when the ship arrive at the port to bring them to his own place of business.

8. Making Payment :
Its also most of the import parts of import procedure. Here mode of time of making the payment is specified according to the terms and conditions as agreed to earlier between the importer and exporter usually 30 to 90 days are allowed to the imported for making the payment of D/A and D/P bills.

9. Closing the Transaction :
At last step in import procedure is closing the transaction. But if he is not satisfied with the quality of goods he will write to the exporter and settle the matters. The insurance company will pay him the compensation under an advice to the exporters if the goods have been damaged in transit.