Importing step by step

Importing is the same chain seen from the buyer's side:

• Trade enquiry: the importer contacts foreign suppliers and gets a proforma invoice.
• Getting an import licence, if the goods need one, and an IEC number.
• Getting foreign exchange through a bank authorised by the Reserve Bank of India (RBI), since the supplier must be paid in its own currency.
• Placing the order or indent.
• Getting a letter of credit from the importer's bank, guaranteeing payment.
• Arranging finance to pay the exporter when the goods arrive.

After the goods are shipped:

• Receipt of shipment advice: the exporter tells the importer that the goods have been loaded, and sends the invoice and the bill of lading.
• Retirement of import documents: the importer pays or accepts the bill of exchange, and receives the documents needed to claim the goods.
• Arrival of goods: the person in charge of the ship gives the port the import general manifest, which lists the goods on board.

Then customs clearance, usually handled by a clearing and forwarding (C&F) agent:

• Getting a delivery order from the shipping company.
• Paying the dock dues and getting a port trust dues receipt.
• Filling in the bill of entry, the importer's form for customs.
• Paying the customs duty and having the goods examined.
• Getting the release order, after which the goods can be taken away.