Importing to India: Process and Requisites

Here are the steps required to carry out the procedure of import to India:

1.Obtaining import license and quota: Download the application form available for IEC
application form (Importer Exporter Code). Attach the required documents (Applicant PAN
card, photograph, bank certificate), furnish the additional company documents including list
of partners/directors, memorandum, articles of association, company's letterhead if the
application is sought for partnership of private limited company. Also, the bank fee receipt for
obtaining license, certificate from a Chartered Accountant denoting the total import value,
income tax verification certificate- are to be furnished along with the above mentioned
documents. Procedure for online application through step by step procedure is in detail
discussed in this article- All that you need to know about IEC code and how to obtain
it. Quota certificate from the concerned authority has t be kept ready which indicates the
upper cap to the quantity of imports.

2.Obtaining foreign exchange: Required foreign exchange is to be applied before the

execution of the import order. The importer needs to apply to the Exchange Control
Department (EDC) of RBI. The request needs to be forwarded through the importer's bank.
Upon validation, the EDC releases the essential foreign exchange.

3.Placing an order: Placing order can be either direct or through canalisation for specified
products like metals and minerals need channelisation through government agency like
MMTC. In the case of canalisation, the importer needs to place the order with the facilitating
agency and the agency will place the order for the importer.

4.Dispatching Letter of Credit: Once the importer receives the confirmation from the
exporter about the products ordered for, the importer needs to give a request letter to his
bank to issue a Letter of Credit (LC) in favouring the exporter. This is a payment confirmation
for the seller meaning that his payment is confirmed by the importer's bank upon the receipt
of documents regarding receipt of imports.

5.Appointing C and F Agents: Clearing and forwarding agents are required to be appointed
by the importer to ensure the hassle-free clearance of imports from customs department.

6.Receipt of Shipment advice: Bill of Exchange, a copy of Bill of Lading, Certificate of

Origin, consular invoice, packing list reaches the importer's bank from the exporter's bank.
(Other documents that may include- Signed invoice, Packing list, Bill of lading or delivery
order/air waybill, GATT declaration form, Importer/CHA declaration, Import license wherever
necessary, Letter of credit/bank draft, Insurance document, Industrial license, if required Test

report in case of chemicals, Adhoc exemption order, DEEC Book/DEPB in original,

Catalogue where applicable, technical write up, literature in case of machineries etc). The
importer needs to collect the documents after payment if he has not paid while dispatching
the Letter of Credit.

7.Bill of Entry: Bill of Entry is as important in import as the shipping bill is, during every
export. The document is the proof that the specified goods have entered the country in the
mentioned quantities with specified quality parameters fulfilled. The customs office gives Bill
of Entry in triplicate. Each copy carries different color to be distinguished easily. A copy each
is retained by customs department, port trust and given to the importer.

8.Delivery Order: The delivery order is given by the shipping company to the clearing
agents after the payment of freight is settled, if any.

9.Clearing of goods: The clearing agent obtains port trust receipt after settling the dock/port
trust dues. Then, the clearing agent approaches the Customs House to present the copy of
Port Trust receipt and two copies of Bill of Entry. He then receives a copy of Bill of Entry to be
given to the importer and also, the Customs House endorses the Trust receipt and gives it
back to the agent. The goods are stored in bonded warehouses if the duty is not paid.
Otherwise, they are released to be taken inside the country, post which, the Clearance and
Forwarding agents receive the payment from the importer.

10.Follow-up: The importer needs to inform the exporter about the receipt of goods and their
condition of import. This completes the import procedure.