RETIREMENT OF IMPORT DOCUMENTS

Import procedure

• Pre-import procedure• Legal dimensions of import procedure• Retirement of import documents• Customs clearance

Where we have to across rid ?Pre-import procedure

Legal dimensions of import procedure

Customs clearance

Retirement of import documents

(a) Loading of Goods and Receipt of Shipment Advice: -

On loading of goods the overseas supplier dispatches the shipment advice to the importer informing him about the shipment of goods.

The shipment advice contains1. invoice number, 2. bill of lading, 3. airways bill number and date, 4. name of the vessel with date, 5. the port of export, 6. description of goods and quantity and the

date of sailing of the vessel.'

(b) Retirement of Import Documents:

After shipping the goods, the overseas supplier prepares the necessary documents as per the terms of contract’ and letter of credit and hands them over to his bank for their onward negotiation to importer in the manner as specified in the L/C.

The set normally contains

bill of exchange, Commercial invoice, bill of lading, packing list, certificate of origin, marine insurance

policy, etc.

For the retirement of documents, the importer is required to submit the following documents to his bank:

(a) A letter authorizing his bank to debit the equivalent Indian rupees to the value of documents including bank charges.

(b) Exchange control copy of the Import License, if applicable.

(c) Form A1 duly completed for the remittance in foreign exchange.

c) Acceptance of the bill of exchange:-

Bill of exchange accompanied by the above documents is known as the Documentary Bill of Exchange.

It is of two types:- Documents against Payment (Sight Drafts) Documents against Acceptance (Usance

Draft)

Documents against Payment (Sight Drafts):- In case of sight draft, the drawer instructs the bank to

hand over ….the relevant documents to the importer only against payment.

Documents against Acceptance (Usance Draft):- In case of usance draft, the drawer instructs the bank

to hand over the relevant documents to the importer against his 'acceptance' of the bill of exchange.

(d) Scrutiny of Documents Received under L/C:-

After receipt of import documents from the exporter's bank, the importer's bank will scrutinize the documents as to their correctness as per the terms and conditions of L/C and hands over them to the importer after payment.

The importer should also scrutinize the documents and ensure that there are no discrepancies.

(e) Appointment of C & F Agent: -

In India, the procedure for clearance of imported goods is very lengthy, time consuming and involves lots of legal formalities.

Therefore, it is advisable to hire the services of C&F agents who are well versed with such formalities.

The C&F Agent prepares the bill of entry containing details of goods to be cleared from the customs.

In case, the C&F agent does not have relevant information about the goods to be cleared,

he prepares a bill of sight in order to enable himself to physically check the goods imported and prepare bill of entry on that basis.

Step 1

overseas supplier

importer

shipment advice

Step 2 overseas supplier (Necessary docs & L/C)

EXPORTER BANK

IMPORTER BANK

TO NEGOTIATE IMPORTER

Step 3

Importer

importer

bank

Letter Authorizing to his bank

Import License

Form A1

Step 4

Importer against Paymentbill of exchange

against Acceptance

Step 5overseas supplier docs& l/c export bank scrutinizing docs (as per contract and

L/C) import bank docs importer

THANK YOUrageebSudhir kumar . JShrish barathwajTasin ahmedVaibhav indoraVaseem