able to use a wide variety of goods like cell phone, car laptop. television audio system, washing machine, perfume, soaps, etc., manufactured in foreign countries and enhance their standard of living through import trade. . Meeting Shortage Situation During famine, earthquake, flood draught, tsunami, abnormal price-increase situations and so on food grains, vegetables and other essential commodities are imported from foreign countries and bad situation arising from the above situations are thus overcome.
. Strengthening Defence Many countries around the world import defence equipments for its armed force. Such imports enable the country to ensure its sovereignty and territorial integrity. Import Procedure Import procedure varies from country to country depending upon the foreign trade policy of a country.
Government of India has framed rules and regulations for the import. The import procedures has been clearly spelt out of Government of India. Following are the procedures of import trade. .
Obtaining Import License Importer has to secure Import and Export Code (IEC) from the Director General of Foreign Trade or its Regional Authority. The Indian Institute classification (ITC) –Harmonized System (HS) classified the goods into three categories, namely Restricted, Canalised and Prohibited. Goods not specified in the above categories can be freely imported without any restrictions. Import license is not required to import the goods not mentioned in the above classification.
An import license is valid for months for capital goods and months for other goods. Commerce - - . . PM Importer has to submit the copy of IEC to customs authorities at the time of clearance of goods.
The second copy of IEC is used to obtain foreign exchange from RBI. . Trade Enquiry Having obtained IEC, the intending importer has to make enquiry from exporter or his agents. Importer makes request by e-mail or postal mail to supply the details given below.
a. Specification of goods like size, design, quality etc., b. Quantity goods available c. Price per unit d.
Terms of shipping e. Terms of payments i.e. Letter of credit Documents against Acceptance (D/A)or Documents against Payment (D/P) f. Probable delivery time g.