of offer period Importer responds to enquiry by sending proforma invoice . Obtaining Foreign Exchange Since importer has to settle import bills in foreign currency, he has to obtain foreign exchange. Importer has to provide IEC code in the form supplied by authorized dealer to get foreign exchange.. The importer has to submit an application along with necessary documents to the Exchange Control Department of RBI.
After scrutinising the said application, the Reserve Bank of India will sanction the release of foreign exchange. . Placing an Indent Order Importer places an order either directly or through an indent houses. The indent contains the details like type of goods, design of goods, price, quantity, grade, packing instructions, insurance, delivery mode, desired delivery period, mode of period, mode of shipment, etc., .
Opening Letter of Credit(L/C) Where foreign exporter does not know Indian importer, he may like to ensure the creditworthiness of the unknown importer. In such a case, exporter may advise the importer to arrange for letter of credit in his favour..Letter of credit is a document under which issuing bank undertakes to make payment on behalf of the importer or to the order of importer in exchange for specified documents from exporters bank. The letter Importer has to fill in ANF 2A form and grant of e-LEC and submit all documents required in this regard online. IEC will be issued.
Commerce - - . . PM of credit is issued only for financially sound importer. Exporter’s bank eventually sends the document to issuing bank which releases the payment.
. Receiving Shipping Document The importer collects shipping documents along with the advice note of shipment of goods from the exporters. Advice note contains a written message through which exporter informs the importer about the dispatch of goods and advise him to make agreement for taking delivery of goods on arrival of goods at the port of destination. The captain of the ship informs the dock authorities about the arrival of goods on a document called Import General Manifest.
The customs authorities in turn inform the importer concerned about the arrival