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Importer required documents and procedures/formalities for Import.

Importer required documents and procedures/formalities for Import. Production cost of a commodity may be higher than another country. Technologically one country may be more advance than other country to produce a commodity. Natural resources are also scattered all over the world. That is why it needs to export and export from one country to another country. To export and export it needs some documents and policy, Hear it is given below.

Importer required documents for getting Import Registration Certificate (IRC)?

                                (i)            Application in a prescribed form.

                                (ii)           Valid Trade license.

                                (iii)          Membership certificate of the respective trade organization or Membership

                                                from the Chamber of Commerce & Industry.

                                (iv)          Registered partnership deed/Memorandum and Articles of Association

                                                along with Certificate of Incorporation.

                                (v)           Two copies attested photograph of the applicant(s).

                                (vi)          Affidavit from 1st class Magistrate.

                                (vii)         Asset Certificate of the applicant(s).

                                (viii)        Ownership deed or Lease deed of the office premises along with rent receipt.

                                (ix)          Bank solvency certificate.

                                (x)           Tax Identification Number (TIN) Certificate.

                                (xi)          Money receipt of requisite fee.

                                (xii)         Any other document as required.

Importer required documents Isued authority of the Import Registration Certificate (IRC)?

After submission of the application by the intending importers for IRC alongwith the papers in mentioned above (a) and deposit of requisite fees, on being satisfied the Chief Controller of Import & Export (CCI&E) issue IRC to the Industrial Consumers or Commercial importers with their half yearly/yearly entitlement mentioning item of commodities.

Contents of an IRC?

 Validity period & issue date mentioned
Name of the importer mentioned
Sometimes amount limited
Sometimes item limited.

Persons exempted for registration:

  • Local authorities or Statutory bodies
  • Recognized Educational institutions
  • Hospitals
  • Imports of goods which does not involve remittance of foreign exchange
  • Reading materials or medicine imported for personal use within permissible limit.
  • Capital machineries & spare parts for new industry.

        Importer required documents: procedures/formalities for Import.

                (I)            Procurement for Import Registration Certificate (IRC):

To carry on the business of import, the first thing needs is registration. An application to be submitted by the intending importer for IRC alongwith the undernoted papers/documents to the Chief Controller of Import & Export (CCI&E).

  • Application in the prescribed form.
  • Valid Trade license.
  • Membership certificate of the respective trade body or Membership from the local Chamber of Commerce & Industry.
  • Registered partnership deed/Memorandum & Articles of Association alongwith Certificate of Incorporation with Registrar of Joint Stock Company.
  • Two copies attested photographs of applicant(s).
  • Affidavit from 1st class Magistrate.
  • Asset certificate of the applicant(s)
  • Ownership deed or Lease deed of the office premises alongwith rent receipt.
  • Bank solvency certificate.
  • Tax Identification Number (TIN) certificate.
  • Any other document as required.

On receiving the application and papers, the office of the CCI&E will scrutinize these and being satisfied they will issue Demand notice for deposit the Import Registration fees to the Bank through Treasury Challan. Original copy of deposited Treasury challan to be also deposited to the office of CCI&E.

Thereafter the Chief Controller of Import & Export will issue Import Registration Certificate which will contain the name of importer, Date of issue, validity period, sometimes items limited and sometimes amount limited for a period.

(II)          Purchase contract with the Seller:

Upon registration, the importer will collect Proforma Invoice directly from the seller through negotiating the price, quantity, quality and other terms & conditions over phone/Telex/Fax/e-mail or letter. Sometimes sellers appoint their Agent in some countries who issue offer letter of sale to the importers describing all terms & conditions which is called Indent.

(III)        Opening of Import L/C:

After obtaining the Proforma Invoice or Indent, the importer will go to his banker or any other bank and approach them for opening of L/C. The bank will verify the Proforma Invoice or Indent whether the item or other terms of the Proforma Invoice or Indent are restricted by the law of the land. If everything is ok, they will settle the percentage of margin and the banker may ask the importer to deposit the margin and other requisite paper(s). Then Bank collect the credit report of the exporter. After completing the formalities, the banker will issue Letter of Credit (L/C).

(IV)         Advising and Confirming the L/C:

The L/C issuing bank (importer’s bank) in accordance with the instruction/request or as per arrangement, the issuing bank request another bank (advising bank) located in the seller’s/exporter’s country to advise the L/C to the beneficiary. The issuing bank may also request the advising bank or any other corresponding bank to confirm the credit, if necessary. The Advising bank inform/advises the seller/exporter that the L/C has been issued.

(V)          Exporter’s duty:

As soon as the exporter receives the L/C and is satisfied that all the terms & conditions of the L/C are in conformity with the proforma invoice or indent and he can meet the terms & conditions, then he will arrange to make the shipment of the goods within the time frame. After making shipment of the goods in favour of the importer then the exporter submit the requisite documents to his bank for negotiation of the export bill.

(VI)         Negotiating bank:

The exporter bank is called Negotiating bank. They receive export documents from the exporter and scrutinize these with the L/C copy and if found OK then they send the documents to the L/C issuing bank through reputed Courier service or Registered post.

(VII)       Lodgement of documents by the L/C issuing bank:

After receiving the documents from the negotiating bank, the issuing bank will examine the documents and if found in order, they make payment instruction to the Reimbursing bank from our NOSTRO account with them.

If any discrepancies found in the documents, the issuing bank must inform the negotiating bank within five working days from the date of receipt of the documents and payments will be held up until settlement of the discrepancies. If the importer agreed in writing to receive the discrepant document, then bank may instruct the Reimbursing bank to pay the bill amount to the negotiating bank.

(VIII)     Retirement of documents and release of imported goods:

After lodgement of the documents against L/C, the issuing bank then request the importer for retirement of documents after making payment or retire the documents duly arrange for making payment to release the goods from the port authority duly observed custom formalities.

If the importer did not come forward to retire the import documents from the bank for any reason, the bank will then create a forced loan in the name of the importer and arrange to release the goods from the port authority after observing custom formalities through their CNF agent and took the goods under Bank’s control.

Guarantee and Security detail with its classification & responsibility

Export import policy

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