Scribd
Upload
12 views

CH 11 NOTES_103326

The document outlines the export and import procedures, detailing the steps an exporter and importer must follow to successfully conduct international trade. Key steps for exporters include obtaining a letter of credit, export license, and ensuring customs clearance, while importers must secure an import license, arrange for payment, and clear goods through customs. Both processes involve necessary documentation and coordination with banks and shipping companies.

Uploaded by

pranavnaresh70
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
12 views

CH 11 NOTES_103326

The document outlines the export and import procedures, detailing the steps an exporter and importer must follow to successfully conduct international trade. Key steps for exporters include obtaining a letter of credit, export license, and ensuring customs clearance, while importers must secure an import license, arrange for payment, and clear goods through customs. Both processes involve necessary documentation and coordination with banks and shipping companies.

Uploaded by

pranavnaresh70
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Export Procedure for Question No.

10

1. An exporter receives an enquiry from the prospective buyers seeking information regarding price, quality & other
terms conditions for export of goods.
2. In case the importer finds the quotation acceptable, he places an order.
3. The exporter makes necessary enquiry about the creditworthiness of the importer and gets a letter of credit.
4. The exporter then obtains an export licence from the Director General of Foreign Trade.
5. In case the exporter requires funds, he can avail of pre-shipment finance from a bank.
6. The exporter then proceeds with the production or procurement of the goods.
7. The exporter has to submit the pre-shipment inspection report along with other documents at the time of export.
8. The exporter has to apply for excise clearance as excise duty is payable on the materials used in manufacturing goods.
9. To obtain Tariff concessions the importer may ask the exporter to send certificate of origin.
10. The exporter then makes arrangement for reserving space on the ship
11. The goods are packed & marked with necessary details
12. To protect the goods against the risk of loss exporter gets the goods insured with an insurance company.
13. The goods must be cleared from the customs before these can be loaded on the ship.
14. Once the goods are loaded on the ship the captain of the ship issues a mate’s receipt.
15. After receiving the freight charges, the shipping company issues a bill of lading.
16. Once the goods are despatched, the exporter prepares an invoice and sends the necessary documents to the importer
through his bank.
17. The bank presents these documents to the importer. Once the payment is received, the exporter requests his bank to
release a certificate of payment.

Import Procedure:

1. The first thing that the importing firm has to do is to gather information about the countries and firms which export the
given product.
2. The importer then proceeds to obtain the import licence from the office of the (DGFT).
3. The importer has to also make an application to a bank authorised for sanction of the necessary foreign exchange.
4. After obtaining an import licence, the importer places an import order or indent with the exporter for supply of the
specified products.
5. If required as per the terms of contract, the importer arranges for the issuance of a letter of credit to the exporter from
the bank.
6. The importer should make arrangements in advance to pay to the exporter on arrival of goods at the port.
7. The overseas supplier after loading the goods on the ship dispatches the Shipment Advice to the importer.
8. The exporter sends a set of necessary documents containing bill of exchange, commercial invoice, bill of lading,
packing list, certificate of origin, marine insurance policy, etc.,
9. Goods are shipped by the overseas supplier as per the contract. The person in charge of the carrier informs the officer
in charge at the dock or the airport about the arrival of goods in the importing country.
10. All the goods imported into India have to pass through customs clearance after they cross the Indian borders.

You might also like