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Assignment 1 import-2

The document outlines the step-by-step procedure for importing goods into India, starting with obtaining an Importer Exporter Code (IEC) and ensuring compliance with customs regulations. It details the necessary documentation, customs clearance process, and payment of import duties, emphasizing the importance of proper planning and record-keeping. The conclusion highlights the need for coordination with customs agents and freight forwarders to facilitate a smooth import process.

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rahuldesai1264
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5 views

Assignment 1 import-2

The document outlines the step-by-step procedure for importing goods into India, starting with obtaining an Importer Exporter Code (IEC) and ensuring compliance with customs regulations. It details the necessary documentation, customs clearance process, and payment of import duties, emphasizing the importance of proper planning and record-keeping. The conclusion highlights the need for coordination with customs agents and freight forwarders to facilitate a smooth import process.

Uploaded by

rahuldesai1264
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment 1

Name: Rishi Bharat More


Roll No.: 65
Class: T.Y.BCom – A
Subject: Tax Practice and Procedure
– VII
Topic: Import Procedure
Date: 10th March 2025
Submitted To: Prof. Jignesh Parekh
Import Procedure

Importing goods into India involves several steps, including


obtaining necessary licenses, complying with customs
regulations, and paying duties. Below is a step-by-step guide to
the Indian import procedure:

Step 1: Obtain Importer Exporter Code (IEC)

 The IEC is a mandatory 10-digit code issued by the


Directorate General of Foreign Trade (DGFT).

 Apply online via the DGFT portal with necessary


documents (PAN, Aadhaar, Bank Certificate).

 Without an IEC, imports are not allowed, except for


personal or non-commercial goods.

Step 2: Determine Import Eligibility & Compliance

 Check if the product is restricted, prohibited, or freely


importable under India’s Foreign Trade Policy (FTP).

 Some goods require special licenses (e.g.,


pharmaceuticals, electronics, chemicals).
 Ensure compliance with BIS certification, FSSAI (for
food products), DGCA (for drones), or CDSCO (for
medical devices), etc.

Step 3: Choose Suppliers & Finalize Terms

 Select a reliable international supplier.

 Negotiate Incoterms (e.g., FOB, CIF, EXW) to define


responsibility for shipping and costs.

 Arrange for product sampling, quality checks, and


agreements.

Step 4: Arrange International Shipping & Insurance

 Choose a mode of transport: Air, Sea, Rail, or Road.

 Hire a freight forwarder to handle shipping, customs


clearance, and logistics.

 Obtain marine insurance to cover goods in transit.


Step 5: Documentation for Import Clearance

Prepare and collect the necessary import documents, including:

1. Bill of Lading (BL) / Airway Bill (AWB) – Proof of


shipment
2. Commercial Invoice – Details of the transaction
3. Packing List – Contents of the shipment
4. Bill of Entry (BoE) – Submitted to Indian Customs for
clearance
5. Certificate of Origin (COO) – Declares the country of
Manufacture.
6. Import License (if applicable) – For restricted items
7. Insurance Certificate – Proof of insurance coverage
8. Letter of Credit (LC) or Payment Proof – Payment
terms with the
Supplier.

Step 6: File Bill of Entry & Customs Clearance

 The Bill of Entry (BoE) is filed electronically through


ICEGATE (Indian Customs EDI System).

 Customs officers verify the shipment, classify goods under


HSN (Harmonized System of Nomenclature), and
assess import duties & GST.

 Customs may inspect the goods physically or via scanning.


 If everything is in order, Customs Clearance Certificate
is issued.
Step 7: Pay Import Duties & Taxes

 Import duties include:


o Basic Customs Duty (BCD)
o Integrated GST (IGST)
o Social Welfare Surcharge (SWS)
o Anti-Dumping Duty (if applicable)

 Payment is made online via ICEGATE or through


authorized banks.

Step 8: Release & Transportation of Goods

 Once customs clearance is obtained, goods are released


from the port or airport.
 The importer arranges for transportation to the final
destination (warehouse, factory, or market).

Step 9: Post-Import Compliance & Record-Keeping

 Maintain import records for at least 5 years for audits and


compliance.
 If required, submit GST returns and claim Input Tax
Credit (ITC) on IGST paid.
Conclusion
Importing into India requires careful planning and
compliance with customs and regulatory requirements.
Proper documentation, timely duty payment, and
coordination with customs agents or freight forwarders
can ensure a smooth process.

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