- 1. Procedures for ImportsDr. Jayaraj R
2. How to Import -Introduction Governed by the Foreign Trade
(Development & Regulation)Act, 1992 With the globalization of
Indian economy andconsequent upon comfortable balance of
paymentposition, Government of India has liberalized theImport
Policy and practically all Controls onimports have been lifted.
Imports may be made freely except to the extent,they are regulated
by the provisions of Import Policy orby any other law for the time
being in force. 3. Principal Law & Import Export PolicyImports
in to India are governed by Foreign Trade (Development
&Regulation) Act 1992. Under this Act, imports of all goods is
Free except forthe items regulated by the policy or any other law
for the time being inforce.By the Foreign Trade (Development &
Regulation) Act 1992 the Government has issuedthe following Rules
& Order: Foreign Trade(Regulation)Rules, 1993, provide for
grant of speciallicense, application for grant of license, fee,
conditions for licenses,refusal of license, amendment of license,
suspension of a license,cancellation of license, declaration as to
the value and quality ofimported goods, declaration as to the
Importer- Exporter Codenumber, utilization of imported goods,
provisions regarding making,signing of any declaration/statement or
documents, power to enterthe premises and inspect, search and
seizure of goods, documents,things and conveyance, settlement,
confiscation (Elimination) andredemption and confiscation of
conveyance. 4. Notifications and Circulars The Import - Export
Policy and Procedurebooks issued by the Government
areamended/clarified/ explained by the Ministryof Commerce from
time to time. The types of
Notifications/Clarifications/Instructionsissued by the Ministry for
this purpose are: Public Notices. Notifications Policy Circulars 5.
Select the commodity/Product you wish toimport Be aware of the
import potential and the commercial viability of
thecommodity/product. Check whether the items of your interest fall
in the Restricted list ofITC(HS) Indian Trade Classification
(Harmonized System)Classifications of Exports & Imports items.
Prohibited items are not permitted to be imported at all. List of
Prohibiteditems of import are detailed below:Tallow(hard fat), Fat
or Oils rendered (caused), un rendered or otherwise of anyanimal
origin, animal rennet (food) and wild animals including their parts
andproducts and ivory any part and products, including ivory. For
import of items appearing in Restricted list you need secure
importlicense. Third category of items comes under the Canalised
list of items. Import of itemsincluded in Canalized d list are
permitted to be imported through Canalizing Agencies. Thus items
not appearing in Prohibited list, Restricted list and or
inCanalised list can be imported Freely without any import license.
A largenumber of Consumer goods are freely importable without
license. 6. Registration with Regional LicensingAuthority
Registration with Regional Licensing Authority is apre-requisite
for import of goods. The Customs willnot allow clearance of goods
unless: The importer has obtained IEC (Importer ExporterCode) Code
Number from Regional LicensingAuthority. However, no such
registration is necessary forpersons importing goods from/ to Nepal
provided Value of asingle Consignment does not exceed Rs. 25000/=
7. Obtaining IEC (Importer Exporter Code)Code Number An application
for grant of IEC Code Number duly signed by the applicantshould be
supported by the following documents: Bank Receipt (in
duplicate)/demand draft for payment of the fee ofRs.1000/- A copy
of Permanent Account Number issued by Income TaxAuthorities, if PAN
has not been allotted, a copy of the letter of legalauthority may
be furnished. If there is any non-resident interest in the firm and
NRI investment isto be made with repatriable benefits, full
particulars thereof alongwith a photocopy of RBIs approval. If
there is NRI investment without repatriation benefit, a
simpledeclaration indicating whether it is held with the
general/specificpermission of the RBI on the letter head of the
firm should befurnished. In case of specific approval, a copy may
also be furnished. 8. Import Policy For items not mentioned as
Prohibited, Restrictedor Canalised List for import in
ITC(HS)Classification of Export and Import items; import ofsuch
items are freely permitted. There is no need toobtain any license
or permission for importing such goods. The ITC(HS) Classification
of Export and Importitems contains 99 chapters and in each
chapterthere are column heading covering Exim Code,items
description, policy and nature or restriction.The information
related to import policy for any item can beobtained from site
under Customs Duty Calculator Schedule. 9. Procedure to be followed
for grant ofimport license An application for grant of an import
license for import of the items mentioned as restricted for import
in ITC(HS) Classification of Export and Import items may be made to
the regional licensing authority concerned. 10. Fees for License
Application: Every application for import license or CCP
(CustomsClearance Permit ) should be accompanied by 2 copies of
abank receipt from the Central Bank of India or a BankDraft from
any Bank indicating the deposit inaccordance with the prescribed
scale of fees. Rs. 200 where the value of goods specified does not
exceed Rs. 50,000. Rs. 2 per thousand or part thereof subject to a
minimum of Rs. 200 and amaximum of Rs.1 lakh 50 thousand, where the
value of goods exceeds Rs.50,000. Rs. 200 where Application is
filed be SSI units where the CIF(costinsurance and freight) value
of goods specified in the application doesexceed Rs. 2 lakh. Rs.
200 where application is for grant of duplicate license. 11.
Validity of License Besides import license for import of restricted
items there are other variety oflicenses and such licenses have
different period of validity. Export Promotion Capital Goods
License validity 24 months Customs Clearance Permit " 12 months
DEPB(Duty Entitlement Passbook) " 12 months Advance License/Special
Imprest License/Advance authorizationscheme (A special imprest
license is given to manufacturer exporters for theimport of inputs
required in the manufacture of goods to be supplied to thedeemed
export categories ) (Deemed exports refers to those transactions
inwhich the goods supplied do not leave the country and the
paymentfor such supplies is received either in Indian rupees or in
free foreignexchange) For Project/Turnkey Project "18 months or
co-terminus with thecontracted duration of the Project For the
cases where the license expires before the last day of themonth,
the license shall be deemed to be valid until the last day ofthat
month. 12. Revalidation of License: License revalidation can be
done on merits but not beyond 12 months by the concerned licensing
authority for a period of six months at a time considered from the
date of expiry of the validity period. 13. Conditions of LicenseThe
license for import is taken into considerationprovided: the goods
covered by the license shall not bedisposed of except in accordance
with theprovisions of the EXIM Policy, 1997-2002 or in themanner
specified by the licensing authority in the license; the applicant
for a license shall execute a bond forcomplying with the terms and
conditions of thelicense. 14. It shall be deemed to be a condition
of everylicense for import that no person shall transfer or acquire
by transfer anylicense issued by the licensing authority except
inaccordance with the provisions of the Policy; the goods for the
import of which a license is granted shall be theproperty of the
licensee at the time of import of which a license isgranted shall
be the property of the licensee at the timeof import and up to the
time of clearance through theCustoms; the goods for the import of
which a licensee is grantedshall be new goods, unless otherwise
stated in thelicense; the goods covered by the license for import
shall not beexported without the written permission of the DGFT.
15. Disposal period for import application Provided the application
is complete in all respects along with prescribed documents, the
applicant- importer can expect the disposal in: IEC No. - 3 working
days Duty free license where input-output norms(standard norms
which define the amount of inputs required to manufacture a unit of
output for export purpose.) are notified - 5 working days Duty free
license where input-output norms are notified but cases are to be
placed before -15 working days Duty free license where input-output
norms are not notified, EPCG licenses/export licenses/export
licenses/specific import licenses - 15 working days Revalidation of
license and extension of export obligation period by - 5 working
days Acceptance of Bank Guarantee/Legal undertaking - 3 working
days Redemption of Bank Guarantee/Legal undertaking/Endorsement of
Transferability - 10 working days Issuance/renewal of Export
House/Trading House/Star Trading House/Super Star Trading House -
15 working days Amendment of any category of license - 5 working
days - 7 working days Fixation of Standard input-output norms - 45
working days DEPB (Duty Entitlement Passbook )- 5 working days All
licenses falling under Chapter 8 - 5 working days Miscellaneous -
15 working days Fixation of deemed exports drawback rate - 45
working days 16. Imports under Special Scheme forExporters The
Govt. of India has framed the certain schemes topromote exports.
17. Export Promotion Capital GoodsSchemes Capital goods including
fixtures, dies and mouldsmay be imported at a concessional rate of
customsduty. Subject to an export obligation to be fulfilled over
aperiod of time. In addition spares up to 20 per cent of thecost
insurance and freight (CIF) value of the capital goodsmay also be
imported under the scheme. Under this scheme Customs duty is 5% if
the exportobligation is 5 times the CIF value of the capitalgoods
or 4 times the CIF value of capital goods. Theperiod of fulfillment
of the export obligation is 8 yearsreckoned from the date of
issuance of license. 18. Duty Exemption Scheme Duty exemption
schemes enable duty free import of inputs Schemes required for
export production.Duty Exemption Schemes consist of(a) Advance
Authorisation scheme (free import ofinputs required for export
production.) and (b) DutyFree Import Authorisation (DFIA) scheme. A
DutyRemission Scheme enables post export replenishment(replacement)
/ remission (reduction) of duty on inputs used inexport product.
Duty Remission Schemes consist of (a) DutyEntitlement Passbook
(DEPB) Scheme and (b) Duty Drawback(DBK) Scheme. 19. Advance
Release Order A duty free license holder except Advance
Intermediate LicenseHolder intending to source the inputs from
indigenoussources/canalising agencies/EOUs/SEZ/EHTP/STP units in
lieuof direct imports has the option to source them against
AdvanceRelease Order (ARO) denominated in foreign
exchange/Indianrupees. In such cases, the license is invalidated
for direct import andpermission in the form of ARO is issued which
will entitle the supplierto the benefits of deemed exports. Back to
back inland letter of credit: This is an alternative to ARO.
Forthis the duty free license holder intending to avail such
facilitymay approach a bank for opening an inland L/C in favour of
anindigenous supplier. Before this the bank will ensure that
necessary bankguarantee or Letter of Undertaking has been executed
by the license holderand endorsement to this effect has been made
on the License. 20. Hints/Suggestion for finalization ofimport
order/contract:Selecting the Overseas Supplier: Imports can be
madefrom any country of the world. The information regarding
overseassupplier can generally be obtained from the following
sources: Trade Directories and Yellow Pages, like Singapore yellow
pages,Japan yellow pages, USA yellow pages etc. available from
leadingbooksellers in India including. Consulate Generals and
TradeRepresentatives of various countries in India and abroad.
Friends and relatives in foreign countries. International
TradeFairs and Exhibitions for which you may contact: International
Trade Promotion Organisation(ITPO),Pragati Maidan, New
Delhi.Chamber of Commerce.Directorate of Industries, etc.Indenting
Agents of Foreign Suppliers. 21. Capability and Creditworthiness
ofOverseas Supplier Successful completion of an import transaction
willmainly depend upon the capability of the overseassupplier to
fulfill his contract. The credit worthiness of the overseas
supplier, hiscapacity to fulfill that contract, etc. should,
therefore, beproperly verified before entering into a contract
withhim. Confidential reports about the supplier may be
obtainedthrough the banks and Indian embassies abroad. Reputed
overseas suppliers normally have theirIndenting Agents with offices
in India and contract canalso be finalized through them for
smoother operations. 22. Mode of Pricing and INCO TERMS The
importer can also take the assistance of CreditInformation Agencies
for specific commercialinformation on overseas suppliers. They may
alsocontact Trade Information Centres of the country concerned.
While finalizing the terms of import contract, theImporter, should,
inter alia, be fully conversant withthe mode of pricing and the
manner of payment forthe imports. As regards mode of pricing, the
overseassupplier normally quote the terms prevailing in
internationaltrade. 23. The importer for his benefits should know
themeaning of the technical terminology. To avoid ambiguity in
interpretation of such terms,International Chamber of Commerce,
Paris, Hasgive detailed definition of a few standard termspopularly
known as INCO TERMS. 24. INCO TERMSEx-work :Ex-work means that the
sellers responsibility is to make thegoods available to the buyer
at works or factory.The full cost and risk involved in bringing the
goods from thisplace to the desired destination will be borne by
the buyer. Thisterms thus represents the minimum obligation for the
seller. It ismostly used for sale of plantation commodities such as
tea, coffee and cocoa.Free on Rail (FOR)/Free on Truck (FOT):These
terms are used when the goods are to be carried by rail,but they
are also used for road transport. The sellers obligations
arefulfilled when the goods are delivered to the carrier.Free
Alongside Ship (FAS):Once the goods have been placed alongside the
ship, the sellersobligations are fulfilled and the buyer
notified.The buyer has to contract with the sea carrier
(transporter orshipper) for the carriage of the goods to the
destination and paythe freight. The buyer has to bear all costs and
risks of loss ordamage to the goods hereafter. 25. Free on
Board(FOB):The sellers responsibility ends the moment thecontracted
goods are placed on board the ship, free ofcost to the buyer at a
port of shipment named in the salescontract. On board means that a
Received for ShipmentBill of Lading (A bill of lading is a
documentacknowledging the receipt of goods )is not sufficient.Such
B/L if issued must be converted into Shipped on Board B/Lby using
the stamp Shiped on Board and must bear signature ofthe carrier or
his authorized representative together with date onwhich the goods
were boarded. 26. Cost and Freight (C & F):The seller must on
his own risk and not as an agent of thebuyer, contract for the
carriage of the goods to the port ofdestination named in the sale
contract and pay the freight.This being a shipment contract, the
point of delivery is fixed tothe ships rail and the risk of loss or
of damage to thegoods is transferred from the seller to the buyer
at thatvery point. As will be seen though the seller bears the cost
ofcarriage to the named destination, the risk is alreadytransferred
to the buyer at the port of shipment itself.Cost Insurance Freight
(CIF): The term is basically the same as C& F but with the
addition that the seller has to obtaininsurance at his cost against
the risks of loss or damage tothe goods during the carriage. 27.
Payment against imports Payment under letter of Credit is a
universally accepted mode ofpayment. A letter from a bank
guaranteeing that a buyers payment to aseller will be received on
time and for the correct amount. Inthe event that the buyer is
unable to make payment on thepurchase, the bank will be required to
cover the full orremaining amount of the purchase. The bank also
acts onbehalf of the buyer (holder of letter of credit) by
ensuringthat the supplier will not be paid until the bank receives
aconfirmation that the goods have been shipped. A Letter of Credit
is a Signed instrument and an undertakingby the banker of the buyer
to pay the seller a certain sum ofmoney on presentation of
documents evidencing Shipment ofSpecified goods subject to
Compliance with the stipulatedterms and Conditions. 28. Parties to
a Letter of Credit Following persons are generally parties, to a
letter of Credit: Beneficiary : The exporter of goods in whose
favour the L/C has been established. Customer/importer : The person
we intends to import the goods andinstructs bank to established
Letter of Credit. Issuing Bank: The Banker in the importers Country
who opened the L/C. Correspondent Bank or Advising Bank: The banker
in the exporterscountry, who is authorized by the issuing bank to
advise the beneficiaryof the Credit and to effect such payment or
to accept and pay such billsof exchange or to negotiate against
Stipulated documents and onCompliance of Stipulated terms and
condition specified by the importeron the exporter. Confirming
Bank: The banker in the exporters(beneficiary) country,who at the
desire of the beneficiary adds confirmation to the letter ofCredit
so that beneficiary can get payment without recourse from
theConfirming bank. The Confirming bank may be correspondent
bankitself or some other bank. 29. Letter of Credit vs. Bank
Guarantee A letter of credit differs from a bank guarantee. Bank
Guarantee is a guarantee from a lending institutionensuring that
the liabilities of a debtor will be met. In otherwords, if the
debtor fails to settle a debt, the bank will cover it. A commercial
credit is neither a performance bond, nor it is aguarantee of the
quantity or quality of the goods shipped. 30. Letters of Credit are
Separate Transactions A contract for sale of goods between the
seller and the buyerincorporates mode of settlement. Letters of
credit by their natureare separate from the sale contract, and
banks are not concerned orbound by such sale contracts even if the
credits bear reference tothem. The credits stipulate documents
which have to be tendered forpayment and it, therefore, follows
that in credits parties deal withdocuments and not with goods,
services or performances to whichthe documents relate. It is,
therefore, in the interest of all the parties concerned that
theconditions and terms of credit are complete and precise
andbanefit of excessive details. The seller(beneficiary) cannot
take advantage of any contractualterms in between the buyer and the
opening bank and between theopening bank and the
advising/confirming bank. 31. Uniform Customs and Practice
forDocumentary Credit In the course of time, a number of practices,
expressions andterms have evolved between banks dealing with
documentarycredits. To ensure uniformity of interpretation
ininternational trade, the International Chambers ofCommerce in
Paris has worked out the "UniformCustoms and Practice for
Documentary Credit". Thesehave been revised and brought up to date
several times in the past.The latest in the line of revisions is
the UCP 500 (w.e.f. January 1,1994) which updates and consolidates
the previous UCP 400.They are now applied by the banks in nearly
allcountries including India. 32. Precautions to be taken at the
time ofestablishing Letter of Credit Letter of credit offers almost
complete protection to the sellerbut the buyer is put to many
disadvantages and has to makepayments against documents only.
Before agreeing to open a letter of credit in favour of the seller,
theopener must be satisfied with the creditworthiness and
generalreputation of the seller. Entire success of an L/C
transactiondepends on proper conduct of the seller. Confidential
report on the seller must be obtained at the timeof first
transaction with him. 33. Letter of credit also does not offer any
protection forthe quality/quantity of goods supplied under theL/C.
It would, therefore be necessary to know the natureof goods and
specify submission of qualityreports/inspection reports from an
independentagency to ensure receipt of goods of proper quality. It
is necessary that complete and precise informationmust be given in
the L/C application form specifyingtherein the description, unit
rate and quantity of thegoods covered under L/C and details of
documentsrequired in absolute clear and unambiguous terms.The
reference to underlying sale contract must be avoidedas far as
possible. The L/C application must neverthelesscontain all the
required/information based on whichL/C could be opened by the bank.
34. Import contract may be concluded either in terms of INRor in
foreign currency. Where the contracts are in INR, therelated
documents are also prepared in INR and noconversion is involved.
However, where the bill is drawn in foreign currency, thepayment is
made in Indian rupees equivalent to theforeign currency. The
equivalent rupee value is arrived atby applying suitable exchange
rate. These rates are appliedby banks to standardise the foreign
exchange-rupeeconversion process. When the price of foreign
currency is quoted in terms ofhome or local currency it is called
direct quotation basis..However, there is a difference between
inter-bankexchange rates and merchant rates. 35. Merchant rates are
the exchange rates applied by the bankersfor transaction with their
customers for various purposes,including imports and exports. These
rates are calculated bythe banks as per the guidelines issued by
the ForeignExchange Dealers Association of India (FEDAI).
Inter-bank rates are the rate for transactions amongst
theauthorized dealers in foreign exchange and depend on themarket
conditions. Since exchange rates are volatile, documents delivered
by thebank at the time of a favourable exchange rate( high
value)will enable the Indian purchaser to pay less of Indian
rupees. Forex rates are always quoted as two way price i.e. at a
rate atwhich the bank is willing to sell foreign currency(buying
rate)and at a rate at which the bank is willing to buy
foreigncurrency(selling rate). There is always some difference in
buying and selling rates.However, the maximum spread available to
bank is restricted in terms ofceiling imposed by RBI. All exchange
rates by authorized dealersare quoted in terms of their capacity as
buyer or seller. 36. TT(Telegraphic Transfer) Selling Rate This
rate is applied for all clean remittances (payment) outside
India.For selling foreign currency to its customer by the bank such
as forissuance of bank drafts, mail/telegraphic transfer
etc.TT(Telegraphic Transfer) Buying Rate This rate is applied for
purchase of foreign currency by banks whenthe banks in India have
already obtained the cover in India. Thus allforeign inward
remittances (transfer of funds) which are madepayable in India are
converted by applying this rate. A mail transfer issued by a bank
in Dubai for US $ 10,000 drawn onany commercial bank having branch
at the overseas destinationwill be converted into rupees at TT
buying rate. Reading Rates-The rates announced by the banks every
daymorning are card rates. Or announced by news papers etc. 37.
Reputed importers can always bargain with the bank forimprovement
in the card rates for reducing their rupeeliability on conversion
of foreign currency into Indianrupees. Also a distinction is made
between spot rates and forwardrates. Spot rates are applicable on
the day of transaction,whereas forward rates are fixed in advance
for a transactionthat will mature at a specified date or during a
specifiedperiod in future imports. 38. Hedging against Forex risk:
Exchange risk arising on account of adverse movement ofthe exchange
rates, can be avoided by the following methods: By requesting the
supplier to invoice the goods inIndian rupees (possible only when
the seller agrees to it) By entering into a forward exchange
contract. 39. What is Forward Exchange Contract? A special type of
foreign currency transaction. Forward contractsare agreements
between two parties to exchange twodesignated currencies at a
specific time in the future. These contracts always take place on a
date after the date thatthe spot contract settles, and are used to
protect the buyerfrom fluctuations in currency prices. Forward
contracts ordinarily takes place within ten days of thetransaction
date. They cannot be canceled except by the mutual agreement ofboth
parties involved. The parties involved in the contract are
generally interested in hedging aforeign exchange position or
taking a speculative position. 40. Hedging against Forex riskThis
involves booking of forward exchange contract with thebank of the
importer. For booking forward contract the importer shouldapproach
his bank with which an L/C has beenopened. The bank will book a
forward contract only againstgenuine trade transaction. The bank
will verify suitable documents to ensure theauthenticity and the
amount of permitted currency ofthe underlying transaction. 41. The
amount, date and number of the forward contract will bemarked on
such documents under the stamp and signature ofthe bank to ensure
that more than one forward contract is notbooked in respect of the
same underlying transaction. A transaction may be covered either in
parts or in whole. The period and extent to which an exposure is to
be coveredis left to the choice of the customer. If the documents
of import are not received within the agreedperiod of the contract,
the contract needs to be cancelled(anfresh contract booked if
desired) for which the bank will levycancellation charges as per
FEDAI rules. In case the documents are received before the
stipulated dateand the importer wants early delivery, the bank will
again levycharges for early delivery, as per FEDAI rules. 42. The
importers should be careful in choosing the period offorward
contract. Otherwise early delivery or cancellation offorward
contract would lead to unnecessary charges. The RBI allows
substitution of an import order on specificrequest, provided the
bank is satisfied with the circumstanceleading to the
non-performance of the contract. Where the documents are under a
contract(Non-L/C case), theseller will submit the complete set of
documents to his bankerwith the request to either purchase/discount
the documentsor same on collection basis to the importer. In the
former case the sellers bank finances the sellerswhereas in the
latter case, no financial facility is extended tothe overseas
seller. The sellers banker may advance some money againstdocuments
sent on collection basis while, treating thedocuments as
collateral(guarantee) security. 43. When the documents are under
L/C, the documents areprepared strictly in conformity with the
letter of credit. After preparing the documents the overseas seller
willtender the documents to his banker for negotiation. The bank,
after receiving the documents, will examinethem to ensure that they
are strictly drawn as per theterms of the credit. Following this
the overseas banker will send thedocuments to the importers banker
in India. The importers bank will advise the importer to collectthe
shipping documents either against payment oracceptance as per the
terms of the contract. 44. In case the documents are drawn under
L/C, the issuingbanker(of the overseas supplier) will examine
thedocuments and if found in order it will hand over thesame to the
importer after debiting his account withamount involved or against
acceptance as per the termsof the credit. If the documents are not
in line with the terms of thecredit, the overseas banker can either
refuse tonegotiate further and ask the seller to send them
oncollection basis only; or it can contact the importersbank(in the
buyers country) for authorization; or it canalso make payment under
the reserve against sellersindemnity (compensation) 45. Procedure
to be followed for grant ofimport license: Scrutiny of
documentsThis is a very important function and this should bedone
with great care. After receiving the document from the
overseassuppliers bank, the importers bank will scrutinisethem to
verify the extent of correctness as per the termsof the L/C. For
discrepancies in the documents following principlesare adopted:
Certificate of originIt is issued by the authority stipulated in
the L/CThe description of goods agrees with that in the invoice 46.
Checking other documentsAll other documents stipulated in the L/C
are verified They are issued by the authorities specified in the
L/C They contain the details as required by the L/C For matter
relating to Documentary Collections and Commercialterms, the
importers are likely to be conversant with the brochuresissued by
the International Chamber of Commerce(ICC), Paris. Following are
the brochures:Uniform Customs and Practice for Documentary
Collection andCommercial TermsUniform Rules of Collections
(ICC522)Uniform Rules for a Combined Transport Document
(ICC298)INCO Terms 1990RBI regulations for Making Payments by
importers 47. Customs Clearance of imported goods Customs
Authorities and the Clearing agents play the key rolein the import
of goods. All goods imported into India have to pass through
theprocedure of Customs clearance as they cross Indian border. The
goods are examined, appraised, assessed, evaluated andthen allowed
to be taken out of charge of the Customs for useby the importer.
The entire process of customs clearance is complex and to carryout
this procedure smoothly, the help of accredited customsclearing
agents has to be taken. 48. The importers need to present a Bill of
Entry on receiptof the advise of the arrival of the vessel. The B/E
is noted in Import Department, withcorresponding endorsement made
against theconsignment entry in the IGM along with the date.
(Theshipping line has to give a detailed report of all the goods
onboard in a report known as "Import General Manifest) The B/E will
then be presented in the AppraisingDepartment with all the relevant
documents likeinvoice, Bill of Lading, Import license and
catalogueliterature. 49. Custom Authorities There are two main
wings of Customs House. In theAppraisement wing the job of
collection of revenue isassigned, while the Preventive one aims at
preventionof smuggling. The Customs authority functions under the
Ministry ofFinance (MoF) with the Central Board of Excise
&Customs at the apex. The board is headed by a Chairman and
assisted byMembers. 50. The Members (Customs) looks after the
following matters: Classification of Customs tariffThe basic
legislation is the Indian Customs Act, 1962 read withCustoms Tariff
Act, 1975. Section 12 of the Customs Act,62empowers levy of duties
on goods imported into orexported from India. However, the rates at
which the different import exportduties shall be leviable have been
respectively specifiedin the First and Second Schedule to the
Customs Tariff Act, 1975-called the import Tariff and Export Tariff
respectively. With effect from Feb. 28, 1986, the new tariff
importschedule based on international convention ofHarmonised
Commodity and Coding system, commonlyknown as Harmonised Coding
System came into being. 51. Import through CourierAs laid down by
the current foreign trade Policy, import ofgoods through courier is
permitted in accordancewith the Courier Imports & Exports
(Clearance)Regulations, 1998. If the CIF value of the consignment
imported does notexceed Rs.100000, the relative Bill of Entry is
requiredto be filed by the registered courier service. If the CIF
value is Rs.100000 or more, importers are tofile separate B/E as in
the case of other imports. 52. Import of Samples Bona fide
technical and trade samples of items, even those in the restricted
in ITC(HS)Classifications of Export and Import items is allowed
without a license for a value not more than Rs. 1 lakh(CIF).
Prototype (trial or model products) import This may be allowed on
payment of duty without a license to an actual user, industrial
engaged in the production of or having industrial license/LoI or
research, as the case may be, provided the number of items imported
does not exceed 10 in number in a year. 53. Passenger BaggageUnder
the Rules various kinds of articles can beimported up to certain
value limit depending uponthe duration of stay of the passenger
abroad and on thebasis of Resident and Non-Resident Status of
thepassenger. Passenger Baggage Rules and import duty structure
forbaggage as applicable for such imports under theBaggage Rules
has been given separately 54. Thank YouContact Author:
[email protected]
