International Trade Procedures And Documentation Pdf

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International trade paperwork

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy. Businesses planning to set up a trading company , or start importing or exporting from India, must understand the stages and stakeholders involved in the process, as well as the regulatory framework and documentation required.

In India, the imports and exports are regulated by the Foreign Trade Development and Regulation Act, , which empowers the federal government to make provisions for development and regulation of foreign trade. The current provisions relating to exports and imports in India are available under the Foreign Trade Policy, Typically, the procedure for import and export activities involves ensuring licensing and compliance before the shipping of goods, arranging for transport and warehousing after the unloading of goods, and getting customs clearance as well as paying taxes before the release of goods.

The IEC is a pan-based registration of traders with lifetime validity and is required for clearing customs, sending shipments, as well as for sending or receiving money in foreign currency.

However, certain items — restricted, canalized, or prohibited, as declared and notified by the government — require additional permission and licenses from the DGFT and the federal government. To determine whether a license is needed to import a particular commercial product or service, an importer must first classify the item by identifying its Indian Trading Clarification based on a Harmonized System of Coding or ITC HS classification.

The ITC-HS code, issued by the DGFT, is an 8-digit alphanumeric code representing a certain class or category of goods, which allows the importer to follow regulations concerned with those goods. An import license may be either a general license or specific license. Under a general license, goods can be imported from any country, whereas a specific or individual license authorizes import only from specific countries.

Import licenses are used in import clearance, renewable, and typically valid for 24 months for capital goods or 18 months for raw materials components, consumables, and spare parts. A Bill of Entry gives information on the exact nature, precise quantity, and value of goods that have landed or entered inwards in the country. If the goods are cleared through the Electronic Data Interchange EDI system, no formal Bill of Entry is filed as it is generated in the computer system.

However, the importer must file a cargo declaration after prescribing particulars required for processing of the entry for customs clearance.

If the Bill of Entry is filed without using the EDI system, the importer is required to submit supporting documents that include certificate of origin, certificate of inspection, bill of exchange, commercial invoice cum packing list, among others. Once the goods are shipped, the customs officials examine and assess the information furnished in the bill of entry and match it with the imported items. If there are no irregularities, the officials issue a 'pass out order' that allows the imported goods to be replaced from the customs.

India levies basic customs duty on imported goods, as specified in the first schedule of the Customs tariff Act, , along with goods-specific duties such as anti-dumping duty, safeguard duty, and social welfare surcharge. Just as for imports, a company planning to engage in export activities is required to obtain an IEC number from the regional joint DGFT. After obtaining the IEC, the exporter needs to ensure that all the legal compliances are met under different trade laws.

Further, the exporter must check if an export license is required, and accordingly apply for the license to the DGFT. Businesses are required to submit a set of documents for carrying out export and import activities in India. These include commercial documents — the ones exchanged between the buyer and seller, and regulatory documents that deal with various regulatory authorities such as the customs, excise, licensing authorities, as well as the export promotion bodies that help avail export import benefits.

The Foreign Trade Policy, mandates the following commercial documents for carrying out importing and exporting activities:. Additional documents like certificate of origin and inspection certificate may be required as per the case. The content of this article is intended to provide a general guide to the subject matter.

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Import procedures Typically, the procedure for import and export activities involves ensuring licensing and compliance before the shipping of goods, arranging for transport and warehousing after the unloading of goods, and getting customs clearance as well as paying taxes before the release of goods. Below, we outline the steps involved in importing of goods.

The process to obtain the IEC registration takes about days. Procure import licenses To determine whether a license is needed to import a particular commercial product or service, an importer must first classify the item by identifying its Indian Trading Clarification based on a Harmonized System of Coding or ITC HS classification. File Bill of Entry and other documents to complete customs clearing formalities After obtaining import licenses, importers are required to furnish import declaration in the prescribed Bill of Entry along with permanent account number PAN based Business Identification Number BIN , as per Section 46 of the Customs Act Determine import duty rate for clearance of goods India levies basic customs duty on imported goods, as specified in the first schedule of the Customs tariff Act, , along with goods-specific duties such as anti-dumping duty, safeguard duty, and social welfare surcharge.

Export procedures Just as for imports, a company planning to engage in export activities is required to obtain an IEC number from the regional joint DGFT. Import and export documents Businesses are required to submit a set of documents for carrying out export and import activities in India. The Foreign Trade Policy, mandates the following commercial documents for carrying out importing and exporting activities: Bill of lading or airway bill; Commercial invoice cum packing list; Shipping bill or bill of export, or bill of entry for imports.

Vasundhara Rastogi. The term "parallel importation" refers to goods produced and sold legally, and subsequently exported. The Special Valuation Branch "SVB" is a unit of the Indian custom authorities that investigates valuation of goods during imports between related parties. Herbert Smith Freehills has issued the latest edition of its Indian international arbitration e-bulletin. The Domestic traders' associations have been at the forefront of these demands.

Trade Protection Khurana and Khurana. This can be done by selling one's product cheaper abroad and lowering the value of its currency in the foreign exchange markets.

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Export Procedure

International trade is the exchange of capital , goods , and services across international borders or territories [1] because there is a need or want of goods or services. In most countries, such trade represents a significant share of gross domestic product GDP. While international trade has existed throughout history for example Uttarapatha , Silk Road , Amber Road , scramble for Africa , Atlantic slave trade , salt roads , its economic, social, and political importance has been on the rise in recent centuries. Carrying out trade at an international level is a complex process when compared to domestic trade. When trade takes place between two or more nations factors like currency, government policies, economy, judicial system, laws, and markets influence trade.

What Is an Export? Exports are subject to the various U. An export is any movement of items outside the country. That includes items sent by regular mail or hand carried on an airplane; documents transmitted by fax; software or specifications downloaded from the internet; and technology transmitted by email or shared in a phone conversation. An item is also considered an export if it is leaving the U.

Export Import procedures

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy. Businesses planning to set up a trading company , or start importing or exporting from India, must understand the stages and stakeholders involved in the process, as well as the regulatory framework and documentation required. In India, the imports and exports are regulated by the Foreign Trade Development and Regulation Act, , which empowers the federal government to make provisions for development and regulation of foreign trade. The current provisions relating to exports and imports in India are available under the Foreign Trade Policy,

International trade

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Export, import procedure serve as important guide to international trade operations and contains a sample of virtually every relevant document used in foreign trade Johnson, Export of goods take place when there is a change of proprietorship from a resident to a non-resident; this does not essentially infer that the goods in question physically crosses the border. However, in specific cases national accounts credit changes of ownership even though in legal terms no change of ownership takes place such as cross border financial leasing, cross border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair. Also smuggled goods must be included in the export measurement. Relevant documents i. For many companies, export begins in the sale or marketing department.

Product Country. The following documents are commonly used in exporting; which of them are actually used in each case depends on the requirements of both our government and the government of the importing country. Exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires; freight forwarders are specialists in this process. The starting point for any Export Transaction is an enquiry. An enquiry for product should, inter alia, specify the following details or provide the following data Size details - Std. After studying the enquiry in detail, the exporter - be it Manufacturer Exporter or Merchant Exporter - will provide a Proforma Invoice to the Buyer. If the offer is acceptable to the Buyer in terms of price, delivery and payment terms, the Buyer will then place an order on the Exporter, giving as much data as possible in terms of specifications, Part No.