PRESENTATION ON IMPORT PURCHASE PROCEDURE

PRESENTATION BY

Names Shaikh Abdul Qadir Rahul Dubey Yogesh Shukla

Roll No 09 HK HK

INTRODUCTION
Import means purchasing from an outside source beyond the territorial jurisdiction of the country. When an industrial organization requires certain materials, plant and equipment, which are either not available within the country or are available from a foreign source at a cheaper price. In order to meet the material needs, many organisations resort to import, and, therefore, purchases from foreign sources for items like raw materials, spares, tools and plant, or equipment, or capital machinery are required by the importing organization.

Categories of Importers
Importers

Established (Quota License Holders)

Actual Users Industrial users

 Usually, it is the duty of the purchase department to make all arrangements with regard to import of all items and to procure them in time.
For many organizations, there may be number of items of regular use which have to be imported from abroad, while for others, only a few items may have to be imported. In India, Import Trade is largely controlled by the Import Trade control Act, Import Policy of the government of India and the Foreign Exchange Requirements and Regulations Act.

Policies And Rules

The following three documents are of vital impotance with respect to import policies and rules (1) Import Trade Control (ITC) Handbook of rules and procedures. (2) Import Trade Control Policy (Red Book) Vol.1 (it deals with the policy of the Government with regard to import of materials) and (3) Import Trade Control Policy Vol. 2

Import Purchasing Procedures

On obtaining Import Clearance and if the item is not banned a firm has to follow the following foreign purchase procedures. Locating a Foreign Source Unless an established foreign source is known to the importing firm, the firm cannot contact Ministry of commerce, foreign consulates or Indian Embassies or consulates abroad. Procurement At this stage the importing firm is involved with the foreign sources of supply, its own user departments and governmental institutions like the DGTD & canalising agenciesl like MMTC, STC etc.

DOCUMENTATION
Some of the special documents used in the foreign purchase are : (a) Bill of Lading (b) Bill of Exchange (c) Invoice (d) Delivery Order (e) Certificate of Origin

Weight Certificate Insurance Policy and Markings of Packages Income Tax Clearance Income tax clearance certificate has to be produced before getting an import license and it should be submitted to the regional licensing authority and remains valid for the two successful financial years.

 Customs Tariff Indian customs tariff is revised from time to time, and the import purchaser has to give the correct classification of goods in order to avoid difficulties in customs clearance.

Registration Of Import Licenses At Port

Under the Import Trade Control Act, every import license is required to be registered with the customs authorities which mentions the specified port with which the particular license is registered and, when the imported materials arrive in the due course, delivery has to be taken by the importer.

Weight certificate

Markings of Packages

PAYMENT METHODS
Cash In Advance Open Account Documentary Collection Documentary Credit Aval & Guarantees Cash Against Documents (CAD) Letter of Credit (L/C)

THANK YOU