IMPORT AND EXPORT
PROCEDURES
By Archit and
Nikunj
Class: 11 - D
Export Procedure
Overview
Export procedure
involves several steps,
including documentation,
legal compliance, banking
formalities, and logistics
to ensure smooth
international trade.
Step 1-3: Initial Steps
1. Receipt of Inquiry
Exporter receives an inquiry from a potential foreign
buyer regarding product details, price, quality, delivery
terms, etc.
2. Sending Quotation (Proforma Invoice)
Exporter provides a quotation including price, terms of
sale, and other relevant details.
3. Receipt of Order or Indent
If the buyer accepts the quotation, they place an order
(indent) specifying product details and delivery
requirements.
Step 4-6: Licensing and
Financing
4. Obtaining Export License
Exporter must check if the goods require an export license
from the Directorate General of Foreign Trade (DGFT).
A Letter of Credit (LC) is often used to ensure payment.
5. Letter of Credit Arrangement
Importer arranges a letter of credit from their bank to
assure payment.
6. Production and Pre-Shipment Inspection
Exporter manufactures/procures goods and may require
quality inspection by a government-approved agency (if
mandated).
Step 7-9: Production &
Quality Control
7. Production or Procurement of Goods
Exporter manufactures or procures the goods to fulfill
the export order.
8. Pre-Shipment Inspection
If mandatory, goods are inspected by authorized
agencies (e.g., Export Inspection Council of India).
9. Excise Clearance
•Exporter obtains excise duty clearance from the
Excise Department, if applicable.
Step 10-12: Customs &
Shipping
10. Customs Clearance
Exporter prepares a shipping bill and submits it to
Customs Authorities for clearance.
11. Obtaining Shipping Order
Exporter books space with a shipping company and gets
a shipping order to load goods onto the vessel.
12. Packing, Labeling, and Marking
Goods are packed and labeled according to
international standards and buyer specifications.
Step 13-17: Final Steps
13. Insurance of Goods
Exporter insures goods against transit risks with an
insurance company (e.g., Export Credit Guarantee
Corporation - ECGC).
14. Loading of Goods
Goods are loaded onto the ship under the supervision of
port authorities.
15. Preparation of Documents
Exporter prepares and submits documents, including:
Bill of Lading Airway Bill
Commercial Invoice Certificate of Origin
16. Securing Payment
Exporter submits documents to the bank for
processing payment.
Payment is collected as per agreed terms
(Advance, LC, Bill of Exchange).
17. Foreign Exchange Realization
Exporter receives payment in foreign
currency, which is converted into local
currency as per RBI regulations.
Import Procedure
Overview
Import procedure involves
steps like obtaining an
import license,
placing an order, securing
foreign exchange, and
clearing customs.
Import Procedure Steps
1. Receipt of Trade Inquiry
Importer sends an inquiry to an exporter regarding
price, quality, delivery terms, and other details.
2. Obtaining Import License (If Required)
Importer checks if an import license is required for
the product under EXIM (Export-Import) Policy.
3. Placing the Order (Indent)
Importer places an order specifying the required
quantity, quality, price, and shipment details.
Import Procedure Steps
4. Obtaining Foreign Exchange
Importer applies to an authorized bank (under RBI
guidelines) for foreign exchange approval.
5. Arrangement of Letter of Credit
Importer arranges a letter of credit (LC) from their bank
to ensure payment to the exporter.
6. Shipment of Goods by Exporter
Exporter ships the goods and sends necessary
documents (bill of lading, invoice, insurance, certificate
of origin) to the importer’s bank.
Step 7-10: Final Steps
7. Customs Clearance and Port Handling
Importer files an import general manifest (IGM) with
customs.
Customs offi cials verify the shipment and levy
applicable import duty.
8. Payment to Exporter
Importer’s bank releases payment to the exporter’s
bank as per the agreed payment terms.
9. Release of Goods
After payment and customs clearance, the importer
takes delivery of goods.
CONCLUSION
International trade
requires adherence to
various legal, financial,
and logistical
requirements for smooth
transactions.
THANK
YOU
