List the various steps involved in import procedure

CBSE Class 11 CBSE Class 11 Business Studies
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List the various steps involved in import procedure.
OR
Your firm is planning to import textile machinery from Canada. Describe the procedure involved in importing.

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Import procedure :

  1. Obtaining I.E.C. No. : Before starting the import procedure, the importer has to obtain an I.E.C. (Import-Export Code) number. This number is used in filling the formalities of import procedure, To get this number, the importer has to apply to 1 the regional Import-Export Licensing Authority in the prescribed form.
  2. Obtaining Registration Cum Membership Certificate (RCMC): Importers get various benefits in the form of subsidies and exemption in excise duty, tax, etc. To get these benefits, they have to show RCMC. After getting the I.E.C. number, the importer applies for RCMC. The RCMC is issued by:
    (i) Import Promotion Council.
    (ii) Federation of Indian Import Organisation.
    (iii) Import Development Authority, etc.
    Along with the application, the importer has to submit a bank certificate and IEC number. If the authority is satisfied, then they will issue RCMC.
  3. Opening a letter of credit: better of credit is issued by the importer’s bank in favour of the exporter. In this letter, the bank undertakes guarantee for making payment on behalf of the importer. The importer approaches his bank and instructs the j bank to issue a letter of credit in favour of the exporter. The importer also instructs the bank about the documents to be collected from exporter before making payment.
  4. Arrival of goods : Goods are shipped by the exporter as per the specifications of the importer. When goods reach the importer’s country, the captain of the ship informs the dock officer and instructs him to receive the goods and record the details about the goods on the document called
    ’ import general manifest. This document gives details of about imported goods.
  5. Informing importer : After the arrival of goods, the dock authorities inform the importer about the arrival of goods. The importer prepares a document called bill of entry which contains details about the imported goods and submits this document to the customs officer to get customs clearance.
  6. Customs clearance : The customs officer examines the bill of entry carefully and assesses the custom duty to be paid by the importer and after assessing the duty amount, the bill of entry is given to the appraiser officer who verifies the details given in the bill. If the appraiser officer is satisfied with the information given in bill of entry, then he returns the bill to the importer for making payment of custom duty