Documents used in Import Trade
The following documents are used in import trade:
1. Indent:
An indent is an order letter from the importer to the exporter. It contains the detailed information relating to the quality, quantity, price, making, packing, insurance, mode and time of shipment and mode of making payments.
2. Import License:
The importer can apply to the government for obtaining import license. The application is forwarded to Exporter Promotion Bureau through bank. The importer must be a member of trade association or chamber of commerce and Industry. The membership certificate is necessary for license. The trade policy is followed for imports.
3. Letter of Credit:
The letter of credit is an account opened by a bank in the name of exporter of goods at the request of importer of goods. The importer can fill up the application for opening irrevocable letter of credit. The information stated in indent is recorded by the bank. The importer’s bank can send copies of letter of credit to the exporter’s bank. It is a promise on the part of one bank to make payment to the other after receipt of documents of title to goods.
4. Bill of Lading:
A bill of lading is a receipt issued by shipping company to the exporter or his agent for shipment of goods on board. It is prepared is sets by the exporter. The detail may include name of ship, port of loading path of destination, freight, nature of goods, making contents of goods and undertaking to deliver the goods.
5. Seaway Bill:
The shipping company prepares seaway bill. It is a receipt of sending goods abroad. It is also agreement between exporter and shipping company about freight charges. It is preferable than bill of lading. The ship can reach earlier than documents. The multinational company can send plant from one country to another. The exporter under open account is possible.
6.Bill of Entry:
A bill of entry is prepared in triplicate by importer or his clearing agent for completing the custom formalities. The forms may be difficult for duty free and datiable goods. The importer’s declares exact details of goods imported. The custom authorities can determine the amount of duty on such items. The importer pay duty and goods are cleared for shipment to destination. One copy of bill of entry is kept by custom office.
7.Insurance Policy:
The exporter can buy insurance policy after handing over goods to common carrier. The policy is purchased to get compensation in case of loss of goods. The insurance company makes an agreement with exporter. The policy is issued and premium is collected from customer. The exporter pays the premium but it is recovered from the importer.
8.Unpacking Note:
The owner of ship or agent prepares unpacking note. The detail of unpacked goods is recovered. The goods may be damaged in transit or not. This information is provided to custom authorities, agent of importer and other persons. The unpacking note is used to claim compensation for loss of goods.
9.Collection Note:
The ship owner or agent informs the importer about arrival of ship. This note means that importer or his agent must submit documents. The custom authorities examine the goods stated in documents. The goods are dispatched to importers.
There is no demurrage for clearing goods in stated time.
10. Packing List:
The exporter or agent prepares document which is known as packing list. It includes bill, importer, agent, real owner, ship, port, destination, weight of goods and son on. It is attached with bill of lading.
11. Dock Challan:
The dock authorities can release goods after collection of dock dues. The dock challan is filled in for payment of charges. The goods are handed over to importer or clearing agent after keeping one copy of dock challan.
12. Bill of Sight:
The importer or his clearing agent can fill in bill of sight in triplicate for custom authorities. When exact detail of goods is not known importer or agent can inform customer office about detail of goods as per information available to him. The Custom office can examine the goods in order to tally with bill of sight.
13.Delivery Note:
The dockyard officer prepares the delivery note. The detail of imported
goods is stated in it. The delivery note is used to hand over goods to importer or agent at dockyard. It is an authority letter for moving goods from port.
14. Letter of Indemnity:
The importer can give letter of indemnity Dfa Ho to shipping company when bill of
lading is lost or it is late. The letter is certified by bank. The shipping company is not
responsible for delivering goods without bill of lading.
