Import Procedure
The Import procedure ahs been described below:
1.Trade Information:
The importer can get trade information from exporters. He can write letter to collect information. He can contact the exporter through agent. He can see trade directory to collect address of exporters. The importer needs catalogue for placing an order.
2. Registration Application:
The importer can submit application for registration to Export Promotion Bureau through his banker. The registration is granted to the importer for completing formalities stated in Registration order 1993.
3.Import License:
For getting import license, the trader has to submit an application on a prescribed form to Chief Controller of Imports and Exports. The CCI & E after necessary check and verification would issue the license. The license issued by the authority can be general or specific. General license permits the importers to import goods from any country whereas the specific license is issued to import goods from specific country. The goods, which are placed under free list, do not require any License
4.Placing the Order:
After obtaining information, the importer places an order for the goods. This order is also known as Indent. It may be placed directly to exporters or through Indent Houses. Importer mentions in indent the quality and quality of goods, date of delivery, method of packing, marking and payment, instructions of shipment and insurance etc.
5. Acceptance Letter:
If the exporter is agreed with the terms and conditions laid down in indent then he sends an acceptance letter to importer.
6.To Arrange Exchange:
As an importer has to pay the exporter in the currency 01 exporting country, the importer has to arrange foreign exchange of the value of import. For this purpose, importer gives an application to the Central Bank of country on a prescribed form along with a copy of import license. The exchange control Department of State Bank of Pakistan on proper verification of the import documents, sanctions to release a certain amount of desired currency to the importer through a bank.
7.Opening Letter of Credit:
After placing the order, the importer arranges for the opening of credit in favor of exporter through any local bank letter of credit may be documentary or clean. In documentary letter of credit, all the required documents of title to the goods must be enclosed with the bill of exchange, but a clean letter of credit does not have any condition. This letter gives assurance to the exporter regarding payment of goods exported.
8.Determination of Exchange Rate:
As different currencies are used in the countries of importer and exporter, therefore an exporter always decides the exchange rate with importer’s bank in order save any future dispute.
9.Intimation of Sending Goods:
When an exporter sends goods by ship after making all the arrangements of packing and delivery etc., he intimates the importer regarding the name of ship and its arrival date.
10. Dispatch of Documents:
The exporter dispatches all the documents to importer’s ban regarding goods including invoice and bill of lading etc. along with instructions that these documents should not be handed over to importer till the final payment.
11. Payment of the Bill:
After this is the agent or the branch of the exporter’s bank in the importing country receives documents from, the exporter, which are necessary to enable the importer to take, delivery of goods. These documents may be D/A (Document against Acceptance) or D/O (Document against Payment). In the first case documents are handed over to the importers as soon as he accepts a bill and in the second case, documents are handed over as soon as the payment is made.
12. Formalities:
The importer has to fulfill following custom formalities to get the goods after
receiving documents.
a) E’M of Entry:
The importer uses this bill to provide information bout goods to custom
authorities for import duty.
b) Bill of Sight:
If the importer cannot provide the information for goods then he requests the custom authorities for the inspection of goods with the help of this bill.
c) Certificate of Origin:
If there is an agreement between two countries for no imposing import duties then the importer has to present certificate of origin as proof.
d) Consular Invoice:
If the import duty is to be imposed on the value of good imported then consular invoice is presented to certify the value of goods.
e) Payment to Custom:
The custom authorities issue bill for duty imposed after scrutinizing the goods imported. The importer can get the receipt of payment by paying directly to custom authorities or in nominated bank.
f) Permission of Custom:
After receiving duty, the custom authorities give permission to get goods imported.
13.C ollecting the Goods:
The importer can take the goods to his godown or store after showing the
custom’s permission letter to warehouse keeper.
14. Delivery Order:
If any other person wants to collect goods from port warehouse then he has to present the delivery order endorsed by the importer of goods.
15. End of Deal:
When the importers get the consignment to Dfa Ho his satisfaction, the transaction is considered to be closed. But if he is not satisfied with quality or quantity, then he will negotiate with the exporter and settle the matter. If there is any damage to goods, the insurance company will compensate the loss to the importer on the advice of exporter.
