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IMPORT
PROCEDURE &
DOCUMENTATION
By Suprgay [30, MBA (IB)]
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CONTENTS

Introduction

Custom Import Procedure

Preparation

Pre-Import

Import

Documents required for Import of

Goods
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FOREIGN
TRADE IN INDIA
In India, the Foreign Trade (Development and Regulation) Act of
1992 regulates imports and exports, which empowers the federal
government to make provisions for the development and
regulation of foreign trade. The current provisions relating to
exports and imports in India are available under the Foreign Trade
Policy, 2023

Typically, the procedure for import and export activities involves:

 ensuring licensing and compliance before the shipping of goods

 arranging for transport and warehousing after the unloading of

goods

 getting customs clearance and paying taxes before the release

of goods
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LEGAL FRAMEWORK FOR IMPORT

Regulatory Authorities Key Laws & Policies

• Directorate General of • Foreign Trade Policy

Foreign Trade (DGFT) (FTP)
• Customs Department • Customs Act, 1962
• Reserve Bank of India
• FEMA Regulations
(RBI)
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CUSTOMS IMPORT PROCEDURE

Prepare Pre-Import Import
• Importer- • ICEGATE • Integrated
Exporter Code Registration Declaration &
• Authorized • Basic Self Assessment
Dealer Code Supporting Docs • Payment
• Identify Supplier • Overseas • Compulsory
& Negotiate Document Compliance
Terms • Pre-Import • Other
• Goods & Clearance Regulatory
Services Tax Certificate Compliance-
Registration FSSA
• Registration • Clearance
under Export
Promotion
Schemes
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• Prior to importing from India, every business

must first obtain an Import Export Code
(IEC)number from the regional joint DGFT.
IEC or Importer Exporter Code is a unique
10-digit alphanumeric code issued on the
OBTAIN IEC basis of PAN of an entity with lifetime
validity and is required for clearing customs,
i. Obtain Importer Exporter Code
(IEC) from DGFT
sending shipments, as well as for sending or
receiving money in foreign currency. The
ii. Register with Goods & Services process to obtain the IEC registration is
Tax (GST) and ICES (Indian Customs
Electronic Data Interchange (EDI) completely online.
System) • An application for IEC is filed online at
www.dgft.gov.in as per ANF 2A, online
payment of application fee of Rs. 500/-
through net Banking or credit/debit card is
made along with requisite documents as
mentioned in the application form.
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Once an IEC is allotted, businesses

ENSURE may import goods that are
LEGAL compliant with Section 11 of the
Customs Act (1962), Foreign Trade
COMPLIANCE (Development & Regulation) Act
Customs Act (1962) (1992), and the Foreign Trade
Foreign Trade (Development &
Regulation) Act (1992)
Policy, 2023. However, certain
Foreign Trade Policy, 2023 items – restricted, canalized, or
Import of Specific Categories of prohibited, as declared and
Goods, Chapter 2. GENERAL
PROVISIONS REGARDING IMPORTS
notified by the government –
AND EXPORTS. FTP, DGFT, Govt. of require additional permission and
India
licenses from the DGFT and the
central government.
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PROCURE To determine whether a license is needed to

import a particular commercial product or
service, an importer must first classify the
IMPORT item by identifying its Indian Trading
Clarification based on a Harmonized System
LICENSES of Coding or ITC (HS) classification.
ITC (HS) is India’s chief method of classifying
Under a general license, goods can
be imported from any country, items for trade and import-export operations.
whereas a specific or individual The ITC-HS code, issued by the DGFT, is an 8-
license authorizes import only from digit code representing a certain class or
specific countries.
category of goods, which allows the importer
to follow regulations concerned with those
goods. Import licenses are used in import
clearance, renewable, and typically valid for
24 months for capital goods or 12 months for
raw materials components, consumables, and
spare parts.
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After obtaining import licenses, importers are

FILE BILL OF required to furnish import declaration in the
ENTRY AND prescribed Bill of Entry along with permanent
account number (PAN) based Business
OTHER Identification Number (BIN), as per Section 46
of the Customs Act (1962).
DOCUMENTS A Bill of Entry gives information on the exact
nature, precise quantity, and value of goods
TO COMPLETE that have landed or entered inwards in the
country.
CUSTOMS If the goods are cleared through the Electronic
Data Interchange (EDI) system, no formal Bill
CLEARING of Entry is filed as it is generated in the
computer system. However, the importer must
FORMALITIES file a cargo declaration after prescribing
particulars required for processing of the entry
for customs clearance.
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If the Bill of Entry is filed without using

FILE BILL OF the EDI system, the importer is
ENTRY AND required to submit supporting
documents that include certificate of
OTHER origin, certificate of inspection, bill of
exchange, commercial invoice cum
DOCUMENTS packing list, among others.
TO COMPLETE Once the goods are shipped, the
customs officials examine and assess
CUSTOMS the information furnished in the bill of
CLEARING entry and match it with the imported
items. If there are no irregularities, the
FORMALITIES officials issue a ‘pass out order’ that
allows the imported goods to be
replaced from the customs.
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India levies basic customs duty on

DETERMINE imported goods, as specified in the
first schedule of the Customs tariff
IMPORT DUTY Act, 1975, along with goods-specific
RATE FOR duties such as anti-dumping duty,
safeguard duty, and social welfare
CLEARANCE surcharge. In addition to these, the
OF GOODS government levies an integrated
goods and services tax (IGST) under
Trade Barriers- Tariff and Non-Tariff
Duties and Indirect Taxes [Excise
the new GST system. The IGST rates
and Goods & Services Tax (GST)] depend on the classification of
imported goods as specified in
Schedules notified under Section 5
of the IGST Act (2017).
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Once goods are released from

customs, they must be transported
to the importer’s warehouse. The
importer must maintain record of
POST import documents for audit and
CLEARANCE compliance.
Importers must also ensure goods
ACTIVITIES for quality and conformity to
purchase agreements. Further
sorting of goods for further
distribution or resale is done at the
importer’s warehouse, for the
distribution to the actual place of
supply.
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IMPORT PROCEDURE
Identify
Place Order &
Obtain IEC & Supplier &
Arrange
Registration Negotiate
Payment
Terms

Exporter Customs
Filing Bill of
Ships Goods & Inspection &
Entry in
Provides Duty
ICEGATE
Documents Assessment

Payment of Goods
Duties & Released &
Taxes Delivered
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DOCUMENTS REQUIRED FOR

IMPORT OF GOODS

Mandatory Additional Documents

• Bill of Lading/ Airway Bill/ Lorry If the bill of entry is filed
Receipt/ Railway Receipt/ Postal without using the EDI system,
Receipt in form CN-22 or CN-23 then the following documents
• Commercial Invoice cum are also required:
Packing List • Certificate of Origin
• Bill of Entry
• Certificate of Inspection
• NOC (in case goods are subject
to any restrictions or policy) • Bill of Exchange
The RCMC helps exporters and importers avail benefits or concessions under
the Foreign Trade Policy 2015-20. Additional documents may be required as
per the case.
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REFERENCES
1. Import of Specific Categories of
Goods, Chapter 2. GENERAL
PROVISIONS REGARDING IMPORTS
AND EXPORTS. FTP, DGFT, Govt. of
India.
2. Custom Import Export Procedures.
DGFT, Govt. of India
3. Import Procedure. Customs
Commissionerate (Preventive),
Vijaywada. Ministry of Finance, Dept.
of Revenue, Govt. of India.
4. Documents Required for Import
Export. India Filings.
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SUPRGAY
MBA (IB)

30

THANK YOU