Import procedures

categories of Importers

categories of Importers
Actual user(industrial) Actual user(non industrial) Commercial organisations R&D labs Service industry

Basic product knowledge for imports.

Knowledge about basic charactristics of the product incl specs. About manufacturers of such product globally and locally in india. That product is not in the negative list for import. Collecting more info about product thru publications available in Chambers of commerce/EPCs / FICCI/ CII/ banks/ embassies etc

Obtaining particulars of foreign suppliers..sources

Thru embassies/consulates/high commissions/trade reps.. EPCs, commodity boards and other Govt & semi govt organisations Trade fairs/trade bulletins and other publications issued by CII, FICCI, banks and other trade bodies

Selection of product to be imported.

Selection of product to be imported shall rest upon final product offerings.. Should not be part of negative list of items banned from imports. Should have an easy production and delivery schedule Should have an easy commercial terms for imports.. Credit worthiness of supplier to be checked before placing import order.

General provisions for import of goods..

Current concept of FTP is based on freedom which denotes removing all trade barriers like licensing, permits, quotas etc Exports & imports are free unless regulated. However goods restricted for imports/exports under ITC(HS), may be allowed, subject to a public notification by DGFT. Capital goods/raw materials/components/consumables/spare parts/accessories etc can be imported by individuals, subject to condition that there is no actual user condition applicable in the policy. Application for license to be made to DGFT for restricted items in prescribed format known as ayat niryat form.

Compliance with law..imports

All imported goods shall be subject to domestic rules & regulations, environment & safety norms, as applicable to domestic industry. No import/export of rough diamond is permitted unless accompanied with a kimberly process certificate issued by Gems & jewellary EPC. All imprters/exporters to abide by provisions of FT(D&R) act.

Exemptions from policy & procedures.

Any request for grant of relaxation to be made to DGFT under following conditions: a) it adversely affect the domestic industry and trade b) there is a genuine hardship to the applicant importer. c) DGFT in public interest may exempt a person, groups, class/category from provisions of FTP pertaining specific procedures. DGFT may impose new ones also if it deems fit.

Restrictions for imports..

DGFT, thru a public notification can impose restrictions on import/export of different products under following conditions: a) import of such product affects public moral. b) affects plant/animal or human life or health. c) affects patent/copyrights or trade marks. d) arms and ammunition Application for grant of license to be made to DGFT, duly filled in specified format along with fee and submitted to its regional authority under jurisdiction the place falls.

Authorization..
Every authorization shall be valid for a specified period and may contain conditions such as: a) actual user condition b) quantity/value and description of goods. c) minimum import or export price d) value addition to be achieved e) export obligation f) authorisation/license/permission is not the right to import or export.

Revalidation of import/export license/permission

Regional authority can revalidate an import license for a period 6 months from the date of expiry. However in case of exports, RA shall act on advice of DGFT. The application for revalidation shall be made to RA, who will consider it depending upon latest guidelines issued thru notifications from DGFT. Authorized/licensee shall be penalised as per provisions laid down in policy for any breach of law or violation.

State trading corp..

State trading corporations are the canalising agency for import and export of various products and commodities as specified in FTP, handbook ITC(HS) DGFT however may delegate reponsibility for import/export of canalised items to individuals also, in pure public interest. STCs shall be making such imports/exports solely on commercial considerations, keeping advantage of price/marketability/logistical and other such factors as focus. STCs shall promote spirit of competitiveness and transparency in the market while dealing with overseas organisations.

Trade with neighboring countries

DGFT has formulated schemes advertised thru FTP, for strengthening economic ties with neighboring countries thru bilateral trade.

Trade with Russia

DGFT has also formulated a scheme pertaining trade with Russia under debt repayment agreement. Under the scheme, the imports and exports with Russia can be settled under Escrow/rupee account .

Actual user condition..

Capital goods/ raw materials/ components/ spares etc can be imported under actual user condition. However, persons other than actual user can also apply for import of such items provided that such condition has been dispensed with.