Import Procedure:
Import procedure varies from country to country depending upon the foreign trade policy of a country. The government of India has framed rules and regulations for the import. The import procedures has been clearly spelt out of the Government of India. Following are the procedures of import trade.
(i) Obtaining import license:
Importer has to secure Import and Export Code (IEC) . from the Director-General of Foreign Trade or its Regional Authority. The Indian Institute classification (ITC)-Harmonized System (HS) classified the goods into three categories, namely Restricted, Canalised and Prohibited. Goods not specified in the above categories can be freely imported without any restrictions. Import license is not required to import the goods not mentioned in the above classification. An import license is valid for 24 months for capital goods and 18 months for other goods. Importer has to submit the copy orIEC to customs authorities at the time of clearance of goods. The second copy of IEC is used to obtain foreign exchange from RBI.
(ii) Trade inquiry:
Having obtained IEC, the intending importer has to make inquiry from the exporter or his agents. The importer makes a request by e-mail or postal mail to supply the details given below.
(a) Specification of goods like size, design, quality etc.,
(b) Quantity goods available
(c) Price per unit
(d) Terms of shipping
(e) Terms of payments i.e. Letter of credit Documents against Acceptance (D/A) or Documents' against Payment (DIP)
(f) Probable delivery time
(g) Validity of offer period
Importer responds to inquiries by sending proforma invoices.
(iii) Obtaining foreign exchange:
Since the importer has to settle import bills in foreign currency,. he has to obtain foreign exchange. The importer has to provide IEC code in the form supplied by an authorized dealer to get foreign exchange. The importer has to submit an application along with necessary documents to the Exchange Control Department of RBI. After scrutinizing the said application, the Reserve Bank of India will sanction the release of foreign exchange.
(iv) Placing an indent order:
Importer places an order either directly or through an indenting house. The indent contains the details like type of goods, design of goods, price, quantity, grade, packing instructions, insurance, delivery mode, desired delivery period, mode of the period, mode of shipment, etc.,
(v) Opening letter of credit (LLC):
Where a foreign exporter does not know an Indian importer, he may like to ensure the creditworthiness of the unknown importer. In such a case, the exporter may advise the importer to arrange for a letter of credit in his favor. Letter of credit is a document under which issuing bank undertakes to make payment on behalf of the importer or to the order of the importer in exchange for specified documents from the exporter's bank. The, letter of credit is issued only for the financially sound importer. Exporter's bank eventually sends the document to issuing bank which releases the payment.
(vi) Receiving shipping document:
The importer collects shipping documents along with the advice' note of shipment of goods from the exporters. Advice note contains a written message through which the exporter informs the importer about the dispatch of goods and advises him to make an agreement for taking delivery of goods on arrival of goods at the port of destination. The captain of the ship informs the dock authorities about the arrival of goods on a document called Import General Manifest. The customs authorities in turn inform the importer concerned about the .arrival of goods at the port.
(vii) Appointment of clearing agents:
There are lot of formalities involved in clearing the goods imported from the port. Normally importer does not feel comfortable with completing the formalities by himself. In this case he may delegate the task of clearing the imported goods from the port of discharge to clearing agent who is well-versed in this job. The latter performs the job for a fee. The importer sends all the documents to the clearing agent to enable him to take delivery of goods after fulfilling the customs formalities prescribed in this regard.
(viii) Fulfilment of customs formalities:
Clearing agent engaged by the importer performs the following activities in connection with taking delivery of goods from the port. .
(a) Getting endorsement for delivery:
The clearing agent gets bill of lading endorsed by the importer in his favour to enable him to take delivery of goods and approaches the shipping company. Where the freight is not paid, the clearing agent pays it. The shipping company may give a separate delivery order after collecting the freight charges or it may simply endorse on the bill of lading by the importer or by his agent itself as a proof payment of freight charges.
(b) Payment of dock dues:
The, clearing agent submits two copies of the filled-in Application form to' "Landing and Shipping Dues Office. This office levies charges on all imported goods. The clearing agent has to pay Dock charges by Dock challan. After paying dock charges 'Landing and Shipping Due Office stamps on the application form itself with wordings like Dock charges paid' or it may issue a separate receipt called Post Trust Dues Receipt.
(c) Preparation of bill of entry:
Bill of Entry is prepared in triplicate in order to pay customs duty. This document contains the details like name and address of the importer, the name of the ship, full description of the goods, number of packages, importer and exporter code (IEC)name of the exporting country and custom duty payable. Bill of Entry is issued in three colours. The black form is meant for non-dutiable goods while the blue form is meant for the goods within the country and the violet is intended for re-export. Import duty is calculated on the basis of details given in the bill of entry by customs authorities. Where the importer/clearing agent does not know the exact land full details about goods imported, he will prepare a billof sight. He would provide as much as details possible about the goods imported to the extent of his memory and with the specific remarks that he cannot give complete information about the goods imported. In such a case, customs authorities will complete the statement and Import duty only after assessing the arrival of goods at the port of delivery.
(d) Payment of import duty:
The clearing agent/importer submits the bill of entry and other required documents to the customs authorities. He pays import duty in the case of dutiable goods to the customs authorities.
(e) Release order from dock:
After payment of customs duty, the bill of entry has to be marked by the dock. Superintendent and an examiner are instructed to physically examine the goods. He gives his report on the bill of entry. Then the bill is passed over to the port authority. He would issue release order.
(f) Getting delivery from the dock:
The clearing agent takes delivery of goods from the dock after submitting the documents like, Port Trust Dues Receipt, Bill of Entry and Bill of Lading. If the goods are imported for re-export, the agent/importer will deposit them in a bonded warehouse and receives Dock Warrant.
(g) Dispatching goods to the importer:
The agent despatches the goods to the importer by the rail! road. He gets Railway Receipt (R/R) or Lorry Receipt (L/R) from the transporter.
(h) Sending advice to the importer:
Clearing agent informs the despatch of goods to the importer and sends Railway Receipt/Lorry Receipt with the statements of expenses incurred by him and the commission payable to him for his service.
(i) Taking Delivery of Goods:
Importer takes delivery of goods from the Railway/ Carrier after producing the Railway Receipt or Lorry Receipt.
(j) Settlement of Import Bill:
The importer settles the import bill in the following ways.
1. Importer collects shipping documents after payment.
2. Importer gets shipping documents after payment of bills of exchange in the case of Documents against payments (D/P).
3. Importer gets shipping documents after giving acceptance on bills of exchange  in the case of Documents again Acceptance(D/A).

Commercial Banks provide financial assistance in the following two ways:
Pre-Shipment Financial Assistance:
This is the type of assistance given to enable exporters to purchase raw materials process them and create finished goods for the purpose of export. This credit is given on the basis of exports orders and letter of credit opened in favour of overseas buyer.
Post-Shipment Financial Assistance:
Post-shipment financial assistance is an assistance granted in the form of advances on the basis of bills of exchange and shipping documents drawn under letters of credit. This type of export finance is granted right from the date of shipment of the goods to date of realization collection of export proceeds for the purpose meeting capital need, paying insurance charges. ECGC premium commission and brokerage to agent export promotion expenses and so on and so forth.

Import trade procedures vary from country to country The following are the important procedures of import trade.
1. Obtaining an import license
The importer has to secure import and export code (IEC) from the direct general of foreign trade or its regional authority. The goods are classified in to three categories, namely restricted, canalized and prohibited. Goods not specified in the above categories can be freely imported without any restriction. Import license is not required to import. the goods not mentioned in the above classification
2. Trade Enquiry
 Having obtained ICE, the intending importer has to make inquiries from the exporter or his agents. The importer makes a request by e-mail, postal mail, to supply the details. the enquiry may be specification of goods like size design, quality, etc, price per unit terms of shipping terms of payment etc.
3. Obtaining foreign exchange
Since the importer has to settle import bills in foreign currency he has to obtain foreign exchange. The importer has to provide ICE code in the form supplied by authorized dealer to get foreign exchange. The importer has to submit an application along with the necessary documents to the exchange control department of RBI. After scrutinizing the application. The Reserve Bank of India will sanction the foreign exchange.
4. Placing an indent/order
 Importer places an order either directly or through an Indent house The indent contains the details like type of goods, design of goods, price quantity grade, packing instructions, insurance, delivery mode, desired delivery period mode of payment mode of shipment etc.
5. Opening letter of credit
 When a foreign exporter does not know about an Indian importers, he may like to ensure the credit worthiness of the unknown importer. In such a case exporter may advise the importer to arrange for letter of credit in his favour letter of credit is a document under which issuing bank undertakes to make payment on behalf the importer.

(i) Achieving Rapid Industrialisation :
Developing countries can achieve rapid industrialisation by importing advanced technology, scarce raw materials, capital goods like machinery, equipment etc. and talents from other countries.
(ii) Upgrading the Standard of living of the People:
Consumers are able to use a wide variety of goods like cell phone, car laptops, television, audio system, washing machine, perfume, soaps, etc. manufactured in foreign countries and enhance their standard of living through import trade.
(iii) Meeting Consumer Demand :
(1) Certain goods are either not available or cannot be manufactured/produced adequately to meet the growing demand in home country.
(2) Hence, import is necessary to meet the short supply of those goods.
(iv) Meeting shortage situation:
During famine, earthquake, flood, drought, tsunami, abnormal price-increase situations and so on food grains, vegetables and other essential commodities are imported from foreign countries and bad situations arising from the above natural calamities and thus overcome.
(v) Strengthening defence:
(1) Many countries around the world import defence equipments for its armed force.
(2) Such imports enable the country to ensure its sovereignty and territorial integrity.