Assignment 1
Name: Aryan Umesh More
Class: T.Y.BCom – A
Roll No.: 64
Subject: Tax Practice and Procedure
– VII
Topic: Import Procedure
Submitted To: Prof. Jignesh Parekh
Date: 10th March 2025
Import Procedure
Importing goods into India involves several steps, including
obtaining necessary licenses, complying with customs
regulations, and paying duties. Below is a step-by-step guide to
the Indian import procedure:
Step 1: Obtain Importer Exporter Code (IEC)
The IEC is a mandatory 10-digit code issued by the
Directorate General of Foreign Trade (DGFT).
Apply online via the DGFT portal with necessary
documents (PAN, Aadhaar, Bank Certificate).
Without an IEC, imports are not allowed, except for
personal or non-commercial goods.
Step 2: Determine Import Eligibility & Compliance
Check if the product is restricted, prohibited, or freely
importable under India’s Foreign Trade Policy (FTP).
Some goods require special licenses (e.g.,
pharmaceuticals, electronics, chemicals).
Ensure compliance with BIS certification, FSSAI (for
food products), DGCA (for drones), or CDSCO (for
medical devices), etc.
Step 3: Choose Suppliers & Finalize Terms
Select a reliable international supplier.
Negotiate Incoterms (e.g., FOB, CIF, EXW) to define
responsibility for shipping and costs.
Arrange for product sampling, quality checks, and
agreements.
Step 4: Arrange International Shipping & Insurance
Choose a mode of transport: Air, Sea, Rail, or Road.
Hire a freight forwarder to handle shipping, customs
clearance, and logistics.
Obtain marine insurance to cover goods in transit.
Step 5: Documentation for Import Clearance
Prepare and collect the necessary import documents, including:
1. Bill of Lading (BL) / Airway Bill (AWB) – Proof of
shipment
2. Commercial Invoice – Details of the transaction
3. Packing List – Contents of the shipment
4. Bill of Entry (BoE) – Submitted to Indian Customs for
clearance
5. Certificate of Origin (COO) – Declares the country of
Manufacture.
6. Import License (if applicable) – For restricted items
7. Insurance Certificate – Proof of insurance coverage
8. Letter of Credit (LC) or Payment Proof – Payment
terms with the
Supplier.
Step 6: File Bill of Entry & Customs Clearance
The Bill of Entry (BoE) is filed electronically through
ICEGATE (Indian Customs EDI System).
Customs officers verify the shipment, classify goods under
HSN (Harmonized System of Nomenclature), and
assess import duties & GST.
Customs may inspect the goods physically or via scanning.
If everything is in order, Customs Clearance Certificate
is issued.
Step 7: Pay Import Duties & Taxes
Import duties include:
o Basic Customs Duty (BCD)
o Integrated GST (IGST)
o Social Welfare Surcharge (SWS)
o Anti-Dumping Duty (if applicable)
Payment is made online via ICEGATE or through
authorized banks.
Step 8: Release & Transportation of Goods
Once customs clearance is obtained, goods are released
from the port or airport.
The importer arranges for transportation to the final
destination (warehouse, factory, or market).
Step 9: Post-Import Compliance & Record-Keeping
Maintain import records for at least 5 years for audits and
compliance.
If required, submit GST returns and claim Input Tax
Credit (ITC) on IGST paid.
Conclusion
Importing into India requires careful planning and
compliance with customs and regulatory requirements.
Proper documentation, timely duty payment, and
coordination with customs agents or freight forwarders
can ensure a smooth process.
