Step 2: Ensures adherence to the norms of bylaws<\/strong><\/p>\n\n\n\nAfter the\nIEC allotment, businesses may secure goods from exporting nations that are\nadherence to Section 11 of the Customs Act, 1962, Foreign Trade Policy,\n2015-20, and Foreign Trade (Development & Regulation) Act (1992),<\/p>\n\n\n\n
But, certain products- canalized or\nprohibited, as notified by the GOI- require additional consent and registration\nform DGFT and the other concerned authorities. <\/p>\n\n\n\n
Step 3: Procure import licenses<\/strong><\/p>\n\n\n\nTo figure out whether registration is\nrequired to import a specific commercial product or service, an importer must\nclassify the product by pinpointing its ITC i.e., Indian Trading Clarification\non the Harmonized System of Coding classification. <\/p>\n\n\n\n
ITC (HS) is India’s primary method of\nclassifying products for trade and EXIM operations. It is granted by the\nDirectorate General of Foreign Trade. <\/p>\n\n\n\n
ITC (HS) refers to an 8-digit\nalphanumeric code that reflects a particular class of products, which permits\nthe importer to follow norms relating to those products. <\/p>\n\n\n\n
An import license may be either a\nspecific license or a general license. Under a general license, items can be\nimported from any nation; meanwhile, a specific license legalizes import only\nfrom specific nations. <\/p>\n\n\n\n
Import licenses help clear shipments from\ncustoms and come with a validity of 2 years for capital goods and 18 months for\nraw material, consumables, components, & spare parts.<\/p>\n\n\n\n
Step 4: File Bill of Entry and other key documentation for custom clearance <\/strong><\/p>\n\n\n\nAfter securing the license for import,\nthe next step is the submit the import declaration in the Bill of entry along\nwith PAN, based on BIN (Business Identification Number), as per Section 46 of\nthe Customs Act (1962).<\/p>\n\n\n\n
A Bill of Entry reflects detail about the\nfollowing <\/em><\/strong><\/p>\n\n\n\n\n- Exact\nnature of goods<\/li>\n\n\n\n
- Precise\nquantity of goods <\/li>\n\n\n\n
- Total\nvaluation of the shipment <\/li>\n<\/ul>\n\n\n\n
If the goods received the clearance via\nthe Electronic Data Interchange system, no formal bill of entry is filed as it\nis automatically generated in the system. But, the importer should file a\nshipment declaration post sharing details required to process the entry for the\nclearance purpose. <\/p>\n\n\n\n
Suppose the Bill of Entry is filed in the\nabsence of the EDI system. In that case, the importer must furnish supporting\ndocumentation, including an inspection certificate, COI, i.e., certificate of\norigin, Bill of exchange, and invoice cum packaging list. <\/p>\n\n\n\n
Once the items are imported, the customs\nofficials verify the detail cited in the Bill of entry and cross-check them\nwith imported goods. If there are no errors, the said officials grant a ‘pass\nout order’ that permits imported items to be replaced from the customs. <\/p>\n\n\n\n
Step 5: Identify import duty rate for good clearance <\/strong><\/p>\n\n\n\nGOI imposes basis custom duty on imported items, as prescribed in the schedule of the Customs Tariff Act, 1975<\/strong><\/em>, in addition with the item-specific duties such as to safeguard duty, anti-dumping duty & social welfare surcharge. <\/p>\n\n\n\nBesides, the GOI imposes an integrated\ngoods and services tax (i.e., IGST) under the GST system. The said rates vary\nin accordance with the classification of imported items as prescribed in\nSchedules notified u\/s 5 of the IGST Act (2017).<\/p>\n\n\n\n