Like every business import business has some certain procedure and documentation so here we discuss about some document which are essential for import trade. The following documents used in import trade:
Documents used in import trade
1. Indent: An indent is an order placed abroad for importing good. An importer places an indent either on the foreign manufacturer or on the export agents. An indent should clearly mention the following information.
- Quantity of goods to be imported;
- Price and quality of the goods;
- Method of payment;
- Date of delivery;
- Method of packing, etc.
2. Bill of lading: It is an acknowledgement of receipt of goods on board the ship. The ship owner or the master of the ship prepares it. It contains the terms and conditions on which goods are to be taken to the port of destination. The exporter sends one copy of this document to the importer enabling him to clear the goods from the ship.
3. Letter of credit: It is a document authorizing a bank to pay the bearer a specified sum of money. Through this document, the importer establishes a credit in favor of the exporter at a bank. The moment the exporter receives the letter of credit; he presents a sight documentary bill to the baker who pays him immediately the amount of the bill.
4. Bill of entry: It is a document containing the details of the goods to be imported. The customs authorities ascertain the amount of import duty on the basis of particulars given in the bill of entry. For the purpose of issuing ill of entry, goods are divided into three categories:
- Free goods (i.e., goods on which customs duty is not payable);
- Goods for home consumption;
- Bonded goods.
The bill of entry contains the following particulars:
- Name and address of the importer;
- import license number;
- Description of goods (quantity and value);
- Customs duty payable (rate and amount);
- Number of packages;
- Port of destination;
- Name of the ship and its number, etc.
5. Bill of sight: When the clearing agent of the importer does not have full details regarding the goods in the bill of entry owing to lack of information, he is required to state the facts in the bill of sight. The clearings agent makes a declaration that to the best of his knowledge the goods imported are the same as are entered in the bill of sight.
6. Dock Challan: The importer or clearing agent should fill up a form in the dock for payment of dock charges. This form is known as dock challan. Dock chargers are paid when all the customers’ formalities have been completed. Imported goods cannot be delivered until dock charges have been paid.
7. Docks warrant: This document is issued by the warehouse-keepers to the persons putting goods with them.
Related Content of Import-Export:
- What is the Definition of Import?
- General Procedure of Import Trade
- What is the Definition of Export?
- Stages of Export Involvement
- Procedures for Export Trade
- Documents used in Export Trade
- Standard Terms of Sale