Question

Answer in brief.
Explain preliminary stage of import procedure.

Answer 1

Import trade refers to buying of goods and services from another country or countries i.e. a foreign country. The procedure of import trade varies from one country to another country depending upon the policy implemented in that country. Import of goods and services is controlled by the government in most of the countries. India follows the following import procedure, which is divided into four stages.
Preliminary Stage:
(1) Registration: In order to carry out import, the importer has to get himself registered with the authorities given below:
(I) Director General Foreign Trade (DGFT) in order to get an Import-Export Certificate Number.
(II) The Income Tax department to obtain Permanent Account Number.
(III) To carry out GST formalities.
(2) Negotiation or Trade enquiry: The importer must collect information from overseas suppliers regarding the goods he wants to import of a product. It contains details like:
(a) Price (b) Delivery schedule, (c) Credit period and (d) Terms and conditions of sale, payment and delivery.