Documents required in Import Transaction

Import procedures are the procedures for import and export activities that include ensuring licencing and compliance prior to shipping goods, arranging for transport and warehousing after goods are unloaded, and obtaining customs clearance and paying taxes prior to the release of goods.

Documents required in Import Transaction

Various documents required in the process of Import are as follows:

1. Trade enquiry: A written request for information about the price and other terms and conditions under which the exporter sells its goods to the importing company is known as a trade enquiry.

2. Proforma invoice: The quality, grade, design, size, weight, and price of the export product, as well as the terms and conditions under which their export will occur, are all specified in a proforma invoice.

3. Import order or indent: It is a document in which the buyer (importer) requests that the supplier provide the necessary goods (exporter). The order or indent contains information such as the quantity and quality of the goods to be imported, the price to be charged, the way the goods will be forwarded, the kind of packing required, and the preferred method of payment.

4. Letter of credit: It is a document that contains a guarantee from the bank of the importer to the bank of the exporter that it will honour the payment of the bills issued by the exporter for exports of the goods to the importer up to a certain amount.

5. Shipment advice: A document informing the importer that the shipment of goods has been made is known as shipment advice. The shipment of advice includes the following information: the invoice number, the bill of lading/airways bill number and date, the name of the vessel with the date, the port of export, the description and quantity of the goods, and the date the vessel set sail.

6. Bill of lading: It is a document prepared and signed by the ship’s master acknowledging the arrival of goods on board. It specifies the terms and conditions under which the goods will be transported to the port of destination.

7. Airway Bill: An airway bill, like a bill of lading, is a document in which an airline/shipping company gives its official receipt of the goods on board its aircraft while also giving an undertaking to transport them to the port of destination. It is also a title document to the goods, and as such, it is freely transferable through endorsement and delivery. 

8. Bill of entry: A bill of entry is a form provided by the customs office to the importer. It must be completed by the importer upon receipt of the goods. It must be submitted in triplicate to the customs office. The bill of entry includes information such as the importer’s name and address, the name of the ship, the number of packages, the marks on the packages, the description of goods, the quantity and value of goods, the exporter’s name and address, the port of destination, and the customs duty payable.

9. Bill of exchange: It is a written instrument in which the person issuing it directs the other party to pay a specified amount to a specific person or the bearer of the instrument. In the context of an export-import transaction, the exporter draws a bill of exchange on the importer, instructing the latter to pay a certain amount to a specific person or the bearer of the bill of exchange. Only when the importer accepts the order contained in the bill of exchange are the documents granting title to the export consignment transferred to the importer.

10. Sight draft: It is a type of bill of exchange in which the drawer instructs the bank to hand over the relevant documents to the importer only in exchange for payment.

11. Usance draft: It is a type of bill of exchange in which the drawer instructs the bank to hand over the relevant documents to the importer only upon acceptance of the bill of exchange.

12. Import general manifest: An import general manifest is a document that contains information about the imported product. It is the document upon which cargo is unloaded.

13. Dock challan: Dock charges must be paid once all customs formalities have been completed. The importer or his clearing agent specifies the amount of dock dues in a challan or form known as dock challan when paying dock dues.