With the Indian government making multiple attempts to relax regulations for exporters and importers, we are seeing various trade promotion councils and associated creating policies and services which contribute towards the development of Indian Economy and encourage exporters and Indian products. Our Prime Minister Narendra Modi has pledged to streamline import-export procedures and redesign laws that may obstruct foreign business from setting up in the Indian market. However, today we will be making our base knowledge strong by discussing the import process in India.
The Indian Trade Classification (ITC) has permitted the free import of most of the goods without any special import license. However, there are certain goods which fall under the below-mentioned categories, require special permissions or licensing:
Licensed (Restricted Items): These items can only be imported after you have received an import license from DGFT (Directorate General of Foreign Trade). These include goods such as precious and semi-precious stones, safety and security products, agricultural products such as seeds, insecticides, pharmaceuticals, and chemicals. Some electronic items are also included in this category.
Canalized Items: These Items include petroleum products, bulk agri. Products such as grains and vegetable oils and some pharmaceutical products. These products can only be imported through specified transportation channels or through govt. agencies such as the State Trading Corporations.
Prohibited Items: These items are strictly banned from import which include tallow fat, animal rennet, wild animals and unprocessed ivory.
After gaining the product knowledge, the importer has to submit a bill of entry, which reflects the description of goods entering the county. A bill of entry is submitted to customs, a copy of it should stay with the importer, a copy for the banker and one copy for making the remittances. An importer is required to file a cargo declaration after describing specifications for the processing of the entry for customs clearance. Bills of Entry are of three types: Bill of Entry for Home Consumption, Bill of Entry for Housing and Bill of Entry for Ex-Bond Clearance. Payment of the goods can be done in any permitted currency, including Indian Rupee. This is the brief outline of the Indian import procedure.