How to import

Abstract

in this study, the author attempts to address the various issues which an importer faces in the initial stages of setting up of the imports business. the actual procedure that an entrepreneur would have to go through has been examined. As much of this process involves sifting through and adhering to myriads of rules and regulations, many potential entrepreneurs shy away from the opportunity of running an imports business. This study also attempts to concentrate on the main regulations and decipher them in a manner which is easy to understand. The importer may then refer, to the Handbook of Proceoures for specific details and forms. imports into India have been growing at rates between 15-25 percent, annually over the past decade. Enough policy efforts have been focused towards export promotion, imports nave far exceeded exports in all years. Imports are essential ingredients far economic growth. Though viewed as necessary evils till recently, the current philosophy is that imports help to foster investment, production and further_ exports. Recent liberalization of the trade policy has led to increased opportunities for importers of all types of goods. This has been in the form of long term policies with liberal and license free imports, special imports for exporters and lower duty rates. To start the Imports business, one has to be registered with the relevant authorities upending on the type of goods to be imported and the purpose tar importation, licenses are granted, Where applicable. These are primarily in the form of REP . Licenses, advance licenses, special licenses, etc. Various modes of financing and payment for the goods are available, the most commonly used mode being that of Letters or credit. the mechanism of availing documentary credit has been explained in the report, along with an explanation of exchange rates. Marine insurance is an important aspect of the business, as risk of loss or damage -often results in hefty financial losses. The process of clearance of customs has been 'described; it is the last barrier between the goods and the importer, yet often the most complicated. Lastly, some sources of information for importers and factors which should be kept in mind before finalizing the contracts nave been considered. the imports business has high potential,--both for growth and profitability. this is a result of the changed economic scenario and the expanding domestic market for imported goods, both raw - materials and capital goods. It offers scope for practicing exporters to expand and diversify into related fields and for fresh entrepreneurs to enter into a rewarding business.