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Procedure
Import Procedures
How
to Import -Introduction
Pricinpal Law & Import Export Policy
Registration with Regional Licencing Authority
and obtaining IEC Code
Licence Application Fees
Validity of Licence
Conditions of Licence
Imports under Special Scheme for Exporters
Selecting the Overseas Supplier
Finalising the Terms of Import
Payment against Imports
Letter of Credit
Scrutiny of documents and Retirement of Documents
Mode of payment & Time limit for Import Remittance
Customs Clearance of imported goods
Classification of Customs tariff and Levy of Customs Duty
Warehousing of Imported goods
Import by Export of Services
Import through Courier
Import for personal use
Import of Samples
Import of Prototype
Import of Computer, Computer parts and Computer Software
Import of Passenger Baggage
How to Import -Introduction
How to Start Import
As
governed by the Foreign Trade (Development & Regulation)
Act, 1992 With the globalisation of Indian economy and consequent
upon comfortable balance of payment position Government
of India has liberalised the Import Policy and practically
all Controls on imports have been lifted.Imports may be
made freely except to the extent they are regulated by the
provisions of Import Policy or by any other law for the
time being in force.
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Pricinpal Law &
Import Export Policy
Principal Law
Imports in to India are governed by Foreign Trade (Development
& Regulation) Act 1992. Under this Act, imports of all goods
is Free except for the items regulated by the policy or
any other law for the time being in force.In exercise of
the powers conferred by the Foreign Trade (Development &
Regulation) Act 1992 the Government has issued the following
Rules & Order:
Foreign Trade(Regulation)Rules, 1993, which inter alia,
provide for grant of special licence, application for grant
of licence, fee, conditions for licences, refusal of licence,
amendment of licence, suspension of a licence, cancellation
of licence, declaration as to the value and quality of imported
goods, declaration as to the Importer- Exporter Code number,
utilisation of imported goods, provisions regarding making,
signing of any declaration/statement or documents, power
to enter the premises and inspect, search and seizure of
goods, documents, things and conveyance, settlement, confiscation
and redemption and confiscation of conveyance. Foreign Trade
(Exemption from Application of Rules in Certain Cases) Order
1993 Notifications under Foreign Trade (Development & Regulation)
Act 1992.
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Import Export Policy
The
present import policy and procedures in respect of various
commodities/category of importers, are, inter alia, contained
in the following publications issued by the Ministry of
Commerce and revised from time to time:
Import
- Export Policy, 1997-2002 as modified upto 31.03.1999
Handbook of Import - Export Procedures(Volume 1), 1997-2002
as modified upto 31.03.2000.
Handbook of Import - Export Procedures: (Volume 2) Duty Exemption
Scheme:
Input - Output and Value Addition Norms, 1997-2002.
ITC(HS) Classification of Import and Export Items.
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Notifications and Circulars
The Import - Export Policy and Procedure books issued by
the Government are amended/clarified/ explained by the Ministry
of Commerce from time to time. The types of Notifications/Clarifications/Instructions
issued by the Ministry for this purpose are:
1.Public
Notices.
2.Notifications
3.Policy Circulars
Select the commodity/Product you wish to import :
Be aware of the import potential and the commercial viability
of the commodity/product.
Check whether the items of your interest fall in the Restricted
list of ITC(HS) Classifications of Exports & Imports items.
Prohibited items are not permitted to be imported at all.
List of Prohibited items of import are detailed below:
Tallow, Fat or Oils rendered, unrendered or otherwise of
any animal origin, animal rennet and wild animals including
their parts and products and ivory any part and products,
including ivory.
For import of items appearing in Restricted list you need
secure import licence. Third category of items comes under
the Canalised list of items. Import of items included in
Canalised list are permitted to be imported through Canalising
Agencies.
Thus items not appearing in Prohibited list, Restricted
list and or in Canalised list can be imported Freely without
any import licence. A large number of Consumer goods are
freely importable without licence.
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Registration with
Regional Licencing Authority and obtaining IEC Code
Registration
with Regional Licensing Authority: Registration with Regional
Licensing Authority is a pre-requisite for import of goods.
The Customs will not allow clearance of goods unless:
The
importer has obtained IE Code Number from Regional Licensing
Authority. However, no such registration is necessary for
persons importing goods from/ to Nepal provided Value of
a single Consignment does not exceed Rs. 25000/=
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Obtaining IEC Code Number
An application for grant of IEC Code Number should be made
in the prescribed proforma given at Appendix 3.I. The application
duly signed by the applicant should be supported by the
following documents:
Bank
Receipt (in duplicate)/demand draft for payment of the fee
of Rs.1000/- Certificate from the Banker of the applicant
firm as per Annexure1 to the form. Two copies of passport
size photographs of the applicant duly attested by the banker
of the applicant. A copy of Permanent Account Number issued
by Income Tax Authorities, if PAN has not been allotted,
a copy of the letter of legal authority may be furnished.
If there is any non-resident interest in the firm and NRI
investment is to be made with repatriable benefits, full
particulars thereof along with a photocopy of RBI's approval.
If there is NRI investment without repatriation benefit,
a simple declaration indicating whether it is held with
the general/specific permission of the RBI on the letter
head of the firm should be furnished. In case of specific
approval, a copy may also be furnished.Declaration by the
applicant that the proprietors/partners/directors of the
applicant firm/company, as the case may be, are not associated
as proprietor/partners/directors with any other firm/company
the IEC No. is allotted with a condition that be can export
only with the prior approval of the RBI.
Profile of the exporter/importer in a given format at Appendix
3.II.
The Registered Office or HO or Branch Office (duly authorized
by the HO in this behalf) should apply for allotment of
IEC No. However, only one IEC no. is allotted to a company
and the same is valid for all its branches/offices/units.
The applilcation for grant of IEC No. should be made to
the Regional Licensing Authority concerned as specified
in Appendix 3.III.The application fee shall be deposited
by way of deposit in an authorized branch of Central Bank
of India indicating the head of Account 1453 Foreign Trade
and Export Promotion Minor Head 102. Import Licence Application
Fee.
The
IEC No. is likely to be granted within 3 days of the receipt
of the complete application and requisite documents.
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How to fill up IEC application:
Application
form should be made in the prescribed form in duplicate
along with the above enclosures, mentioned against serial
1 to 8 of above paragraph, also in duplicate. The form should
be neatly typed/handwritten in bold capital letters only.
Each copy of the application form should be signed in ink
by the authorised person. Items of information relevant
to applicant should only be filled and remaining items may
be marked not applicable. Modification of particulars of
the applicant should also be furnished on this form by filling
the relevant items. However, in case an IE Code holder no
longer wishes to operate under the allotted code number,
the matter should be brought under the notice of the Regional
Licensing Authority to make the Code number inoperative.
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Import Policy:
For items not mentioned as Prohibited, Restricted or Canalised
List for import in ITC(HS) Classification of Export and
Import items; import of such items are freely permitted.
There is no need to obtain any license or permission for
importing such goods. The ITC(HS) Classification of Export
and Import items contains 99 chapters and in each chapter
there are column heading covering Exim Code, items description,
policy and nature or restriction. The information related
to import policy for any item can be obtained from our site
under Customs Duty Calculator Schedule.Procedure to be followed
for grant of import license:
An
application for grant of an import licence or CCP for import
of the items mentioned as restricted for import in ITC(HS)
Classification of Export and Import items may be made to
the regional licensing authority concerned.
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Licence Application
Fees
Fees for Licence Application:
Every application for import licence or CCP should be accompanied
by 2 copies of a bank receipt from the Central Bank of India
or a Bank Draft from any Bank indicating the deposit in
accordance with the prescribed scale of fees. Rs. 200 where
the value of goods specified does not exceed Rs. 50,000.
Rs. 2 per thousand or part thereof subject to a minimum
of Rs. 200 and a maximum of Rs.1 lakh 50 thousand, where
the value of goods exceeds Rs. 50,000. Rs. 200 where Application
is filed be SSI units where the CIF value of goods specified
in the application does exceed Rs. 2 lakh. Rs. 200 where
application is fro grant of duplicate licence. The application
fee shall be deposited either:
By
way of deposit in an authorized branch of Central Bank of
India indicating the Head of Accounts 1453 Foreign Trade
and Export Promotion - Minor Head 102, Import Licence Application
Fee. The Bank receipt must show the name of the department
viz. "Director General of Foreign Trade". The bank receipt
should be drawn in favour of Pay & Accounts Officer concerned.
Such fees can also be deposited with Indian Missions abroad.
Or, Crossed DD on a scheduled bank for the requisite amount
should be made in favour of the concerned licensing authority.
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Validity of Licence
Besides import licence for import of restricted items there
are other variety of licences and such licences have different
period of validity. Export Promotion Capital Goods Licence
validity 24 months
Customs Clearance Permit " 12 months
DEPB " 12 months
Advance License/Special Imprest Licence
For Project/Turnkey Project "18 months or co-terminus with
the contracted duration of the Project For the cases where
the license expires before the last day of the month, the
license shall be deemed to be valid until the last day of
that month.
Revalidation of License: License revalidation can be done
on merits but not beyond 12 months by the concerned licensing
authority for a period of six months at a time reckoned
from the date of expiry of the validity period.
Last date for filling applications: the last date for receipt
of applications for grant of licenses is 28th February of
the licensing year unless otherwise specified.
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Conditions of
Licence
Licensing conditionalities: The license for import is taken
into consideration provided: the goods covered by the license
shall not be disposed of except in accordance with the provisions
of the EXIM Policy, 1997-2002 or in the manner specified
by the licensing authority in the license; the applicant
for a license shall execute a bond for complying with the
terms and conditions of the license. It shall be deemed
to be a condition of every license for import that - no
person shall transfer or acquire by transfer any license
issued by the licensing authority except in accordance with
the provisions of the Policy; the goods for the import of
which a license is granted shall be the property of the
licensee at the time of import of which a license is granted
shall be the property of the licensee at the time of import
and up to the time of clearance through the Customs; the
goods for the import of which a licensee is granted shall
be new goods, unless otherwise stated in the license; the
goods covered by the license for import shall not be exported
without the written permission of the DGFT; Disposal period
for import application: Provided the application is complete
in all respects along with prescribed documents, the applicant-importer
can expect the disposal in:
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IEC No. - 3 working days
Duty free license where input-output norms are notified
- 5 working days
Duty
free license where input-output norms are notified but cases
are to be placed before ALC -15 working days
Duty free license where input-output norms are not notified,
EPCG licenses/export licenses/export.
licenses/specific import licenses - 15 working days
Revalidation of license and extension of export obligation
period by RLA - 5 working days
Acceptance of Bank Guarantee/Legal undertaking - 3 working
days
Redemption of Bank Guarantee/Legal undertaking/Endorsement
of Transferability - 10 working days
Issuance/renewal of Export House/Trading House/Star Trading
House/Super Star Trading House - 15 working days
Amendment of any category of license - 5 working days SIL
- 7 working days Fixation of Standard input-output norms
- 45 working days
DEPB - 5 working days
All licenses falling under Chapter 8 - 5 working days
Miscellaneous - 15 working days
Fixation of deemed exports drawback rate - 45 working days
N.B. This apart, a " Counter Assistance" service is provided
in all the offices of the DGFT for speedy disposal of applications.
A foreign trade development officer (FTDO), in charge of
the counter in each office. On submission of the application
at the counter the applicant will be handed over a token
and advised to return the same day when he will be informed
whether his application has been found complete and admitted
for further processing by the office or if there are any
deficiency or lacunae. If deficiency is noticed the same
is sent back to the applicant. Counter Assistance may also
be availed of, for amendments of minor nature/enquiries.
Applications in such cases will be received in the licensing
offices at the counter. Importer's own Identity Card: An
application for issuance of an Identity Card may be made
in the prescribed form. In case of loss of an Identity Card,
a duplicate card is issued.
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Imports under Special Scheme for
Exporters
The Govt. of India has framed the certain schemes to promote
exports. Export Promotion Capital Goods Schemes:
Capital goods including jigs, fixtures, dies and moulds
may be imnported at a concessional rate of customs duty
as per table given below. Subject to an export obligation
to be fulfilled over a period of time. In addition spares
up to 20 per cent of the cost insurance and freight (CIF)
value of the capital goods may also be imported under the
scheme. Under this scheme Customs duty is 5% if the export
obligation is 5 times the CIF value of the capital goods
or 4 times the CIF value of capital goods on NEF basis.
The period of fulfillment of the export obligation is 8
years reckoned from the date of issuance of licence. Period
from the date of issue of licence Proportion of total export
obligation
Block of 1st and 2nd year nil
Block of 3rd and 4th year 15%
Block of 5th and 6th year 35%
Block of 7th and 8th year 50%
The licence holder under EPCG scheme shall fulfill the export
obligation over the specified period in the following proportions:
An application for grant of license under this scheme should
be made to the licensing authority concerned in the form
given in Appendix 10 A of the Handbook of Procedures, 1997-2002
along with documents prescribed therein. Before clearance
of goods through customs, the importer has to execute a
bond supported by a bank guarantee with the Customs Authority
in the prescribed manner. The license holder will also have
to submit progress report of the export/supplies made and
services provided, duly certified by a Charted Accountant/Cost
and Works Accountant to the Licensing Authority. The report
should be submitted in the prescribed form 10C of the Handbook
of Procedures, 1997-2002. For Customs duty exemption exemption
in respect of imports under EPCG scheme, the Ministry of
Finance has issued Notification No. 28/97-Cus. & 29/97-Cus.,
both dated 1st April, 1997
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Duty Exemption Scheme:
According
to the EXIM Policy 1997-2000, duty free import of inputs
is permitted under the following schemes: Advance License
- granted to merchant exporter or manufacturer exporter
for the import of inputs required for the manufacture of
goods without payment of basic customs duty. However, such
inputs shall be subject to the payment of additional customs
duty equal to the excise duty at the time of import. Reference:
Notification No. 30/97-Customs both dated 1.4.97. Annual
Advance License - Manufacturer exporter with export performance
of Rs. 1 crore in the preceding year and registered with
excise authorities, except for products which are not excisable
for which no such registration is required, shall be entitled
for Annual Advance License. Export House, Trading House,
Star Trading Houses and Super Star Trading Houses Holding
the certificate as merchant exporter where they agree to
the endorsement of the name(s) of the supporting manufacturer
on the relevant annual advance license shall also be entitled
for the annual advance license. This license and/or material
imported thereunder shall not be transferable even after
completion of export obligation. Such annual advance license
shall be issued with positive value addition without stipulation
of minimum value addition. The entitlement under this scheme
shall be up to 125% of the average FOB value of export in
the preceding licensing year. Imports against this is exempted
from payment of Additional customs duty, Special Additional
Duty, Anti Dumping Duty, Safeguard duty, if any, in addition
to Basic customs duty and surcharge thereon. Advance Intermediate
License: This license is granted to a manufacturer exporter
for the import of inputs required in the manufacture of
goods to be supplied to the ultimate exporter holding an
Advance License/Special Imprest License. Special Imprest
License: This license is granted for the duty free import
of inputs required in the manufacture of goods to be supplied
to the ultimate exporter holding an Advance License/Special
Imprest License. Such Special Imprest License is granted
for the Duty Free import of inputs required in the manufacture
of goods to be supplied to the EoUs/units in EPZs/STP/EHTP,
holders of license under the EPCG scheme, projects financed
by multilateral/bilateral agencies/funds as notified by
the Dept. of Economic Affairs, MoF, Fertilizer Plants if
the supply is made under the procedure of International
Competitive Bidding, supply of goods to refineries and proejcts/purposes
for which MpF permits import of such goods on zero customs
duty.
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Advance Release Order:
A
duty free license holder except Advance Intermediate License
Holder intending to source the inputs from indigenous sources/canalising
agencies/EOUs/EPZ/EHTP/STP units in lieu of direct imports
has the option to source them against Advance Release Order
denominated in foreign exchange/Indian rupees. In such cases,
the license is invalidated for direct import and permission
in the form of ARO is issued which will entitle the supplier
to the benefits of deemed exports. Back to back inland letter
of credit: This is an alternative to ARO. For this the duty
free license holder intending to avail such facility may
approach a bank for opening an inland L/C in favour of an
indigenous supplier. Before this the bank will ensure that
necessary bank guarantee or Letter of Undertaking has been
executed by the license holder and endorsement to this effect
has been made on the License. The indigenous supplier may
supply the goods on the strength of L.C. opened in his favour
. For the purpose of claiming Deemed Export benefits, an
indigenous supplier shall produce the copy of the L/C together
with a photocopy of the Duty Free License, duly endorsed
by the bank concerned and the said documents shall for all
purposes be deemed to be an ARO. Duty Entitlement Pass Book
scheme: It aims at neutralising the incidence of customs
duty and surcharge thereon on the import content of the
export product. This neutralisation is provided by way of
grant of duty credit on the deemed import content in the
export product as per Standard input output norms and considering
the value addition achieved. This scheme is allowed to be
operated on pre and post export basis by a manufacturer
exporter and merchant exporter. The scheme allows exporter
to claim credit of customs duty at a specified percentage
of the f.o.b. value of the exports made in freely convertible
currency. DGFT issues public notice featuring eligible products
along with the credit rates under this scheme. Although
items outside the restricted list can be exported without
Customs duty, DEPB holder may pay additional customs duty
in cash, if any. (vide MoF Customs Notification No. 34/97
- Cus. Dated 7.4.1997 and Circular No. 10/97-Cus. Dt.17.4.1997).
Third party exports are also permissible for grant of credit
under this scheme and DEPB is valid for 12 months from the
date of issue. Special Import License(SIL): issued to Export/Trading/Star
Trading/Super Star Trading houses; Manufacturers/processors
with the quality certification from ISO,HACCP,WHO-GMP or
SSI CMM level 2 and above certification; EOUs/EPZs ; Deemed
exporters; exporters of telecom and electronic equipments;
small scale exporters(certified); service providers and
other exporters. This provision has been withdrawn from
31.03.2000. No SIL licenses will be issued for exports made
after 31.03.2000. Diamond, Gem & Jewellery Export Promotion
Scheme: Exporters of gem and jewellery are eligible to import
their inputs by obtaining Rep. License and diamond imprest
license from the licensing authority. Exporters of gold/silver/platinum
jewellery and articles thereof may import their essential
inputs e.g. precious metals and stones in accordance with
the procedure specified in this regard. 100% EOU/EPZ/FTZ
Scheme -This means an industrial unit offering its entire
production, excluding rejects and items otherwise specifically
permitted to be supplied to the domestic tariff area(DTA),
for exports. Such units may be set up under the EOU/EPZ
scheme. While EOUs can be set up anywhere in India subject
to certain locational conditions, units in EPZ/FTZ can be
set up in specific areas separated from the DTA by physical
barriers. Hints/Suggestion for finalisation of import order/contract:
Proper selection of the Commodity will depend up on Various
Commercial and legal Considerations including the regulations
Contained in the Current Import Export Policy, Procedure,
while selecting the product, particularly for Commercial
purposes one should know the export regulations in the exporting
Countries.
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Selecting the Overseas Supplier
Imports
can be made from any country of the world except Fiji and
Iraq. The information regarding overseas supplier can generally
be obtained from the following sources: Trade Directories
and Yellow Pages, like Singapore yellow pages, Japan yellow
pages, USA yellow pages etc. available from leading booksellers
in India including. Consulate Generals and Trade Representatives
of various countries in India and abroad. Friends and relatives
in foreign countries. International Trade Fairs and Exhibitions
for which you may contact:
International Trade Promotion Organisation(ITPO),
Pragati Maidan, New Delhi.
Chamber of Commerce.
Directorate of Industries, etc.
Indenting Agents of Foreign Suppliers.
The advertisement in foreign papers
may also be useful.
Similar informations are also available in our Import-Export
database.
Capability and Creditworthiness of Overseas Supplier
Successful completion of an import transaction will mainly
depend upon the capability of the overseas supplier to fulfil
his contract.The credit worthiness of the overseas supplier,
his capacity to fulfil that contract, etc. should, therefore,
be properly verified beforeentering into a contract with
him. Confidential reports about the supplier may be obtained
through the banks and Indian embassies abroad. Reputed overseas
suppliers normally have their Indenting Agents with offices
in India and contract can also be finalised through them
for smoother operations. The importer can also take the
assistance of Credit Information Agencies for specific commercial
information on overseas suppliers. They may also contact
Trade Information Centres of the country concerned.
Correct address of these agencies can be obtained from the
overseas countries trade representatives posted in India.
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Role of Overseas Suppliers' Agents
in India
Some
overseas suppliers have appointed their agents in India.
These agents procure orders from the Indian parties and
arrange for the supply of goods from their principal abroad.
It is advisable to import through such agents as they can
be readily contacted in case of any difficulty with regard
to quality of goods, payment and documentation, etc.
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Finalising the Terms of Import
This
is an important subject and should be handled with extreme
care and caution. It is advisable that before finalising
the terms of Import Order, you should call for the samples
or catalogue and other relevant literatures and the specification
of the items to be imported. Import of samples of goods
is exempt from import duties under 'Geneva' Convention of
7th November, 1952. Samples are subject to re-export and
other conditions as specified in the Geneva Convention.
Besides, vide Customs Notification No. 154/94 dated 13.07.1994,
commercial samples brought into India as personal baggage
by bona fide commercial travellers and businessmen or imported
into Into India by post or by air are exempt from the customs
duty. Similarly, vide Notification No. 154/94 dated 13.07.1994,
prototype of engineering goods when imported into India
as samples for executing or for use in connection with-export
orders are exempt from customs duty. Likewise, the Central
Government has exempted bona fide commercial samples and
prototype of engineering goods when imported into India
by post or by air or by courier service by manufacturers
of export goods. Once you are satisfied with the samples
and the creditworthiness of the overseas supplier, you can
proceed to finalise the term of the contract to be entered
into. For this purpose, the Import Contract should be carefully
and comprehensively drafted incorporating therein precise
terms, all relevant conditions of the trade deal. There
should not be any ambiguity regarding the exact specifications
of the goods and terms of the purchase including import
price, mode of payment, type of packaging, port of shipment,
delivery schedule, etc. The different aspects of an import
contract are enumerated as under some of which may be relevant
and other may not be:
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Payment against
imports
Payment under better of Credit is a universally accepted
mode of payment. A Letter of Credit is a Signed instrument
and an undertaking by the banker of the buyer to pay the
seller a certain sum of money on presentation of documents
evidencing Shipment of Specified goods subject to Compliance
with the stipulated terms and Conditions
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Mode of Pricing and INCO TERMS
While finalising the terms of import contract, the Importer,
should, inter alia, be fully conversant with the mode of
pricing and the manner of payment for the imports. As regards
mode of pricing, the overseas supplier normally quote the
terms prevailing in international trade. The importer for
his benefits should know the meaning of the technical terminology.
To avoid ambiguity in interpretation of such terms, International
Chamber of Commerce, Paris, Has give detailed definition
of a few standard terms popularly known as 'INCO TERMS'.
These terms have almost universal acceptance and are explained
below:
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Ex-work
'Ex-work'
means that the seller's responsibility is to make the goods
available to the buyer at works or factory. The full cost
and risk involved in bringing the goods from this place
to the desired destination will be borne by the buyer. This
terms thus represents the minimum obligation for the seller.
It is mostly used for sale of plantation commodities such
as tea, coffee and cocoa.
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Free on Rail (FOR)/Free on Truck (FOT)
These terms are used when the goods are to be carried by
rail, but they are also used for road transport. The seller's
obligations are fulfilled when the goods are delivered to
the carrier.
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Free Alongside Ship (FAS)
Once the goods have been placed alongside the ship, the
seller's obligations are fulfilled and the buyer notified.
The buyer has to contract with the sea carrier for the carriage
of the goods to the destination and pay the freight. The
buyer has to bear all costs and risks of loss or damage
to the goods hereafter. Once the goods have been placed
alongside the ship, the seller's obligations are fulfilled
and the buyer notified. The buyer has to contract with the
sea carrier for the carriage of the goods to the destination
and pay the freight. The buyer has to bear all costs and
risks of loss or damage to the goods hereafter.
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Free on Board(FOB)
The sellers's responsibility ends the moment the contracted
goods are placed on board the ship, free of cost to the
buyer at a port of shipment named in the sales contract.
'On board' means that a Received for Shipment' Bill of Lading
is not sufficient. Such B/L if issued must be converted
into 'Shipped on Board B/L' by using the stamp 'Shiped on
Board' and must bear signature of the carrier or his authorised
representative together with date on which the goods were
'boarded'.
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Cost and Freight (C & F)
The
seller must on his own risk and not as an agent of the buyer,
contract for the carriage of the goods to the port of destination
named in the sale contract and pay the freight. This being
a shipment contract, the point of delivery is fixed to the
ship's rail and the risk of loss or of damage to the goods
is transferred from the seller to the buyer at that very
point. As will be seen though the seller bears the cost
of carriage to the named destination, the risk is already
transferred to the buyer at the port of shipment itself.
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Cost Insurance Freight (CIF)
The term is basically the same as C & F but with the addition
that the seller has to obtain insurance at his cost against
the risks of loss or damage to the goods during the carriage.
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Payment against imports
Payment
under better of Credit is a universally accepted mode of
payment. A Letter of Credit is a Signed instrument and an
undertaking by the banker of the buyer to pay the seller
a certain sum of money on presentation of documents evidencing
Shipment of Specified goods subject to Compliance with the
stipulated terms and Conditions.
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