Flowchart of Import Procedure

The import procedure can be shown by the following flow chart,-

IMPORT REGISTRATION CERTIFICATE

PURCHASE CONTRACT WI TH FOREIGN SUPPLIER DIRE CTLY OR THROUGH AGENT

A) IMPORT REGISTRATION CERTIFICATE

REGISTRATION OF LETTER OF CREDIT AUTHORISATION (LCA) FORM

OPENING OF LETTER OF CREDIT BY THE IMPORTERS BANK

Copy of L/C, TIN, Vat,
etc, send to PSI agent

DESPATCH OF LETTER OF CREDIT TO THE BENEFICIARY BY ISSUING BANKS CORRRESPONDENT

RECEIPT OF IMPORT DOCUMENTS FROM NEGOTIATING/COLLECTING BANK

SCRUTINY OF IMPORT DOCUMENTS

INSTRUCT REIMBURSING BANK NOT TO HONOUR CLAIM

Are The Documents
Discrepant?
INFORM NEGOTIATING BANK ABOUT DISCREPENCIES

INFORM OPENER ABOUT DISCREPENCIES

NO

YES
AGREE TO ACCEPT
DOCUMENT DESPITE
DISCREPIENCIES?

LODGEMENT OF IMPORT BILLS

NO

ASK NEGOTIATING BANK FOR DISPOSAL INSTRUCTION

REQUEST THE OPENER TO TAKE
DELIVERY OF IMPORT DOCUMENTS
FOR RELEASE OF GOODS
YES DELIVER THE DOCUMENTS TO
DO THEY ACCEPT
DOCUMENTS ON THE IMPORTERFOR RELEASE
COLLECTION BASIS? OF GOODS
NO

COLLECT PROCEEDS FROM

IMPORTERS
SEND BACK THE DOCUMENTS

NO RETIRE THE BILL THROUGH CREATION OF LTR & CLEAR THE GOODS THROUGH C&
WHETHER THEY
RESPOND F AGENT&STORE THE SAME UNDER EFFECTIVE CONTROL RELEVANT EXPENSES IN
CONNECTION WITH CLEARING OF GOODS BY DEBITING LTR A/C
Yes

Yes IF YOU AGREE RECOVER FURTHER MARGIN FROM THE

HAVE THEY
APPROCHED FOR OPENER & RETIRE THE DOCUMENTS BY CREATION OF LIM
IMPORT FINANCE & CLEAR THE GOODS THROUGH C&F &STORE THE SAME
UNDER BANKS EFFECTIVE CONTROL RELEVANT EXPENSES
OF CLEARING OF GOODS BY DEBITTED LTR.
NO

RETIRE THE IMPORT BILL AND DOCUMENTS TO THE

OPENER FOR RELEASE OF GOODS