PROCEDURES

FOR
IMPORTS
 WHAT IS IMPORT ?

IMPORT is to bring in foreign

goods or services to a country

(Procedures for imports) 2

 PREPARATION OF
TENDER DOCUMENT

Establishing requirements of goods

to be imported (by the end user)

Preparation of tender document

(by import department)

(Procedures for imports) 3

 APPROVAL OF TENDER DOCUMENT

Approval of tender document and approval

for inviting tenders from the authority.

(A tender is a bid or an offer in response to

an invitation by a person, consultant, firm
or an organization expressing his or its
willingness to undertake a specified task at
a price).
(Procedures for imports) 4
 TENDER NOTICE AND OPENINIG

Publishing “Notice inviting tenders”

or “Tender Notice”
Receiving the bids
Opening or announcement of the
bids by tender opening committee
Recording the results/
minutes of tender opening

(Procedures for imports) 5

 TECHNICAL EVALUATION COMITTEE

Constitution of technical and financial

evaluation committee
(by the competent authority).

The competent authority may be HOD,

Chairman, Chairperson, Dean, Pro-Vice
Chancellor, Vice Chancellor or any other
Resource Person.
(Procedures for imports) 6
 TECHNICAL & FINANCIAL
EVALUATION
Technical evaluation of bids (by evaluation
committee; the evaluation must be
according to the criteria already specified in
the tender document)

Financial evaluation of bids (by evaluation

committee; converting all foreign currencies
into local by using selling rate)
(Procedures for imports) 7
 QUOTATIONS / PRICES

Ex-Works or Ex-Factory price (The seller delivers

when he places the goods at the disposal of the
buyer at the seller’s premises or another named
place as works, factory, warehouse, etc. All costs
on transportation of goods from this point to the
buyers place and the cost of insurance are to be
borne by the buyer. The export clearance is the
responsibility of the buyer).
(Procedures for imports) 8
 QUOTATIONS / PRICES

FOB or Free On Board Price

(the buyer has to bear all costs and risks of
loss of or damage to the goods from the
board or side of the ship. The cost of
transportation from board to destination
and cost of insurance is to be borne by the
buyer. The export clearance is the
responsibility of the seller.)
(Procedures for imports) 9
 QUOTATIONS / PRICES

CFR or C&F or Cost & Freight price

(This price includes the cost of goods and

the freight necessary to bring the
goods to the named port of
destination. Additional cost incurring
on insurance of consignment is to be
borne by buyer.)
(Procedures for imports) 10
 QUOTATIONS / PRICES

CPT or Carriage Paid To price

(The seller has only to ensure that the

goods are delivered to the name place.
The risk and costs are of course for the
seller as is the responsibility of export
clearance up to that named place.)

(Procedures for imports) 11

 QUOTATIONS / PRICES

DDP or Delivered Duty Paid price

(The shipper/seller is responsible for

dealing with all the task involved in
moving goods from the manufacturing
plant to the buyer’s/consignee’s door.)

(Procedures for imports) 12

 AWARD OF WORK

Recommendations for award of work (by

evaluation committee in the form of
technical & financial evaluation report)
Approval for award of work (from
competent authority)
Issuance of Letter of Intent or Purchase
Order on the basis of approved quotation
or proforma invoice.
(Procedures for imports) 13
 QUOTATION OR
PROFORMA INVOICE
PROFORMA INVOICE is the quotation
indicating compulsorily the INCOTERM
along with the prices & description of
items. The buyer has to pay the price
indicated on proforma invoice to the seller.
Proforma invoice also indicates the mode
or method of payment compulsorily.

(Procedures for imports) 14

 INCOTERMS
(INTERNATIONAL COMMERCIAL TERMS)
INCOTERMS are shorthand definitions of
the respective responsibilities of sellers and
buyers in international sales contracts.

INCOTERMS 2000 are the official ICC

(International Chamber of Commerce)
rules for the interpretation of trade terms
that must be explicitly incorporated into
international sales contracts.
(Procedures for imports) 15
 INCOTERMS 2000
CIF (Cost, Insurance & Freight)
Ex-Works (From Works Place)
CPT (Carriage Paid To)
FOB (Free on Board)
CIP (Carriage & Insurance Paid to)
FCA (Free Carrier)
DAF (Delivered At Frontier)
FAS (Free Alongside Ship)
DES (Delivered Ex Ship)
CFR or CNF (Cost & Freight)
DEQ (Delivered Ex Quay)
DES (Delivered Ex Ship)
DDP (Delivered Duty Paid)

(Procedures for imports) 16

 DELIVERY OF GOODS

Delivery after advance payment through

telegraphic transfer (TT) or wire transfer

Payment through Documentary Credit/

Letter of Credit (LC) after shipment/
dispatch of goods from country of seller

(Procedures for imports) 17

 LETTER OF CREDIT OR
DOCUMENTARY CREDIT

The Letter of credit (LC) or Documentary

credit is an undertaking issued by the
buyer’s bank or issuing bank on the
instructions and for the account of the
buyer, to pay the seller or beneficiary the
value of the draft and/or documents
provided that the terms & conditions of the
Documentary credit are complied with.
(Procedures for imports) 18
 CUSTOMS CLEARANCE

Customs clearance by Import Department.

Installation (or placing in position) and

commissioning (or bringing into operation)
of equipment or machines, etc. by the seller
or by the representative of seller.

(Procedures for imports) 19

 WARRANTY

A Warranty describes the conditions under,

and period during, which the producer/
manufacturer/ seller will repair, replace, or
other compensate for, the defective item
with out cost to buyer or user.

(Procedures for imports) 20

 LIMITED WARRANTY

Written statement that specifies under what

conditions, to what extent, and for how long
the manufacturer of an item guarantees that
it will work as claimed. If a defect or
malfunction occurs, such warranties are
usually limited to the repair or replacement
of the item and do not include any
compensation for any loss arising.
(Procedures for imports) 21
 HS CODE (HARMONISED SYSTEM CODE)

Short name for

harmonized commodity description
and coding system.
HS Code Description
85.01 Electric motors and generators (excluding generating sets).
8501.1000 Motors of an output not exceeding 37.5 W

8501.2000 Universal AC/DC motors of an output exceeding 37.5 W

8501.3100 Other DC motors; DC generators of an output not

exceeding 750 W

(Procedures for imports) 22

THANK YOU