Explain the meaning of the following documents used in connection with import transactions :

(i) Trade enquiry.

(ii) Import license.

(iii) Shipment of advice.

(iv) Import general manifest.

(v) Bill of entry. 

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 (i) Trade enquiry : The person wanting to import any goods has, first of all, to send a letter of inquiry to a foreign exporter. Through the letter of enquiry, the importer will ask for information regarding—(a) availability of goods, (b) the price at which such goods would be available, (c) terms and conditions in regard to delivery, payment etc.

If necessary, he may also ask for some samples, patterns etc. to be sent to him. Importer can gather information about exporters from the trade directors, and or trade associations and organisations.

(ii) Import licence : Any person who wants to import goods into his country is required to obtain an import license under the Import and Export Control Act 1947. In order to get an import license, an application in the prescribed form has to be made to the Controller of Exports and Imports. The completed application form has to be submitted along with the following documents: 1. Treasury Receipt from the Reserve Bank of India, 2. Income tax verification certificate from the Income tax authorities. A certificate from the Chartered Accountant Certifying the total C.I.F. value of goods (invoice price of the goods plus freight charges and insurance up to the place of destination) imported by the applicant in the previous financial years, if any.

The Controller of Export and Import will scrutinise these documents and if satisfied about the claim of the applicant, will issue the import license.

(iii) Shipment of advice : When the exporter despatches the goods, he communicates this fact to the importer through an advice note, called “shipment of advice” which contains date of the despatch of the goods, and the date or reference as to when the importer could expect to receive the goods.

(iv) Import General Manifest : It is a document that contains the details of the imported good. It is the document on the basis of which unloading of cargo takes place.

(v) Bill of Entry : It is a document certifying that the goods of specified description and value are entering into the country from abroad. It contains particulars like :

(a) Name and address of the importer, (b) Importer’s license number, (c) Port of destination, (d) Name of ship, its nationality and number, 4. Name of the country, those from goods have been imported, (e) Description of goods in terms of their quantity and value.