What is Import Process?
“The import process involves determining the requirements of market, selecting the resources of supply, physical allocation, preparing documents for import and scheduling for trade or use.”
Import, to put in very simple terms, refers to the purchase of goods from foreign countries. The procedure for import trade differs from country to country. But one thing is common that all over the world imports are controlled by the government.
The import process involves determining the requirements of market, selecting the resources of supply, physical allocation, preparing documents for import and scheduling for trade or use.
There are number of sources from which one can estimate the market needs. Both consumer goods and commercial goods can be imported from outside. When trade is liberalized, the restrictions on imports are minimized.
The determination of consumer goods can be made on the basis of power of purchasing, their standard of living, preferences to the foreign goods and the like. Next step is of the selection of sources of supply. The supplies should be contracted as per the needs of domestic market.
The methods of procuring goods should also be selected. The goods may directly be procured from manufacturers or purchased from export houses through agents. The reliability of the source, financial aspects and the terms etc. should be taken into account while selecting a source.
The importer has to settle the mode of transport, time of delivery, and claims for damages etc. He has at first to arrange for the goods to the country and then has to transport them to their destination inside the domestic market. Ever nation has its own law for dealing with outside businessmen.
The economic interests and nation’s sovereignty are of supreme importance in international trade. There are a number of rules and procedures, which are to be obeyed. The documents such as letter of credit, advise notice, documentary bill, bill of entry, bill of sight, etc. are expected to be prepared for completing of an import transaction.
The importer has to develop a distribution channel to arrange for the distribution of goods and then convince the consumers regarding the utility of imported goods.
Moreover, domestic and imported goods are always in a state of competition and even fierce rivalry. Many a time the domestic farmers and producers become furious and persuade the government to ban the exported goods. All these things are also to be dealt with judiciously in the import trade process.
Author - DeeKay
Tags - Finance, Economy
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