Imports in the Supply Chain | Supply Chain step by step process

Imports in the Supply Chain field are part of the procurement which states purchasing any goods or services outside the country.

It involves stakeholders which are buyers, sellers, Banks, agents of sellers, freight forwarders, customs, clearing companies, shipping lines, transporters, etc.

The trade rules and policies were made concerning countries for trading from one country to another country and Imports are only possible by following rules and policies made by the respective government of the country. All of them are involved when any buyer imports at the time of clearance of goods from customs at the port of destination before handing over to the company, all the documents are checked properly along with the goods allowed to import in that country.

At each phase which documentation wise process is mentioned below:

Imports Process Flow

Imports Process Flow explains the step by step process of how imports are done from the requirement until payment.

1. The first process of purchase requirement comes from an end-user or production planning
2. Raising inquiry to concern foreign vendor
3. After confirmation of order and review all terms and conditions issue Purchase order
4. Request for Proforma Invoice by sending the Purchase order
5. After receiving a request for a marine cover note for the insurance of Goods from any insurance company
6. Acknowledgment on proforma invoice to the supplier
7. Opening of Letter of Credit (LC) by filling up the LC form
8. Send all the relevant documents to the bank along with PI, Marine cover note, LC form, Terms, and conditions and Purchase order (if required)
9. After the opening of LC, the bank will send the transmitted swift copy of LC to buyer
10. Send a swift copy to the vendor and request for the ETD (Estimated Dispatch time) and ETA (Estimated Time of arrival) of goods
11. Engage clearing company and finance department after receiving non-negotiable documents and for the estimated duties
12. At the time of shipment arrival at Port, arrange for the retirement of the document through bank
13. Handing over the original documents to clearing company for clearance of goods from customs and pay all the required duties by Port, customs and shipping companies
14. Arrange transportation of goods to the destination
15. Receiving of goods and inspect as per packing list
16. Reconcile invoices of clearing and shipping companies
17. Arrange payment to a clearing company and an insurance company.

It is necessary to follow the above steps while importing any goods to legally perform the duties required by the government of the respective country.

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