Import procedure for my ATV

Finally  I  decided to get my  ATV  from  China.    It becomes more difficult to  finalize   as manufacture is scattered. Though limited to two cities, Chongquing and Yongkang, there are numerous manufacturers over there. It is better to call them fabricators as many of them procure the main components and mainly do the assembly. There is no regular assembly line with most of them and they assemble in batches as per the orders.

Pricing depends upon the order quantity. Normally container load order is expected and pricing given out. If we ask for fewer sample pieces, they expect premium on that depending on order size. Only after they receive your money, factories procure the components and start assembly. Normally they dispatch in ten days or two weeks.

The quotation and billing is done either as CIF or FOB. The CIF cost insurance freight billing means everything has been paid. The invoice should be very clear about freight &  insurance. Otherwise Indian  Customs will add 20 % as freight and 1.125 % as insurance to the Cost of the goods &  do the tax assessment.

This web page gives the fair idea of lengthy procedure involved in customs clearance.

http://jeena.com/cimp.htm

The IEC code is issued by DGFT and the Bank may insist on it while doing remittance for import purpose and the customs may ask while clearing the goods. Though it is not required for import of goods for personal use, we may have to do some convincing at the goods clearance time. It involves a fee of INR 1000 plus a approx brokerage of INR 3500. The procedure takes a week or two. It is always better to be on safer side.

I spent about 1200 INR for money remittance and the party got money found that USD 35 deducted. So we pay for transfer to New York and they are charged for getting it from New York. There is no direct fund transfer from here to China.

I paid some amount as freight to my supplier in China but again had to pay almost twice that amount as THC to the delivery agent in Mumbai.

So it is like money remittance and the freight is charged at both ends.

Export document mean they have to make the invoice and Packing list. On handing over to the shipper, they will get Bill of Lading which is like Lorry Receipt when we send parcels here. All the three has to be with the importer for presenting to the customs for clearing the goods.

The container number should be invariably mentioned in Bill of Lading. Otherwise it is difficult to locate the right container. The bill of lading we got from China had this crucial information missing &  we had to lot of e-mailing to get the information.

Certificate Of Origin (COO) is one useful important document in Import-Export Trade. This certificate indicates that the goods, which are being exported, are actually manufactured in a specific country mentioned therein. This certificate is sent by the exporter to the importer and in my case the company failed to send the certificate in time that created many headaches.

The clearing &  forwarding agency charges for movement of goods within &   outside the port plus for interacting with the customs. Since the procedure involved for customs clearance of very small consignment and very big are basically same, the charges may appear to be expensive for small consignment.

The following check list gives fair idea about expenses involved in importing a ATV or similar goods from abroad. We have to make sure beforehand, if the goods come under restricted list from the Customs Department.


1. IEC code expenses
2. Cost of Goods
3. Freight
4. Insurance
5. Bank Remittance Charges
6. Freight component at Indian port.
7. Handling expenses at port
8. Clearing &   Forwarding Agency Bill
9. Customs duty


Item number 6 and 9 cannot be precisely known beforehand. It is not possible to get exact estimation of the shipping agency charges as we come across the agency involved only when the goods are in their hands.


Customs department follow same set of rules all over India but the procedure ; interpretation could vary. So it is always better to approach appropriate customs office &   get the clarifications. Many customs offices have independent web sites .


Normally to get a consignment from China you have to wait for sixty days. Mine took longer, eighty days from sending money to delivery in our farm. There was unanticipated delay at factory, port and in the sea.


Importing is not a easy job. You will need plenty of patience &  perseverance to make it happen. Anyway, GOOD LUCK. .