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4. Meeting Shortage Situation

During famine, earthquake, flood draught, tsunami, abnormal price-increase
situations and so on food grains, vegetables and other essential commodities
are imported from foreign countries and bad situation arising from the above
situations are thus overcome.

5. Strengthening Defense

Many countries around the world import defense equipments for its armed
force. Such imports enable the country to ensure its sovereignty and territorial
integrity.

Import Procedure

Import procedure varies from country to country depending upon the foreign
trade policy of a country. Government of India has framed rules and
regulations for the import. The import procedures have been clearly spelt out of
Government of India. Following are the procedures of import trade.

1. Obtaining Import License

Importer has to secure Import and Export Code (IEC) from the Director General
of Foreign Trade or its Regional Authority. The Indian Institute classification
(ITC)–Harmonized System (HS) classified the goods into three categories,
namely Restricted, Canalized and Prohibited.

Goods not specified in the above categories can be freely imported without any
restrictions. Import license is not required to import the goods not mentioned
in the above classification.

An import license is valid for 24 months for capital goods and 18 months for
other goods. Importer has to submit the copy of IEC to customs authorities at
the time of clearance of goods. The second copy of IEC is used to obtain foreign
exchange from RBI.

2. Trade Enquiry

Having obtained IEC, the intending importer has to make enquiry from
exporter or his agents. Importer makes request by e-mail or postal mail to
supply the details given below.

a. Specification of goods like size, design, quality etc.,