Import and Export Trade Procedure — Flashcards

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Import trade means the purchase of goods from a foreign country. A simple example is India buying petroleum from Kuwait. Imports are needed when goods are not produced in enough quantity, are costly t…

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Export trade means the sale of goods and services to a foreign country. A simple example is India selling tea to England. Exports help a country earn foreign exchange and use its resources better.

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Countries import goods because of cost disadvantage or physical difficulties in production. Some goods are also imported when local production is not enough to meet demand. Imports help meet essential…

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Countries export goods because they want to earn foreign exchange and make better utilisation of resources. Exports also support national income and help in paying for imports.

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Trade enquiry is the first step in import procedure. The importer collects information about countries where the required goods are available, the exporters dealing in them, price, type, and terms of …

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An import licence is permission required before goods can be imported. It is issued in duplicate: one copy is for customs purposes and the other is for exchange control purposes. It ensures that impor…

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Open General Licence O.G.L. is a type of import licence for goods of limited value and specified categories. Goods such as free gifts, books, samples, blueprints, and advertisement literature can be i…

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A Restricted Licence is required for goods not covered under Open General Licence O.G.L. It must be obtained from the Director General of Import and Export or from regional licensing authorities. It i…