Understanding Import Processes and Customs Procedures
1. Defining Import
Import is the legal entry of foreign goods through ports, airports, or border crossing points for domestic use and consumption.
2. Local Income
This means that goods should be admitted to places authorized and empowered by the National Customs Service (SNA).
3. Foreign Goods
Foreign goods are those manufactured or produced outside the country.
4. Understanding Domestic Consumption
The goods must be intended for use and consumption by the inhabitants of the country.
5. Formalization of Customs Destinations
The formalization of customs destinations is done by a paper statement, indicating the class or type of destination concerned.
6. Main Customs Destinations
The main customs destinations include import-export, temporary admission, re-import, free zone, and temporary storage.
7. Temporary Admission
Temporary admission is the entry of goods for a fixed period, after which they must be exported. The SNA may authorize the temporary admission of foreign goods into the country. Temporary admission is recorded with a variable rate, which is a percentage of the total customs duties and import taxes, depending on the duration of their stay in the country.
8. Re-importation
Re-importation is the entry of goods free of taxes and customs duties, authorized by the National Customs Service once it is accredited.
9. Free Zone
A free zone is defined as any area near a port or airport that enjoys a customs presumption of extraterritoriality. This means that goods can be signed, completed, manufactured, marketed, and processed without any restrictions.
10. Particular Storage
These are places where goods can stay for up to 90 days without paying customs duties and taxes. However, you cannot remove the goods during this period.
11. Temporary Admission for Asset Improvement
This is the entry of goods for a given time (90 days) into individual deposits in manufacturing industries. It is eligible for all raw materials undergoing termination processes.
12. Steps to Import
- Relationship with foreign suppliers
- Intervention bank
- Import report
- Request for a letter of credit
- Operation of freight and insurance recruitment
- Reception of goods
- Retrieval of goods (customs clearance) and foreign payment
13. Documentation Involved in an Import
- Proforma invoice or offer letter
- Import report
- Bill of lading
- Air waybill
- Letter of credit
- Commercial invoice
- Cost note
14. Parties Involved in a Letter of Credit
- Purchaser/Importer
- Commercial Bank (issuing the letter of credit)
- Correspondent foreign bank
- Beneficiary (foreign exporter)
15. Pro Forma Invoice
A pro forma invoice accompanies an offer. It is delivered to the office.
Incoterms
Ex Works (EXW): Place Convention (factory). The seller’s liability is to place the goods at the purchaser’s disposal on his premises. The buyer bears the costs and risks of transportation from the place of sale or factory to the destination.
Free Alongside Ship (FAS): Free on the dock alongside the vessel at the port of origin. The source port is responsible. Transfers of risks and costs occur alongside the vessel. The buyer bears the cost of customs for export and pays the freight; the agency chooses.
Free On Board (FOB): The seller’s responsibility is to deliver goods on the ship at the port of origin. The buyer selects the ship and ocean freight, and the transfer of risks and costs of goods occurs when the ship’s rail goes beyond. The seller is responsible for import formalities.
Cost, Insurance, and Freight (CIF): The seller’s responsibility is to deliver the goods alongside the vessel at the port of destination.
Delivered Ex Quay (DEQ): Delivered on the quay at the port of destination. The seller’s responsibility is to deliver the goods to the destination port. The transfer of risk and expenditure occurs when the seller makes the goods available to the buyer at the destination port. The formalities and payment of the tariff and other import fees are the seller’s responsibility.