-Buyer looks to purchase textiles from Indian sellers, and begins to narrow down supplier by the supplier providing the buyer with samples & price quotes
1. Collection of samples and prices The importer contacts exporters or exporters’ agents in India to collect samples. Business contracts for importing textiles from India are normally arranged through agents. Exporter's agents visit Nepalese importers with samples of their textiles and price quotations. 2.Selection of goods and negotiation of trade terms Nepalese importers enter into negotiation with the exporter's agents then fix the terms of trade and finalize a deal. 3. Sign and exchange contract documents Once the trade terms are finalized, the exporter prepares and signs the contract and sends it to the importer (through a courier or the exporter's agent) for signing. After signing by the importer the contract documents are exchanged and the importer arranges the 50 per cent advance payment. . Documents: Proforma Invoice Purchase Order Contract Documents
-Importer and Exporter agree on trade terms and finalize contract
1.The importing firm collects the Firm Registration Certificate and PAN/VAT Certificate from the concerned government offices and the commercial invoice from the Indian exporter or agent.
-Exporter and Importer have already agreed into sales/ purchase terms of trade
1. For imports of textiles into Nepal from India, 50 per cent of the payment is made in advance (after signing the contract) and the remaining 50 per cent is paid after receiving the cargo. These payments are made through bank drafts. 2.To issue a bank draft in favour of an exporter, the Nepali importer approaches a Nepali bank with a performa invoice, the original contract and an application form. After checking the documents, the importer’s bank issues a draft in favour of the exporter. The importer then sends the bank draft to the exporter, who presents the bank draft to his/her bank in India and collects the money.
1. For customs clearance at the India-Nepal (departure) border, the importer's agent submits the required documents, including the commercial invoice, packing list, truck chalan and export licence number (with the exporter’s stamp) 2. Customs personnel examine the documents and inspect the cargo 3. After completion of the inspection, customs records the quantity and value of the goods exported and permission is given to move or unload goods at the designated area 4. The importer's agent completes the import declaration form and submits it to the customs office along with the required documents 5. The customs official examines the documents and inspects the cargo. If satisfied, the quantity and value of the imports are recorded in the customs records 6. Then the importer's agent is asked to pay the charges 7. Once the charges have been paid, permission is given to move the goods. The transport operator then moves the cargo to the destination and the importer's agent collects the custom clearance form
1. The importer’s agent contacts a transport operator and negotiates the transport of the goods. 2. The goods are moved first from the Indian exporter’s warehouse to the exporter's customs point (India-Nepal border). After this, the goods are loaded into a different truck or container. 3. The required documents are handed over to the transport operator, who moves the cargo to the importer's (Nepal-India border) custom point. 4. The same transport operator may then carry the goods to the importer's warehouse.