Preliminaries for Starting Import Business


  • Introduction
  • Selecting the Commodity Market
  • State Trading Corporation of India

Introduction

Starting an import business necessitates proper planning and knowledge of the foreign market. Before beginning an import, it is also critical for an importer to obtain all necessary information regarding foreign trade agreements. Importing is not a get-rich-quick scheme. Import, like export, necessitates extensive planning.

Selecting the Commodity Market

Proper selection of the commodity market is an important factor before starting an import. Commodity market data and information collected  during research helps to prepare the commodity market report. The right market can be selected by answering the following the following questions.

Is the product(s) an importer need to conducting his business available domestically?

Is there a lucrative and untapped domestic market for an imported product?

Does importing a product increase competitiveness as a business?
An importer should only proceed; if he is determined that importing certain goods will definitely make his business profitable.

Once the importer is confirmed about his importing decision, then he should proceed towards the development of the proper import business plan. While making the import plan, importer of India must evaluate the various government policies and guidelines including the rules and regulation as mentioned in the Foreign Trade Policy Procedures, 2004-09.

An importer is always free to import goods in India provided that such goods are imported under the regulations of ITC- HS Classifications of Export Import items. ITC-HS codes are divided into two schedules. All the rules and regulations related to the Indian import is mentioned in the Schedule I of the ITC.

Prohibited goods and items are not at all allowed to import while restricted items are only allowed to import though a special license issued by the Ministry of Commerce, Government of India.

State Trading Corporation of India

Certain goods can only be imported from outside the country through a recognized agency. State Trading Corporation of India is also one of them, importing a variety of essential commodities to cover domestic shortfalls and keep prices stable. STC contributes to the national goal by arranging timely imports at the most competitive prices. In the process, the Corporation makes the best use of its strength in handling bulk imports, vast infrastructure, and, most importantly, over four decades of experience in meeting the needs of the industry. The STC is in charge of importing items like bullion, vanaspati and edible oils, pulses, hydrocarbons, metals and minerals, and fertilizers.