How to Import Products from Ghana
The relation between India and Ghana has always been bilateral and warm. Ghana is a country from West Africa that got included under the 2004’s TEAM 9 of India’s Government. Since then, assistance through Line of Credit and grants is provided by India for Ghana’s development. The trade balance between the two countries is positive, with India being Ghana’s among the top five trading partners. Indian companies also invest significantly in Ghana and are increasing their presence with the exchange of business delegations.
Products Imported from Ghana
India not only exports but also imports various products from Ghana. India imports mostly gold, which alone accounts for 80%. Other essential products of import include vehicles other than railways, vegetable fats and oils, tramway, isotopes, machinery, precious metal compound, boilers, inorganic chemicals, cereals, apparatus, articles of iron and steel, meat and edible meat, plastics, beverages, and spirits, etc. among many others. India’s total import from Ghana from April to July of this year was $353.13 million. However, the relationship suffered greatly due to the pandemic. In regular times, the import figure is always more than $1000 million.
Importing products from Ghana
Foreign Trade (Development and Regulation) Act, 1992, governs the imports and sectors of India. The basic requirements for exporting products from Ghana or any other country involves tax paying for the goods, compliance and licensing, warehousing, transportation, and customs clearance. Below stated are the steps for the importing of goods.
- Trade Enquiry: It is similar to any transaction where importer inquiries about the details of the exporter’s products. The request will get placed through a written letter, and the exporter replies it back through quotation.
- Procurement of Import License and Quota: There must be a valid importing license without which no goods can get imported to India. There are two types of import license, general and specific. A general license will allow import from anywhere globally, whereas the specific will allow only from a particular country or place.
- Foreign Exchange: All the required arrangements for obtaining foreign exchange should also get made as the payment has to get done with the exporting country’s currency.
- Order Placing: Order should get placed for the goods after completion of all the above steps. It is also known as Indent, whereby an importer places an order from the exporter to supply specific commodities.
- Other Requirements: The other process after order placing is Letter of Credit despatching, procuring of necessary documents, formalities of customs and clearance, paying of import or custom duty, bonded and duty paid warehouses, clearing agents appointment and finally making the payment and closing all transactions.
Hence, the import business should also complete various other formalities besides importing any products to India, like when the goods are on the way or have already reached. It is instead a lengthy process for one who is importing for the first time.