Buying used machines from abroad can give you great benefit in terms of value for money. To make it successful , please make sure you have done your homework completely.
1. Import License – You must have valid Import License ( IEC ) to import any machines to India.
2. Inspection of used machine – Always prefer to inspect the machine before you pay any kind of money to foreign supplier. If you cannot inspect, appoint third party person for the same. he can inspect following things.
o Basic condition of machine – Dirt / noise / oil leakage / video calls / so many thing
o Personal meeting with seller
o Dismantle & loading experience of seller
o Past reference of seller
o Repo of seller in the region and so many other things.
3. Payment- Divide your payment to 3 segments.
o Booking amount or Advance payment – 10% is preferable
o Machine preparation – Seller is ready for dismantle- 80% - you can negotiate
o Balance- 10% - you can negotiate this. Most of foreign seller don’t agree this but you always can try.
4. Shipping terms
o CIF – Cost , Insurance & Freight – This must be clearly mentioned on the invoice
o FOB Port – Freight up to Port- so Local foreign transportation included
o Ex Works- Be careful, lot of other cost can come afterwards.
5. Detention free period at port of discharge
o Most of the time foreign companies do not give this free period
o If you insist, they can do this up to 14 days at nominal charges of US$ 150 to US
o If you insist, they can do this up to 14 days at nominal charges of US$ 150 to US
6. Invoice
o One can start with Proforma invoice / draft invoice before make any actual payment.
o Invoice must be stamped by consignor on company stationery.
o Invoice must mention
§ your GST , IEC, company name as per GST
§ Machine Serial no, Machine Year of manufacturing
§ Description of machines – USED Machine
§ Amount- as per the terms
§ Delivery time or Tentative schedule of despatch
§ Contact person of consignee and consignor.
7. Packing List – Packing list is mandatory for any machines you import at India or any other country. Please consult your local clearing agent as soon you buy machine from abroad.
8. Bill of Lading
o Shipping company raise this bill of lading
o Two options you may have
§ Original
§ Express bill of lading
9. Chartered engineer’s certificate
10. Appoint your clearing agent to clear the machine at Indian port.
All points are very important, and each point must need proper guidelines.