The steps to import the contacts in smarter mail are as follows.

1) Login into the SmarterMail web interface in which one need to import contacts.
2) Click on the Contacts tab.
3) Click My Contacts.
4) Click Actions -> Navigate to Import/Export Contacts -> Click on Import.
5) Click on Choose file and upload it by selecting from the local machine.
6) Click OK.
7) Click next after one has set the Map Contact Fields

If contact details conflict with current contact details then it will be prompted to with a message. To resolve conflicts either Replace Existing Contact or Skip this Contact