import xml fail without internet connection sever

Tools -> Import -> WordPress gives error of….

An unexpected error occurred. Something may be wrong with www.ads-software.com or this server’s configuration. If you continue to have problems, please try the support forums.

I think it is due to my local server doesnot have internet connectivity. I cannot understand that to import data why need to connect www.ads-software.com??

any other solution? site transfer plugins etc.?

Regards,