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How does jupyter notebook import modules which are not in the current working directory?

I am trying to understand how import works in jupyter notebook.
My present working directory is "home/username". I have three python modules.
The path names of these modules are as given below.
"/home/username/module1.py"
"/home/username/folder/module2.py"
"/home/username/anaconda3/lib/python3.7/os.py" (which is an inbuilt python module)
Jupyter Notebook:
cell 1:
import module1
Works just fine
cell 2:
import module2 gives
ModuleNotFoundError: No module named 'module2'
cell 3:
import os
Works just fine
It seems like modules in the working directory can be imported without any problem. So, module1.py can be imported. Modules in other directories that are not packages cannot be imported directly. So, module2.py throws an error. But if this is the case how can os.py, which is not the working directory or in another package in the same directory, be imported directly?

This is really more about how python itself works.
You should be able to import module2 with from folder import module2. You should declare /home/username/folder as a package by create a blank init file /home/username/folder/__init__py. I recommend naming the package something more unique, like potrus_folder, that way you don't get naming conflicts down the line.
To explain: Python keeps track of what modules it has available through it's path, it is usually set in your environment variables. To see what folders it looks in for modules you can do import sys then print(sys.path). By default your working directory (/home/username/) will be included, with highest priority (it should thus be either first or last in sys.path, I don't remember). You can add your own folder with sys.path.append('/some/folder'), although it is frowned upon, and you should really add it to your system path, or just keep it as a package in your working directory.
Packages are really just subfolders of paths which have already been added. You access them, as I explained earlier, by using the from X import Y syntax, or if you want to go deeper from X.Z import Y. Remember the __init__.py file.

The path of os library is set in environment*
Whenever you give import it would search all the directories which are added in your environment + the pwd , so you could just add the directory in environment and that would work
By default /home/username/anaconda3/lib/python3.7/ is added by default at the time of installation since there is where most of the module lies, but you can add urs too

Importing dependencies works in Pycahrm not Terminal?

I used below solution for importing dependencies.
I found this solution works if I run the code in Pycharm but not in Terminal.
The error message in Terminal is "cannot find graphics.primitive".
I'm using Mac and Python 3.5.
Why I see different behaviors from the Terminal and Pycharm?
How may I make the solution work for both?
http://chimera.labs.oreilly.com/books/1230000000393/ch10.html#_solution_169
Making a Hierarchical Package of Modules
Problem
You want to organize your code into a package consisting of a hierarchical collection of modules.
Solution
Making a package structure is simple. Just organize your code as you wish on the file-system and make sure that every directory defines an init.py file. For example:
graphics/
__init__.py
primitive/
__init__.py
line.py
fill.py
text.py
formats/
__init__.py
png.py
jpg.py
Once you have done this, you should be able to perform various import statements, such as the following:
import graphics.primitive.line
from graphics.primitive import line
import graphics.formats.jpg as jpg

You need to make sure that the graphics package is in the Python search path. PyCharm does this by extending sys.path as follows:
import sys
sys.path.extend(['/Users/hackworth/Development/graphics_parent_dir', '/Applications/PyCharm.app/Contents/helpers/pycharm', '/Applications/PyCharm.app/Contents/helpers/pydev'])
You can do the same in your code replacing /Users/hackworth/graphics_parent_dir with the appropriate path, or you can include the full path to graphics_parent_dir in the PYTHONPATH environment variable. See the Python documentation for details.
Another option would be to place the graphics package into a location the is searched by default on your system.

Local vs Global imports python

I am not seeing an answer to this out there, so apologies if this is a duplicate. Basically, I am trying to understand how to force my interpreter (2.7) to import a module from site packages if there is a conflict. For example imagine you are running python from a directory (top_level) that has the following structure:
top_level
----cool_mod
----init.py
----sweet_module.py
but you have already installed sweet module to site packages. When in this directory (but no others) if you run:
from cool_mod.sweet_module import *
you will import from the local module, not the global one. Can I change this somehow?
This situation might arise from the case:
top_level
setup.py
----cool_mod
----init.py
----sweet_module.py
You can run cool_mod.sweet_module before installing if you working directory is top_level. But after installing you can import cool_mod.sweet_module from anywhere. However, if you ever import from this directory, even after installation, you still import the local copy

Inserting the site package directory at the begining of sys.path, and then import.
Or, use imp.load_source to load a module from specified path.

Creating (not distributing) and importing Python 3.3/4 packages vs Python 2.7

Okay, so in the past, I've made my own Python packages with Python 2.x (most recently, 2.7.5). It has worked fine. Let me explain how I did that, for reference:
Make a directory within the working directory. We'll call it myPackage.
Make a file called __init__.py in the directory myPackage.
Make sure all the modules that you want to be part of the package are imported within __init__.py. These modules are typically in the myPackage folder.
From a Python program in the working directory, type import myPackage (and it imports fine, and is usable).
However, in Python 3, I get errors with that. (ImportError: No module named 'Whatever the first imported module is')
I researched the problem and found the following:
Starred imports don't work in Python 3.3.
The __init__.py file is not required in Python 3.3.
So, I removed the stars from my imports, and leaving the __init__.py file in, I still got errors (ImportError: No module named 'Whatever the first imported module is'). So, I removed the __init__.py file, and I don't get any errors, but my package doesn't include any of my modules.
Okay, so I discovered by doing a web search for python3 __init__.py or some such that I can do the following, although I don't have any clue if this is the standard way of doing things:
In the modules in the package, make sure there are no plain imports (not just no starred ones). Only do from myModule import stuff. However, you need to put a . in front of myModule: e.g. from .myModule import stuff. Then, I can import myPackage.oneOfMyModules
I found that by following this rule in the __init__.py file, it also works.
Once again, I don't know if this is how it's supposed to work, but it seems to work.
I found this page that is supposed to have something to do with the changes in packages in Python 3.something, but I'm not sure how it relates to what I'm doing:
http://legacy.python.org/dev/peps/pep-0420/
So, what is the standard way to do this? Where is it documented (actually saying the syntax)? Is the way I'm doing it right? Can I do regular imports instead of from package import module?
After analyzing some Python 3 packages installed on my system (I should have tried that to start with!) I discovered that they often seem to do things a little differently. Instead of just doing from .myModule import stuff they would do from myPackage.myModule import stuff (inside the modules in the package). So, that works, too, I suppose, and seems to be more frequently used.

Importing a module which have the same name with a system module

My situation is similar to one in this question... The difference is,
In our python/django project, we have a directory called utils, which keeps basic functions...
Sometimes, we need to test some modules by running thm from console like
python myproject/some_module.py
It is all good, until python tries to import something from our utils directory...
from utils.custom_modules import some_function
ImportError: No module named custom_modules
I check my python path, and our project is on the list, each folder under the project file has __init__.py files, and when i run ipython within project directory... Everything is ok, otherwise, python imports from its own utils directory...
My collegues use the sama method without any problem, but it throws ImportError on my environment... What could be the problem that all of us was missing?
UPDATE: My project directory, and each sub-drectory have __init__.py file, and i can import other modules from my project without any problem... When i am in a diffrent folder than my procekt and i run ipython, a such import have no problem...
from someothermodule.submodule imprort blahblahblah
But, when it comes to importing utils, it fails...
UPATE 2: What caused the problem was the utils directory under django folder, which is also in the python path...

See the PEP on absolute and relative imports for the semantics. You probably want
from .utils.custom_modules import some_function
if you're in a file at the top level of your package.
Edit: This can only be done from inside a package. This is for a good reason -- if you're importing something that is part of your project, then you're already treating it like a Python package, and you should actually make it one. You do this by adding an __init__.py file to project directory.
Edit 2: You've completely changed the question. It may be possible to work around the problem, but the correct thing to do is not refer to your packed the same way as a builtin package. You either need to rename utils, or make it a subpackage of another package, so you can refer to it by a non-conflicting name (like from mydjangoapp.utils.custom_modules import some_function).

I'm not going to bother telling you to try and make sure you don't name your own modules after the stdlib modules;
If you want to leave the name like this, you'll have to use something like this in everything that imports your own utils module:
import sys, imp
utils = sys.modules.get('utils')
if not utils: utils = imp.load_module('utils',*imp.find_module('utils/utils'))
However, unless there's a lot of stuff that you'd have to change after renaming it, I'd suggest you rename it.