Export Procedure and Documentation 140128115356 Phpapp02

EXPORT PROCEDURE AND DOCUMENTATION
STRUCTURE OF AN EXPORT ORGANISATION
• marketing manager for generating sales
• Commercial manager for looking activities of the execution of the orders.
• staff personnel for carrying out the day-to-day activities namely
o Preparation of pre - shipment documents.
o Co-ordinating with clearing agents on the progress of the shipment to be
made.
o Co-ordinating with the ware house\C. excise department regarding
packing and clearance of the goods for export.
o Preparation of post shipment documents foe banks.
o Follow-up with the bank on dispatch of documents, receipt of payment,
availment of bank loans etc.
• o look into the re!uirement of licenses, claiming of export benefits fiiling of
documents with the "overnment #uthorities in $ischarge of %xport &bligations,
if any, filing of returns to the various "overnment #gencies which are mandatory,
prepare and keep an information bank of various transaction of the company, their
domestic as well as international competitors.
• #n office boy for doing leg work.
• # clearing and forwarding agent to handle the documents and the goods in the
customs premises\ in the ports of lading.
$epending upon the si'e of the business the numbers of personnel under
each category may increase. For example if a company is transacting substantial volume
of business in more than one product. hen it is necessary to have marketing manager for
each product so that the person can concentrate on a particular trade to enhance the
business.
(
EXPORT PROCEDURE AND DOCUMENTATION
REGISTRATION WITH REGIONAL LICENCING AUTHORITIES OBTAINING
IMPORTER EXPORTER CODE (IEC) NUMBER.
he Customs #uthorities will now allow the exporter to export or import goods into or
from )ndia unless he holds a valid )%C number. *efore applying for )%C number it is
necessary to open a bank account in the name of the company with any commercial bank
authori'ed to deal in foreign exchange. he duly signed application form should be
supported by the following documents.
• *ank receipt + in duplicate , - $emand $raft for payment of the fees of .s. (///--
• Certificate from the banker of the applicant firm as per #nnexure ( to the form
given.
• &ne copy of P#0 number issued by )ncome ax #uthorities duty attested by the
applicant.
• &ne copy of Passport 1i'e photographs of the applicant duly attested by the
banker to the applicant.
• $eclaration by the applicant that the proprietor-partners-directors as the case may
be of the applicant company, are not associated as proprietor-partners-directors in
any other firm, which has been caution, listed by the .*). 2here the applicant
declares that they are associated as proprietor-partners-directors in any other firm,
which has been caution, listed by the .*), they will be allotted )%C 0o. but with
an additional condition that they can export only with .*)3s prior approval and
they should approach .*) for the purpose.
• %ach importer-exporter shall be re!uired to file importer-exporter profile once
with the licensing authority shall enter the information furnished in #ppendix 4 in
their database so as to dispense with changes in the information given in
#ppendix-4, importer-exporter shall intimate the same to the licensing authority.
4
EXPORT PROCEDURE AND DOCUMENTATION
IEC EXEMPT CATEGORIES.
he following importer exporter is exempted from the re!uirement of )%C code number.
• 5inistries \ $epartment of Central or 1tate "overnment.
• Person importing or exporting goods for their personal use not connected with
trade or manufacture or agriculture.
• Persons importing\exporting goods from\to 0epal 6 5yanmar provided the C)F
value of single consignment does exceed )ndian .s. 47///\-.
APPLICATION FOR OBTAINING AN IEC NUMBER
For obtaining )%C number apply in the prescribe form along with the documents listed
above to .egional 8icensing #uthority +&ffice of the .egional $"F,. he registered
office or the head office may apply for allotment of )%C 0o.
2henever, there is a change in the name, address or constitution of the holder of )%C
0o., such change should be intimated within 9/ days to the concern authorities.
)%C certificate will be issued in the form +copy enclosed,. # copy of )%C 0o. is also
endorsed to the concerned banker.
VALIDITY :
he )%C 0o allotted to a firm-company will be valid for all its branches-divisions
units-factories as indicated in the )%C 0o. )mport-%xport of any commodity by that
firm-company. here being no date of expiry, the )%C once allotted is valid till it is
revoked. *ut, if no import or export is effected in the previous financial year, the same
will be made inoperative. ;owever, this can be made operative by a formal re!uest to the
$"F.
9
EXPORT PROCEDURE AND DOCUMENTATION
IDENTITY CARD (For condc!"n# !r$n%$c!"on% &"!' !'( o))"c( o) DGFT)*
#s it is not always possible for the top man or directors, promoters of the company to
visit $"F fre!uently. here is a provision of issuance of identity cards to the
proprietors-partners-directors and their authori'ed representatives. #n application of
)ssuance of an identity card may be made in the form +#ppendix-7, he document-
8icense-Certificate-Permissions may be delivered to the identity card holder and officials
of the 8icensing #uthority+$"F,shall not be responsible for any loss etc. )n case of loss
of an identity card a duplicate card may be issued on the basis of an F). 6 affidavit. )n
addition to obtaining the )%C 0o. the exporter is also re!uired to obtain *usiness
)dentification 0o+*)0,. For this exporter is re!uired to contact $"F online on web site.
he licensing authority issues *)0 in coordination with customs authorities. his *)0 is
re!uired to be mentioned on the shipping bills at the time of customs clearance of the
export cargo.
RCMC (R(#"%!r$!"on+C,+M(,-(r%'". C(r!")"c$!() / REGISTRATION WITH
EXPORT PROMOTION COUNCILS /
)n order to enable the exporter to obtain benefits-concessions under the Foreign rade
Policy, the exporter is re!uired to register himself with an appropriate export promotion
agency by obtaining registration-cum-membership certificate. +.C5C,. )f the export
product is that it is not covered by any %PC, .C5C in respect thereof may be issued by
F)%&. #n application for registration should be accompanied by a self certified copy of
the )mporter-%xporter Code number issued by the regional licensing authority concerned
and bank certificate in support of the applicants financial soundness. he .C5C shall be
valid for 7 years ending 9(
st
5arch of the licensing year.
REGISTRATION WITH SALES TAX AUTHORITIES*
"oods that are to be shipped out of the country for export are eligible for exemptions
from both 1ales ax and Central 1ales ax. For this purpose, exporter should get himself
<
EXPORT PROCEDURE AND DOCUMENTATION
registered with the 1ale ax #uthority of is state after following the procedures
prescribed under the 1ales ax #ct applicable to his state.
HOW ONE BEGINS TO DO EXPORT
*efore entering into the venture of exports, one must look for the product to be exported
and the market where he intends to export.
)n case of a manufacturer, obviously he would like to export the product he manufactures
as is or with possible modification as may be re!uired by the market. ;owever, in case of
a merchant exporter or a trader, one has to identity the product to export. )f the exporter is
already in the trade in the domestic market and is familiar with the product it would be an
advantage to export the said product of which he has reasonable knowledge.
*efore selecting a product, one must simultaneously made a study and find out the
prospective market. For finding out the market for the selected product, the following
methods will help.
• "et statistical information as to imports of the product by various countries
and their growth prospects in the respective countries
• #pproach the chamber of commerce for their guidance to find out the market.
• #pproach the %xport Promotion Council dealing in the product of selection to
get more information.
The Preliminary
&nce you are ready with the product you wish to export and have found the market for
the same, you are ready to proceed further. Following se!uences can be followed:
• #ny one, who wishes to export, must first of all get an Importer Exporter
Code Number (IE Code).his can be obtained by making a formal
application to the office of the Regional Directorate General o !oreign
Trade (DG!T).
• Get your"el regi"tered #ith the related Export Promotion Council and
become a member. $l"o arrange to obtain Regi"tration%Cum%&ember"hip
Certiicate (RC&C) from the council. his has twin ob=ectives:
7
EXPORT PROCEDURE AND DOCUMENTATION
o >nder the Foreign rade Policy, it is mandatory that an exporter gets him
registered with the %xport Promotion Council to avail of various export
facilities.
o *eing a member, you will have access to all the information relating to the
product that could be made available by the council
o 5any foreign buyers send their en!uiries for the imports to the %xport
Promotion Council. ;ence you will have few customers interested in your
product.
• )f you are a manufacturer, find out the provisions under the %?)5 Policy of
getting the raw materials duty free.
• "et familiar with the excise formalities as goods meant for export can be cleared
without payment of C. %xcise duty on the finished product sub=ect to compliance
of certain formalities.
• >nderstand the local government regulations in relations to the export of the
product.
• "et information of the government3s regulations of the importing country as to
restrictions on the !uantity, product specification, packing regulations, customs
regulations, re!uirement of specific documents-information etc.
• #vailability of @essels-#irlines, the transport charges, fre!uency of operation etc.,
• o look for a Custom ;ouse #gent +C;#, +also know as freight forwarders or
clearing agents, for handling the documents-cargo in the customs.
• )f the product is covered under any !uota regulation, find out the agency-council
who are handling the !uota distribution for the product and the availability of
!uota for exports.

A
EXPORT PROCEDURE AND DOCUMENTATION
EXPORT DOCUMENTS
#ny export shipment involved various documents re!uired by various authorities such as
customs, excise, .*), )nspection and according depending upon the re!uirements, there
are categori'ed into 4 categories, namely commercial documents and regulatory
documents.
$. Commercial Document". ' % Commercial documents are re!uired for effecting
physical transfer of goods and their title from the exporter to the importer and the
realisation of export sale proceeds. &ut of the (A commercial documents in the
export documentation framework as many as (< have been standardised and
aligned to one another. hese are proforma invoice, commercial invoice, packing
list, shipping instructions, intimation for inspection, certificate, of inspection of
!uality control, insurance declaration, certificateB of insurance, mateBs receipt, bill
of lading or combined transport document, application for certificate origin,
certificate of origin, shipment advice and letter to the bank for collection or
negotiation of documents. ;owever, shipping order and bill of exchange could not
be brought within the fold of the #ligned $ocumentation 1ystem,
(. Co,,(rc"$0 In1o"c(* Commercial invoice is an important and basic export
document. )t is also known as a B$ocument of ContentsB as it contains all the
information re!uired for the preparation of other documents. )t is actually a sellerBs
bill of merchandise. )t is prepared by the exporter after the execution of export
order giving details about the goods shipped. )t is essential that the invoice is
prepared in the name of the buyer or the consignee mentioned in the letter of credit.
)t is a prima facie evidence of the contract of sale or purchase and therefore, must
be prepared strictly in accordance with the contract of sale.
Con!(n!% o) Co,,(rc"$0 In1o"c(
• 0ame and address of the exporter.
• 0ame and address of the consignee.
C
EXPORT PROCEDURE AND DOCUMENTATION
• 0ame and the number of @essel or Flight.
• 0ame of the port of loading.
• 0ame of the port of discharge and final destination.
• )nvoice number and date.
• %xporterBs reference number.
• *uyerBs reference number and date.
• 0ame of the country of origin of goods.
• 0ame of the country of final destination.
• erms of delivery and payment.
• 5arks and container number.
• 0umber and packing description.
• $escription of goods giving details of !uantity, rate and total amount in terms of
internationally accepted price !uotation.
• 1ignature of the exporter with date.
S"#n")"c$nc( o) Co,,(rc"$0 In1o"c(
• )t is the basic document useful in preparation of various other shipping
documents.
• )t is used in various export formalities such as !uality and pre-1hipment
inspection excise and customs procedures etc.
• )t is also useful in negotiation of documents for collection and claim of incentives.
• )t is useful for accounting purposes to both exporters as well as importers.
) In"pection Certiicate' he certificate is issued by the inspection authority such as
the export inspection agency. his certificate states that the goods have been
inspected before shipment, and that they confirm to accepted !uality standards.
* &arine in"urance policy' "oods in transit are sub=ect to risk of loss of goods
arising due to fire on ship, perils of sea, theft etc. marine insurance protects losses
incidental to voyages and in land transportation. 5arine insurance policy is one of
D
EXPORT PROCEDURE AND DOCUMENTATION
the most important document used as collateral security because it protects the
interest of all those who have insurable interest at the time of loss. he exporter is
bound to insure the goods in case of C)F !uotation, but he can also insure the goods
in case of F&* contract, at the re!uest of the importer, but the premium payment
will be made by the exporter. here are different types of policies such as
• +PECI!IC P,-IC.' his policy is taken to cover different risks for a
single shipment. For a regular exporter, this policy is not advisable as he
will have to take a separate policy every time a shipment is made, so this
policy is taken when exports are in fre!uent.
• !loating Policy' his is taken to cover all shipments for some months.
here is no time limit, but there is a limit on the value of goods and once
this value is crossed by several shipments, then it has to be renewed.
• ,pen Policy' his policy remains in force until cancelled by either party
i.e. insurance company or the exporter.
• ,pen Co/er Policy' his policy is generally issued for (4 months period,
for all shipments to one or more destinations. he open cover may specify
the maximum value of consignment that may be sent per ship and if the
value exceeded, the insurance company must be informed by the exporter.
• In"urance Premium' $iffers upon product to product and a number of
such other factors, such as, distance of voyage, type and condition of
packing, etc. Premium for air consignments are lowered as compared to
consignments by sea.
0. Con%0$r In1o"c(* Consular invoice is a document re!uired mainly by the
8atin #merican countries like Eenya, >ganda, an'ania, 5auritius, 0ew Fealand,
5yanmar, )ra!, #ustralia, Fi=i, Cyprus, 0igeria, "hana, "uinea, Fan'ibar, etc. his
invoice is the most important document, which needs to be submitted for
certification to the %mbassy of the importing country concerned. he main purpose
of the consular invoice is to enable the authorities of the importing country to
collect accurate information about the volume, value, !uality, grade, source, etc., of
the goods imported for the purpose of assessing import duties and also for statistical
G
EXPORT PROCEDURE AND DOCUMENTATION
purposes. )n order to obtain consular invoice, the exporter is re!uired to submit
three copies of invoice to the Consulate of the importing country concerned. he
Consulate of the importing country certifies them in return for fees. &ne copy of the
invoice is given to the exporter while the other two are dispatched to the customs
office of the importerBs country for the calculation of the import duty. he exporter
negotiates a copy of the consular invoice to the importer along with other shipping
documents.
S"#n")"c$nc( o) Con%0$r In1o"c( )or !'( E2.or!(r
• )t facilitates !uick clearance of goods from the customs in exporterBs as well
as importerBs country.
• CertificationB of goods by the Consulate of the importing country indicarer
that the importer has fulfilled all procedural and licensing formalities for
import of goods.
• )t also assures the exporter of the payment from the importing country.
S"#n")"c$nc( o) Con%0$r In1o"c( )or !'( I,.or!(r
• )t facilitates !uick clearance of goods from the customs at the port
destination and therefore, the importer gets !uick delivery of goods.
• he importer is assured that the goods imported are not banned for imported
in his country.
S"#n")"c$nc( o) Con%0$r In1o"c( )or !'( C%!o,% O))"c(
• )t makes the task of the customs authorities easy.
• )t facilitates !uick calculation of duties as the value of goods as determine
by the Consulate is considered for the purpose.
1. C(r!")"c$!( o) Or"#"n* he importers in several countries re!uire a certificate of
origin without which clearance to import is refused. he certificate of origin states
(/
EXPORT PROCEDURE AND DOCUMENTATION
that the goods exported are originally manufactured in the country whose name is
mentioned in the certificate. Certificate of origin is re!uired when:-
• he goods produced in a particular country are sub=ect to3 preferential tariff rates
in the foreign market at the time importation.
• he goods produced in a particular country are banned for import in the foreign
market.
T3.(% o) !'( C(r!")"c$!( o) Or"#"n
(a) Non%preerential Certiicate2 o ,rigin: - 0on-preferential certificate of origin is
re!uired in general by all countries for clearance of goods by the importer, on which
no preferential tariff is given. )t is issued by: H
• he authorised Chamber of Commerce of the exporting country.
• rade #ssociation. &f the exporting country.
(b) Certiicate o ,rigin or a/ailing Conce""ion" under G+P :- Certificate of origin
re!uired for availing of concessions under "eneralised 1ystem of Preferences
+"1P, extended by certain, countries such as France, "ermany, )taly, *%0%8>?
countries, >E, #ustraliaI Japan, >1#, etc. his certificate can be obtained from
specialised agencies, namelyI
• %xport )nspection #gencies.
• Jt. $irector "eneral of Foreign rade..
• Commodity *oards and their regional offices.
• $evelopment Commissioner, ;andicrafts.
• extile Committees for textile products.
• 5arine Products %xport $evelopment #uthority for marine products.
• $evelopment Commissioners of %PFs
((
EXPORT PROCEDURE AND DOCUMENTATION
(c) Certiicate or a/ailing Conce""ion" under Common#ealth Preerence" (C3P)'
Certificate of origin for the purpose of Commonwealth Preference is also known as
BCombined Certificate of &rigin and @alueB. )t is re!uired by two member countries,
i.e. Canada and 0ew Fealand of the Commonwealth. For concession under
Commonwealth preferences, the certificates or origin have to be submitted in
special forms obtainable, from the ;igh Commission of the country concerned.
(d) Certiicate or a/ailing Conce""ion" under other +y"tem" o Preerence'%
Certificate of origin is also re!uired for tariff concessions. under the "lobal 1ystem
of rade Preferences +"1P,, *angkok #greement+*#, and 1##.C Preferential
rading #rrangement +1#P#, under which )ndia grants and receives tariff
concessions &n imports and exports. %xport )nspection Council +%)C, is the sole
authority to print blank Certificates of &rigin under *#, 1##.C and 1#P# which
can be issued by such agencies as %PCs, $Cs of %PFs, %)C, #P%$#, 5P%$#,
F)%&, etc...
Con!(n!% o) C(r!")"c$!( o) Or"#"n
• 0ame and logo of chamber of commerce.
• 0ame and address of the exporter.
• 0ame and address of the consignee.
• 0ame and the number of @essel of Flight
• 0ame of the port of loading.
• 0ame of the port of discharge and place of delivery.
• 5arks and container number.
• Packing and container description.
• otal number of containers and packages.
• $escription of goods in terms of !uantity.
• 1ignature and initials of the concerned officer of the issuing authority.
• 1eal of the issuing authority.
(4
EXPORT PROCEDURE AND DOCUMENTATION
S"#n")"c$nc( o) !'( C(r!")"c$!( o) Or"#"n
• Certificate of origin is re!uired for availing of concessions under "eneralised
1ystem of Preferences +"1P, as well as under Commonwealth Preferences
+C2P,.
• )t is to be submitted to the customs for the assessment of duty clearance of goods
with concessional duty.
• )t is re!uired when the goods produced in a particular country are banned for
import in the foreign market.
• )t helps the buyer in adhering to the import regulations of the country.
• 1ometimes, in order to ensures that goods bought from some other country have
not been reshipped by a seller, a certificate of origin )1 re!uired.
4. B"00 o) L$d"n#* he bill of lading is a document issued by the shipping
company or its agent acknowledging the receipt of goods on board the vessel, and
undertaking to deliver the goods in the like order and condition as received, to the
consignee or his order, provided the freight and other charges as specified in the bill
have been duly paid. )t is also a document of title to the goods and as such, is freely
transferable by endorsement and delivery.
B"00 o) L$d"n# %(r1(% !'r(( ,$"n .r.o%(%*
• #s a document of title to the goodsI
• #s a receipt from the shipping companyI and
• #s a contract for the transportation of goods.
T3.(% o) B"00 o) L$d"n#
• Clean 5ill o -ading' % # bill of lading acknowledging receipt of the goods
apparently in good order and condition and without any !ualification is termed as
a clean bill of lading.
(9
EXPORT PROCEDURE AND DOCUMENTATION
• Clau"ed 5ill o -ading' % # bill of lading !ualified with certain adversere marks
such as, Kgoods insufficiently packed in accordance with the Carriage of "oods
by 1ea #ct,K is termed as a claused bill of lading.
• Tran"hipment or Through 5ill o -ading' % 2hen the carrier uses other
transport facilities, such as rail, road, or another steamship company in addition to
his own, the carrier issues a through or transhipment bill of lading.
• +tale 5ill o -ading' % # bill of lading that has been held too long before it is
passed on to a bank for negotiation or to the consignee is called a stale bill of
lading.
• !reight Paid 5ill o -ading' % 2hen freight is paid at the time of shipment or in
advance, the bill of landing is marked, freight paid. 1uch bill of lading is known
as freight bill of lading.
• !reight Collect 5ill o lading '% 2hen the freight is not paid and is to be
collected from the consignee on the arrival of the goods, the bill of lading is
marked, freight collect and is known as freight collect bill of lading
Con!(n!% o) B"00 o) L$d"n#
• 0ame and logo of the shipping line.
• 0ame and address of the shipper.
• 0ame and the number of vessel.
• 0ame of the port of loading.
• 0ame of the port of discharge and place of delivery.
• 5arks and container number.
• Packing and container description.
• otal number of containers and packages,
• $escription of goods in terms of !uantity.
• Container status and seal number.
• "ross weight in kg. and volume in terms of cubic meters.
• #mount of freight paid or payable.
(<
EXPORT PROCEDURE AND DOCUMENTATION
• 1hipping bill number and date.
• 1ignature and initials of the Chief &fficer. .
S"#n")"c$nc( o) B"00 o) L$d"n# )or E2.or!(r%
• )t is a contract between the shipper and the shipping company for carriage of the
goods to the port of destination.
• )t is an acknowledgement indicating that the goods mentioned in the document
have been received on board for the Purpose of shipment.
• # clean bill of lading certifies that the goods received on board the ship are in
order and good condition.
• )t is useful for claiming incentives offered by the government to exporters
• he exporter can claim damages from the shipping company if the goods are lost
or damaged after the issue of a clean bill of lading.
S"#n")"c$nc( o) B"00 o) L$d"n# )or I,.or!(r%
• )t acts as a document of title to goods, which is transferable endorsement and
delivery.
• he exporter sends the bill of lading to the bank of the importer so as to enable
him to take the delivery of goods.
• he exporter can give an advance intimation to the foreign buyer about the
shipment of goods by sending him a non-negotiable copy of bill of lading
S"#n")"c$nc( o) B"00 o) L$d"n# )or S'".."n# Co,.$n3
• )t is useful to the shipping company for collection of transport charges from the
importer, if not collected from the exporter.
4. A"r&$3 B"00* #n airway bill, also called an air consignment note, is a receipt
issued by an airline for the carriage of goods. #s each shipping company has its own bill
(7
EXPORT PROCEDURE AND DOCUMENTATION
of lading, so each airline has its own airway bill. #irway *ill or #ir Consignment 0ote is
not treated as a document of title and is not issued in negotiable form.
Con!(n!% o) A"r&$3 B"00
• 0ame of the airport of departure and destination.
• he names and addresses of the consignor, consignee and the first carrier.
• 5arks and container number.
• Packing and container description.
• otal number of containers and packages.
• $escription of goods in terms of !uantity.
• Container status and seal number.
• #mount of freight paid or payable.
• 1ignature and initials of the issuing carrier or his agent.
I,.or!$nc( o) A"r&$3 B"00* )t is a contract between the airlines or his agent to
carry goods to the destination. )t is the document of instructions for the airline
handling staff. )t acts as a customs declaration form. 1ince, it contains details about
freight it also represents freight bill.
4. +hipment $d/ice to Importer'% #fter the shipment of goods, the exporter
intimates the importer about the shipment of goods giving him details about the date
of shipment, the name of the vessel, the destination, etc. ;e should also send one
copy of non-negotiable bill of lading to the importer.
5. P$c6"n# L"%!* he exporter prepares the packing list to facilitate the buyer to check
the shipment. )t contains the detailed description of the goods packed in each case,
their gross and net weight, etc. he difference between a packing note and a
packing list is that the packing note contains the particulars of the contents of an
individual pack, while the packing list is a consolidated statement of the contents of
a number of cases or packs.
(A
EXPORT PROCEDURE AND DOCUMENTATION
7. B"00 o) E2c'$n#(: he instrument is used in receiving payment from the importer.
he importer may prefer *ill of %xchange to 8C as it does not involve blocking of
funds. # bill of exchange is drawn by the exporter on the importer, to make
payment on demand at sight or after a certain period of time.
• *-% is a means to collect payment.
• *-% is a means to demand payment.
• *-% is a means to extent the credit.
• *-% is a means to promise the payment.
• *-% is an official acknowledgement of receipt of payment.
• Financial documents perform the function of obtaining the finance
collection of payment etc.
• 4 sets. %ach one bearing the exclusion clause making the other part of the
draft invalid.
• 1ight *-%.
• >sance *-%.
• )t is known as draft.
• )mmediate payment L 1ight draft.
• here are two copies of draft. %ach one bears reference to the other part
#6*. when any one of the draft is paid, the second draft becomes null and
void.
P$r!"(% !o -"00 o) (2c'$n#(.
(. he drawer: he exporter - person who draws the bill.
). he drawee: he importer - person on whom the bill is drawn for payment.
*. he payee: he person to whom payment is made, generally, the exporter -
supplier of the goods.
B A2"0"$r3 Doc,(n!%* hese documents generally form the basic documents based
on which the commercial and or regulatory documents are prepared. hese documents
(C
EXPORT PROCEDURE AND DOCUMENTATION
also do not have any fixed formats and the number of such documents will wary
according to individual re!uirements.
8. Pro)or,$ In1o"c(* he starting point of the export contract is in the form of offer
made by the exporter to the foreign customer. he offer made by the exporter is in
the form of a proforma invoice. )t is a !uotation given as a reply to an in!uiry. )t
normally forms the basis of all trade transactions.
Con!(n!% o) Pro)or,$ In1o"c(
• 0ame and address of the exporter.
• 0ame and address of the importer.
• 5ode of transportation, such as 1ea or #ir or 5ultimodal transport.
• 0ame of the port of loading.
• 0ame of the port of discharge and final destination.
• Provisional invoice number and date.
• %xporterBs reference number.
• *uyerBs reference number and date.
• 0ame of the country of origin of goods.
• 0ame of the country of final destination.
• 5arks and container number. .
• 0umber and packing description.
• $escription of goods giving details of !uantity, rate and total amount in
terms of internationally accepted price !uotation.
• 1ignature of the exporter with date.
I,.or!$nc( o) Pro)or,$ In1o"c(
• )t forms the basis of all trade transactions.
• )t may be useful for the importer in obtaining import licence or foreign
exchange.
(D
EXPORT PROCEDURE AND DOCUMENTATION
9. In!",$!"on )or In%.(c!"on* 2henever the consignment re!uires the pre-
shipment inspection, necessary application is to be made to the concerned
inspection agency for conducting the inspection and issue of certificate thereof.
:. D(c0$r$!"on o) In%r$nc(* 2here the contract terms re!uire that the insurance
to be covered by the exporter, the shipper has to give details of the shipment to the
insurance company for necessary insurance cover. he detailed declaration will
cover:
• 0ame of the shipper \ exporter.
• 0ame 6 address of buyer.
• $etails of goods such as packages, !uantity, value in foreign
currency as well as in )ndian .s. %tc.
• 0ame of the @essel \ #ircraft.
• @alue for which insurance to be covered.
;. A..0"c$!"on o) !'( C(r!")"c$!( Or"#"n* )n case the exporter has to obtain
Certificate of &rigin from the concerned authorities, an application has to be
made to the concerned authority with re!uired documents. 2hile the simple
invoice copy will do for getting C\& from the chamber of commerce, in respect of
obtained the same from the office of the extile Committee or %xport Promotion
Council, the documents re!uirement are different.
<. M$!(=% R(c(".!: 5ateBs receipt is a receipt issued by the Commanding &fficer of
the ship when the cargo is loaded on the ship. he mateBs receipt is a prima facie
evidence that goods are loaded in the vessel. he mateBs receipt is first handed
over to the Port rust #uthorities. #fter making payment of all port dues, the
exporter or his agent collects the mateBs receipt from the Port rust #uthorities.
he mateBs receipt is freely transferable. )t must be handed over to the shipping
company in order to get the bill of lading. *ill of lading is prepared on the basis of
the mateBs receipt.
T3.(% o) M$!(=% R(c(".!%
(G
EXPORT PROCEDURE AND DOCUMENTATION
• Clean &ate6" Receipt' % he Commanding &fficer of the ship issues a clean
mateBs receipt, if he is satisfied that the goods are packed properly and there is
no defect in the packing of the cargo or package.
• 7ualiied &ate6" Receipt' % he Commanding &fficer of the ship issues
!ualified mateBs receipt, when the goods are not packed properly and the
shipping company does not take any responsibility of damage. to the goods
during transit.
Con!(n!% o) M$!(=% R(c(".!
• 0ame and logo of the shipping line.
• 0ame and address of the shipper.
• 0ame and the number of vessel.
• 0ame of the port of loading.
• 0ame of the port of discharge and place of delivery.
• 5arks and container number.
• Packing and container description.
• otal number of containers and packages.
• $escription of goods in terms of !uantity.
• Container status and seal number.
• "ross weight in kg. and volume in terms of cubic meters.
• 1hipping bill number and date.
• 1ignature and initials of the Chief &fficer.
S"#n")"c$nc( o) M$!(=% R(c(".!
• )t is an acknowledgement of goods received for export on board the ship.
• )t is a transferable document. )t must be handed over to the shipping company
in order to get the bill of lading.
4/
EXPORT PROCEDURE AND DOCUMENTATION
• *ill of lading, which is the title of goods, is prepared on the basis of the mateBs
receipt.
• )t enables the exporter to clear port trust dues to the Port rust #uthorities.
,btaining &ate6" Receipt
he goods are then loaded on board the ship for which the 5ate or the
Captain of the ship issues 5ateBs .eceipt to the Port 1uperintendent.
>. S'".."n# ord(r* it is issued by the 1hipping-Conference 8ine intimating the
exporter about the reservation of space for shipment of cargo which the exporter
intends to ship. $etails of the vessel, poet of the shipment, and the date on which
the goods are to be shipped are mentioned. his order enables the exporter to
make necessary arrangements for customs clearance and loading of the goods.
4. S'".."n# In%!rc!"on%* at the pre-shipment stage, when the documents are to sent
to the C;# for customs clearance, necessary instructions are to be give with
relevance to
• he export promotion scheme under which goods are to be
exported.
• 0ame of the specific vessel on which the goods are to be
loaded.
• )f goods are to be FC8 or 8C8.
• )f freight amount are to be paid - collected.
• )f shipment are covered under #...%.-( procedure.
• )nstructions for obtaining *ill of 8ading etc.
5. B$n6 0(!!(r )or n(#o!"$!"on o) doc,(n!%* at the post shipment stage, the exporter
has to submit the documents to a bank for negotiation or discounting or collection
for forwarding the same to the customer and also for reali'ation of export
proceeds. he bank letter is the set of instruction for the bank as to how to handle
the documents by them and by the bank at the buyer3s country which may include
4(
EXPORT PROCEDURE AND DOCUMENTATION
• 0ame and address of the buyer.
• $etails of various documents being sent and the number of the
copies thereof.
• 0ame and address of the buyer3s bank if available.
• )f the documents are sent 8-C or on open terms.
• )f the proceeds are to ad=usted against any pre-shipment packing
credit loan.
• )f the bill amount is to be ad=usted against any forward
exchange cover.
• )n case of credit bill who has to bear the interest, either exporter
or if the same is to be collected from the buyer.
• )nstructions in case non-acceptance-non-payment by the buyer.
C. R(#0$!or3 Doc,(n!* .egulatory pre-shipment export documents are prescribed by
the different government departments and bodies in order to comply with various
rules and regulations under the relevant laws governing export trade such as export
inspection, foreign exchange regulation, ex port trade control, customs, etc. &ut of G
regulatory documents four have been standardised and aligned. hese are shipping
bill or bill of export, exchange control declaration +". from,, export application dock
challan or port trust copy of shipping bill and receipt for payment of port charges.
8. S'".."n# B"00* 1hipping bill is the main customs document, re!uired by the
customs authorities for granting permission for the shipment of goods. he
cargo is moved inside the dock area only after the shipping bill is duly
stamped, i.e. certified by the customs. 1hipping bill is normally prepared in
five copies :-
• Customs copy.
• $rawback copy.
• %xport promotion copy.
• Port trust copy.
44
EXPORT PROCEDURE AND DOCUMENTATION
• %xporterBs copy.
T3.(% o) S'".."n# B"00
*ased on the incentives offered by the government, customs authorities have introduced
three types of shipping bills:-
• Dra#bac8 +hipping 5ill' % $rawback shipping bill is useful for claiming the
customs drawback against goods exported.
• Dutiable +hipping 5ill: - $utiable shipping bill is re!uired for goods which are
sub=ect to export duty.
• Duty%ree +hipping 5ill' % $uty-free shipping bill is useful for exporting goods
on which there is no export duty.
)n order to facilitate easy recognition and !uick processing, following colours have been
provided to different kinds of shipping bills :
Type" o good" 5y +ea 5y $ir
$rawback shipping bill "reen "reen
$utiable shipping bill Mellow Pink
$uty-Free shipping bill 2hite Pink
Con!(n!% o) S'".."n# B"00
• 0ame and address of the exporter.
• 0ame and address of the importer.
• 0ame of the vessel, master or agents and flag.
• 0ame of the port at which goods are to be discharged.
• Country of final destination.
• $etails about packages, description of goods, marks and numbers, !uantity and
details of each case.
• F&* price and real value of goods as defined in the 1ea Customs #ct.
• 2hether )ndian or foreign merchandise to be re-exported
49
EXPORT PROCEDURE AND DOCUMENTATION
• otal number of packages with total weight and value.
S"#n")"c$nc( o) S'".."n# B"00
a) 1hipping bill is the main customs document, re!uired by the customs
authorities for granting permission for the shipment of goods.
b) he cargo is moved inside the dock area only after the shipping bill is duly
stamped, i.e. certified by the customs.
c) $uly endorsed shipping bill is also necessary for the collection of export
incentives offered by the government.
d) )t is useful to the Customs #ppraiser while determining the actual value of
goods exported.
9. A.R.E. 8 )or, (C(n!r$0 (2c"%()* this form #.%-( is prescribed under Central
%xcise rules for export of goods. )n case goods meant for export are cleared
directly from the premises of a manufacturer, the exporter can avail the
facility of exemption from payment of terminal excise duty. he goods may be
cleared for export either under claim for rebate of duty paid or under bond
without payment of duty. )n both the events the goods are to be cleared under
form #...%-( which will show the details of the goods being exported, the
relevant duty involved and if the duty is paid or goods being cleared under
bond, details of goods being sealed either by the exporter or Central %xcise
officials etc.
:. E2c'$n#( Con!ro0 d(c0$r$!"on For, (GR?PP?SOFTEX)* under the exchange
control regulations all exporters must declare the details of shipment for
monitoring by the .eserve *ank of )ndia. For this purpose, .*) has
prescribed different forms for different types of shipments like ".), PP forms
etc. hese declaration forms must be presented to the customs officials at the
time of passing of export documentation. >nder the %$) processing of
shipping bill in the customs, these forms have been dispensed with and a new
form 1$F has to be submitted to the customs in the place of above forms.
4<
EXPORT PROCEDURE AND DOCUMENTATION
;. E2.or! A..0"c$!"on* this is the application to be made to the customs officials
before shipment of goods. he prescribed form of the application is the
1hipping *ill-*ill of %xport. $ifferent types are re!uired for shipment like ex-
bond, duty free goods, and dutiable goods and for export under different
export promotion schemes such as claims for duty drawback etc.
<. V('"c0( T"c6(!?C$r! T"c6(!?G$!( P$%% (!c.* before the goods are being taken
inside the port for loading, necessary permission has to be obtained for
moving the vehicle into the customs area. his permission is granted by the
Port rust #uthority. his document will contain the detail of the export cargo,
name and address of the shippers, lorry number, marks and number of the
packages, driver3s licence details etc.
>. B$n6 C(r!")"c$!( o) R($0"%$!"on* this is the form prescribed under the Foreign
rade Policy, wherein the negotiating bank declares the fob value of exports
and for the date of realisation of the export proceeds. his certificate is
re!uired fore obtaining the benefit under various schemes and this value of
fob is reckoned as fob value of exports.
D. O!'(r Doc,(n!*
• B0$c6 L"%! C(r!")"c$!(* it certifies that the ship-aircraft carrying the
cargo has not touched the particular country on its =ourney or that the
goods are not from the particular country. his is re!uired by certain
nations who have strained political and economical relations with the
so called N*lack 8isted CountriesO.
• L$n#$#( C(r!")"c$!(* )mporters in the %uropean Community re!uire a
language certificate along with the "1P certificate in respect of
handloom cotton fabrics classifiable under 0#5%? code 77./G.
"enerally four copies of language certificate are prepared by the
concerned authority who issues "1P certificate. hree copies are
handed over to the exporter. # copy is sent along with the other
documents for realisation of export proceeds.
47
EXPORT PROCEDURE AND DOCUMENTATION
• Fr("#'! P$3,(n! C(r!")"c$!(* in most of the cases, the *-8 or #2*
will mention the transportation and other related charges. ;owever if
the exporter does not want these details to be disclosed to the buyer, the
shipping company may issue a separate certificate for payment of the
freight charges instead of declaring on the main transport documents.
his document showing the freight payment is called the freight
certificate.
• In%r$nc( Pr(,", C(r!")"c$!(* this is the certificate issued by the
)nsurance Company as acknowledgement of the amount of premium
paid for the insurance cover. his certificate is re!uired by the bank for
arriving at the fob value of the goods to be declared in the bank
certificate of realisation.
• Co,-"n(d C(r!")"c$!( o) Or"#"n $nd V$0(* this certificate is re!uired
by the Commonwealth Countries. his certificate is printed in a special
way by the Commonwealth Countries. his certificate should contain
special details as to the origin and value of goods, which are useful for
determining import duty. #ll other details are generally the same as that
of Commercial )nvoice, such as name of the exporter and the importer,
!uality and !uantity of the goods etc.
• C%!o,% In1o"c(* this is re!uired by the countries like Canada, >1#
for imposing preferential tariff rates.
• L(#$0"@(d In1o"c(* this is re!uired by the certain 8atin #merican
Countries like 5exico. )t is =ust like consular invoice, which re!uires
certification from Consulate or authorised mission, stationed in the
exporter3s country.
S.(c"$0 Pro1"%"on nd(r Un")or, C%!o,% $nd .r$c!"c( )or Doc,(n!$r3 Cr(d"!
UCP+<AAB )or Co,,(rc"$0 In1o"c(.
4A
EXPORT PROCEDURE AND DOCUMENTATION
• Ar!"c0(+:4* Commercial )nvoice
o 5ust appear on their face to be issued by the beneficiary named
in the credit.
o 5ust be made out in the name of the applicant.
o 0eed not be signed
• *anks may refuse Commercial )nvoice issued for amounts in excess of
the amount permitted by the credit except otherwise stated.
• he description of the goods in the commercial invoice must
correspond with the description of the credit. )n all other documents the
goods may be described in the "eneral in general terms not
inconsistent with description in the credit. )n all documents goods may
be described in general terms not inconsistent with the $escription of
the goods in the credit.
Pr(+S'".,(n! Doc,(n!%*
• 1hipping bill.
• %xport order-1ales contract-Purchase order.
• 8etter of Credit
• Commercial invoice.
• Packing list.
• Certificate of origin.
• "uaranteed .emittance +"..-1$F-PP-1&F%?,,or 1$F.
• Certificate of )nspection.
• @arious declarations re!uired as per custom procedure.
4C
EXPORT PROCEDURE AND DOCUMENTATION
E2c'$n#( Con!ro0 D(c0$r$!"on For,* all exports to which the re!uirement of
declaration apply must be declared on appropriate forms as indicated below unless the
consignment is of samples and of P0o Commercial @alue3
• GR FORM* to be completed in duplicate for exports otherwise than by
post including export of software in physical form i.e. magnetic
tape-discs and paper media.
• SDF FORM* to be completed in duplicate and appended to the
1hipping *ill for export declare to the customs offices notified by the
Central "overnment which have introduced %$) system for processing
1hipping *ill.
• PP FORM* to be completed in duplicate for export by post.
• SOFTX* to be completed in triplicate for export of software otherwise
than in the physical form i.e. magnetic tapes-discs and paper media.
T'(%( )or,% $r( $1$"0$-0( )or %$0( "n R(%(r1( B$n6 o) Ind"$
%xport declaration forms have utmost importance and are binding on the exporters. )t is,
therefore, necessary that enough care is taken while declaring exports on these forms,
with special reference on the following points.
• 0ame and address of the authorised dealer through whom proceeds of
exports have been or will be reali'ed should be specified in the relevant
column of the form.
• $etails of commission and discount due to foreign agent or buyer
should be correctly declared otherwise difficulties may arise at the time
of remittance of such commission.
• )t should be clearly indicated in the form whether the export is on
Poutright sale basis3 or Pon consignment basis3 and irrelevant clauses
must be stuck out
4D
EXPORT PROCEDURE AND DOCUMENTATION
• >nder the term Panalysis of full export value3 a break up of full export
value of goods under F.&.* value, freight and insurance should be
furnished in all cases, irrespective of the terms of contract.
• #ll documents relating to the export of goods from )ndia must pass
through the medium of an authorised dealer in foreign exchange in
)ndia within 4( days of shipment.
• he amount representing the full export value of goods must be
reali'ed within six months from date of shipment.
D"%.o%$0 o) Co."(% o) E2.or! Doc,(n!$!"on For,
• ". forms covering export of goods other than =ewellery should be
completed by the exporter in duplicate and both the copies should be
submitted to customs at the port of 1hipment. Customs will give their
running serial number on both the copies of the ". forms after
verifying the particulars and admitting the corresponding shipping bill.
he value declared by the exporter will also be verified by the customs
and they will also record the assessed value. $uplicate copy will be
returned to the exporter and the original will be remained by the
customs for onward submission to the .eserve *ank. $uplicate form of
the ". form will again be presented to the customs at the time of
actual shipment. #fter examination of goods and certifying the !uantity
passed for shipment the duplicate copy will again be returned to
exporter for submission to an authorised dealer. ;owever, an exception
to submission of ". forms to the Customs authorities have been made
in case of deep sea fishing.
• ($) PP forms are to be first presented to an authorised dealer for
countersignature. he form will be countersigned by the authorised
dealer only if the post parcel is addressed to his branch or
correspondent bank in the country or import. he concerned overseas
4G
EXPORT PROCEDURE AND DOCUMENTATION
branch or correspondent is to be instructed to deliver the post parcel
against payment or acceptance of relevant bill, as the case may be.
(-) For post parcel addressed directly to the consignee, the
authorised dealer will countersign the form, provided Q
+i, an irrevocable letter of credit for the full value of export has
been opened in favour of exporter and has been advised
through authorised dealer concernedI or
+ii, the full value of shipment has been received in advance by the
exporter through an authorised dealerI or
+iii, &n receipt of full value of shipment declared on
this form the authorised dealer will forward to .*) the
duplicate copy along with the certified copy of shipper3s
invoice.
+iv, he authorised is satisfied on the basis of standing and track
record of the exporter and arrangements made for realisation of
the export proceed that he cold do so. )f the authorised dealer is
not satisfied about standing etc. of the exporter, the application
is re=ected. 0o reference is entertained by the .eserve *ank in
such cases.
(c) he original PP form countersignature will be returned to the
exporter by the authorised dealer and the duplicate will be retained
by him. &riginal PP form should then be submitted to the post
office along with the parcel. he post office through the goods
have been dispatched will forward the original to .*).
he export of computer software may be undertaken in physical form i.e. software
prepared on magnetic tape and paper media as well as in non-physical form by direct data
transmission through dedicated earth stations-satellite links. he export of computer
software in physical form is sub=ect to normal declaration on ".-PP form and regulations
9/
EXPORT PROCEDURE AND DOCUMENTATION
applicable there to will also be applicable to such exports. ;owever, export of non-
physical form should be declared on 1&F%? Form. *esides computer software, export
of video - .@. 1oftware and all other types of software products - packages should also
be declared on the 1&F%? forms. 1ince export of software is fraught with many risks
and special guidelines have been framed for handling such exports.
9(