MEANING

Import The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus an import is any good (e.g. a commodity) or service brought in from one country to another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale. Import goods or services are provided to domestic consumers by foreign producers. An import in the receiving country is an export to the sending country. Export The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer". In International Trade, "exports" refers to selling goods and services produced in home country to other markets. Any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Export goods or services are provided to foreign consumers by domestic producers.

PROCEDURES FOR IMPORT AND EXPORT

General Provisions about Customs Procedures

Basic document is Entry Loading and unloading at specified places only Computerisation of customs procedures Amendment to documents

Entry in relation to goods means entry made in Bill of Entry, Shipping Bill or Bill of Export. In case of import by post, label or declaration accompanying goods is entry Imported goods can be unloaded only at specified places. Goods can be exported only from specified places. Customs procedures are largely computerised. Most of documents have to be e-filed. Documents submitted to customs can be amended with permission In case of bill of entry, shipping bill or bill of export, it can be amended after clearance only on the basis of documentary evidence which was in existence at the time the goods were cleared, warehoused or exported, and not on basis of any subsequent document. [proviso to section 149]. Imported and export goods are usually handled in containers. These can be stored in Inland Container Depot (ICD) or Container Freight Station (CFS). They function like dry port for handling and temporary storage of imported/export goods and empty containers. Boat Notes are used for transferring small cargo from ship to shore, or from shore to ship, without berthing the ship. Goods can be transshipped from one conveyance to other after following required procedure. Such transhipment may be to any major port or airport in India. The goods can be transshipped to any other customs station in India if Customs Officer is satisfied that the goods are bona fide intended for transhipment to any customs station. The facility is available at all customs ports and Inland Container Depots (ICDs). Procedures have been prescribed for coastal goods, even if there is neither import nor export.

ICD and CFS

Boat Notes Transshipment of goods

Coastal goods

Import Procedures

e-filing of documents

Goods should arrive at customs port/airport only. Most of customs procedures are computerised. E-filing of documents is required. Person in charge of conveyance is required to submit Import Manifest or Import Report. Goods can be unloaded only after grant of Entry Inwards. Self Assessment on basis of Risk Management System (RMS) has been introduced in respect of specified goods and importers.

Import manifest or Import Report Entry Inwards Risk Management System

Importer has to submit Bill of Entry giving details of goods Bill of Entry for home consumption on being imported, along with required documents. Electronic submission of documents is done in major ports. payment of customs duty White Bill of Entry is for home consumption. Imported goods are cleared on payment of customs duty.

Bill of Entry for warehousing

Yellow Bill of Entry is for warehousing. It is also termed as into bond Bill of Entry as bond is executed. Duty is not paid and imported goods are transferred to warehouse where these are stored. Green Bill of Entry is for clearance from warehouse on payment of customs duty. It is for ex-bond clearance. Bill of Entry is noted, Goods are assessed to duty, examined and pre-audit is carried out. Customs duty is paid after assessment. Bond is executed if required if assessment is provisional (PD bond) or concessional rate of customs duty is subject to certain post import conditions. Goods can be cleared outside port after Out of Customs Charge order is issued by customs officer. After that, port dues, demurrage and other charges are paid and goods are cleared. Demurrage is payable if goods are not cleared from port/airport within three days. Goods can be disposed of if not cleared from port within 30 days.

Noting, examination and assessment Bond

Out of customs charge order

Demurrage if clearance from port delayed

Export Procedures

Entry Outward Export manifest/Export report Registration with DGFT and EPC Third party exports

Loading in conveyance can start after Entry Outward is given by customs officer. Person in charge of conveyance is required to submit Export Manifest or Export Report. Exporter has to be obtain IEC number from DGFT is advance. He should be registered with Export Promotion Council if he intends to claim export benefits. Export can be by manufacturer himself or third party (i.e. by exporter on behalf of another). Merchant exporter means a person engaged in trading activity and exporting or intending to export goods [para 9.40 of FTP] Advance authorisation, DEPB etc. should be registered if exports are under Export Promotion Scheme.

Registration of documents under Export Promotion Scheme Shipping Mill

Export is required to submit Shipping Bill with required documents for obtaining permission to export. There are five forms : (a) Shipping Bill for export of goods under claim for duty drawback - these should be in Green colour (b) Shipping Bill for export of dutiable goods - this should be yellow colour (c) Shipping bill for export of duty free goods - it should be white colour (d) shipping bill for export of duty free goods ex-bond - i.e. from bonded store room - it should be pink colour (e) Shipping Bill for export under DEPB scheme - Blue colour.

FEMA formalities Noting, assessment, examination Certification of documents for export incentives Let export order

GR/SDF/Softex form (under FEMA) is required to be submitted. The shipping bill is noted, goods are assessed and examined. Export duty is paid, if applicable. If export is under export incentives, relevant documents are checked and certified. Then proof of export is obtained on ARE-1. Conveyance can leave only after Let Export order is issued.

PROCEDURE

1 EXPORTER

IMPORTER

4
2 5

EXPORTERS BANK

IMPORTERS BANK

IMPORTER WAREHOUSE

8
MANUFACTURING

10

CUSTOMERS

6 9

SECURE TRANSPORTATION AND DOCUMENTATION 00000000000000000000000

SHIP

EXPORT DOCUMENTS
Introduction An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates. Therefore, it becomes important for the exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates and various factors determining the exchange rates. In this section, we have discussed various topics related to foreign exchange rates in detail. Export from India required special document depending upon the type of product and destination to be exported. Export Documents not only gives detail about the product and its destination port but are also used for the purpose of taxation and quality control inspection certification. The General Form for Export Documentation A bill of lading is a document and also a contract between the owner of the export goods and the carrier. This form is also the owners receipt of the goods. It is imperative that the owner keeps a copy of this form in order to claim the goods. A bill of lading can be negotiable or non-negotiable. A commercial invoice is an export document that is required by customs in most countries that determines how much the cargo is worth. Customs use this invoice to assess duties and tax. A commercial invoice must identify the buyer and seller of the export and provide a complete description of the cargo. It should also including the type of packaging used and the dates and terms of the sale. There may be other information required depending on the receiving country. The export packing list is required documentation for exported goods. This document is a detailed itemization of the goods contained within. It should be attached to the outside of the package and should clearly give the tare weights and gross weights of the package. The weights should be displayed in both U.S. pounds and metric. An Export license will often be required for the exportation of products from one country to another. It is a government document that gives the exporter authorization to make such a transaction. Yet it is not required for all exports.

Shipping Bill / Bill of Export Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, included ship's owner, seller, buyer and some other parties. For each one represents a kind of certificate document. Documents Required for Post Parcel Customs Clearance

In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below: Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) and international apex body coordinating activities of national postal administration. It is known by the code number CP2/ CP3 and to be prepared in quadruplicate, signed by the sender. Despatch Note- It is filled by the exporter to specify the action to be taken by the postal department at the destination in case the address is non-traceable or the parcel is refused to be accepted. Commercial Invoice - Issued by the exporter for the full realisable amount of goods as per trade term. Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania, Mauritius, New Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is prepared in the prescribed format and is signed/ certified by the counsel of the importing country located in the country of export. Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is prepared on a special form being presented by the Customs authorities of the importing country. It facilitates entry of goods in the importing country at preferential tariff rate. Legalised / Visaed Invoice - This shows the seller's genuineness before the appropriate consulate or chamber or commerce/ embassy. Certified Invoice - It is required when the exporter needs to certify on the invoice that the goods are of a particular origin or manufactured/ packed at a particular place and in accordance with specific contract. Sight Draft and Usance Draft are available for this. Sight Draft is required when the exporter expects immediate payment and Usance Draft is required for credit delivery.

Packing List - It shows the details of goods contained in each parcel / shipment. Certificate of Inspection It is a type of document describing the condition of goods and confirming that they have been inspected. Black List Certificate - It is required for countries which have strained political relation. It certifies that the ship or the aircraft carrying the goods has not touched those country(s). Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few countries to show that the goods shipped have actually been manufactured and is available. Certificate of Chemical Analysis - It is required to ensure the quality and grade of certain items such as metallic ores, pigments, etc. Certificate of Shipment - It signifies that a certain lot of goods have been shipped. Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine products, hides, livestock etc. Certificate of Conditioning - It is issued by the competent office to certify compliance of humidity factor, dry weight, etc. Antiquity Measurement It is issued by Archaeological Survey of India in case of antiques. Shipping Order - Issued by the Shipping (Conference) Line which intimates the exporter about the reservation of space of shipment of cargo through the specific vessel from a specified port and on a specified date. Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate and includes the shipper's name, cart/ lorry No., marks on packages, quantity, etc. Shut Out Advice - It is a statement of packages which are shut out by a ship and is prepared by the concerned shed and is sent to the exporter.

COMMON EXPORT DOCUMENTS To be able to export goods into other countries, exporters are required to have specific export documentation. This documentation will vary based on the government from which it is being shipped and the receiving governments regulations. Here are some of the most common documents required for export documentation. This is a general form that has been adapted by the airline industry and is a nonnegotiable form meaning that the document cannot be transferred to another party. The Section covers to documents that are commonly used in exporting, but specific requirements vary by destination and product. It is divided in the following sections: common export-related documents, certificates of origin, other certificates for shipments of specific goods, Export licenses and Temporary shipment documents. For assistance with countryspecific documentation requirements, please contact the Trade Information Center at 1800-USA-TRADE. Common Export Documents Certificates of Origin Other Certificates for Shipments of Specific Goods Export Licenses Other Export Related Documents Temporary Shipments

Common Export Documents Airway Bill Air freight shipments require Airway bills, which can never be made in negotiable form (see sample). Airway bills are shipper-specific (i.e. USPS, Fed-Ex,UPS, DHL, etc). Bill of Lading A contract between the owner of the goods and the carrier (as with domestic shipments). For vessels, there are two types: a straight bill of lading, which is non-negotiable, and a negotiable or shipper's order bill of lading. The latter can be bought, sold, or traded while the goods are in transit. The customer usually needs an original as proof of ownership to take possession of the goods (see Sample Short Form Bill of Lading and Sample Liner Bill of Lading). Commercial Invoice A bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods when assessing customs duties. Governments that use the commercial invoice to control imports will often specify its form, content, number of copies, language to be used, and other characteristics (see Sample). Export Packing List Considerably more detailed and informative than a standard domestic packing list, it lists seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity, description, the type of package, such as a box, crate, drum, or carton, the quantity of packages, total net and gross weight (in kilograms), package marks, and dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing list forms. A packing list may serve as conforming document. It is not a substitute for a commercial invoice. Electronic Export Information Form (Shippers Export Declaration) The EEI is the most common of all export documents. Required for shipments above $2,500* and for shipments of any value requiring an export license. SED has to be electronically filed via AES Direct (free service from Census and Customs) online system.

CERTIFICATES OF ORGIN Generic Certificate of Origin The Certificate of Origin (CO) is required by some countries for all or only certain products. In many cases, a statement of origin printed on company letterhead will suffice (download generic certificate or see sample with explanation). The exporter should verify whether a CO is required with the buyer and/or an experienced shipper/freight forwarder or the Trade Information center. Note: Some countries (i.e. Middle East) require that certificate of origin be notarized, certified by local chamber of commerce and legalized by the commercial section of the consulate of the destination country. For textile products, an importing country may require a certificate of origin issued by the manufacturer. The number of required copies and language may vary from country to country. Certificate of Origin for claiming benefits under Free Trade Agreements Special certificates may be required for countries with which the United States has free trade agreements (FTAs).Some certificate of origin including those required by the North American Free Trade Agreement (NAFTA), and the FTAs with Israel and Jordan, are prepared by the exporter. Others including those required by the FTAs with Australia, CAFTA countries, Chile and Morocco, are importers responsibility). Click on a specific country below to learn details on how to document origin. Australia (CO samples) Bahrain (importer to check with Govt. of Bahrain on format/information) CAFTA (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras CO sample) Chile (CO sample) Israel (sample Note: Green form needs to be purchased from Vendor or US-Israel Chamber of Commerce or a publishing house ) Jordan (notarized generic certificate of origin required)

Morocco (importer makes a claim on the basis of supporting evidence) NAFTA no certificate of origin is required. However, the importer is required to produce the necessary permits together with an invoice, at the time of cargo clearance. OTHER CERTIFICATES FOR SHIPMENTS OF SPECIFIC GOODS ATA CARNET/Temporary shipment certificate An ATA Carnet a. k. a. "Merchandise Passport" is a document that facilitates the temporary importation of products into foreign countries by eliminating tariffs and value-added taxes (VAT) or the posting of a security deposit normally required at the time of importation. Apply for an ATA Carnet. Certificate of Analysis: A certificate of analysis is required for seeds, grain, health foods, dietary supplements, fruits and vegetables, and pharmaceutical products. Certificate of Free Sale Certificate of free sale may be issued for biologics, food, drugs, medical devices and veterinary medicine. More information is available from the Food and Drug Administration. Health authorities in some states as well as some trade associations also issue Certificates of Free Sale. Dangerous Goods Certificate Exports submitted for handling by air carriers and air freight forwarders classified as dangerous goods need to be accompanied by the Shippers Declaration for Dangerous Goods (sample) required by the International Air Transport Association (IATA). The exporter is responsible for accuracy of the form and ensuring that requirements related to packaging, marking, and other required information by IATA have been met. For shipment of dangerous goods it is critical to identify goods by proper name, comply with packaging and labeling requirements (they vary depending upon type of product shipper and country shipped to). More information on labeling/regulations is available from the International Air Transportation Association or Department of Transportation HAZMAT websites.

Fisheries Certificate The National Marine Fisheries Service conducts inspections and analyses of fishery commodities for export. Fumigation Certificate The Fumigation Certificate provides evidence of the fumigation of exported goods (esp. agricultural products, used clothing, etc). This form assists in quarantine clearance of any goods of plant or animal origin. The seller to fumigate commodity at their expense a maximum of fifteen (15) days prior to loading. Halal Certificate Required by most countries in the Middle East, this certificate states that the fresh or frozen meat or poultry products were slaughtered in accordance with Islamic law. Certification by an appropriate chamber and legalization by the consulate of the destination country is usually required. Health Certificate For shipment of live animals and animal products (processed foodstuffs, poultry, meat, fish seafood, dairy products, and eggs and egg products). Note: Some countries require that health certificates be notarized or certified by a chamber and legalized by a consulate. Health certificates are issued by the U.S. Department of Agricultures Animal and Plant Health Inspection Service (APHIS). Ingredients Certificate A certificate of ingredients may be requested for food products with labels that are inadequate or incomplete. The certificate may be issued by the manufacturer and must give a description of the product, contents and percentage of each ingredient, chemical data, microbiological standards, storage instructions, shelf life, and date of manufacture. If animal fats are used, the certificate must state the type of fat used and that the product contains no pork, artificial pork flavor, or pork fat. All foodstuffs are subject to analysis by Ministry of Health laboratories to establish their fitness for use.

Inspection Certificate Weight and Quality certificates should be provided in accordance with governing USDA/GIPSA regulations for loading at port and loading at source/mill site as appropriate. A certificate of origin certified by local chamber of commerce at load port and a Phytosanitary certificate issued by APHIS/USDA and Fumigation certificate are to be provided to buyer. Costs of all inspection, certificates/ documents at the load port are usually the responsibility of the seller. Insurance Certificate Used to assure the consignee that insurance will cover the loss of or damage to the cargo during transit (Sample). These can be obtained from your freight forwarder or publishing house. Note: an airway bill can serve as an insurance certificate for a shipment by air. Some countries may require certification or notification. Phytosanitary Certificate All shipments of fresh fruits and vegetables, seeds, nuts, flour, rice, grains, lumber, plants, and plant materials require a federal phytosanitary certificate. The certificate must verify that the product is free from specified epidemics and/or agricultural diseases. Additional information and forms are available from Animal and Plant Health Inspection Service (APHIS). Radiation Certificate Some counties including Saudi Arabia may require this certificate for some plant and animal imports. The certificate is statement that the products are not contaminated by radioactivity. Steamship or Airline Company Certificate A declaration attached to a bill of lading or airway bill stating that the shipper will not stop at an unscheduled port, attesting to the accuracy of the shipping route and providing other shipping information such as name of vessel/plane, nationality of vessel/plane, owner of vessel/plane, names of ports of call including port of leading and discharge. Other (product-specific) certificates

Shaving brushes and articles made of raw hair must be accompanied by a recognized official certificate showing the consignment to be free from anthrax germs. Used clothing requires a disinfection certificate. Grain requires a fumigation certificate, and grain and seeds require a certificate of weight. Many countries in the Middle East require special certificates for imports of animal fodder additives, livestock, pets, and horses. Weight certificate Certificate of weight is a document issued by customs, certifying gross weight of the exported goods. EXPORT LICENSES Export license is a government document that authorizes the export of specific goods in specific quantities to a particular destination. This document may be required for most or all exports to some countries or for other countries only under special circumstances. Examples of export license certificates include those issued by the the Department of Commerces Bureau of Industry and Security (dual use articles), the State Departments Directorate of Defense Trade Controls (defense articles), the Nuclear Regulatory Commission (nuclear materials), and the US Drug Enforcement Administration (controlled substances and precursor chemicals). Destination Control Statement Destination Control Statement (DCS) is required for exports from United States for items on the Commerce Control List that are outside of EAR99 (products for which no license is required). A DCS appears on the commercial invoice, ocean bill of lading or Airway bill to notify the carrier and all foreign parties that the item can be exported only to certain destinations. OTHER EXPORT RELATED DOCUMENTS Consular Invoice Required in some countries, it describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment. If required, copies are available from the destination country's Embassy or Consulate in the U.S.

Dock Receipt and Warehouse Receipt Used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the ship line for export. Import License Import licenses are the responsibility of the importer and vary depending upon destination and product. However, including a copy of an import license with the rest of your documentation may in some cases help avoid problems with customs in the destination country. ISPM 15 (Wood Packaging) Marking The International Standards for Phytosanitary Measures Guidelines for Regulating Wood Packaging Material in International Trade (ISPM15) is one of several International Standards for Phytosanitary Measures adopted by the International Plant Protection Convention (IPPC). The IPPC is an international treaty to secure action to prevent the spread and introduction of pests of plants and plant products, and to promote appropriate measures for their control.. Pre-shipment Inspections The governments of a number of countries have contracted with international inspection companies to verify the quantity, quality, and price of shipments imported into their countries. The purpose of such inspections is to ensure that the price charged by the exporter reflects the true value of the goods, to prevent substandard goods from entering the country, and to deflect attempts to avoid payment of customs duties. Requirements for pre-shipment inspection are normally spelled out in letter-of-credit or other documentary requirements. Inspections companies include Bureau Veritas, SGS and Intertek. Some countries require preshipment inspection certificates for shipments of used merchandise. Shippers Letter of Instruction Issued by the carrier or the forwarder includes shipping instructions for air or ocean shipment (sample)

IMPORT DOCUMENTS
Import documentation depends on which country is doing the exporting and importing. However, there are some common forms needed for most imports .Purchase orders ensure that the import is valid. Purchase orders can also be used in the place of a letter of credit although this is not advised. Purchase order funding is a short-term loan that gives funds to a person expecting import goods that have been pre-sold. These loans however, depend on credibility and possibly the credit rating of the importer. A letter of credit may be needed for making payments on the imported goods. The letter of credit is a crucial part of import documentation as it is a guarantee that the importers financial institution will pay for the goods. Without this, the exporter would have very little security over the goods being paid by the importer. It would be unwise to send a shipment without a letter of credit (L/C). Shipment documents such as a bill of lading for sea shipments or an airway bill for freight shipments are needed. These documents provide proof that the goods have actually been sent by the exporter. These forms give evidence that a valid contract of shipment has been made. Although these documents are generally non-negotiable, negotiable bill of lading forms can be purchases. The aspects of the documentation that is required to be submitted to customs at the time of assessment.

Routine Shipments 1. Airway Bill (A.W.B).

2. Cargo Arrival Notice (C.A.N).

3. Letter of Authority, in favour of INTERPORT CLEARING SERVICES for of documents / Delivery Order (Take Prints).

collection

4. Bank Delivery Order - in case A.W.B / C.A.N is in favour of the Bank.

5. Commercial Invoice (duly signed)

6. Packing List.

7. Indent / Proforma Inv. / Purchase Order (w.r.t. the document referred to in

the invoice.)

8. Catalogue / Drawing / Tech. Literature.

9. Copy of L/ C.

10. Insurance Certificate or Insurance Premium Memo (Required only if terms F.O.B).

are C & F /

11. Certificate of Origin.

12. Import and GATT declaration forms duly filled and signed (Take Print).

13. I.E.C. Code No. ( D.G.F.T. has now issued P.A.N based certificates)

14. Income Tax P.A.N No.

15. Octroi 'N' forms. (Take Print). (a) 'N' Form. (b) 'N' Form Undertaking.

16. Factory licence / Shop and Est. Certificate / Sales Tax regn. For Octroi registration.

'N' form

17. Freight Certificate (If freight Payable in India).

18. Modvat declaration (If applicable).

19. Original documents (Bank attested).

20. Blank letterheads. The above listed documents are required in the normal course of clearance to ensure smooth and quick clearance of Cargo. In case the customs officer has any doubt, they can ask for any other papers, which on demand will be called for from the importers.

With regards to certain categories of Imports related to certain schemes or for different nature of products, the customs department will insist on certain additional documents during assessment of the Bill of Entry. These are the various documents required for the various products, different schemes, or the different modes that they are being imported. Import documents The obligation to submit to customs documents covering imported goods An importer shall submit to customs authorities import documents before imported goods are removed from storage at the transporter, placed in abonded warehouse or removed from a bonded warehouse or a free zone for disposal domestically; the documents shall be submitted to customs no later than 3 months from the date of arrival of the vessel which transported the goods to the country. Import documents shall be submitted to the director of customs in the customs district where the goods are unloaded from the vessel, unless the goods are transported undeclared to another customs district and arrangements are made for customs treatment there. Documents that shall be submitted The following documents shall be submitted with an import declaration, as far as applicable: An invoice a bill of lading or a transport document issued in connection with the transport of the goods; however when there is submitted a bill covering freight charges or a notice from the transporter to the consignee concerning a consignment of goods, and these documents contain the same information as specified in regular bills of lading, a bill of lading need not be submitted unless specially requested ,a certificate of origin when preferential customs treatment is requested in accordance with international agreements to which Iceland is a party, unless a declaration of origin has been entered on the invoice,

other documents concerning the imported goods which are of relevance to their customs treatment, e.g. an import license when required, a confirmation of an authorization for special customs treatment when such is the case, or other certificates required in special circumstances. Invoices Invoices shall contain the following information: name and address of the seller (consignor), name and address of the buyer (consignee), place and date of issue, when the sale took place, number of pieces, type of packing, weight, marks and numbers, the goods contained in a consignment, type, make and quantity (number, weigh tor measurements, as the case may be), the selling price of individual articles and the currency in which the price is specified, terms of payment, payment conditions and delivery conditions, discounts and other deductions and the reasons for granting such discounts or making such deductions. An original or a copy of the documents listed above may be submitted to customs, provided that international agreements to which Iceland is a party do not stipulate otherwise An importer may submit such import documents which he has received in other forms than in writing, for example by computer media or telecommunications. If customs authorities deem it necessary, they can always stipulate that an importer must submit an original of mentioned documents.

import documentation: Certificates of Origin one of the vital documents for enabling the goods to be imported Certificates of origin are vital because many countries will not accept the importation of goods from specific countries or they impose tariffs that may apply for certain types of goods. The certificate of origin is signed by a designated authority and enables the goods to be imported. Inspection certificates may also be required import documentation. If the importer requests that an inspection be made prior to the goods shipping, then this import documentation is imperative to ensure that the goods will be accepted upon arrival. A packing list is an inventory of all the packages and the contents of each package. It is imperative for this piece of import documentation to be accurate. Any deviation from the packing list can cause customs to reject and confiscate the shipment. An Invoice is the most critical part of Import documentation for accepting shipments The invoice is also a crucial document that needs to be accurate. This is by far, the most critical import documentation needed for accepting shipments. A complete summary of the goods should be made part of the invoice. Although these are the most common types of import documentation needed, there may be other documents required which varies from country to country. When importing food and animals, some countries have strict laws governing their acceptance. You may also need a permit for these types of products. It is imperative to understand what each country requires before shipping or receiving out of country goods. Having correct and accurate import documentation will allow the transition of the imported goods to be a smooth process. Documentation is the one of the most important parts of international trade as it is closely monitored. Any deviation from the required paperwork can be disastrous for the importing or exporting company In a significant extension of liberalisation schemes, which the government has been following over the past one year, government of India have simplified and rationalised customs laws

and procedures as pert of the liberalised economic, industria land trade policies of the government in June 1992. The following is the gist of official announcement on simplification of customs rules and procedures, both for goods and passengers. Self- assessment of import document by which importer of proven identity with unblemished record of past conduct to self-assess the goods, determine duty liability and disburse the duty.

This is applicable to government departments and undertakings.- Any breach of trust to attract penalty.

Green channel for clearance of cargo under which cargo imported by persons of proven identity with unblemished record as well as private sector units to be cleared without scrutiny.

Only 10 percent consignments to be selected at random for physical verification.

Chemical test of samples to be extended to other institutes and laboratories in view of the congestion in the central revenues control laboratory.

The powers of assistant collectors and deputy collectors enhanced. Export documents in certain prescribed categories not required to be put up to assistant collector.

Import document up to a value of rupees one lakh to be assessed by the appraisers.

Greater facility to imports through international courier service to be provided. The level of duty cut and value up which the articles to e imported through courier raised. Bonafide commercial samples restricted to Rs. 200 duty free imports allowed up to Rs. 1300

Passenger clearance rules simplified and inconvenience and irritants eliminated

.Duty-free allowance to passengers enhanced from Rs 2000 to Rs 3000. This includes those arriving from Sri Lanka and Maldives provided their stay abroad is more than three days

MAJOR CONCESSIONS IN CUSTOMS DUTY

In further bid to boost exports and bring tariffs down to international levels, the government of India have announced major concessions in customs duty for capital goods and their components. The first notification prescribes a concessional rate of customs duty of 25 per cent ad valorem or 15 per cent ad valorem on capital goods imported under the export promotion capital goods (EPCG) scheme, subject to specified conditions The second notification prescribes customs duty at a concessional rate of 15 per cent ad valorem on components imported for the manufacture of capital goods to be supplied to the manufactures- exporters under the EPCG scheme, subject to specified conditions. The third notification fully exempts capital goods and components imported under the scheme from auxiliary duty to customs.According to the first notification, an importer undertaking an export obligation equivalent to three times the CIF value of the capital goods over a period of four years would attract customs duty at the rate of 25 per cent ad valorem. Imports undertaking an export obligation equivalent to four times the CIF value of the capital goods over a period of five years would have to pay customs duty at the rate of 15 per cent ad valorem. Capital gods include plant, machinery, equipment or accessories required by an importer for manufacture of goods and also machinery for packing goods, testing equipment and equipment required for research and development activity .The second notification prescribes a concessional rate of customs duty of 15 per cent ad valorem on components imported for the manufacture of capital goods. All such imports of capital goods and components have also been fully exempted from the additional customs duties

IMPORT EXPORT DOCUMENTS

The Import Export documents that accompany all import export items are an integral part of all import export activities.Given that the world is now a global village theres hardly anything that doesnt move between borders be it books, foodstuffs, white goods and even cars. Importing and exporting are routine activities for many businesses, and the reason for being for others. It is almost certain that youve been involved in import export at some level in your business, even if its just the products you need to use in your business. But if you are toying with the idea of getting more serious about import export, you need to learn about the import export documents you will need to be familiar with.

The Importance of Import Export Documents

A common adage is that importing and exporting has next to nothing to do with goods and everything to do with import export documents! It sounds like an exaggeration, but unfortunately its true! The importance of correct paperwork cannot be overstated properly managing importing exporting. If youre the type of person who just cant stand dealing with paperwork for your import export documents, may we suggest that you hire someone who can! Documentation is the cornerstone of international trade and the lifeblood of making a living from it. Some Variation in the Import Export documents Required There is generally some variation in the Import Export documents documentations required for trade from country to country but theyre sure to include the following: Purchase order - It seems like a business requirement but it may be needed for financing. The purchaser may need to show the order to his bank to organize a temporary loan or customs may want to see the paperwork to make sure everything is valid.

Letter of credit - this is used for making payments for imported goods, once the necessary import export documents are handed over (see, we told you they were important). A letter of credit basically says that the importers bank guarantees to pay provided all the papers stipulated in it are in order. Shipment documents - a bill of lading is needed for sea shipments or an airway bill when goods are sent by plane, as proof that the goods have been sent by the supplier. Certificates of origin - Several countries have restrictions on the learn import of goods from certain other countries, and may apply tariffs to these goods or ban them altogether. Alternatively, there may be tariff benefits accorded to goods from specific supply sources. In such cases, an learn export will need to submit a Certificate of Origin, which is endorsed by a designated regulatory authority. Quality or inspection certificates - if the buyer specifies an inspection prior to shipment, these are paramount to making sure the deal is confirmed. Packing list - The list of all of the cartons within the container and the contents within. Invoice - The most important document, make sure that a full summary of goods is outlined and its invoiced in the currency of sale. Others(!) - These are specific requirements, and change from country to country. For example, Australia has stringent quarantine restrictions governing the trade of food and animal products. You would need to secure a permit, or subject your goods to an inspection or quite possibly both.

COMMON EXPORT IMPORT DOCUMENTS

There are many documents involved in international trade, such as commercial documents, financial documents, transport documents, insurance documents and other international trade related documents. In processing the export consignment, documentation may be executed in up to four contracts: the export sales contract, the contract of carriage, the contract of finance and the contract of cargo insurance. It is therefore important to understand the role of each document and their requirements in the international trade. A. Commercial Documents Document Quotation Functions An offer to sell goods and should state clearly the price, details of quality, quantity, trade terms, delivery terms, and payment terms. Prepared by Exporter

Sales Contract

An agreement between the buyer and the seller Exporter and stipulating every details of the transaction. It is a Importer legally binding document. It is therefore advisable to seek legal advice before signing the contract. An invoice provided by a supplier prior to the Exporter shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and importation specifications (weight, size and similar characteristics). This is not issued for demanding payment but may be used when applying for an import licence/permit or arranging foreign currency or other funding purposes. It is a formal demand note for payment issued by Exporter the exporter to the importer for goods sold under a sales contract. It should give details of the goods sold, payment terms and trade terms. It is also used for the customs clearance of goods and sometimes for foreign exchange purpose by the importer. A list with detailed packing information of the goods shipped. A report issued by an independent surveyor Exporter

Pro Forma Invoice

Commercial Invoice

Packing List

Inspection

Inspection

Certificate

(inspection company) or the exporter on the specifications of the shipment, including quality, quantity, and/or price, etc; required by certain buyer and countries.

Company or Exporter

Insurance Policy/ An insurance policy is an insurance document Certificate evidencing insurance has been taken out on the goods shipped, and it gives full details of the insurance coverage. An insurance certificate certifies that the shipment has been insured under a given open policy and is to cover loss of or damage to the cargo while in transit. Product Testing Certificate A certificate to certify the products are conformed to a certain international/national technical standard, such as product quality, safety and specifications, etc.

Insurer or Insurance Agent or Insurance Broker

Accredited Laboratories

Health Certificate

Document issued by the competent country when Exporter / agricultural or food products are being exported, to Inspection certify that they comply with the relevant Authority legislation in the exporter's country and were in good condition at time of inspection, prior to shipment and fit for human consumption. Frequently an international requirement that any Exporter consignment of plants or planting materials importing into a country shall be accompanied by a Phytosanitary Certificate issued by the exporting country stating that the consignment is found substantially free from diseases and pests and conforms with the current phytosanitary regulations of the importing country. Application of the certificate in Hong Kong should be made to the Agriculture and Fisheries Department. A pest control certificate issued to certify that the Exporter or concerned products have been undergone the Inspection quarantine and pre-shipment fumigation by the Company approved fumigation service providers. It is mainly required by the US, Canada, Australia, New Zealand and UK's customs on solid wood packing material from Hong Kong and the Chinese

Phytosanitary Certificate

Fumigation Certificate

Mainland. ATA Carnet An international customs document used to obtain Exporter a duty-free temporary admission for goods such as exhibits for international trade fairs, samples and professional equipment, into the countries that are signatories to the ATA Convention.

Consular Invoice A document required by some foreign countries, Exporter showing shipment information such as consignor, consignee, and value description, etc. Certified by a consular official of the importing country stationed in the foreign country, it is used by the country's customs officials to verify the value, quantity and nature of the shipment. B. Transport Documents Document Shipping Order S/O Functions Prepared by

A document to give details of the cargo and the Shipper / shipper's requirements. It is the basic document for Transport preparing other transport documents such as bill of Companies lading, air waybill, etc. A receipt to confirm the receipt of cargo on Shipping quay/warehouse pending shipment. The dock Company receipt is used as documentation to prepare a bill of lading. It has no legal role regarding processing financial settlement.

Dock Receipt D/R or Mate's Receipt

Bills of Lading ( An evidence of contract between the shipper of the Shipping B/L) goods and the carrier. The customer usually needs Company the original as proof of ownership to take possession of the goods. There are two types: a STRAIGHT bill of lading is non-negotiable and a negotiable or shipper's ORDER bill of lading (also a title document) which can be bought, sold or traded while goods are in transit and is used for many types of financing transactions. House Bill of Lading A bill of lading issued by a forwarder and, in many Forwarder cases, not a title document. Shippers choosing to use a house bill of lading, should clarify with the

(Groupage)

bank whether it is acceptable for letter of credit purpose before the credit is opened. Advantages include less packing, lower insurance premiums, quicker transit, less risk of damage and lower rates than cargo as an individual parcel / consignment. A receipt for cargo which incorporates the contract Shipping of carriage between the shipper and the carrier but Company is non-negotiable and is therefore not a title document. A kind of waybill used for the carriage of goods by Airline air. This serves as a receipt of goods for delivery and states the condition of carriage but is not a title document or transferable/negotiable instrument. An air consignment note issued by an air freight Forwarding agent to provide the cargo description and records. Agent Again, it is not a title document. Usually a pre-printed form provided by a shipping company or the bank, given by an importer's bank to the shipping company to replace the original transport document. The consignee may then in advance take delivery of goods against a shipping guarantee without producing the original bill of lading. The consignee and the importer bank will be responsible for any loss or charges occurred to the shipping company if fault is found in the collection. It is usually used with full margin or trust receipt to protect the bank's control to the goods. Importer's Bank / Shipping Company / Consignee

Sea Waybill

Air Waybill (AWB)

House Air Waybill (HAWB) Shipping Guarantee

Packing List (sometimes as packing note)

A list providing information needed for Shipper transportation purpose, such as details of invoice, buyer, consignee, country of origin, vessel/flight date, port/airport of loading, port/airport of discharge, place of delivery, shipping marks / container number, weight / volume of merchandise and the fullest details of the goods, including packing information.

C. Financial Documents Document Documentary Credit D/C Functions A bank instrument began (issuing or opening bank), at the request of the buyer, evidencing the bank's undertaking to the seller to pay a certain sum of money provided that specific requirements set out in the D/C are satisfied. Prepared by The Issuing Bank upon an application made by the Importer

Standby Credit

An arrangement between customer and his bank by Exporter / which the customer may enjoy the convenience of Issuing Bank cashing cheques, up to a value. Or a credit set up between the exporter and the importer guaranteeing the exporter will pay the importer a certain amount of money if the contract is not fulfilled. It is also known as performance bond. This is usually found in large transactions, such as crude oil, fertilizers, fishmeal, sugar, urea, etc. An instruction given by an exporter to its banker, which empowers the bank to collect the payment subject to the contract terms on behalf of the exporter. Exporter

Collection Instruction

Bill of Exchange An unconditional written order, in which the Exporter (B/E) or Draft importer addressed to and required by the exporter to pay on demand or at a future date a certain amount of money to the order of a person or bearer. Trust Receipt (T/R) A document to release a merchandise by a bank to Importer a buyer (the bank still retains title to the merchandise), the buyer, who obtains the goods for processing is obligated to maintain the goods distinct from the remainder of his/her assets and to hold them ready for repossession by the bank.

Promissory Note A financial instrument that is negotiable evidencing Importer the obligations of the foreign buyer to pay to the bearer.

D. Government Documents Document Certificate of Origin (CO) Functions Prepared by

A certificate to certify the place of manufacture, the Trade and nature/quantity/value of the goods. Industry Department and five Chambers of Commerce 1 A C.O. to support the claim for preferential tariff See Above entry (a reduced or zero rate) of the exporting country's products into the GSP donors under the GSP they operate. In general, a Form A is issued only when the goods concerned have met both the origin rules of the preference receiving country as well as the origin criteria of the respective donor country's GSP. Hong Kong is now a beneficiary under the GSP schemes operated by Canada and Norway, while China is beneficiary to countries like Australia, Canada, Czech Republic, European Union, Japan, Poland, Russia, Slovakia. Exporter/ Importer

Certificate of Origin Generalized Systems of Preferences (GSP) Form A (or as Form A)

Import / Export A statement made to the Director of Customs at Declaration port of entry/exit, declaring full particulars of the shipment, eg. the nature and the destination/exporting country of the ship's cargo. Its primary use is for compiling trade statistics. Import / Export A document issued by a relevant government Licence department authorising the imports and exports of certain controlled goods.

Trade and Industry Department, Customs & Excise Department, etc

International A statement issued by the government of country Trade and Import of destination, certifying the imported strategic Industry Certificate (IIC) goods will be disposed of in the designated Department country. In Hong Kong, it is issued only to meet an exporting country's requirement. Delivery A statement issued by the government of country Trade and

Verification Certificate (DVC)

of destination, certifying a specific strategic Industry commodity has been arrived in the designated Department country. In Hong Kong, it is issued only to meet an exporting country's requirement. A document issued by the government of country Census and of destination, certifying a specific commodity has Statistics been arrived in the designated country. In Hong Department Kong, it is issued by the Census and Statistics Department. Application requirements include letter stating the reason for the application, import declaration & receipt; bill of lading, sea waybill & land manifest; supplier's invoice; and packing list (if any).

Landing Certificate

A document specified by the customs authorities of Exporter the importing countries stating the selling price, Customs Invoice costs for freight, insurance, packing and payment terms, etc, for the purpose of determining the customs value.
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Five Government Approved Certification Organisations are the Hong Kong General Chamber of Commerce; the Indian Chamber of Commerce, Hong Kong; Federation of Hong Kong Industries; Chinese Manufacturers' Association of Hong Kong; and Chinese General Chamber of Commerce.