Вы находитесь на странице: 1из 30

EXPORT PROCEDURE AND DOCUMENTATION

PROPER EXPORT PROCEDURE AND DOCUMENTATION IS


CRUCIAL TO INTERNATIONAL MARKETING, AS BOTH EXPORTERS AND IMPORTERS ARE SITUTED IN TWO DIFFERENT COUNTRIES AND ARE GOVERNED BY DIFFERENT LEGISLATIVE FRAMEWORKS. THE EXPORT TRANSACTION CHAIN CONSISTS OF A NUMBER OF ENTITIES, WHICH ARE INTEGRAL TO THE ENTIRE SYSTEM. THESE ENTITIES FACILITATE HASSLE-FREE
1

TRANSACTION BETWEEN THE EXPORTERS AND THE IMPORTERS.

A NUMBER OF GOVERNMENT REGULATORY AGENCIES, SUCH AS THE DIRECTORS GENERAL OF FOREIGN TRADE IN INDIA, INSPECTION AGENECIES, INSURANCE COMPANIES, CUSTOMS AND CENTRAL EXCISE AUTHORITIES, BANKING INSTITUTIONS,

CLEARING AND FORWARDING AGENTS, SHIPPING COMPANIES OR AIRLINES, CARRIERS FOR INLAND TRANPORTATION ETC.

FACILITATE TRADE TRANSACTIONS BETWEEN THE EXPORTERS AND IMPORTERS. THE EXPORTERS HAVE TO COMPLY WITH THE RULES, REGULATIONS ORGANISATION. AND TRADE CUSTOMES OF ALL THESE

PRE-SHIPMENT EXPORT DOCUMENTATION


IT IS DIVIDED INTO TWO PARTS1. COMMERCIAL DOCUMENTS 2. REGULATORY DOCUMENTS

COMMERCIAL DOCUMENTS USED BY CUSTOM OF


TRADE IN INTERNATIONAL LEGAL AND COMMERCE BY EXPORTERS AND IMPORTERS IN DISCHARGE OF THEIR RESPECTIVE OTHER INCIDENTAL RESPOSIBILITIES UNDER SALES CONTRACTS. REGULATORY DOCUMENTS PRESCRIBED BY DIFFERENT GOVERNMENT DEPARTMENTS/BODIES FOR COMPLIANCE OF FORMALITIES UNDER RELEVANT

LAWS.

COMMERCIAL DOCUMENTS
1. COMMERCIAL INVOICE: IT IS A MOST IMPORTANT DOCUMENT FOR AN EXPORT TRANSACTION AND IT MUST BE PREPARED BY THE EXPORTER. A COMMERCIAL INVOICE CONTAINS INFORMATION ON THE EXPORTERS, THE CONSIGNEES DETAILS, COUNTRY OF ORIGIN OF GOODS, COUNTRY OF FINAL DESTINATION, TERMS OF DELIVERY AND PAYMENT, SHIP/ FLIGHT NO., PORT OF LOADING, PORT OF DISCHARGE, FINAL DESTINATION, MARKS AND NUMBERS, NUMBER AND KIND OF PACKAGING, DETAILED DESCRIPTION OF

GOODS, QUANTITY, RATE, AND TOTAL AMOUNT PAYABLE.

COMMERCIAL DOCUMENTS
2. PACKING LIST: It is an essential document for the
customs authority. Packing list provides details of how the goods are packed, the contents of different boxes,

cartons, or bales, and details of the weights and


measurement of each package in the consignment. Packing list is used by the carrier while deciding on the loading of the consignment. It helps the importer to check the inventory of the merchandise received.
6

COMMERCIAL DOCUMENTS
3. BILL OF LADING: It is a transport document
issued by the shipping company to the shipper for
accepting the goods for the carriage of merchandise. It is

also known as the document of title, which means that


the genuine holder of the documents is entitled to claim the ownership of the goods covered therein.

PURPOSES OF BILL OF LADING (B/L)


1. IT IS THE RECEIPT OF CARGO BY THE SHIPPING COMPANY. 2. THE CONTRACT OF CARRIAGE (OR

TRANSPORT). 3. A DOCUMENT OF TITLE.

COMMERCIAL DOCUMENTS
4. AIRWAY BILL (AWB): It is known as the air consignment note

or airway bill of lading. The airway bill is a receipt of goods and an evidence of the contract of carriage, but unlike the bill of lading, it is not a document of title and therefore, it is

non-negotiable. The goods are consigned directly to the


named consignee and are delivered to the consignee (i.E. The importer) without any further formality once the customs clearance is obtained at the destination.

The international air transport association airway bill is issued in a set of 12


copies, three of which are originals, all of which are originals, all having the same validity and commercial significance as given below:

1.

Origional 1 (green): for issuing carrier, which is to be signed by the


consignor or his agent.

2.

Original 2 (pink): for the consignee, which accompanies the goods to the destination, is signed by the carrier or his agent.

3.

Original 3 (blue): for the shipper, is signed by the carrier and is handed over to the consigner or his agent after goods have been accepted by the carrier.

10

COMMERCIAL DOCUMENTS
5. COMBINED (CTD):
The combined

TRANSPORT
document

DOCUMENT
covers the

transport

movement of cargo from the place of containerization to the place of destination using multi-model transport.

11

COMMERCIAL DOCUMENTS
6. CRTIFICATE OF ORIGIN: THIS DOCUMENT IS USED

AS AN EVIDENCE OF THE ORIGIN OF GOODS IN THE


IMPORTING COUNTRY. IT INCLUDES THE DETAILS OF THE GOODS COVERED AND THE COUNTRY WHERE THE GOODS ARE GROWN, PRODUCED, OR MANUFACTURED. THE CERTIFICATE OF ORIGIN IS REQUIRED FOR

DECIDING THE LIABILITY PREFERENTIAL DUTY IN THE


IMPORTING COUNTRY.
12

THE CERTIFICATE OF ORIGIN IS OF TWO TYPES: 1. PREFRENTIAL CERTIFICATE OF ORIGIN: THE PREFERENTIAL CERTIFICATES ARE REQUIRED BY THE COUNTRIES OFFERING TARIFF CONCESSIONS ON IMPORTS FROM CERTAIN COUNTRIES. 2. NON-PREFERENTIAL CERTIFICATE OF ORIGIN: IT MERELY EVIDENCES THE ORIGIN OF GOODS FROM A PARTICULARS COUNTRY AND DOES NOT GIVE ANY TARIFF BENEFITS ON EXPORTS TO THE IMPORTING NATIONS. GENERALLY, SUCH A CERTIFICATE OF ORIGIN IS ISSUSED BY THE LOCAL CHAMBER OF COMMERECE.
13

COMMERCIAL DOCUMENTS

COMMERCIAL DOCUMENTS
7. INSPECTION CERTIFICATE : Under the export (quality control and inspection) act, 1963, it is mandatory to obtain an export inspection certificate for a number of products by the notified agency. The

agencies entrusted with compulsory pre-shipment


quality inspection include export inspection agency (eia), bureau of indian standards, agricultural marketing advisor (agmark), drugs controller, tea board, coffee board etc.
14

COMMERCIAL DOCUMENTS
8. INSURANCE POLICY/CERTIFICATE: Since the carrier and other

intermediaries, such as the clearing and forwarding agents, port


authorities, warehousing operators, etc. Have only limited liability during the process of cargo movement from the exporter to the importer, they cannot be held responsible. In the event of loss due to a situation beyond their control, such as man-made accidents, natural calamities etc. Therefore, in order to provide protection to the cargoowner, an insurance cover is necessary while the cargo is in transit from the consignor to the consignee.

15

COMMERCIAL DOCUMENTS
9. BILL OF EXCHANGE (DRAFT): It is an unconditional order in writing prepared and signed by the exporter and addresses to the importer, requiring the importer to pay

on demand or at a future date a certain sum of money


to the exporter or his or her nominee. The maker of the bill (i.E. The exporter) is known as the drawer while the person receiving the bill (i.E., The importer) is called the drawee.
16

COMMERCIAL DOCUMENTS
10. SHIPMENT ADVICE: Soon after the shipment has taken place, the shipment advice is sent to the importer informing him of the details of the shipment. The shipment advice indicates details of the ship or flight number, port of discharge and destination, export order or contract number, description of cargo, quantity, etc.
17

REGULATORY DOCUMENTS
REGULATORY DOCUMENTS FULFILL THE STATUARY REQUIREMENTS OF BOTH THE IMPORTING AND THE EXPORTING COUNTRIES. THESE DOCUMENTS ARE RELATED TO VARIOUS GOVERNMENTS AUTHORITIES SUCH AS THE DIRECTORATE GENERAL OF FOREIGN TRADE, THE RESERVE BANK OF INDIA, EXPORT

PROMOTION

COUNCILS,

EXPORT

INSPECTION

AGENCIES, BANKS, CUSTOMS AND CENTRAL EXCISE AUTHORITIES, ETC.


18

REGULATORY DOCUMENTS
1. EXCHANGE CONTROL DECLARATION FORMS: UNDER THE FOREIGN EXCHANGE MANAGEMENT ACT2000, FOR

EVERY EXPORT ACTIVITY TAKING PLACE OUT OF INDIA, THE


EXPORTER HAS TO SUBMIT AN EXCHANGE CONTROL DECLARATION FORM IN THE PRESCRIBED FORMAT. EXPORTS TO NEPAL AND BHUTAN ARE EXEMPT FROM SUCH DECLARATIONS. THE BASIC OBJECTIVEOF A DECLARATION

FORM IS TO ENSURE THE REALIZATION OF EXPORT


PROCEEDS BY THE EXPORTER AS PER THE PROVISIONS OF THE FOREIGN EXCHANGE MANAGEMENT ACT1999.
19

REGULATORY DOCUMENTS
THE VARIOUS TYPES OF FORMS USED FOR FOREIGN EXCHANGE DECLARATION ARE AS FOLLOWS: GR FORM: GUARANTEED REMITTANCE FORMS ARE FOR ALL TYPES OF PHYSICAL EXPORTS, INCLUDING SOFTWARE EXPORTS IN PHYSICAL FORM BY USING MAGNETIC TAPES OR PAPER . SDF FORM: FOR ALL SUCH EXPORTS WHERE THE CUSTOMS AUTHORITY HAS THE FACILITY FOR EDI PROCESSING OF A SHIPPING BILL AND IS ATTACHED IN DUPLICATE WITH THE SHIPPING BILL.
20

REGULATORY DOCUMENTS
PP FORM: POSTAL PARCEL (PP) FORMS ARE FOR ALL EXPORTS BY POST. SOFTEX FORM: SOFTWARE EXPORT DECLARATION FORMS FOR SOFTWARE EXPORTS IN NONPHYSICAL FORM,SUCH AS DATA TRANSMISSION THROUGH SATELLITE LINK.

21

REGULATORY DOCUMENTS
2. SHIPPING BILL/ BILL OF EXPORT: SHIPPING BILL IS THE MAIN DOCUMENT REQUIRED BY THE CUSTOMS AUTHORITIES.THE EXPORT CARGO IS ALLOWED TO BE CARTED ON PORT SHEDS AND DUCKS ONLY AFTER THE SIPPING BILL HAS BEEN STAMPED BY THE CUSTOMS AUTHORITIES. THE SHIPPING BILL MENTIONS THE DESCRIPTION OF GOODS, MARKS, QUANTITY, NAME OF THE SHIP/ FLIGHT NUMBER, PORT OF LOADING, PORT OF DISCHARGE, COUNTRY OF DESTINATION ETC.
22

THE MAIN TYPES OF SHIPPING BILLS ARE AS FOLLOWS: SHIPPING BILL FOR DUTIABLE GOODS.

SHIPPING BILL FOR DUTY-FREE GOODS. SHIPPING BILL FOR GOODS CLAIMING DUTY DRAWBACK.
23

REGULATORY DOCUMENTS
3. BILL OF ENTRY:AFTER UNLOADING, THE IMPORTED CARGO IS TRANSFERRED TO THE CUSTODY OF AN AUTHORISED AGENCY, SUCH AS THE PORT TRUST AUTHORITY OR AIRPORT AUTHORITY OF INDIA OR ANY OTHER CUSTOMS APPROVED WAREHOUSE PRIOR TO ITS CUSTOMS EXAMINATION, DUTY PAYMENTS AND HANDING OVER TO THE IMPORTER. FOR GETTING CUSTOMS CLEARANCE ON THE IMPORTED CARGO, BILL OF ENTRY IS REQUIRED TO BE SUBMITTED IN FOUR COPIES BY AN IMPORTER OR HIS AGENT TO THE CUSTOMS AUTHORITY.
24

REGULATORY DOCUMENTS
THERE ARE THREE TYPES OF BILLS ON ENTRY: BILL OF ENTRY FOR HOME CONSUMPTION (WHITE): IT IS USED TO GET GOODS CLEARED IN ONE LOT BY THE IMPORTER. BILL OF ENTRY FOR WAREHOUSING (YELLOW) : USING INTO BOND BILL OF ENTRY, AN IMPORTER CAN GET THE GOODS SHIFTED TO A WAREHOUSE AND GET THEM CLEARED IN SMALL LOTS. IT IS ESPECIALLY USEFUL WHEN THE IMPORTER HAS SHORTAGE OF WAREHOUSING SPACE OR HE IS UNABLE TO PAY THE IMPORT DUTY AT ONE TIME.
25

REGULATORY DOCUMENTS
EX-BOND BILL OF ENTRY (GREEN) : FOR REMOVING GOODS FROM THE WAREHOUSE, AN IMPORTER HAS TO USE EX-BOND BILL OF ENTRY. WHILE IMPORTING GOODS BY POST, THERE IS NO BILL OF ENTRY. THE FOREIGN POST OFFICE PREPARES A WAY BILL FOR THE ASSESEMENT OF IMPORT DUTY.

26

REGULATORY DOCUMENTS
DOCUMENTS FOR CENTRAL EXCISE CLEARANCE:

INVOICE:

SET

OF

TREE

COPIES-

THE

ORIGIONAL COPY IS FOR THE BUYER, THE DUPLICATE FOR THE TRANSPORTER, AND THE TRIPLICATE FOR THE ASSESSEE. TRANSPORTION OF GOODS WITHOUT INVOICE IS CONSIDRED TO BE A VIOLATION OF RULES.
27

REGULATORY DOCUMENTS
PERSONAL LEDGER ACCOUNT (PLA): FOR SMOTH TRANSACTION REGARDING PAYMENT OF EXPORT DUTY, A PERSONAL LEDGER

ACCOUNT IS REQUIRED TO BE MAINTAINED BY THE EXPORTER.


THE ESTIMATED AMOUNT OF EXCISE DUTY TO BE PAID BY THE EXPORTER IS DEPOSITED TO THE NATIONALIZED BANK OR TREASURY. THE AMOUNT DEPOSITED IN THE BANK IS SHOWN AS CREDIT IN THE PLA ON THE BASIS OF THE PROOF OF DEPOSIT. AT THE TIME OF THE REMOVAL OF CONSIGNMENT, THE AMOUNT OF DUTY ACTUALLY LEVIED IS SHOWN AS DEBIT ENTRY. AN EQUIVALENT AMOUNT IS AGAIN RE-CREDITED AFTER THE PROOF OF EXPORT IS RECEIVED.
28

REGULATORY DOCUMENTS
ARE-1: (APPLICATION FOR REMOVAL OF EXCISABLE GOOGS-1) ARE-2 (APPLICATION FOR REMOVAL OF EXCISABLE GOODS-2) CT-1

29

REGULATORY DOCUMENTS
BLACKLIST CERTIFICATE: HEALTH/VETERINARY/ SANITARY CERTIFICATE:

30