International Trade

Documentation
Dr. Anupam Varma
Role of Proper Documentation

Correct documentation alone can

ensure:
 swift passage of goods to the
customer,
 Customs clearance,
 Transfer of title, and
 Prompt payment for the goods
supplied
“You help yourself and your buyer
by appropriate and correct
documentation”
 EXPORT DOCUMENTATION

Export Documents

Commercial Documents Regulatory Documents

Principal Auxiliary
 The Concept of Master Documents
 The two master documents- one for commercial
use and the other for regulatory documents
meant for customs, RBI and port trust-have
maximum advantage of alignment and minimum
cost and time for preparing individual documents.
 The two- master documents contain all the
information that is common to individual documents.
 Aligned Documentation System (ADS) is based on
the UN layout key.
 Different forms used in the international trade
transaction are printed on paper of the same size
and in such way that the common items of
information are given the same relative slots in each
of the documents.
 Commercial Documentation
 ‘Principal export documents’ by customs of
trade are required for:
- effecting physical transfer of goods
- transferring of title of goods from an exporter to an importer
- realising export proceeds

 There are other ‘Auxiliary documents’

required for preparation and procurement of
principal export documents
Regulatory Documentation
 These are prescribed by different
government departments in
compliance with the requirements
under relevant laws
 Documents incidental to customs
clearance of export/import
consignment, foreign exchange
regulations, etc are covered in this
category
 Assistance and Incentive
Documentation
 For promoting exports, from time to time
Government announces many special
schemes and incentives
 These relate to duty free imports,
concessional import duties, duty
drawbacks on exports and excise related
export goods, etc.
 Documentation relating to above are
called assistance or incentive
documentation
Principal Export Documents
 Commercial  Insurance
Invoice Certificate/Policy
 Packing List  Certificate of
 Bill of Origin
Lading/Combined  Bill of Exchange
Transport  Shipment Advice
Document
 Certificate of
Inspection/Quality
control
 Commercial Invoice
 It is the document of account of sale
rendered by buyer to the seller
 It is a prima facie evidence of the
contract of sale and purchase
 Description of merchandise must
correspond exactly to the details in the
L/C and should be made on the paper of
the seller and signed by him
 It should be made in the name of the
opener, unless otherwise stated in L/C
 Consular Invoice
 Needed mostly by Latin American countries,
Kenya, Uganda, Tanzania, Nigeria, Ghana,
Mauritius, New Zealand, Australia, Fiji, etc.
 The importer’s country require this to collect
accurate import details for assessing import
duties & for other statistical purposes.
 Helps importer to get goods customs cleared
easily
 Consular invoice has to be got certified by the
embassy of country concerned
Customs Invoice
 Required by countries like USA,
Canada, etc. for allowing entry of
goods at preferential tariff rates
 Invoice forms are generally
available at the consular office of
the importing country & should be
signed and witnessed after duly
filling the same.
Legalised/Visaed Invoice
 Required by some countries in
Middle East, Latin America, Turkey,
Taiwan etc.
 These invoices are sworn for their
genuineness by seller as being
correct before appropriate
Consulate /Chamber of
Commerce /Embassy and bear the
stamp and authentication
Certified Invoice

 Sometimes exporter is asked to

certify on the invoice about the
goods being of particular origin or
packed at particular place and in
accordance with a specific contract.
 Such invoices are called as a
certified invoice
 Packing List
 It shows details of goods contained in
each parcel/shipment
 Shows item by item the contents of
containers or parcels shipped
 Enables buyer/receiver to check received
items correctly
 Specified number of copies are kept
inside the package, sent with shipping
documents, sent to buyer, to shipping
agent
Transport Documents
 Following documents are used in
export as transport documents:
a. Ocean freight: Bills of Lading
b. Air Freight: Airway Bills / Air
consignment note
c. Rail/Road: Railway Receipt
/Consignment Note
d. Post: Post Parcel Receipt
Combined Transport Document

 It is a document for multi-modal

movement of goods in container. The
movement is carried out by more than
one mode, e.g. rail and ship.
 A CTD provides an alternative to
establishing a series of separate and non-
uniform contracts for each segment of the
total transport process.
 It is acceptable for negotiation under L/C.
 Bill of Lading
 It is a document issued by the shipping
company or its agent acknowledging the receipt
of goods on board of vessel, and
 Undertaking to deliver the goods in the like
order and conditions as received to the
consignee or his order of assignee provided
freight and other charges have been duly paid
 It is a document of title and by practice
transferable.
 Types of Bill of Lading

 Clean Bill of Lading

 Claused Bill of Lading

 On Board Bill of Lading

 Stale Bill of Lading

Airway Bill / Air Consignment Note

 It is the receipt issued by the airline

for the carriage of goods
 It is not treated as a document of
title and is not issued in negotiable
forms
 Indian Exchange Control discourages
consignment of goods in the name of
either importer, buyer or his agent.
 Post Parcel Receipt
 It evidences merely receipt of goods for
exports by post office
 It is not treated as a document of title
 It is advisable to send post parcels in the
name of foreign correspondent bank
instead of to the buyer
Inspection certificate

It indicates that the goods have

been inspected before sealing for
export.
Specialized inspection agencies
are there in India
Self inspection certificates can
also be given by export houses
with good record of exports
Marine Insurance Policy / Certificate

Marine insurance is intended to

protect the insured against the
risk of loss or damage to goods
in transit due to marine perils
 Insurance Policy
 Marine Insurance Policy is a contract
whereby the insurer, in consideration of
a payment of premium by the insured,
agrees to indemnify the latter against
the loss incurred in respect of goods
exposed to perils of sea and incidental to
sea voyage
Insurance Certificate
 It gives details of the shipment
insured together with a shortened
version of the provision of open
cover
 It is a more convenient document
than a policy and more easily
intelligible
 It does not have legal standing,
cannot be assigned.
Certificate of Origin
 It is required by the importer for
clearance of goods in his country
 Also required for taking advantage of
preferential tariffs granted to exports
from India in a particular country
 Obtainable from a recognised
Chamber of Commerce, Export
Promotion Council, etc on payment
of a small fee.
Generalised System of Preferences
(GSP) Certificate

 Many developed countries have

adapted GSP
 Exporters from developing countries
including India are entitled to a
concessional rate of import duty in
these countries
 Issued usually by Export Inspection
Agency
 Bill of Exchange
 Also known as ‘Draft’
 It is an instrument in writing containing
an unconditional order, signed by the
maker, directing a certain person to pay
a certain sum of money only to or to the
order of a person or to the bearer of the
instrument
 ‘Sight Draft’; ‘Usance Draft’
 There is no standard format for Bill of
Exchange
 Shipment Advice
 ‘Shipment Advice’ is sent by exporter to
importer intimating the date of shipment of
consignment by a named vessel and its ETA at
the destination port.
 Shipment advice is sent in the prescribed
format along with following documents: 1. Non
negotiable copy of the B/L; 2. Commercial
invoice; 3. Packing list; and 4. Customs invoice
 Auxiliary Documents
The seven auxiliary documents are
1. Proforma Invoice
2. Intimation for inspection
3. Shipping instructions
4. Insurance Declaration
5. Application for certificate of origin.
6. Mate's Receipt
7. Letter to bank of collection/negotiation
of documents
 Regulatory Documents
There are seven regulatory documents
associated with the pre-shipment stage of
the export transaction:
1. ARE.1/AR4 Form ( for Central Excise)

2. Shipping Bill/Bill of Export (for Customs)

3. Port Trust Copy of Shipping Bill/

Export Application/Dock Challan - Port

4. Vehicle ticket - Port

(contd)
 Regulatory Documents (contd.)

5. Exchange Control Declaration/GR/PP

forms - RBI
6. Freight Payment Certificate -
Steamer Agents
7. Insurance Premium Payment
Certificate - Insurance Co.
ARE.1 Form

 It is used for claiming excise rebate / duty

drawback from the GoI.
 The different copies of ARE.1/AR4 forms should
be of different colors indicated below:
 Original---- White (Returned to Exporter)
 Duplicate--- Buff (Do)
 Triplicate--- Pink (Rebate sanctioning
authority )
 Quadruplicate---Green (Chief Accounts Officer
at Collectorate Head Quarters)
 Quintuplicate---- Blue (Central Excise Officer)
 Sixtuplicate- Yellow (optional copy to
exporter)
Shipping Bill

 Most important document required by custom

authorities for allowing exports. It contains all
details of goods shipped.
 These are of 4 types

 White : Export of duty free goods (3 Copies)

 Green : Export under claim for duty drawback

(4 copies)
 Yellow : Export for dutiable goods (3 copies)

 Pink : Export of duty free goods ex-bond (3

copies)
 Blue: Export under DEPB scheme (7 copies)
Port Trust Copy of Shipping Bill/
Export Application/Dock Challan

 An exporter has to pay the port and dock

charges when the shipment is sent by sea.
The amount is assessed on the basis of
nature of goods, volume, weight etc.
 Vehicle Ticket It is an entry pass issued
by the port trust authority to the shipper
to allow the latter to bring export cargo to
the port for their dispatch to the importer.
 Declaration Documents

GR Forms
 Prescribed by the RBI under FEMA to ensure that the
Forex receipts in respect of exports are repatriated
to India.
 Prepared in duplicate. Both copies submitted to
customs at port of shipment along with shipping bill.
 Customs gives ten no. running serial no. on both
copies
 Customs returns duplicate copy and retains original
 Exporter submits GR form and other documents to
his bank/authorized dealer for collection of export
bills within 21 days
SDF Forms

Where shipping bills are processed

electronically, SDF is used.
Submitted in duplicate
Customs gives back one copy along
with a copy of the shipping bill
marked as ‘Exchange Control Copy’
Should be given to authorized dealer
within 21 days
 PP Forms

 Completed in duplicate
 Exports to all countries are to be declared on PP
Form when goods are sent by post parcel. All
such parcels are routed through the ‘foreign
post offices’ located in major cities.
 Postal articles intended for any permissible
foreign destinations may be booked at any of
the post office in India .
 PP form or No objection certificate from the
Reserve Bank of India is required to be enclosed
to the parcel depending upon the value of the
goods being exported.
SOFTEX Forms

Used in export of software otherwise

than in physical form, i.e magnetic
tapes, discs, etc.
Valuation of Software Exports
Disposal of SOFTEX form (triplicate)
Should be submitted not later than
30 days along with invoice to the
valuation authorities
Other documents

Freight Payment Certificate

It is like receipt for payment of
freight
Insurance Premium Payment
Certificate
It is like receipt for payment of
insurance premium.
 Mistakes in Documentation

Particulars often incorrectly declared

 Quantity vis a vis Units of Qty
 Gross weight & Net weight
 Invoice No/Date & ARE 1 No in the SB
 Port of Destination/ Discharge
 Description of goods
 Currency Viz USD/GBP/Aus D/Euro etc
 CIF Value/FOB Value
 Export promotion Scheme opted.
Other Documents

 Black list certificate

 Weight Note

 Languages certificate

 Certificate of Chemical Analysis

 Phytosanitary certificates

 Conditioning certificate

 Antiquity Certificates

 Certificate of measurement

 Transshipment bill

 Shipping Order
Thank You