Export Import

GROUP-8

ALIGNED DOCUMENTATION

SYSTEM

GROUP MEMBERS

Nisha Patel 026 Siddhida Mistry 033 Aashima Sobti 037 Sidarth Nair 054 Goldy Patel 060

Procedure for Export Registration procedure Pre-shipment procedure. Shipment stage. Export shipment procedure. Exchange control procedure. Realization of exports.

Flowchart Of Export ActivitiesPreliminary Operations

Receipts & Processing Of Export Order

Production/ manufacturing

of export goods

Pre-shipment Formalities

Post Shipment Formalities

Claiming Of Export

Incentives

Export Documentation

The paperwork that is required for an export sales transaction

The means by which the shipping process is facilitated and recorded.

Documentation is essential for moving goods through the channels of distribution, transferring responsibility or possession, clearing goods through customs, and facilitating payment according to the agreed upon terms.

Standardised Documents

Types Of Standardized Pre-Shipment Documents

preshipment export

documentation

commercial documents

principal auxiliary

regulatory documents

New Standardised Document

Aligned Documentation System Meaning:

A methodology of creating information as a set of standardized forms printed on paper of same size in such a way that items of identical information occupy the same position of each form.

Objectives of ADS To simplify, rationalize and prioritize information

To achieve economy of time and effort involved in the present methodology of export documentation.

 

Advantages Of ADS Uniformity Generates many copies Ensures convenience Facilitates expeditious checking Easy to handle

Shipping Documents

Commercial Documents

Regulatory Documents

Commercial Documents Proforma Invoice Commercial Invoice Packing List Certificate Of Origin Mate’s Receipt Bill of Lading Bill Of Exchange

Proforma Invoice Document that states a commitment from the seller

to sell goods to the buyer at specified prices and terms

Quote in an invoice format

Usually issued by the exporting company

Same information as the formal quotation

Contents in Proforma Invoice Description of item Type of currency Terms of payment Costs associated with freight and insurance Buyers & sellers name & address Prices of items: per unit and extended totals Weights and dimensions of quoted products Estimated shipping date

Commercial Invoice Document showing the value of goods exported

It includes:

- customs invoice

- legalized invoice

- consular invoice

Consular Invoice

It is a certificate issued by the office of consular general.

It is to ensure swift clearance of goods at the port of destination.

It states value of goods being exported as per international standards of evaluation.

It is prepared by buyer.

Packing list

A list showing the details of goods contained in each parcel/shipment.

Detailed view of item-by-item the containers to enable the buyer/receiver of shipment to check the shipment.

It is prepared at the time of exports immediately after inspection and certification by central excise inspector.

Packing list includes Name and address-shipper & consignee Weight Quantity Description Order number Exporting Carrier

Cont.…. It itemizes the material in each individual

package and indicates the type of package: box, crate, drum, carton, and so on.

It shows individual net, legal, tare, and gross weights and measurements for each package .

The list is used by the shipper or forwarding agent to determine the total shipment weight and volume and whether the correct cargo is being shipped.

Presented to…

Excise inspector

Customs

Duty drawback cell of customs

Certificate of origin

It traditionally states from what country the shipped goods originate.

It is require to claim preferential tariffs.

Helps prove that the product is allowed into that particular country.

Issued by Chamber of commerce

Export promotion council(EPC)

Commodity boards

Captain’s/Mate receipt Temporary receipt issued for goods, which have been delivered

to the vessel.

Acknowledgement that the ship owner has received the goods in the condition stated.

Preliminary document only, which is later given up in return for the bill of lading.

When the Chief Officer signs the receipt for goods he is personally liable for any deficiency in the number proved to exist on discharge of the good.

Cont.…. Mate's Receipts should be issued on ship's forms and

numbered.

The number in dispute should clearly be stated in words on the receipt which there is agreement being separately shown .

Mate's receipts should be endorsed "at shipper's risk until actually shipped.

Content Name of the shipper Place of receipt Voyage Number Port of Loading Port of Discharge Place of Delivery Container Number Description of Goods Gross Weight

Bill of Lading A document issued by a carrier or by a shipper's agent

that identifies the goods received for shipment, where the goods are to be delivered, and who is entitled to receive the shipment.

It is evidence that a valid contract of carriage exists, and it may incorporate the full terms of the contract between the consignor and the carrier by reference .

Types of bills of lading Clean B/L

Order B/L

Straight B/L

Through B/L

Content Name of the shipping company Shipper's name Order and notify party Description of Goods Gross/net/tare weight Freight rate/Measurements and weight of

goods/Total freight

Parties involved Exporter Importer Forwarding agent Insurance company Shipping line Customs and authorise dealer

Bills of exchange A bill of exchange or "draft" is a written order by the

drawer to the drawee to pay money to the payee.

It is a negotiable financial instrument by the drawer (creditor) to the drawee (debtor) to pay a certain amount of money at a matured date.

They are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date.

Parties to Bill of Exchange Drawer

Drawee

Payee

Special features A Bill Of Exchange is an instrument in writing It must be signed by the maker It contains an unconditional order The order must be to pay money only The sum payable must be specific The amount must be paid within a stipulated time The name of the drawee must be clearly mentioned It must be dated and stamped

Advantages A Bill of Exchange is used in settlement of debts

It fixes the date of payment

It is a written and signed acknowledgement of debt

A debtor enjoys full period of credit

A drawer can convert the bill into cash by getting it discounted with the bank

Regulatory Documents Freight Payment Certificate

Vehicle Ticket

Receipt for payment of Port Charges

Shipping Bill

Shipping bill The Shipping Bill/ Bill of Export are the main

document required by the Customs Authority for allowing shipment for all products exported

It is a document prescribed under custom act 1962 for allowing shipment of cargo by customs authority

It is prepared by custom house agent

Parties involved Exporter Importer Central excise Forwarding agent Insurance company Customs department Inspection agency

Documents required

GR forms (in duplicate) for shipment to all the countries.

Four copies of the packing list mentioning the contents, quantity, gross and net weight of each package

Four copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods.

L/C, Purchase Order of the overseas buyer. AR4 (both original and duplicate) and invoice. Inspection/ Examination Certificate.

Contents

Name and address of exporter and consignee Port of shipment Country of destination No.of packages Nature of contract Description of goods

Types of shipping bill Duty free goods shipping bill

Dutiable goods shipping bill

Drawback shipping bill

Entitlement of credit of duty under DEPB scheme

Shipping bill for shipment of excise bond

Formats White Shipping Bill in triplicate for export of duty free

of goods.

Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback

Yellow Shipping Bill in triplicate for the export of dutiable goods,

Blue Shipping Bill in 7 copies for exports under the DEPB scheme

Letter of Credit

Summary of a contract between seller and buyer with the bank(s) as referee.

Cont..…. A letter of credit is a commercial instrument used as

a means of financing international business transaction.

It is a contract under which a bank agrees to pay the seller in connection with the export of specific goods against the presentation of specified documents relating to those goods.

The credit is issued at the request of the buyer (the applicant) in favour of the seller (the beneficiary)”.

Parties to an L/C

The buyer (the applicant).

The issuing bank.

The advising bank (may also be the correspondent, nominated, confirming bank).

The seller (the beneficiary).

Types of L/C

Revocable L/C Irrevocable L/C Confirmed L/C Transferable L/C Back to back L/C Revolving L/C

Routing of L/CImporter opener advising his banker to open L/C in favor of exporter

Importer bank opens L/C

Exporter ‘s advising bank receives L/C and forward it to the exporter

Exporter receives L/C scrutinizes and proceeds to effect shipment

Exporters prepares/present documents as per L/C

Negotiating bank receives cheque and negotiates

Opening bank receives cheque and reimburses to the negotiating bank

Importer receive the bill. Accept bill ,after checking they pay to importer

Export Inspection Agency Need for inspection Coverages and applicability Procedures/Documentation Validity of Certificate Testing Organization Bonafide Samples

Central Excise Formalities Background Requirement of Export Consignment Procedures/Documentation Sanctioning authority Parties concerned

Formalities with Insurance Co. Background Necessities Types of Marine Insurance Premium Modus Operandi Types of Insurance Policy Fundamental principles involves Parties involved

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