Export Procedure and Documentation 140128115356 Phpapp02

8/10/2019 Export Procedure and Documentation 140128115356 Phpapp02

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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 volumeof 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.

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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.

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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 isrevoked. *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 .

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IDENTITY CARD (For cond c!"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 tovisit $"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


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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 exportedand 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 !oreignTrade (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

Certi icate (RC&C) from the council. his has twin ob=ectives:

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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.

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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, packinglist, 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"$0 In1o"c * Commercial invoice is an important and basic exportdocument. )t is also known as a B$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.


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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 shippingdocuments.

)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 Certi icate' 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

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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 the8atin #merican countries like Eenya, >ganda, an'ania, 5auritius, 0ew ealand,

5yanmar, )ra!, #ustralia, Fi=i, Cyprus, 0igeria, "hana, "uinea, an'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

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purposes. )n order to obtain consular invoice, the exporter is re!uired to submitthree 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 portdestination 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

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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%pre erential Certi icate2 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) Certi icate 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 %P s

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(c) Certi icate or a/ailing Conce""ion" under Common#ealth Pre erence" (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 ealand 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) Certi icate or a/ailing Conce""ion" under other +y"tem" o Pre erence'%

Certificate of origin is also re!uired for tariff concessions. under the "lobal 1ystem

of rade Preferences +"1 P , *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 soleauthority to print blank Certificates of &rigin under *#, 1## C and 1#P # which

can be issued by such agencies as %PCs, $Cs of %P s, %)C, #P%$#, 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 discharge and place of delivery.


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.

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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 shippingcompany 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.

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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.





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.

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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 receiptissued by an airline for the carriage of goods. #s each shipping company has its own bill

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of lading, so each airline has its own airway bill. #irway *ill or #ir Consignment 0ote isnot 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.






#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.

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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 A 2"0"$r3 Doc , n!%* hese documents generally form the basic documents based

on which the commercial and or regulatory documents are prepared. hese documents

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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 importer.

5ode of transportation, such as 1ea or #ir or 5ultimodal transport.


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.

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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.


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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.

7uali ied &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.








"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.

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*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 tomake necessary arrangements for customs clearance and loading of the goods.

4. S'" "n# In%!r c!"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(


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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.

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%xporterBs copy.

T3 % o S'" "n# B"00

*ased on the incentives offered by the government, customs authorities have introducedthree 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 shi pping bill Mellow Pink $uty-Free shipping bill 2hite Pink

Con! n!% o S'" "n# B"00


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

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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 customsauthorities 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, therelevant 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.

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;. 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.


26/31


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+< or Co,, rc"$0 In1o"c .

4A


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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.

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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 0o 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

outright sale basis3 or on consignment basis3 and irrelevant clauses

must be stuck out

4D


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>nder the term analysis 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 becompleted 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


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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 insuch 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/


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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.

Documents

Export Procedure and Documentation 140128115356 Phpapp02