MIB 3.6 Export Import Procedure

and Documentation

06 /august 2012

What are the different categories of exporter???

• Mfrer Exporter: Means a person engaged in trading activity and exporting or intending to export goods.

• Merchant Exporter: Means a person engaged in trading activity and exporting or intending to export goods.

• AEZ: Agricultural Export Zones notified by DGFT in Appendix 8 of Handbook of precedures(Vol 1)

Contd …• BTP: Means Biotechnology park as notified by

DGFT on the recommendation of the department of biotechnology.

• EHTP: means Electronic Hardware Technology Park

• EOU: Export Oriented Unit for which an LOP(letter of permission) issues by the development commissioner.

SERVICE PROVIDER ( Exporter) • i) supply of service from India to any other

country • ii) supply of service from India to the service of

any consumer any other country • Iii) supply of service from India through

commercial or other physical presence in the territory of any other country

• Iv)supply of service in India relating to exports paid in free foreign exchange or Indian rupees which are otherwise considered as having being paid for the free foreign exchange by RBI.

Contd

• SEZ: Special Economic Zones as notified by the Ministry of commerce and Industry.• Status Holder: Means any exporter

recognized as Export house /Trading house etc. by DGFT / Development commissioner.• STP: Software Technology Park.

Category of Importers

• ‘Importer’ means a person who imports or intends to import and holds an Importer- Importer code number unless otherwise specifically exempted.• Actual user: who may be either

Industrial or non Industrial.

Basic definitions of EXIM • Accessaories- or attachment • Act- 1992 (FT(D&RAct), 1992. • Apllicant :-• Authorization: - 2(g) of FT(D&Act) 1992 • BOA- Board of Approval notified by Dept of

Commerce• Capital Goods:-• Competent authority:- • Component:- • Consumables :-

Counter Trade !!!! Any arrangement under which exports/imports

from / to India are balanced either by direct imports /exports from the importing /exporting country or through a third country under a trade agreements or otherwise. Exports/imports under counter trade may be carried our through Escrow accounts, buyback arrangements, barter trade or any similar arrangement.The balancing of exports and imports could wholly or partly be in cash, goods and or/ services.

Developer Means a person or body of persons, company, firm

and such other private or government undertaking , who develops, builds, designs, organizes, promotes, finances, operates, maintain or manages a part or whole of the infrastructure and other facilities in the SEZ as approved by the central government.

Development commissioner:-

Drawback In relation to any goods produced or

manufactured in India and exported, means rebate of duty chargeable on any imported material or exercisable material used in the manufacture of such goods in India. The goods include imported spares, if supplied with capital goods manufactured in India.

• Excisable Goods: Means any goods produced or manufactured in India and subject to duty of excise under the Central Excise and Salt Act,1944. • Export Obligation: - the obligation to

export the product or products covered by the authorization or permission in terms of quantity , values or both, as may be prescribed or specified by the regional or competent authority.

• Group company:- • Infrastructure facilities:- for SEZ etc., • Jobbing: - • Regional authority:- • Licensing Year:- 1st April to 31st March.• Managed Hotel:- • Manufacture:- • MAI- Market Access Initiative • NC- norms committee in the DGFT

• Notification:- published in the official gazette• Order:-order by the central government under

Act • SION- Standard input output Norms notified in

DGFT hand book (Vol.2) by Board of Approval.• Third Party exports: exports made by an exporter

or manufacturer on behalf of another exporter(s) .In such cases export documents such as shipping bills etc shall indicate the name of both the mfg exp/mfr and third part exporter.

BASIC EXPORT DOCUMENTS

BASIC EXPORT DOCUMENTS

PRINCIPAL DOCUMENTS .The Commercial Invoice,

. Packing List

. Bill of Lading/Air Waybill

. Certificate of Inspection/Quality control. Certificate of origin. Bill of Exchange and. Shipment Advice. Insurance Certificate

AUXILARY DOCUMENTS 1. Proforma Invoice

2. Intimation for inspection3. Shipping instructions4. Insurance Declaration5. Application for certificate of origin.6. Mate's Receipt7. Letter to bank ofcollection/negotiation of documents

REGULATORY DOCUMENTS

1. ARE Form ( for Central Excise)2. Shipping Bill/Bill of Export(for Customs)- For export of goods Ex. Bond- For export of duty free goods- For export of dutiable goods- For export of goods under claim of drawback

REG DOCU…• -For export of goods under claim of DEPB • 3. Port Trust Copy of Shipping Bill/ • Export Application/Dock Challan-Port • 4. Vehicle ticket • -Port

5. Exchange Control Declaration/GR/PP forms-RBI6. Freight Payment Certificate-Steamer Agents7. Insurance Premium Payment Certificate- Insurance Co.

Pro Forma invoice Prepared by the supplier prior to

shipment of merchandise, informing the buyer of the kinds and goods to be sent, their value and importation specifications(weight, size and such characteristics)

Prepared by the Exporter

COMMERCIAL INVOCE

Its A formal demand note for payment issued by the exporter to the importer for goods sold under a sales of contract. Its should give details of the goods sold,payment terms and trade terms. It is also used for the customs clearance of the goods

Prepared by EXPORTER

PACKING LIST A LIST WITH DETAILED PACKING INFORMATION OF THE GOODS BEING SHIPPED

PREPARED BY exporter

Inspection certificateA report is issued by an independent

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

Prepared by Inspection company or exporter

Insurance policy/certificate Its an document evidencing –insurance

has been taken out on goods shipped, and it gives full details of insurance coverage. An insurance certifies that the shipment has been under or given open policy and is to cover loss of or damage to the cargo while in transit.

Prepared by Insurer/insurance agent or insurance broker

Product testing certificateTo certify that products are conformed

to e certain international/national technical standard such as product quality, safety and specifications etc,.

Issued by Accredited Laboratories

CONSULAR INVOICE A document required by some foreign countries,

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, its used by the countries' customs officials to verify the value ,quantity and nature of the shipment. Required for the countries like ..kenya,uganda, australia, fiji …

Preaperd by Exporter and certified by the said authority

TRANSPORT DOCUMENTATION Dock Receipt(DR) or Mate’s

Receipt: a receipt to confirm the receipt cargo on warehouse pending shipment. DR used as documentation to prepare bill of lading. Its has no legal role processing financial settlement.

Prepared by Shipping company

BILL OF LADING( B/L )A documents issued by the carrier to shipper,

acknowledging that specified have been received on board as cargo for conveyance to a named place for delivery. A through bill of lading involves the use of at least two modes of transport from road, rail, air and sea.. The term derives from the verb ‘ to LADE’ – means to load a cargo on to ship or other form of trans…………….

The basics of B/L 1. Name of the shipping company

2. Flag of Nationality

3. Shippers’ Name

4. Order and notify party

5. Description of goods

6. Gross/Net weight etc.,

7. Freight rate/measurement /weight and total freight .

Types of Bill of Lading Order bill of lading : this bill uses express word

to make the bill negotiable i.e. it states that the delivery is to be made to the further order of the consignee using words such delivery to Z ltd ..or right to make delivery can be transferred by physical delivery of the bill accompanied by adequate evidence of Z ltd ‘s intention to transfer

Bearer Bill of Lading

Delivery shall be made to whoever holds the bill. Such bill may be created explicitly or its an order bill

Surrender Bill of Lading

When we hand over the Bill of Lading , we surrender title to the goods and our power of sale over goods

A clean bill of Lading

States that the cargo has been loaded on board the ship in apparent good order and condition. Such B/L will not bear the clause or notation which expressively declares a defective condition goods and or the packing thus …its simply to acknowledge that the goods are received in good condition.

AIR- WAY BILL (AWB)

• Used for carriage of goods by AIR.• This serves as receipt of goods for

delivery and states the condition of carriage, but is not a title document or transferable/ negotiable instrument .

Issued by AIRLINE

Packing List…prepared by shipper

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

Dynamic documents • Export documentation is subject to frequent change

and amendments and requirements vary from country to country .

• To avail the updated information… the following sources can be contacted

• International chamber of commerce • Trade information centre • Export assistant centre

• An embassy • Freight forwarders

Combined Transport Document (CTD)

• Exporters situated in interior parts of the country face the problem of delay in submitting shipping' documents pertaining to the exports made by them to their bankers for negotiation as they have to depend on their shipping agents functioning at sea ports to obtain, shipping documents, especially, the marine bill of lading.

• To obviate this delay and also to popularize containerization Government has established Inland Container Depots (ICD) at a number of places. In these depots, exporters can arrange to get the goods stuffed in containers, customs formalities completed and goods dispatched to gateway ports in Customs Sealed Containers.

Export Procedures & Documentation - Step by Step

• Exporter examines export order/letter.• Exporter places order with the factory or

supplier in case of merchant exporters. • Factory/Supplier makes arrangements for

preship inspection and central excise clearance.

• Factory arranges despatch of Railway Receipt/Lorry Challan, AR4/AR5, inspection certificate, packing list etc. to Export Department.

• Insurance cover is arranged • Documents (Commercial Invoice in particular)

are prepared in Export Deptt. and despatched to C&F Agent along with shipping instructions.

• C&F Agent takes delivery of goods for storage in a warehouse.

• C&F Agent brings the documents for clearance by the Export Department of the Customs.

• After the documents are cleared goods are brought for physical examination. The Dock Appraiser records examination report, makes `Let Export' endorsement on the duplicate copy of Shipping Bill and hands over the same to the C&F Agent to 'be presented to Preventive Officer supervising the loading of the cargo.

• Preventive Officer makes the endorsement `let ship'. Thereafter, shipping Bill is handed over to the Agent of the shipping company.

• Goods are loaded and captain of the ship issues Mate's Receipt to the Shed Superintendent. C&F agent pays port charges and takes delivery of the Mate's Receipt, which is exchanged with Bill of Lading.

• C&F Agent forwards all the documents to the exporter.

• The exporter takes necessary Steps for obtaining Certificate of Origin.

• Shipment Advice is sent to Exporter. • Export Documents are presented to Bank for

negotiation.

• Export documents are scrutinized, and if found in order are negotiated or sent for collection. Exporter receives payment, if documents are negotiated and Bank Certificate issued to him.

• Exporter claims rebate of central excise and duty drawback.

• Exporter initiates action for claiming export benefits.