• Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU)

and international apex body coordinating activities of national postal administration.

It is known by the code number CP2/ CP3 and to be prepared in quadruplicate, signed
by the sender.
• Despatch Note, also known as CP2. It is filled by the sender to specify the action to be
taken by the postal department at the destination in case the address is non-traceable
or the parcel is refused to be accepted.
• Prescriptions regarding the minimum and maximum sizes of the parcel with its
maximum weight :
Minimum size: Total surface area not less than 140 mm X 90 mm.
Maximum size: Lengthwise not over 1.05 m. Measurement of any other side of
circumference 0.9 m./ 2.00 m.
Maximum weight: 10 kg usually, 20 kg for some destinations.
• Commercial invoice - Issued by the seller for the full realisable amount of goods as
per trade term.
• Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania,
Mauritius, New Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana,
Zanzibar etc. It is prepared in the prescribed format and is signed/ certified by the
counsel of the importing country located in the country of export.
• Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is
prepared on a special form being presented by the Customs authorities of the
importing country. It facilitates entry of goods in the importing country at preferential
tariff rate.
• Legalised/ Visaed Invoice - This shows the seller's genuineness before the
appropriate consulate/ chamber of commerce/ embassy. It do not have any prescribed
form.
• Certified Invoice - It is required when the exporter needs to certify on the invoice
that the goods are of a particular origin or manufactured/ packed at a particular place
and in accordance with specific contract. Sight Draft and Usance Draft are available
for this. Sight Draft is required when the exporter expects immediate payment and
Usance Draft is required for credit delivery.
• Packing List - It shows the details of goods contained in each parcel/ shipment.
• Certificate of Inspection - It shows that goods have been inspected before shipment.
• Black List Certificate - It is required for countries which have strained political
relation. It certifies that the ship or the aircraft carrying the goods has not touched
those country(s).
• Weight Note - Required to confirm the packets or bales or other form are of a
stipulated weight.
• Manufacturer's/ Supplier's Quality/ Inspection Certificate.
• Manufacturer's Certificate - It is required in addition to the Certificate of Origin for
few countries to show that the goods shipped have actually been manufactured and
are available.
• Certificate of Chemical Analysis - It is required to ensure the quality and grade of
certain items such as metallic ores, pigments, etc.
• Certificate of Shipment - It signifies that a certain lot of goods have been shipped.
 • Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs,
marine products, hides, livestock etc.
• Certificate of Conditioning - It is issued by the competent office to certify
compliance of humidity factor, dry weight, etc.
• Antiquity Measurement - Issued by Archaeological Survey of India in case of
antiques.
• Transhipment Bill - It is used for goods imported into a customs port/ airport
intended for transhipment.
• Shipping Order - Issued by the Shipping (Conference) Line which intimates the
exporter about the reservation of space of shipment of cargo through the specific
vessel from a specified port and on a specified date.
• Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate
and includes the shipper's name, cart/ lorry No., marks on packages, quantity, etc.
• Shut Out Advice - It is a statement of packages which are shut out by a ship and is
prepared by the concerned shed and is sent to the exporter.
• Short Shipment Form - It is an application to the customs authorities at port which
advises short shipment of goods and required for claiming the return.
• Shipping Advice - It is prepared in aligned document to be used to inform the
overseas customer about the shipment of goods.

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role_of_various_regulation_documents#ixzz17mRzQMKL

Che 4 Export Documentation - Presentation Transcript

1. C hapter 4 Export Documentation Framework

2. A n export manager needs to keep himself thoroughly updated on all documentation requirements to carry out an
export transaction successfully and it is one of his primary responsibilities to ensure that all documentary
formalities are duly complied with. Proper documentation will ensure smooth sailing with the requirements of
each of these agencies and the resulting transaction will be a successful one. Inaccurate or incomplete
documentation will result in serious financial and goodwill losses.
3.
○ Export Documentation Requirements in India
○ Export documentation in India has evolved a great deal particularly since 1990. Efforts are on, on a faster
footing to streamline and modernize the system further. Prior to 1990, the documentation was all manual
and not at all coordinated. The result was lot of delays and mistakes, rendering the task very clumsy,
tiresome, repetitive and truly frustrating. India adopted the ADS in 1991. ADS refers to Aligned
Documentation System, which is the internationally accepted documentation system. ADS uses a Master
Document that contains the information common to all documents forming part of the aligned series (refer
to enclosed CD).
○ The export documentation framework in India can be best understood by classifying export documents in
the following two categories:
○ Commercial documents
 ○ Regulatory documents.
4.
○ Commercial Documents
○ These documents have their origin in “Custom of Trade” in international commerce and are used by
exporters/importers to discharge their respective legal and other incidental responsibilities under sales
contract. Commercial documents can be further sub-divided into:
○ Principal commercial documents
○ Auxiliary commercial documents
Cont….
5.
○ Principal commercial documents include:
○ Commercial invoice (and the invoice prescribed by the importer)
○ Packing list
○ Certificate of inspection
○ Certificate of insurance/insurance policy
○ Bill of Lading/Airway bill/Combined transport document
○ Certificate of origin
○ Bill of exchange
○ Shipment advice.
Cont….
6.
○ Auxiliary commercial documents: These documents are required to prepare/procure the principal
commercial documents and include:
○ Proforma invoice
○ Shipping instructions
○ Insurance declaration
○ Intimation for inspection
○ Shipping order
○ Mate’s receipt
○ Application for certificate of origin
○ Letter to bank for negotiation/collection of documents

7. Regulatory Documents
○ These are prescribed by various government departments/bodies for compliance of formalities under
relevant laws governing export transactions. These include:
○ Exchange Control Declaration Form-GR Form
○ Freight Payment Certificate
○ Insurance Premium Payment Certificate
○ ARE I/ARE II Forms
○ Shipping Bill/Bill of Export
○ Port Trust Copy of Shipping Bill/Export Application/Dock Challan
○ Receipt of Payment of Port Charges
○ Vehicle Ticket
A. Invoice
1) Proforma Invoice:
A proforma invoice is a quote in an invoice format that may be required by the buyer to
apply for an import license, contract for pre-shipment inspection, open a letter of credit or
arrange for transfer of hard currency.
A proforma may not be a required shipping document, but it can provide detailed
information
that buyers need in order tole gally import the product.
Proforma invoices basically contain much of the same information as the formal quotation,
and in many cases can be used in place of one. It should give the buyer as much information
about the order as possible so arrangements can be made efficiently. The invoices inform
the buyer and the appropriate import government authorities details of the future shipment;
changes should not be made without the buyer’s consent.
As mentioned for the quotation, the points to be included in the proforma are:
1. Seller’s name and address
2. Buyer’s name and address

3. Buyer’s reference
4. Items quoted
5. Prices of items: per unit and extended totals
6. Weights and dimensions of quoted products
7. Discounts, if applicable
8. Terms of sale or Incoterm used (include delivery point)
9. Terms of payment
10. Estimated shipping date
11. Validity date
For example, country A does not require person X to have a visa before entering the country
but person X is in country B which requires a visa from country A in order to allow X to
depart. In that case country A may issue a pro-forma visa to X, meaning the only object of
the visa is to satisfy the formal requirement for X to have a visa and not any real requirement
by country A.

2) Commercial Invoice:
A commercial invoice is document used in foreign trade. It is used as a customs
declaration provided by the person or corporation that is exporting an item across
international borders. Although there is no standard format, the document must include a few
specific pieces of information such as the parties involved in the shipping transaction, the
goods being transported, the country of manufacture, and the Harmonized System codes for
those goods. A commercial invoice must also include a statement certifying that the invoice
is true, and a signature. A commercial invoice is primarily used to calculate tariffs.
3)Consular Invoice:
Certification by a consular or government official covering an international shipment of
goods. A consular invoice, obtained from the consul of the importing country at the point of
shipment, insures that the exporter's trade papers are in order and the goods being shipped
do not violate any laws or trade restrictions.
B. Certificate
4) Certificate Of Origin:
A Certificate of Origin (often abbreviated to CO or COO) is a document used in
international trade. It traditionally states from what country the shipped goods originate, but
"originate" in a CO does not mean the country the goods are shipped from, but the country
where their goods are actually made. This raises a definition problem in cases where less
than 100% of the raw materials and processes and added value are not all from one country.
An often used practice is that if more than 50% of the sales price of the goods originate from
one country, that country is acceptable as the country of origin (then the "national content" is
more than 50%). In various international agreements, other percentages of national content
are acceptable.

5) Combined Certificate of Origin And Value:

This Document is applicable to commonwealth countries only. This document
certifies not only
the origin of goods but also the value of goods.
C. Customs Documents
5) Combined Certificate of Origin And Value:
This Document is applicable to commonwealth countries only. This document
certifies not only
the origin of goods but also the value of goods.
C. Customs Documents
Shipping Bill/ Bill of Export is the main document required by the Customs Authority for
allowing shipment. Usually the Shipping Bill is of four types and the major distinction lies with
regard to the goods being subject to certain conditions which are mentioned below:

• Export duty/ cess

• Free of duty/ cess

• Entitlement of duty drawback

• Entitlement of credit of duty under DEPB Scheme

• Re-export of imported goods

The following are the documents required for the processing of the Shipping Bill:
• GR forms (in duplicate) for shipment to all the countries.
• 4 copies of the packing list mentioning the contents, quantity, gross and net
weight of
each package.
• 4 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 etc.
• Contract, L/C, Purchase Order of the overseas buyer.

• AR4 (both original and duplicate) and invoice.

• Inspection/ Examination Certificate.

The formats presented for the Shipping Bill are as given below:
• 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.
Note: - For the goods which are cleared by Land Customs, Bill of Export (also of 4
types -
white, green, yellow & pink) is required instead of Shipping Bill.
D. Transport Documents
1)Mate Receipt:
A declaration issued by an officer of a vessel stating that certain goods have
been received on
board his vessel. An archaic practice. An acknowledgement of cargo receipt
signed by a mate

of the vessel. The possessor of the mate's receipt is entitled to the bill of lading,
in exchange
for that receipt.
2)Bill of Lading:
A bill of lading (sometimes referred to as aB OL, orB/L) is a document issued by a carrier
to a shipper, acknowledging that specified goods have been received on board as cargo for
conveyance to a named place for delivery to the consignee who is usually identified. Athr
ough bill of lading involves the use of at least two different modes of transport from road,
rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo onto
a ship or other form of transportation.
A bill of lading can be used as a traded object. The standard short form bill of
lading is
evidence of the contract of carriage of goods and it serves a number of
purposes:
•

It is evidence that a valid contract of carriage, or a chartering contract, exists, and it

may incorporate the full terms of the contract between the consignor and the carrier
by reference (i.e. the short form simply refers to the main contract as an existing
document, whereas the long form of a bill of lading (connaissement intégral)
issued by the carrier sets out all the terms of the contract of carriage);
•

It is a receipt signed by the carrier confirming whether goods matching the contract
description have been received in good condition (a bill will be described asc le an if the
goods have been received on board in apparent good condition and stowed ready for
transport); and
•
It is also a document of transfer, being freely transferable but not a negotiable instrument in
the legal sense, i.e. it governs all the legal aspects of physical carriage, and, like a cheque or
other negotiable instrument, it may be endorsed affecting ownership of the goods actually
being carried. This matches everyday experience in that the contract a person might make
with a commercial carrier like FedEx for mostly airway parcels, is separate from any contract
for the sale of the goods to be carried, however it binds the carrier to its terms, irrespectively
of who the actual holder of the B/L, and owner of the goods, may be at a specific moment.
Types of Bill of Lading
Straight bill of lading : This bill states that the goods are consigned to a specified
person and it
is not negotiable free from existing equities, i.e. any endorsee acquires no better rights than
those held by the endorser. So, for example, if the carrier or another holds a lien over the
goods as security for unpaid debts, the endorsee is bound by the lien. Although, if the
endorser wrongfully failed to disclose the charge, the endorsee will have a right to claim
damages for failing to transfer an unencumbered title. Also known as a non-negotiable bill of
lading; and from the banker's point of view this type of bill of lading is not safe.

Order bill of lading : This bill uses express words to make the bill negotiable, e.g. it
states that
delivery is to be made to the further order of the consignee using words such as "delivery to
A Ltd. or to order or assigns". Consequently, it can be endorsed by A Ltd. or the right to take
delivery can be transferred by physical delivery of the bill accompanied by adequate
evidence of A Limited’s intention to transfer.
Bearer bill of lading : This bill states that delivery shall be made to whosoever holds
the bill.
Such bill may be created explicitly or it is an order bill that fails to nominate the consignee
whether in its original form or through an endorsement in blank. A bearer bill can be
negotiated by physical delivery.
Surrender bill of lading : Under a term import documentary credit the bank releases
the
documents on receipt from the negotiating bank but the importer does not pay the bank until
the maturity of the draft under the relative credit. This direct liability is called Surrender Bill of
Lading (SBL), i.e. when we hand over the bill of lading we surrender title to the goods and
our power of sale over the goods.
1)Airway Bill:
Air Waybill(AWB) or air consignment note refers to a receipt issued by an
international
courier company for goods and an evidence of the contract of carriage, but it is not a
document of title to the goods. Hence, the AWB is non-negotiable. The AWB has a tracking
number which can be used to check the status of delivery, and current position of the
shipment. The number consists of a three digits airline prefix issued by IATA and an 8 digit
number.
The first three copies are classified as originals. The first copy is retained by the issuing
carrier or their appointed agent. The 2nd copy by the receiving carrier or their appointed
agent. The 3rd copy is used as Proof Of Delivery (POD). The goods in the air consignment
are consigned directly to the party (the consignee) named in the letter of credit (L/C). Unless
the goods are consigned to a third party like the issuing bank, the importer can obtain the
goods from the carrier at destination without paying the issuing bank or the consignor.
Therefore, unless a cash payment has been received by the exporter or the buyer's integrity
is unquestionable; consigning goods directly to the importer is risky.
For air consignment to certain destinations, it is possible to arrange payment on a COD
(cash on delivery) basis and consign the goods directly to the importer. The goods are
released to the importer only after the importer makes the payment and complies with the
instructions in the AWB. The AWB must indicate that the goods have been accepted for
carriage, and it must be signed or authenticated by the carrier or the named agent for or on
behalf of the carrier.
E. EXCHANGE CONTROL DOCUMENTS
2) GR FORM:

It is an exchange control document which is to be submitted to the RBI after clearance from
the customs authorities. It is designed mainly to furnished guarantee to the RBI to remit the
foreign exchange earned from the export shipment within 180 days from the date of export.
3)PP FORM:
It is also an exchange control document. It is used in place of form GR when
goods are
exported by post parcel.
F. PAYMENT DOCUMENTS
12) Bill of exchange:
A bill of exchange or "draft" is a written order by thedr awer to thedr awee to pay
money to the
payee. A common type of bill of exchange is the cheque, defined as a bill of
exchange drawn
on a banker and payable on demand. Bills of exchange 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. Prior to the advent of paper currency, bills of exchange were a common means
of exchange. They are not used as often today.
A bill of exchange is an unconditional order in writing addressed by one person to another,
signed by the person giving it, requiring the person to whom it is addressed to pay on
demand or at fixed or determinable future time a sum certain in money to order or to bearer.
It is essentially an order made by one person to another to pay money to a third person. A
bill of exchange requires in its inception three parties--the drawer, the drawee, and the
payee.
The person who draws the bill is called the drawer. He gives the order to pay money to third
party. The party upon whom the bill is drawn is called the drawee. He is the person to whom
the bill is addressed and who is ordered to pay. He becomes an acceptor when he indicates
his willingness to pay the bill. The party in whose favor the bill is drawn or is payable is
called the payee. The parties need not all be distinct persons. Thus, the drawer may draw on
himself payable to his own order.

A bill of exchange may be endorsed by the payee in favour of a third party, who may in turn
endorse it to a fourth, and so on indefinitely. The "holder in due course" may claim the
amount of the bill against the drawee and all previous endorsers, regardless of any
counterclaims that may have disabled the previous payee or endorser from doing so. This is
what is meant by saying that a bill is negotiable. In some cases a bill is marked "not
negotiable". In that case it can still be transferred to a third party, but the third party can have
no better right than the transferor.
G. MISCELLANEOUS DOCUMENTS
13) MARINE INSURANCE:
Marine Insurance covers the loss or damage of ships, cargo, terminals, and any
transport or
property by which cargo is transferred, acquired, or held between the points of
origin and final
destination.

Cargo insurance—discussed here—is a sub-branch of marine insurance, though Marine also

includes Onshore and Offshore exposed property (container terminals, ports, oil platforms,
pipelines); Hull; Marine Casualty; and Marine Liability.
14) Certificate of Insurance:
A document issued by an insurance company/broker that is used to verify the existence of
insurance coverage under specific conditions granted to listed individuals. More specifically,
the document lists the effective date of the policy, the type of insurance coverage purchased,
and the types and dollar amount of applicable liability.
A certificate of insurance is often demanded in situations where liability and large losses are
a concern. For example, a company wishes to hire a driver from a temp agency. The
company will most likely ask the agency to show them a certificate of insurance that proves
that certain liabilities will be covered by insurance in the event the driver causes problems,
such as incurring damages from driving the company’s vehicles.
15) HEALTH CERTIFICATE:
It is required for export of food products, seeds, animal meat products, etc. This certificate is
issued by the health department of the exporting country certifying that these items are free
from infection and contamination.
IMPORT DOCUMENTS
1. BILL OF ENTRY:
A bill of entry is a formal declaration describing goods which are being imported or exported.
The bill of entry is examined by customs officials to confirm that the contents of a shipment
conform to the law, and to determine which taxes, tariffs, and restrictions may apply to the
shipment. This document must be prepared by the importer or exporter, with many
companies hiring a clerk specifically to handle the process of preparing bills of
entry.

A typical bill of entry includes a description of the goods in the shipment, including details
and the quantity of the goods, along with an estimate of their value. Customs officials
reserve the right to inspect the shipment to determine whether or not it is consistent with the
bill of entry, and discrepancies can be grounds for legal proceedings. Once a bill of entry has
been reviewed and the shipment has been inspected, it can be cleared for sale or transfer. If
there is a problem, customs may opt to confiscate the goods.
Many nations have specific laws about how bills of entry should be formatted and presented.
It is important to have accurate documentation, or goods can be held up in customs. This
can cause an inconvenience in some cases, and spoilage or destruction of the goods in
others; a shipment of fruit, for example, will not hold up through a lengthy retention by
customs while details of the shipment are worked out.
In addition to a bill of entry, goods may also need additional supporting paperwork. Works of
art, for example, may need to be accompanied by certificates of provenance. Archaeological
artifacts also need to be accompanied by paperwork indicating that their release has been
approved by the government, and describing the purpose for which the artifacts are being
moved across international borders. This is designed to prevent the illegal sale and trade in
priceless cultural artifacts.
Companies keep copies of their bills of entry on record as part of their financial paperwork;
they need to be able to track the movement of shipments. These forms are also used by
customs officials to track the type of goods being moved over their borders, and in the case
of objects with import and export quotas, to make sure that these quotas are not exceeded.
This paperwork is also used in the preparation of statistics which are designed to shed light
on a nation's economic health and trade balance with other nations.

2. CERTIFICATE OF INSPECTION:
Inspection report or report of findings is required by some importers and/or importing
countries. Please see the sample Inspection Report. The export-trader uses such a report in
the inspection of goods purchased from a manufacturer. The export-manufacturer also uses
such a report in the inspection of its own productions.
In case an inspection certificate is required, the importer may stipulate in the
letter of credit
(L/C) to use a specific independent surveyor.
In the case of a foreign government required pre-shipment inspection, which is stipulated in
the L/C, the report of findings can be in the form of a security label attached on the invoice.
The label bears the number and date of the corresponding report of findings issued by the
foreign government engaged surveyor.
3. CERTIFICATE OF MEASUREMENT:

There are two ways how freight can be charged i.e. on the basis of weight or measurement.
When freight is charged on the basis of weight, the weight declared by the exporter is
accepted. However, the exporter can obtain certificate of measurement either from the
Indian chamber of commerce or any other approved organization and submitted to the
shipping company for calculation of applicable freight. The certificate contains detail like
name of the vessel, port of destination, description of goods, length, breadth, quantity,
depth, etc. of the packages.
4. FREIGHT DECLARATION:
When the importer agrees to pay the freight or the overseas supplier pays the
freight; in both
the cases freight declaration is needed from the overseas supplier.
5. FUMIGATION CERTIFICATE:
In order to ensure safety against spread of harmful virus importer insist on fumigation
certificate where the cargo includes plants & weeds. Unless his certificate is provided the
cargo will not be allowed to enter into their countries. The exporter is responsible to carry out
fumigation & also obtain a certificate from the prescribed agency. Serious complications will
arise in the certificate from the exporter. The certificate will enable importers easy clearance
of goods.