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Leb 1

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Published by Kapil Saini

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Published by: Kapil Saini on Sep 16, 2012
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• Engine of exports in global trade • Facilitates the movement of freight, transfer of title, processing of payment, and customs clearance. • Local customs authorities do not physically inspect most import shipments.

Flow chart .

freight brokers. an insurance company. a banker.Need • Buyers and sellers are separated by long distances in overseas trade transactions. • Formal contract laying down duties and responsibilities of buyers and sellers respectively is required • Intermediation becomes inevitable-a carrier. chambers of commerce etc. • Others-freight forwarders. .

• AR4/AR5 Form • Pre-shipment Inspection Certificate • Export Declaration Form GR/PP/VPP/COD/SOFTEX Form • Shipping Bill .Combined Transport Document II) Documentation as per requirement of Government of India: • Export License.Airway Bill .Classification of documents I) Documentation as per requirements of the contract: • Commercial Invoice • Packing List • Insurance Certificate/Policy • Bill of Exchange • Shipment Advice • Certificate of Origin • Inspection Certificate • Transportation Documents: . if necessary.Bill of Lading .

.III) Documents as per requirement of the importing Country: • Customs Invoice • GSP Certificate of Origin IV) Documents required for claiming export assistance: • Application form • Shipping Bill duly authenticated by customs • Commercial invoice attested by bank • Bank certificate • Statement of Exports certified by the negotiating bank • Registration cum membership form of concerned export promotion council.

Another classification Principal Documents 1. Packing List 3. Export Inspection Certificate 11. Marine Insurance Policy/Certificate 4. Combined Transport Document 9. Bill of Lading 7. GR/PPNPP/COD/SOFTEX Forms 10. Bill of Exchange 5. Consular Invoice . Letter of Credit 6. Shipment Advice 15. Shipping Bill 13. AR4/AR5 Forms 12. Airway Bill 8. Certificate of Origin 14. Commercial Invoice 2.

Shipping Instructions Form 2.Auxiliary Documents 1. Shipping Order 4. Mate Receipt and 5. Dock Challan . Application for Export Inspection Agency 3.

Legalized/ Visaed Invoice . Performa Invoice 3.Customs Invoice 5. Commercial Invoice 2.Invoices 1. Consular Invoice 4.

Insurance documents • • • • Letter of insurance Broker’s Certificate Insurance Certificate Insurance Policy .

Financial documents • • • • • Draft Clean Bill and Documentary Bill Stamp Duty Acceptance of Bill Noting/Protesting of Foreign Bills .

• Packing List • Marine Insurance Policy/Certificate • Bill of Exchange .

Letter of Credit a) Revocable and Irrevocable Letter of Credit: b) Confirmed and Unconfirmed Letter of Credit: c) Without Resource and with Resource: d) Sight and Usance: e) Transferable: f) Straight and Negotiation Credit: g) Revolving Letter of Credit: h) Red Clause Credits: i) Green Clause Credit: j) Back to Back Letter of Credit: .

or the insurers of the goods. Important points laid down in Uniform Customs and Practices for Documentary Credits issued by ICC . 2.1. 4. 7. In the absence of such indicators the credit shall be deemed to be revocable. in addition to that of the issuing bank. the additional risks which are to be covered. provided that the stipulated documents are presented & that the terms & conditions of the credit are complied with. genuineness. packing. nor do they assume any liability or responsibility for the description. 3. When an issuing bank authorizes or requests another bank to confirm its irrevocable credit & the latter has added its confirmation. by acceptance or by negotiation. value or existence of the goods represented by any documents or for the good faith or acts and/or omissions. banks will accept insurance documents as presented. the goods may be described in general terms not inconsistent with the description of the goods in the credit. The description of the goods in the commercial invoice must correspond with the description in the credit. solvency. A revocable credit may be amended or cancelled by the issuing bank at any moment and without notice to the beneficiary. without responsibility for any risk not being covered. by deferred payment. 6. acceptance or negotiation. 5. or any other person whomsoever. accuracy. falsification or legal effect of any document. 9. such confirmation constitutes a definite undertaking of such bank (the confirming bank). weight quality. 8. delivery. quantity. performance or standing of the consignor. Failing specific stipulation in the credit. In all other documents. sufficiency. condition. or for the general and/or particular conditions stipulated in the documents or super imposed thereon. All credits should clearly indicate whether they are revocable or irrevocable. the carriers. All credits must stipulate an expiry date for presentation of documents for payment. An irrevocable credit constitutes a definite undertaking of the issuing bank. provided that the stipulated documents are presented and that the terms and conditions of the credit are complied with. All credits must clearly indicate whether they are available by sight payment. Banks assume no liability or responsibility for the form. if any. Credits should stipulate the type of insurance cover required and.

Checklist for the seller after the documentary credit opening General Points • Deadlines and shipment of goods • Draft • Invoice • Transport documents in general • Marine bill of lading • Airway bill • Insurance documents • Certificate of Origin .

• A collateral. that can be used for any advances made to the seller or to the buyer in the process of financing the shipment. . • A contract of affreightment between the shipper and the carrier specifying their respective responsibilities and obligations. • A document of title to goods and provides interested parties including banks with title to the goods mentioned therein.Bill of Lading • A receipt/acknowledgement of cargo delivered for transportation.

Types of bill of lading 1) Received for Shipment B/L 2) On Board Shipped B/L 3) Clean B/L 4) Claused or Dirty B/L 5) Combined B/L 6) Through B/L Trans-shipment B/L 8) Charter Party B/L .

Air Way Bill (AWB)/Air Consignment Note .

Combined Transport Document (CTD) .

.GR/PP/VPP/COD/SOFTEX Forms a) GR Form: It is required to be filled in duplicate for all exports in physical form other than by post. d) SOFTEX Form: It is required to be prepared in triplicate for export of computer software in non-physical form. b) PP Form : It is required to be filled in duplicate for all exports to all countries. c) VP/COD Form: It is required to be filled in one copy for exports to all countries by post parcel wider arrangements to realise proceeds through postal channels on "value payable" or "cash on delivery" basis. made by post parcel. except when made on "value payable" or "cash on delivery" basis.

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