Business and Shipping Terms

In RMG Shipment
Typical Documentation in Export-Import
 Export Documents Required for Shipment
•Shipping bill of entry.
•Certificate of origin.
•Insurance Certificate.
•Proforma Invoice.
•Commercial Invoice.
•GSP
•Weight.
•Bill of Lading.
•Export Packing List.
•Certificate of Inspection.
•Export L/C copy.
•Dock & Warehouse Receipts.

Extra Documents: Test report, Payment Terms, Certificate of

Health or Sanitation, Dangerous Goods Certificate etc.
 Export Documents Required for Shipment
•Shipping bill of entry:

prepared by exporter’s customs broker or exporter.

GSP: GSP means Generalised System of Preferences (GSP), which provides

garment manufacturers with duty-free access. Actually, GSP is an instrument by
which developed nations help the poorer countries foster more trade.
 Export Documents Required for Shipment
•Certificate of Origin:

In most countries, importers are required to submit a certificate

of origin in respect of import consignment for obtaining their
custom clearance. This can be issued by any chamber of
commerce. The application should be accompanied by two copies
of the commercial invoice and draft for the prescribed fee.
 Export Documents Required for Shipment
•Insurance Certificate:

This is the document indicating insurance of the cargo. It is issued

by the insurance company. The difference between the two is that
the certificate is just an evidence of insurance. It does not state the
terms and conditions of the insurance, on the other hand the
policy states the terms and conditions of the goods.
 Export Documents Required for Shipment
Performa Invoice:
A pro forma invoice is an invoice prepared by the exporter before
shipping the goods, informing the buyer of the goods to be sent, their
value, and other key specifications. It also can be used as an offering of
sale or price quotation.

Commercial Invoice:
A commercial invoice is a bill for the goods from the seller to the
buyer. These invoices are often used by governments to determine the
true value of goods when assessing customs duties. Governments that
use the commercial invoice to control imports will often specify its
form, content, number of copies, language to be used, and other
characteristics.
 Export Documents Required for Shipment
•Bill of Lading (BIL) :

It is a major document if the goods are dispatched by sea.

The document represents:
1. A formal receipt for the goods
2. The evidence of the contract of carriage of the goods between the
shipper of the goods and the shipping company.
3. The document of title to the goods
A bill of lading may include the following details:
A description of the goods in general terms not inconsistent with
that in the letter of Credit
Identifying marks and numbers if any
The name of the carrying vessel
Evidence that the goods have been loaded on board
The ports of shipment and discharge
The names of shipper, consignee (if not made out “to order”) and
name and address of third party if any.
Whether freight has been paid in advance or is payable at
destination.
 Export Documents Required for Shipment
•Export Packing List:
Considerably more detailed and informative than a standard
domestic packing list, an export packing list lists seller, buyer,
shipper, invoice number, date of shipment, mode of transport,
carrier, and itemizes quantity, description, the type of package,
such as a box, crate, drum, or carton, the quantity of packages,
total net and gross weight (in kilograms), package marks, and
dimensions, if appropriate. Both commercial stationers and
freight forwarders carry packing list forms. A packing list may
serve as conforming document. It is not a substitute for a
commercial invoice. In addition, U.S. and foreign customs
officials may use the export packing list to check the cargo.
 Export Documents Required for Shipment
•Certificate of Inspection:
 Export Documents Required for Shipment
•Export L/C copy:
 Export Documents Required for Shipment
•Dock & Warehouse Receipts:
 Export Labelling & Shipping Marks
To ease the dispatch of exported products, and their receipt in the
country of destination, specific labeling and marking are used on
the export packages in order:-

•To meet shipping regulations.

•To ensure proper handling of the packages.
•To conceal the identity of the contents.
•To help receivers (freight forwarders) to identify shipments.
 Export Labelling & Shipping Marks
Importing countries may require many different types of markings
to be on the shipment package. To meet these requirements
Producers/Exporter may need to put some or all of the following
markings on their export packaging: -
Shipper's mark.
•Country of origin (Producer/Exporter country).
•Weight marking (e.g. in kilograms etc.).
•Number of packages and size of cases (e.g. in inches and
centimeters).
•Handling marks (international pictorial symbols).
•Cautionary markings, such as "This Side Up" or "Use No Hooks"
(in English and in the language of the country of destination).
•Name of the port of entry.
•Labels for hazardous materials (i.e. universal symbols adapted by
the International Maritime Organization - IMO).
 Shipping Terms
Consignee-
The Person whose name appears on the bill of lading or Airway bill
as the party to whom the goods are to be delivered by the carrier.
FCL (Full Container load)-
A fully loaded container which may be in weight or cubic
measurements terms, contracted by one shipper, and conveyed to
one consignee and to one destination.
LCL (Less Container load)-
A consignment of Cargo which does not fill a full container, grouped
with other consignments for the same destination.
Shipper-
This is the person whose name appears on the bill of lading or air
way bill as the party who has contracted the carrier to dispatch the
goods.
 G.S.P certificate of origin:
• The G.S.P certificate of origin is different from
the CO. This is required under the scheme of
generalized system of preferences introduced
by the developed countries in pursuance to
unclad resolution of 1971 the scheme enables
the importer in developed countries to import
goods from developing countries like India at
concessional rates of import duty or without
payment of duty. This is issued by textile
committee {ready made garments}
 Bill of exchange
• It is an unconditional written order requesting the
buyer {drawee} to pay a specified sum of money to a
specified person at a specified time. One who prepares
this order is called drawer {seller}. This is also known as
draft in international trade. When the buyer has to pay
for the amount at time of its presentation it is known
as sight draft. If a credit time is allowed by exporter it is
called usance draft. It is important to note that bill of
exchange should be drawn to the order of the
exporter’s bank i.e. the bank which would negotiate
the documents/ collect the proceeds.
 DOCUMENTATION PROCEDURE OF
GARMENT EXPORT HOUSE

• Special custom invoice ( Canada)

• G.S. P.( E. U. Countries)
• Visa (U.S.A.)
• Single country declaration (U.S.A.)
• Multiple country declaration (if 100% E.O.U. for
U.S.A)
• Certificate of origin (E.U.)
• Canada custom invoice
 Custom clearance set

• This set of document is forwarded to the agent when the goods are
ex. Factory for getting custom clearance. It contains:
• Invoice
• Packing list
• Duplicate visa{U.S.A.}
• Draw back declaration form
• Export certificate {Canada & E.U.}
• S.d.f. {E.U., Canada, non quota}
• Certificate of origin{E.U.}
• S.d.f (Canada, U.S.A, non quota countries)
• Certificate from PhD. Chamber of Commerce( non quota
countries)
 Import Documents Required to Release a Shipment
•Bill of Entry
•Copy of Bill of Lading (BL)
•Copy of Invoice.
•Packing List.
•Certificate of Origin.
•UD/UP (Utilization Declaration/ Utilization Permission)
•VBF-6A (Value Bond Form)
•Bond/Stamp
•Copy of Master LC.
•Letter of Credit authorization (LCA)
•Performa Invoice.
•Copy of insurance cover note.
•PSI (Pre-Shipment Inspection)
 Import Documents Required to Release a Shipment
•Bill of Entry:

•Copy of Bill of Lading (BL)

 Import Documents Required to Release a Shipment
•Bill of Entry:

•Copy of Bill of Lading (BL)

•Copy of Invoice.
•Packing List:
This is a document that indicates the contents of each
individual/package in the container. The packing list includes the cubic
measurement of the cartons/Package, the weight, the number of
cartons/Packages, the breakdown of the goods by size /color/quantity.
This document is prepared by the seller or the ship-owner, and the
buyer can specify which information should be included.

Exporter
Consignee
Invoice number
Purchase order number
Color
 Import Documents Required to Release a Shipment

•Certificate of Origin.
•UD/UP (Utilization Declaration/ Utilization Permission)
•VBF-6A (Value Bond Form)
•Bond/Stamp
•Copy of Master LC.
•Letter of Credit authorization (LCA)
•Performa Invoice.
•Copy of insurance cover note.
•PSI (Pre-Shipment Inspection)
 Short Note

•Freight Forwarder.
•Shipper.
•GSP.
•Carrier.
•Cut-off.
•Stuffing.
•Consignee,
•Notify Party.
•HS Code.
•Bonded Warehouse.
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