EXPORT DOCUMENTATION

EXPORT DOCUMENTATION

There are a number of documents, which have to be prepared by the exporter in order to arrange export of his consignments.
These documents can be mainly classified into two i.e. (a) Commercial Documents and

(b) Legal Documents

EXPORT DOCUMENTATION

Export Documents
Commercial Documents Principal Auxiliary Regulatory Documents

EXPORT DOCUMENTATION

Out of the 15 commercial documents, eight are principal and the rest are auxiliary. The eight principal documents are 1. The Commercial Invoice,
2. Packing List 3. Bill of Lading/Air Waybill 4. Certificate of Inspection/Quality control 5. Certificate of origin 6. Bill of Exchange and 7. Shipment Advice 8. Insurance Certificate

EXPORT DOCUMENTATION

The seven auxiliary documents are

1. Proforma Invoice 2. Intimation for inspection 3. Shipping instructions 4. Insurance Declaration

5. Application for certificate of origin.

6. Mate's Receipt 7. Letter to bank of collection/negotiation of documents

Proforma Invoice
An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and importation specifications (weight, size and similar characteristics). It is prepared by the exporter.

Contents of Proforma Invoice

Name and address of the exporter Name and address of the importer Mode of transportation, such as sea or air or multimodal transport Name of the port of loading Name of the port of discharge and final destination Provisional invoice number and date Exporters reference number Buyers reference number and date Name of the country of origin of goods Name of the country of final destination Marks and container number Number of packing description Signature of the exporter with date

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Export Invoice
It is a formal demand note for payment issued by the exporter to the importer for goods sold under a sales contract. It should give details of the goods sold, payment terms and trade terms. It is also used for the customs clearance of goods and sometimes for foreign exchange purpose by the importer. It is prepared by the Exporter

Packing List
A list providing information needed for transportation purpose, such as details of invoice, buyer, consignee, country of origin, vessel/flight date, port/airport of loading, port/airport of discharge, place of delivery, shipping marks / container number, weight / volume of merchandise and the fullest details of the goods, including packing information. It is prepared by the shipper

Certificate of Origin
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. The document may be issued by the exporter or be confirmed by another party in the exporting country, such as a notary, a chamber of commerce, or a local consulate of the destination country The CO is primarily important for classifying the goods in the customs regulations of the importing country, thus defining how much duty shall be paid. But it may also be important for import quota purposes and for statistical purposes, and especially for food shipments, it may also be important for health regulations

For eg: certain goods have preferential rates of tariff for Indian goods.

Commercial Documents
Document Functions
Prepared by

Quotation An offer to sell goods and should Exporter state clearly the price, details of quality, quantity, trade terms, delivery terms, and payment terms.

Sales Contract

An agreement between the buyer and the seller stipulating every details of the transaction. It is a legally binding document. It is therefore advisable to seek legal advice before signing the contract.

Exporter and Importer

Commercial Documents
Document Functions
Prepared by

Inspection A report issued by an independent Inspection Certificate surveyor (inspection company) or Company or the exporter on the specifications Exporter of the shipment, including quality, quantity, and/or price, etc; required by certain buyer and countries.

Commercial Documents
Document Insurance Policy/ Certificate Functions
An insurance policy is an insurance document evidencing insurance has been taken out on the goods shipped, and it gives full details of the insurance coverage. An insurance certificate certifies that the shipment has been insured under a given open policy and is to cover loss of or damage to the cargo while in transit. A certificate to certify the products are conformed to a certain international/national technical standard, such as product quality, safety and specifications, etc. Prepared by

Insurer or Insurance Agent or Insurance Broker

Product Testing Certificate

Accredited Laboratories

Bill of Lading
A BL is a doc issued and signed by a shipping company to ascertain that the goods due for shipment have been duly received. Features:
Receipt for goods received by the shipment company Contains the terms of the contract between the shipper and the shipping company It is a certificate of ownership to the goods

Bill of Lading (contd)

For bill of lading to be negotiable, three requirements must be fulfilled:
It must be made out to the order of the shipper It must be signed by the steamship company It must be endorsed in blank by the shipper
(Blank endorsement is made when the document doesnot carry any specific name of the person to whom the BL can be transferred. However, it can be converted in to a special endorsement by specifying the name of the endorsee. This is then known as Endorsement in Full).

Bill of Lading (contd)

Contents of Bill of Lading
Name of the shipping company Name of the shipper Name and address of the importer Name and address of the party to be notified on arrival of the shipment, usually the importer. Name of the carrying vessel Name of the ports of loading and discharge Whether freight is still to be paid or has already been paid.

Bill of Lading (contd)

Contents of Bill of Lading
Number of originals in the set of the bill of lading documents Marks and number identifying the goods Brief description of the goods Number of packages Signature of the ships master or his agents Date on which the goods were received for shipment and the date on which were loaded on the vessel. Signature of the exporter.

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Types of Bill of Lading

Received for Shipment B/L On Board Shipped B/L Clean B/L Claused or Dirty B/L Combined B/L

Date of Bill of Lading

The date of issuance of bill of lading is very important for the following reasons:
To show whether the goods have been shipped on time, if the letter of credit stipulates a deadline for shipment To meet the requirements that the documents must be presented for payment, acceptance or negotiation, as the case may be, within the validity of the credit and within 21 days from the issuance of the bill of lading unless any other date specified. The date of insurance coverage starts from the shipment date which is indicated on a bill of lading

Bill of Exchange
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

Parties to B/E
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 (The Exporter). He gives the order to pay money to third party. The party upon whom the bill is drawn is called the drawee (The Importer). 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 (Generally the Exporters Bank). Common examples of B/E are Cheques and demand drafts.

Mates Receipt
This is a document originally issued by the commanding officer responsible for cargo. The document would be issued by him after the cargo is loaded onto the ship. The shipper or his representative would then take the mate's receipt to the master or the agent to exchange it for a bill of lading, which would incorporate any conditions inserted into the mate's receipt.

Types of Mates Receipt

Clean Mates Receipt
The commanding officer of the ship issues a clean mates receipt, if he is satisfied that the goods are packed properly and there is no defect in the packing of the cargo or package.

Qualified Mates Receipt

The commanding officer of the ship issues a qualified mates receipt, when the goods are not packed properly and the shipping company doesnot take any responsibility of damage to the goods during transit.

Contents of Mates Receipt

Name and logo of the shipping line Name and address of the shipper Name and number of the vessel Name of the ports of loading and discharge and the place of delivery Marks and container number Packing and container description Container status and seal number Shipping bill number and date Signature and initials of the Chief Officer

Significance of Mates Receipt

It is an acknowledgement of goods received for export on board the ship. It is a transferable document. It must be handed over to the shipping company in order to get the bill of lading. Bill of lading, which is the title of goods, is prepared on the basis of the mates receipt. It enables to clear the port trust dues to the Port Trust Authorities.

Bill of Entry
It is a declaration (on a prescribed form) by an importer or exporter of the exact nature, precise quantity and value of goods that have landed (entered inwards) or are being shipped out (entered outwards). Prepared by a qualified customs clerk or broker, it is examined by customs authorities for its accuracy and conformity with the tariff and regulations.

Classification of Goods under Bill of Entry

Free Goods : Where the goods imported are not subject to any customs duty. Goods for Home Consumption: Where the goods imported for self consumption Bonded Goods: Where the goods imported are subject to custom duty, the goods are kept in bond till the duty is paid.

Contents of Bill of Entry

Name and address of the importer Name and address of the exporter Import license number of the importer Name of the port / dock where goods are to be cleared Description of the goods Value of the goods