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Export Procedure and

Documentation

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Introduction
Proper export procedure and documentation is
crucial to international marketing, as both importer
and exporter are situated in different countries and
are governed by different legislative framework.
The export transaction chain consist of a number of
entities, which provide a smooth functioning of
business.
A number of government regulatory agencies
facilitate trade between exporter and importer.
Both exporter and importer have to comply with
these regulations and trade customs.
Apart from these there are issues related to
payment.
Hence, an export manager has to make himself fully
aware of all of these.
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Contents of this Presentation


Attention !!!
The entire Presentation is
divided into two parts:
1. Pre Shipment Documents
2. Export Procedure

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Part I Pre Shipment


Documents

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Pre-Shipment Export
Documents

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Pre-Shipment Export
Documents
These Documents can be classified
into two major categories:
Commercial Documents
Regulatory Documents

Commercial Documents can be


further classified into:
Principal Documents
Auxiliary Documents
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Commercial Documents
Commercial Documents:
These are the documents, which as per trade
customs, are required to be prepared and
used by exporters and importers for their
legal and other incidental Responsibilities.
The Commercial Documents are further
classified into:
Principal Documents:
Required for enabling physical transfer of goods along with
their title-of-ownership, from exporter to importer.

Auxiliary Documents:
Required for preparation/ procurement of Principal
Documents. They act as the base for preparation of
Principal Documents.
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Commercial Documents (I) :


Principal Documents
Principal Documents:
Are of following types:
Commercial Invoice:
It is the key document for an export transaction, and is prepared
by exporter.
Provides a very comprehensive information regarding:
consignees details, country of origin of goods, country of final
destination, terms of delivery and payment, detailed description
of goods, kind of packaging, quantity, marks and numbering etc.
Annexure 15.3

Packing List:
Packing List provides details of how the goods are packed, the
contents of different boxes, cartons etc.
Details of the weights and measurements of each package in
consignment.
It is used by the carrier while deciding on the loading of
consignment.
Annexure 15.5
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Commercial Documents (I) :


Principal Documents
Inspection Certificate:

According to Quality control and Inspection Act, it is


mandatory to obtain an export inspection certificate.
This is asked by an importer for ensuring the quality of
merchandise as per export contract.
Annexure 15.11 & 15.12

Ocean/Marine Bill of Lading (B/L)

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It is a transport document issued by the shipping


company, for accepting the goods for carrying of
merchandise.
It is also known as document of title, which means the
legitimate holder of the document is entitled to claim the
owner ship of the goods covered therein.
Hence, the importer cannot obtain the possession of the
goods until they surrender the signed Bill of Lading
Annexure 15.6
9

Commercial Documents (I) :


Principal Documents
Airway Bill (AWB) :
It is the Bill of Lading used for air transport.
But unlike ocean bill of lading, it does not have very strict rules.

Combined Transport Document (CTD) :


The Combined Transport Document covers the movement of cargo from
place of containerization to place of destination using a multi-modal
transport.
Can be used for goods, which are stuffed for padding purposes.
Annexure 15.6

Certificate of Origin :
This document is used as an evidence of the origin og goods in the
importing country.
It includes the details of goods covered, where they were grown or
manufactured
It is used for deciding the liability and the rate of importing duty in the
importing country.
Annexure 15.8

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Commercial Documents (I) :


Principal Documents
Insurance Policy/Certificate:
Since the carrier and other intermediaries, such as C&F agents
and other port authorities, warehousing operators etc. have a
limited liability during the process of cargo movement from
exporter to importer, they cannot be held responsible in the
event of loss.
Therefore, in order to provide protection to the cargo owner,
an insurance cover is necessary.
Annexure 15.13 & 15.14

Mates Receipt:
On the receipt of cargo on board, the master of the vessel
issues Mates Receipt for every shipment taken on board.
The port authorities take this from chief officer of the vessel.
The shipper then collects this Mates Receipt from port
authorities after clearing all dues.
After collecting this, the shipper or his agents prepares Bill of
Lading.
Annexure 15.7

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Commercial Documents (I) :


Principal Documents
Bill of Exchange:
An unconditional order in writing prepared and signed by
exporter and addressed to importer, asking him to pay
on demand in future date, a sum of money.
Generally two copies are prepared, and sent through
different modes, whichever is received first is excepted.

Shipment Advice :
Soon after shipment has taken place, the Shipment
Advice is sent to importer, giving an advance
information of details of delivery.
It generally covers details of Vessel/Flight, port of
discharge and port of destination, export order number,
description of cargo, quantity etc.
Is used for confirming safe delivery and making
arrangements for receiving the export.
Annexure 15.15
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(II) : Regulatory Documents


Regulatory Documents fulfill the statutory
requirement.
They are required for benefit of both
importer and exporter.
These documents are related various
government authorities, like: Directorate
General of Foreign Trade etc., Reserve Bank
of India etc.
These documents are also needed by other
bodies like export inspection agencies, banks
and custom & central excise authorities etc.
They can be of many kinds.
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(II) : Regulatory Documents


Exchange Control Declaration Forms:
Under the Foreign Exchange Management Act, for every
export activity taking place out of India, the exporter has to
submit an Exchange Control Declaration Form.
Exports to Bhutan and Nepal are exempted from such
declaration.
The aim of this document to ensure realization of export
proceedings by the exporter as per Foreign Exchange
Management Act.

Shipping Bill/ Bill of Export:


Shipping Bill is the main document required by custom
authorities.
The export cargo is allowed to be charted on the port sheds
and docks only after the Shipping Bill has been stamped by
custom authorities.
It is called Bill of Export if shipment is being done by land.
Annexure 15.20, 15.21, 15.22
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(II) : Regulatory Documents


Bill of Entry:
After unloading, the imported cargo is transferred to
the custody of an authorized agency such as Port
Trust Authority or Airport Authority.
This is done for a custom examination, duty
payment, and other formalities, then the cargo is
released to the importer.
Hence, for getting custom clearance at this stage the
exporter has to produce Bill Of Export in four copies.
The format of this is standardized by Central Board of
Customs and Clearance Excise.
It can be of three types.
Annexure 15.23

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(II) : Regulatory Documents


ARE -1
This document is in form of application.
It is prepared by exporter at the time of removal of goods.
and made for jurisdictional central excise superintendent.
It contains details of consignment, such as value of
consignment and amount of duty involved etc.
The exporter has to submit this document 24 hours in
advance from the time of removal of goods, in four copies.
It acts as a proof of exports.
Annexure 15.24

ARE -2
This document is used for refund of excise duty paid on
finished goods as well as production inputs.
It strengthens ARE-1.
Annexure 15.25

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(II) : Regulatory Documents


Blacklist Certificate:
Countries which have strained political relationships, or at
war with one another, require Blacklist Certificate as an
evidence of the following:
The point of origin is not a particular country.
The parties involved like intermediaries, bank, insurance
companies etc are not blacklisted.

It needs to be furnished by an exporter only when


specifically asked for.

Health/ Veterinary/ Sanitary Certificate:


The importer at times require this certificate for foodstuffs
etc, from a responsible authority.
This is done to ensure that the cargo is not contaminated.

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Part II Export Procedure

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Summary of Export Procedure

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Thank You !!!

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