What

is export?

Sale of goods from one country to

another against payment in foreign

currency in a legal way

It should mention
Parties: Addresses and Identities
Nature of contract: Sales of goods/services, agency/distributorship
Date of agreement
The contract should state
Products name (including its technical name )
Sizes in which it is supplied
Standards/specifications according to the buyer or as per the
samples approved by him. Details of specification of sample must
be given in the contract
Quantity, total value
Inspection, Test certification
Packing, packaging, labelling
Marking
Terms of delivery
Duty and charges, taxes
Period of delivery
terms of payment
discounts and commisions
licences and permits
insurance

 Why

do we need documentation?

Buyer and sellers are separated by long

distances
Formal contract ( assigning
duties/responsibilities) is necessary
Protection of interests of both the parties
The operational constraint
Claim of export assistance and
incentives provided by the government

 Trade

documents may be broadly

categorised into 3 heads
Commercial documents
Legal or Regulatory documents
Incentive and Assistance Claim

documents

 Possession

of docs imply ownership

of goods
Docs represent goods shipped by
exporter
These docs entitle the importer
Indicates goods at destination, and
Used to compensation by insurance,
in the event of damage or loss

Commercial
Invoice
Packing list
Insurance
Certificate/Policy
Bill of Exchange
Shipment Advice

Certificate of Origin
Inspection Certificate
Transportation
Documentation
- Bill of lading
-forwarder
- Airway Bill
- Combined
transport document

DOCUMENTATION AS PER
REQUIREMENT OF GOI

Export License if
necessary
AR4/AR5 Form
Pre-shipment
Inspection Certificate
Export Declaration form
GR/PP/VPP/COD/Softex
Form
Shipping Bill - customs

DOCS AS PER REQUIREMENT

OF IMPORTING COUNTRY

Customs Invoice
GSP Certificate of
origin

 Application form
Shipping Bill duly

authenticated by

customs
Commercial Invoice attested by bank
Statement of exports certified by the
negotiating bank
Registration cum membership form
of concerned export promotion
council

 First

and the only complete document

for a shipment from among the set of
commercial documents.
Serves as a basis for preparation of all
other documents
CI is needed at both pre-shipment and
post-shipment stages for
Obtaining Export Inspection Certificate,
Clearance from excise and customs
Negotiating documents with the bank.

 CI

performs three main functions

It is a Document of Content,
It is a Bill by exporter,
It is a Packing List
It also sets forth the terms of shipment

and payment and can operate as

Certificate of Origin

 Equivalent

to multimodal transport
document/airway bill/railway/lorry/post
parcel/courier receipt
These documents state and evidence
the mode, manner and date of
shipment.
These docs define the contractual
rights and obligations of the parties
lawful holders can claim goods at the
destination and at will
given by forwarder to exporter

 It

performs 3 functions:
An evidence of contract of affreightment
between the ship owner and the charterer
A receipt of goods
Document of title:(Order B/L: negotiable doc.
and Consignee named/ Straight B/L: nontransferable)

 Its

legally defined as an unconditional

order in writing, addressed by one
person to another, signed by the
person giving it, requiring the person to
which it is addressed to pay on demand
or at a fixed or determinable future
time a certain sum of money, to or to
the order of, a specified person or to
bearer.

EXPORTER
(Drawer) (Payee)
1
OF G
L
BIL HAN
XC
E
EXPORTERS
E
CUSTOMS
BANK
(collecting bank)

IMPORTER
(Drawee)

6
T I
N
E AK
OF G
M
L
Y
RT
N
IL
A
E
A
B
P
2
3
D
CH
N
X
E
U
E
IMPORTERS BANKNG
(remitting bank)
4
DOCS
(MASTER/HOUSE AWB)

It performs the role of bridging time gap

between shipment of goods and receipt of sale
amount.
This is required to be honored either by actual
payment or by an undertaking to make
payment at a future date by the party on whom
it is drawn.
After payment/undertaking the importers bank
will hand over the documents to the importer
for taking possession of goods.
Can be either a Sight Draft (for DP Docs
Against Payment) OR Usance/Term Draft (for DA
Docs Against Acceptance)

Sight Bill of Exchange

Bill of exchange for

Date
Place
On demand, Pay this First of Exchange (Second of the same date and
tenor being unpaid) to the order of (exporters bank) a sum of .... only for
value received vide Airway Bill No./Bill of Lading
No. dated . and place the same to account.
To : Drawee

For : Drawer (exporter)

Usance Bill of Exchange

BILL OF EXCHANGE

BILL OF EXCHANGE

Bill of exchange for

Date
Place
. Days after date, Pay this First of Exchange (Second of the same
date and tenor being unpaid) to the order of (exporters bank) a sum of ..
only for value received vide Airway Bill No./
Bill of Lading No. dated . and place the same to account.
To : Drawee

For : Drawer (exporter)

 Lunch

time