BEST PRACTICES IN EXIM

DOCUMENTATIONS

SUPPLY CHAIN MANAGEMENT

VAIBHAV BANDEKAR
M2020096
 WHAT ARE EXIM DOCUMENTS
EXPORT DOCUMENTS:
• INVOICE.
• PACKING LIST.
• SHIPPING BILL
• BILL OF LADING
OTHER
• TEST REPORT OF EXPORTER.
• QUALITY CERTIFICATE FROM ANY THIRD PARTY INSPECTION AGENCY.
• CONSULAR OR LEGALIZED INVOICE.
• BANK REALIZATION CERTIFICATE / BRC.
• FREIGHT RECEIPT OR FREIGHT INVOICE.
• MATE RECEIPT.
• INSURANCE CERTIFICATE.
• SHIPPING ADVISE.
LIST OF DOCUMENTS IN IMPORT.
• SIMILARLY, THERE ARE FEW COMMON DOCUMENTS IN IMPORT AS UNDER:
• INVOICE.
• PACKING LIST.
• BILL OF ENTRY (DIFFERENT THAN EXPORTS).
• BILL OF LADING.
• LETTER OF CREDIT
OTHER DOCUMENTS USED IN IMPORT:
• BILL OF ENTRY WHICH IS GIVEN BY CUSTOMS DEPARTMENT WHILE IMPORT.
• TEST CERTIFICATE OF OVERSEAS EXPORTER.
• THIRD PARTY INSPECTION CERTIFICATE.
• INSURANCE CERTIFICATE.
 IMPORT – EXPORT CODE (IEC)
 A 10 DIGIT IDENTIFICATION NUMBER THAT IS ISSUED BY THE DGFT (DIRECTOR GENERAL
OF FOREIGN TRADE), DEPARTMENT OF COMMERCE, GOVERNMENT OF INDIA.

 MUST HAVE CERTIFICATE FOR IMPORT AND EXPORT FROM INDIAN BORDERS
 HOW CAN YOU OBTAIN THE IEC CODE?
• YOU NEED TO FILL THE APPLICATION FORM FOR IEC ONLINE ON THE DGFT WEBSITE.
• GO TO WWW.DGFT.GOV.IN AND CLICK ON ‘APPLY FOR IEC’
 CODE IS GENERATED WITHIN 5-15 WORKING DAYS AFTER THE DOCUMENTS ARE
SUBMITTED AND ALL THE CORRECTIONS REQUIRED ARE MADE
UPDATE IEC PROFILE ANNUALLY
SITUATIONS WHERE IEC IS REQUIRED

• WHEN AN IMPORTER HAS TO CLEAR HIS SHIPMENTS FROM THE CUSTOMS THEN IT’S

NEEDED BY THE CUSTOMS AUTHORITIES.

• WHEN AN EXPORTER HAS TO SEND HIS SHIPMENTS THEN IT’S NEEDED BY THE CUSTOMS
PORT.
• WHEN AN IMPORTER SENDS MONEY ABROAD THROUGH BANKS THEN IT’S NEEDED BY THE
BANK.
• WHEN AN EXPORTER RECEIVES MONEY IN FOREIGN CURRENCY DIRECTLY INTO HIS BANK
ACCOUNT THEN IT’S REQUIRED BY THE BANK.
 RCMC
• REGISTRATION CUM MEMBERSHIP CERTIFICATE:
• IT IS MANDATORY:
• IF DEALING WITH RESTRICTIVE ITEMS.
• WANTS ANY TYPE OF GOVERNMENT INCENTIVES / BENEFITS.
 EXPORT CONTRACT
ESSENTIAL CONTENTS
• PRODUCT DESCRIPTION, STANDARDS AND SPECIFICATIONS
• QUANTITY PARAMETERS
• INSPECTION CLAUSE
• TOTAL VALUE OF CONTRACT
• TERMS OF DELIVERY
• TAXES, DUTIES AND CHARGES
• PERIOD OF DELIVERY/ SHIPMENT
• PACKING, LABELLING AND MARKING
COMMERCIAL INVOICE/ PROFORMA
INVOICE
• COMPLETE DETAILS OF THE EXPORT
ORDER.
• RAISE AND SEND A PROFORMA
INVOICE TO THE BUYER FOR HIS
APPROVAL, ONCE THE ORDER HAS
BEEN FINALIZED.
• ON RECEIPT OF THE APPROVED
PROFORMA INVOICE, THE EXPORTER
CAN USE IT AS A PART OF THE EXPORT
CONTRACT.
• THE COMMERCIAL INVOICE THEN
BECOMES EASIER TO PREPARE ON THE
BASIS OF THE APPROVED PROFORMA
INVOICE.
PACKING LIST:

PURPOSE
• DISPATCHED GOODS AND CROSS CHECK OF GOODS
SENT.
• FOR THE PORT PERSONNEL, PLANNING THE
LOADING AND OFFLOADING OF CARGO.
• CUSTOMS AUTHORITIES AS THEY CAN CARRY OUT
THE PHYSICAL EXAMINATION OF THE CARGO AND
CONDUCT CHECKS ON THE WEIGHT AND
MEASUREMENT OF THE GOODS SMOOTHLY AGAINST
THE DECLARATIONS MADE BY THE EXPORTER IN
THE PACKING LIST.
CERTIFICATE OF INSPECTION

• EXPORT INSPECTION AGENCY

• AFTER PRE-SHIPMENT INSPECTION OF GOODS FOR NOTIFIED CATEGORY OF GOODS

REQUIRING COMPULSORY SHIPMENT OF INSPECTION.

CERTIFICATE OF INSURANCE/INSURANCE POLICY:

• INSURANCE IS AN IMPORTANT AREA IN THE EXPORT BUSINESS AS THE STAKES
ARE USUALLY VERY HIGH.
• PROTECTION NEEDS TO BE TAKEN IN THE FORM OF INSURANCE COVER FOR THE
DURATION OF TRANSIT OF GOODS FROM THE EXPORTER TO THE IMPORTER.
 BILL OF LADING

• A BILL OF LADING (B/L OR BOL) IS A DOCUMENT ISSUED BY A CARRIER (OR HIS

AGENT) TO ACKNOWLEDGE RECEIPT OF CARGO FOR SHIPMENT.

• THIS IS ISSUED WHEN THE GOODS ARE SHIPPED USING OCEAN (MARINE)
TRANSPORT.

• WHEN THE EXPORTER FINALLY HAND OVER THE GOODS TO THE SHIPPING
COMPANY FOR LOADING ON BOARD THE SHIP FOR TRANSPORT TO THEIR FINAL
DESTINATION, THE SHIPPING COMPANY ISSUES A SET OF BILLS OF LADING TO THE
EXPORTER.
 WHY IS BILL OF LADING NEEDED?
MAIN PURPOSES:
o DOCUMENT OF TITLE TO THE GOODS
o RECEIPT FROM THE SHIPPING COMPANY
o CONTRACT OF TRANSPORTATION OF GOODS
o AN ACKNOWLEDGEMENT THAT THE GOODS HAVE BEEN LOADED

TYPES OF BILL OF LADING

• RECEIVED BILL OF LADING
• STRAIGHT BILL OF LADING
• CLAUSED BILL OF LADING
• TO ORDER BILL OF LADING
• HOUSE BILL OF LADING
• CLEAN BILL OF LADING
• MASTER BILL OF LADING
• THROUGH BILL OF LADING
• CONTAINER BILL OF LADING
• MULTIMODAL/COMBINED TRANSPORT BILL
OF LADING • SHORT FORM BILL OF LADING

• STALE BILL OF LADING • CHARTER PARTY BILL OF LADING

• SURRENDER BILL OF LADING
• BEARER BILL OF LADING
SAMPLE BILL OF LADING
CERTIFICATE OF ORIGIN
• THIS DOCUMENT SERVES AS A PROOF OF THE COUNTRY OF ORIGIN OF GOODS FOR THE
IMPORTER IN HIS COUNTRY.
• IMPORTED COUNTRIES USUALLY REQUIRE THIS TO BE PRODUCED AT THE TIME CUSTOMS
CLEARANCE OF IMPORT CARGO.
• IT ALSO PLAYS AN IMPORTANT PART IN COMPUTING THE LIABILITY AND THE RATE OF
IMPORT DUTY IN THE COUNTRY OF IMPORT.
• THIS CERTIFICATE DECLARES THE DETAILS OF GOODS TO BE SHIPPED AND THE COUNTRY
WHERE THESE GOODS ARE GROWN, MANUFACTURED OR PRODUCED.
• SUCH GOODS NEEDS TO HAVE SUBSTANTIAL VALUE ADDITION SO AS TO BECOME
ELIGIBLE TO CERTIFICATION OF THIS NATURE.
SHIPPING ADVICE
• THE EXPORTER SENDS THIS DOCUMENT, CALLED SHIPPING ADVICE, TO THE
BUYER SOON AFTER THE SHIPMENT IS MADE TO PROVIDE HIM ALL THE SHIPMENT
DETAILS.
• THIS SERVES AS AN ADVANCE INTIMATION OF THE SHIPMENT AND ALLOWS THE
IMPORTER TO ARRANGE FOR DELIVERY OF THE SAME.
 LETTER OF CREDIT
• BANK GIVES THE ASSURANCE THAT THE BILLS WILL BE PAID FROM THE
IMPORTER

STANDBY LETTER OF CREDIT

IF THE IMPORTER FAILS TO MAKE PAYMENT WITHIN
DEADLINE, EXPORTER CAN CLAIM PAYMENT TO THE
IMPORTER’S BANKS USING SLOC
CONCLUSION

• BY FOLLOWING PROPER DOCUMENTATION PROCESS INTERNATIONAL TRADE

CAN BE MADE SMOOTHLY
THANK YOU