EXPORT:

Documents, Payments, Financing, and Shipment

Pratibha Ray
(207084)
 Contents
01 02 03
Introduction Documents required Payment methods

04 05 06
Financers Shipments Conclusión
निकासी EXPORT निर्यात
 01
INTRODUCTION
 EXPORT
Export refers to a product or service
produced in one country but sold to a buyer
abroad.
Exports are one of the oldest forms of
economic transfer and occur on a large
scale between nations.
 Export Readiness Checker

Is your business registered at the local authority?

First, you will have to register your firm or business enterprise at the local
authority, that is, at the ward office where the manufacturing unit and/or
outlets are located.
The registration fee and other related fees depend on the local municipal
laws.
Government fee for a public company
 Contd…

Basic documents required are

● Citizenship certificate of the business owners
● Land ownership certificate where the business unit is located. In case of rented
establishments, you will need to provide a rent contract signed by the owner of the
property where the unit is located and the property owner’s citizenship certificate
● Electricity or drinking water bill as a proof of address.
02
Documents
Rules related to exporting from Nepal is
governed by the Ministry of Industry,
Commerce and Supplies and
Department of Customs, under the
Ministry of Finance.
Basic Documents Required
1. Business registration certificate (one time submission)
2. Permanent Account Number (PAN) with VAT registration
3. EXIM Code
4. Single Administrative Document (SAD)–Pragypan Patra or
The Yellow Form
5. Certificate of Origin (COO) and Generalized System of
Preferences (GSP) Form A wherever applicable. Other
additional certificates, is necessary
6. Packaging list
7. Commercial Invoice
8. Payment Certificate—Letter of Credit (L/C) or certificate of
advance payment
Payment method
03
 Payment Methods in Export Trade.
Letter of credit
Clean Payment (L/c)

1 2 3
Collection of bills
 Clean Payment

All shipping documents, including title documents are handled directly between the trading
partners,
A relatively cheap and uncomplicated method of payment for both importers and exporters,
Types of method
● Advance Payment
In advance payment method the exporter is trusted to ship the goods after receiving
payment from the importer
● Open Account
In open account method the importer is trusted to pay the exporter after receipt of goods.
 Payment Collection of Bills in
International Trade
★ Also called “Uniform Rules for Collections”
★ Payment in international trade the exporter entrusts the handling of commercial and often
financial documents to banks and gives the banks necessary instructions concerning the
release of these documents to the Importer.
★ Considered to be one of the cost effective methods of evidencing a transaction for buyers,
where documents are manipulated via the banking system
Types of methods
● Documents Against Payment D/P
Documents are released to the importer only when the payment has been done.
● Documents Against Acceptance D/A
Documents are released to the importer only against acceptance of a draft.
 Letter of credit
★ Also known as Documentary Credit
★ It is a written undertaking by the importers bank known as the issuing bank on behalf of its
customer, the importer (applicant), promising to effect payment in favor of the exporter
(beneficiary) up to a stated sum of money, within a prescribed time limit and against stipulated
documents.
Various types of L/Cs are :
● Revocable & Irrevocable Letter of Credit (L/c)
A Revocable Letter of Credit can be cancelled without the consent of the exporter.
● Sight & Time Letter of Credit
If payment is to be made at the time of presenting the document then it is referred as the Sight Letter of
Credit.
● Confirmed Letter of Credit (L/c)
Under a Confirmed Letter of Credit, a bank, called the Confirming Bank, adds its commitment to that of
the issuing bank.
 Financers
04
 Export Finance

Export finance is a short-term funding agreement available to Suppliers (Exporters) trading with
overseas Buyers (Importers).
Export finance allows Suppliers to access working capital while they wait for Buyers to pay invoices.
 05
Shipments
 Shipping documents

A set of official papers, such as insurance documents, that are

necessary when sending goods from one country to another.
Exporters normally send copies of the shipping documents with their
bill.
Export shipping documents

● Pro-forma invoice;
● Packing list;
● PAN/VAT Certificate;
● Company Registration Certificate;
● Letter of Credit (L/C) or Advance Payment Certificate.
 06
Conclusión
 Guide to export
The following section will provide a stepwise guide to exporting from Nepal:
STEP ONE: Find Trade Partners
STEP TWO: Conclude Sales Contract
STEP THREE: Obtaining required Certificates
STEP FOUR: Financing your Exports
STEP FIVE: Appoint a Freight Forwarder
STEP SIX: Appoint Transporter
STEP SEVEN: Appoint Customs Agent
STEP EIGHT: Clear Customs
 Reference
https://nepaltradeportal.gov.np/guide-to-exporting
https://www.lawimperial.com/company-registration-in-nepal/
http://www.eximguru.com/exim/guides/export-finance/ch_1_payment_
methods_in_export_import.aspx
Thank You
Have a great day ahead!!!