Documents required for exports in India


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Documents required for exports in India

  1. 1. Course Instructor: Sneha Sharma
  2. 2. Export Documents Commercial Documents Principal Documents Regulatory Documents Auxiliary Documents
  3. 3. Principal Documents Auxiliary Documents • • • • • • • • • • • • • Commercial Invoice Packing List Bill of Lading Certificate of Inspection Certificate of Origin Bill of Exchange Shipment Advice Insurance Certificate Proforma Invoice Intimation for Inspection Shipping Instructions Insurance Declaration Application for certificate of origin • Mate’s Receipt • Letter to bank for collection/ negotiation of documents
  4. 4.  It is the first important document for conveying to the exporter  an idea about the prices , description , quantity and quality for sale of goods to importer.
  5. 5.  The exporter provides all information to the importer        Tentative prices Tentative description Tentative idea about shipping terms Tentative idea about payment terms Quality benchmarks of commodity Mode of shipment Expected time required by exporter for delivery
  6. 6.  The exporter also expresses  his desire for letter of credit or other modes of payment from the importer in case the importer shows interests in the deal.  his ideas about preferred mode of transportation  Details about the process of packing the cargo or packing material to be used.
  7. 7. Prepared by Exporter after the execution of export order giving details about the goods shipped • It is a sellers bill of merchandise • 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.
  8. 8.  A list with detailed packing information of the goods shipped.  Custom official use it to check what is being exported or imported.  Importer uses it to know and cross check that the goods are as per the demanded specifications by importer in export order.
  9. 9.  It gives all the details about the goods in the box/crate/pallet/container  Type  Dimension  Weight
  10. 10.  It is furnished by the freight forwarder.  The fright forwarder is apprised about the various aspects of shipment through shipping instructions and process of shipping.
  11. 11.  According to Export Quality Control and Inspection Act ,1963  An exporter is required to make an application in duplicate for intimating the export inspection agency to carry out the pre-shipment inspection works.  Such inspection can be carried out in the premises of exporter or the EIA.  The intimation for the same purpose has to be given to EIA through Intimation for inspection
  12. 12.  The following documents need to be sent along  Copy of commercial invoice  Requisite fee for inspection of cargo in crossed cheque / DD  Copy of letter of credit  Description of packing specification as per the importer  Copy of export order/contract  The EIA then issues a certificate of inspection within 4-5 days of application for inspection.
  13. 13.  It indicates that the goods have been inspected before sealing for export.  Issued by EIA  Issued in prescribed pro forma in 5 copies
  14. 14.   It is based on a format approved by the Institute of London Underwriters It is suggested that open cover/policy holders may be supplied with blank forms of these documents and  such forms can be reproduced from the standardized master document and  can be sent by the exporter to the nearby General insurance Corporation ▪ for declaration of cargo in order to obtain insurance cover for the exportable goods.
  15. 15.  The General insurance company issues the certificate of insurance.  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 Agent or 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.
  16. 16.  It is issued by the conference shipping lines for intimating the exporter about the reservation of space of shipment.  It describes about the specific vessel along with shipping dates and specified port of departure.
  17. 17.  It is a declaration issued by an officer of vessel  whereby he indicates that the goods have been received on board in his vessel for shipment to destined country or port of destination. ▪ It is signed by mate of the vessel where he acknowledges receipt of cargo by the vessel. ▪ The person who has mate’s receipt is entitled bill of lading.
  18. 18.  Mate’s receipt issued by the officer of the ship is to be exchanged with the bill of lading at subsequent stage.
  19. 19.  Bill of Lading is a document issued by the shipping company or his agent acknowledging the receipt of cargo on board.  This is an undertaking to deliver the goods in the same order and condition as received to the consignee or his agent on receipt of freight, the shipping company is entitled to.  It is a very important document to the exporter as it constitutes document of title to the goods.
  20. 20.  The Bill of Lading acknowledges that the exporter has delivered the cargo to the shipping company  It ensures that goods are on board for shipment to importer ‘s country and destined port.  It indicated goods loaded on cargo as items are listed.  It is negotiable in nature.
  21. 21.   Airway Bill is non negotiable i.e. it doesn’t carry the title of goods as in case of bill of lading. It is issued by cargo airline carrier.
  22. 22.  Certificate of Origin is an instrument which establishes evidence on origin of goods imported into any country.  These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin may be eligible for in the country of exports.  The certificate need to be authenticated by the importer country’s chamber of commerce.
  23. 23.  The Negotiable Instruments Act, 1881 defines a Bill of Exchange as  “ an instrument in writing containing an unconditional undertaking, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument”.
  24. 24.  Sight Bill of Exchange  In this Bill of Exchange, also known as demand Bill of Exchange, the drawee has to make the payment, on presentation.
  25. 25.  Usance Bill of Exchange  In case of Usance or Time Bill of Exchange, payment is to be made on the maturity date, after a certain period, known as tenor. ▪ When the calculation of period is made with reference to the sight of bill, the bill is known as ‘after sight usance bill’. ▪ Sometimes, the maturity date is calculated with reference to the date of bill of exchange, it is known as ‘after date usance bill’.
  26. 26.  Clean Bill of Exchange  A clean Bill of Exchange is one when the relative shipping documents do not accompany with it. In this case, the relative shipping documents i.e. Bill of Lading is sent directly to the importer to enable him to take delivery of the cargo.
  27. 27.  Documentary Bill of Exchange  A documentary Bill of Exchange is one where the relative shipping documents such as Bill of Lading, marine insurance policy, invoice and other documents are sent along with the Bill of Exchange. ▪ This is the common form in export trade. ▪ The documents are given to the bank either for collection or negotiation. In case the importer gets the documents on acceptance, it is called Documents against Acceptance. If the importer gets the documents only on payment, it is called Documents against Payment.
  28. 28.  An advice of shipment is a notice sent to a recipient when a shipment is dispatched.  The document provides information about the shipment. It is not possible to make changes to the order once this notice is received, because it is already in transit.
  29. 29.  A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided certain documents have been presented to the bank.  These are documents that prove that the seller has performed the duties under an underlying contract (e.g., sale of goods contract) and the goods (or services) have been supplied as agreed
  30. 30.    Issued by importer’s bank Serves as a financial instrument to the exporter for meeting a contract. Exporter uses this document for in financing transaction for pre-shipment credit.
  31. 31. Regulatory Documents • Exchange Control Declaration form-GR form • ARE Forms • Shipping Bill/ Bill of Export • Port Trust of Copy of Shipping Bill • Vehicle Ticket • Receipt for Payment of port charges • Freight Payment Certificate • Insurance Premium Payment Certificate
  32. 32.  The shipping bill is the main document on the basis of which the customs permission is given.  Under manual processing of export documents, the exporter is required to file the appropriate type of shipping bill to seek the order for customs clearance of the export shipment.  Under computerized processing, the exporter does not prepare the shipping bill; instead it is computer generated. The customs order is called “LET EXPORT Order”.
  33. 33.  After the shipping bill is stamped by the customs, then only the goods are allowed to be carted to the docks.  The shipping bill is prepared in five copies:      Customs copy Drawback copy Export Promotion copy Port Trust copy and Exporters copy
  34. 34.  Free Shipping Bill:  It is used in case of goods which neither attract any export duty nor entitled for duty drawback. It is printed on simple white paper.  Dutiable Shipping Bill  It is used in case of goods, which attract export duty. It may or may not be entitled to duty drawback. It is printed on yellow paper.
  35. 35.  Drawback Shipping Bill  It is used in case when refund of duties is allowed on the goods exported. Generally, it is printed on green paper, but when the drawback claim is paid to a bank, then it is printed on yellow paper.  Shipping bill for Shipment Ex-Bond  It is used in case of imported goods for re- export and which are kept in bond. It is printed on yellow paper.  Coastal Shipping Bill  It is used in case of shipment that is moved from one port to another port, by sea, within India. It is not an export document.
  36. 36.   Exporter pays some charges for use of port of facilities in order to maintain the port in proper way. The port authority uses this money for the port development and to provide better facilities to exporters and importers.
  37. 37.  Ports in India have prescribed their own documents for payment of port charges and handling shipment.  Dock Challan at Kolkata  Export Application in Chennai and Cochin  Port Trust copy at Mumbai
  38. 38.  It is an entry pass issued by the port trust authority to the shipper to allow the latter to bring export cargo to the port for their dispatch to the importer.  The customs official give vehicle chit when the goods enter the custom designated area so that the duty can be assessed and let export seal can be availed from the customs for loading the cargo to the ship.
  39. 39.  A certificate showing that the freight for the consignment has been paid to the shipping company. It is a supplementary evidence to avail the second bill of lading in case original has been lost.
  40. 40.  The shipping company demands an insurance premium certificate for the insurance cover of goods. The carriage of goods through ship