• It is essential for an exporter to register
himself with the specified authorities:
1) Regional licensing Authority
2) Registration with export promotion
Regional licensing Authority
• The JDGFT for the respective area is the
authority under which an exporter has to
register himself, and obtain IEC number.
• The custom authority will not allow one to
export or import from one country unless he
has obtained the IEC number.
• After obtaining IEC number does not export
or import any goods in a year, the authorities
may strike off the IEC number from the list
Registration with EPCs
• This is dine on a prescribed form given by the
• This registration also helps the exporter to get
any benefit given under export import policy.
• If the product or services to be exported does
not have any specific council or authority to
which it is attached, the organization can register
with FIEO (federation of Indian exporter’
Procedure in the various phases of export
• Offer & Receipt of confirmed order
• Production & clearance of the products for
• Negotiation of Documents & realization of export
• Obtaining various export incentives.
Offer & Receipt of confirmed order
• The proposal submitted by an exporter is
referred to as offer. The offer, when accepted
by the foreign buyer, becomes an order.
• The offer made by the exporter is usually in
the form of a ‘Performa Invoice’.
• This is just a documents indicating the
exporter intention to sell, and usually address
to the prospective buyer.
• The consignee or the buyer
• Description of goods
• Conditions for sale
• Other obligations
The consignee or the buyer
• Name & address of buyer
• Consignee can be individual, a company, a
corporation or a government department.
• Description of goods
• Important technical specifications &
physical features which make the
identification of the product easy.
• The Performa invoice should indicate the
unit & total prices of the production
internationally accepted or mutually agreed
• It should indicate total quality of products
• There should be clearly indicate the discount
for a specific volume.
Conditions for sale
• The Performa invoice submitted entails legal
obligations on the part of the exporter to
supply the product to the buyer, in the event
of the invoice being accepted by him.
• Hence it is necessary that the conditions of
sale & other factors qualifying it should be
clearly spent out.
Conditions for sale
• Delivery Schedule
• Payment terms
Producing the goods
• Processing of an export order is to make
arrangements for the items to be produced at
the factory of exporter or to be obtained from
• All the operations from the time for production
is placed, till it reaches to export warehouse,
are normally covered by this phase.
Excise Duty Rebate
• It is levy imposed by government of India on all
excisable item as specified by it and is usually
collected at source, i.e. manufacturing stage.
• The manufactured products, as soon as they are
ready for dispatch from the factory attract the levy.
• Only after the excise is paid can the products be
removed from the factory premises.
Sales Tax Exemption
• The govt. allows exemption from paying sales
tax for export products.
• For this, Exporter should register with the
sales tax authorities.
• Sales tax exemption is for the last two stages
of transaction in a product before export.
Pre shipment Inspection of Export Cargo
• The GOI has introduced a compulsory pre
shipment inspection for selected items of export to
ensure that the products to be exported conform to
high quality std.
• Pre shipment inspection scheme is administered
by the Export Inspection council. Under this
scheme, the emphasis is on quality control rather
than on inspection for export.
• In case the export of the product is subject to
export inspection by the agency, the exporter
makes an application in the prescribed form to the
export inspection Agency, enclosing the following
• Copy of commercial Invoice
• A cheque or Demand Draft
• A copy of export contract
• More popular method of Dispatching goods
to an export buyer than dispatch by air.
• Freight charges are less compare to air
• Physical size of product constraints the
exporter to dispatch the goods by air.
The clearing & Forwarding Agents
• This are specialized personnel who
arrange for the completion of all formalities
connected with the shipment of goods.
• As soon as the export goods reaches to
the warehouse, the exporter arranges for
a complete set of shipping documents, to
be passed on the forwarding agent.
• These comprise:
• GR-1 form
• Performa Invoice
• Certificate of inspection where necessary.
• Form of declaration
• Shipping bill
• Export License
• Mate Receipt
• Port trust dues
• It is an exchange control document
required by RBI.
• As per exchange control regulations, an
exporter has to realize the proceeds Within
180 days from the date of shipment from
• In order to ensure this, the RBI has
introduced the GR Form.
• It’s a main document required by the custom
authorities for the purpose of Granting
permission for shipment.
• It is prepared in 5 copies.
• It contains the name of exporter, his address,
code no, the description and Quantity of
goods to be shipped, the value of goods,
number of packages etc.
• The GOI regulations require that an export
license be obtained for certain categories of
export products before shipment is made.
• Obtained from DGFT
• DGFT scrutinizes the application with reference
to quantity, value and description of goods in all
• According to prevailing customs regulations,
no cargo meant for export can be loaded on
a ship unless the custom authorities at the
port accord their formal approval.
• After obtaining the shipping documents,
including 5 copies of shipping bills is
submitted by the exporter to the customs
• A complete set of negotiating documents
is presented to the negotiating bank
through whom the L/C has been advised.
• Where the exporter has compiled with all
the T&C of the L/C while submitting his
documents to the negotiating bank, the
documents are deemed to be clean.
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