Export Document Framework:•Procurement of an export order and acquisition or production ofgoods for export are as important as ensuring their physicaldelivery and remittance of sale proceeds•To think of export documentation as a hindrance to the smoothflow of trade between nations is to take a faulty, narrow andopaque view of the way trade takes place.•The operational aspect of international marketing is conditionedby the fact that the operating entities, exporter and importer, arelocated in two different countries, which have enacted differentlaws and regulations governing the flow of goods and money.Therefore goods must accompany, follow or preceded by relevantdocuments to establish proper compliance with those laws andregulations•Yet another reason for documentation is claim of exportassistance and incentives provided by the governments worldover
• Complexity in documentation arises due to complexity in policies and schemes.Documentation dimension – Export documents can be classified on the basis of their role in the smooth flow of trade1. Commercial Dimension2. Legal Dimension3. Incentive Dimension1. Commercial Dimension – in the process of physical movement of goods and remittance of the sale amount the exporter and importer are not personally and physically involved. In other words the symbol of ownership in goods is the mere possession of a set of documents which represents goods shipped by the exporter. The set of commercial documents, known variously as shipping documents or principal export documents, is essential for smooth flow of international trade.
For a consignment being sent on CIF basis, the full set of commercial documents consists of the following1. Commercial invoice2. Bill of lading or Airway bill3. Cargo insurance policy or certificate4. Bill of exchangeIn addition to above documents specific transactions may need additional documents1. Commercial Invoice – This is the first basic document. It performs three functionsA. It is a documents of contentsB. It is a bill by exporterC. A packing list
Description of goods in the invoice should tally with that in thecontract sheet and L/C. quantity should also tally with that in thecontract sheet and L/C. exporter should be very clear whether partshipment is allowed or not. Commercial invoice to be made in thename of the party so specified in L/C, if shipment is under L/C.invoice is to be made in the name of the applicant of the creditunless otherwise specified.2. Bill of lading or Airway bill –These are transport documents. Whereas commercial invoicedescribes the goods being shipped, these documents evidencethe mode manner and date of shipment3. Insurance policy / certificateThe need for cargo insurance arises on account of the limitedliability of the carrier and other intermediaries (warehouseoperator, clearing and forwarding agent, port authorities). Lawsrelated to these agencies protect them if the loss or damage to
the goods is due to factors beyond their control.4. Bill of exchange – it performs the role of bridging the gapbetween shipment of goods and the receipt of sale amount.Defined as an unconditional order in writing by exporter toimporter signed by the person giving it requiring the importer topay on demand or at fixed or determinable future, a sum inmoney (contract value) to the named party.Legal Dimension – all over the world, laws regulating exportimport trade have been enacted to account for movement ofgoods and foreign exchange and to protect economic, political,cultural and other interests and to implement bilateral andmultilateral trade agreements.RBI code number – identification reference of a company throughwhich control over the realization of sale amount is exercised andmonitored.
Registered Cum Membership Certificate – (RCMC)Certificate from relevant export promotion council or commodityboardImporter Exporter Code (IEC) – from DGFTThe allotted number is to be quoted in customs documents, whileclearanceOthers include export license or permitGR form etcShipping bill – main document for obtaining customs permissionfor shipping goodsRegulatory controls in other countries – these are two types. 1. toprotect the interests of the customers or users of importedmaterials. 2. Government rules and trade agreementsEg.1. Independent Inspection certificate 2. certificate of origin
Incentive Dimension: an exporter wishing to avail himself ofgovernment incentives, will have to forward his claims bypresenting relevant documents supporting his claim to differentauthorities.These include – ARA, AR4 form, commercial invoice for claimingrebate in excise duty, drawback copy of shipping bill etc forclaiming duty drawback.