An export order, simply stated, means that there should be an agreement in the form of a document, between the exporter and importer before the exporter actually starts producing or procuring goods for shipment. Generally an export order may take the form of proforma invoice or purchase order or letter of credit

1. Export Order Processing
Supriya Lamba Sahdev
Assistant Professor
Amity International Business School*
Amity University Uttar Pradesh**
I-3 Block, 1st Floor, Amity University Campus
Sector – 125, Noida – 201 313. UP, INDIA
Tel: +91-120 4392034
slamba@amity.edu | www.amity.edu/aibs

2. PROCESSING OF AN EXPORT ORDER
Starts with the receipt of an
export order.

3. Processing of an Export Order
1. Acknowledging the export order-
• Must acknowledge its receipt by intimating.
2.Examination & Confirmation of export
• Order contents should be checked .
• Contents should be examined particularly –
product description, marking & labeling, terms of
payment, terms of shipment , type of inspection
,insurable value, documents for realizing payment
,last date of negotiation of docs with the bank.

4. Processing of an Export Order
3.Manufacturing or procuring goods as per
specifications- for this a delivery note is
prepared; duplicate of the same is given to
production department or to the marketing
dept. in case of merchant –exporter (known as
purchase order).
• Delivery note/ purchase order give details
about-product specification , quantity, packing,
marking, labeling, excise clearance, intimation to
transport dept.

5. Processing of an Export Order
4.Pre-shipment & Post-shipment Credit facility
by commercial banks-
• Pre-shipment credit is given to finance
working capital requirement, like purchase of
raw materials, processing them & converting
them into finishes goods.
• Post-shipment Credit is given to bridge the
time gap b/w shipment of goods & the
realization for sale proceeds.

6. Processing of an Export Order
4.Procedure for obtaining Pre-shipment & Post-
shipment Credit facility from commercial banks-
• Exporter hands over export order/ L/C to the bank.
• Bank will calculate the drawing power of the
exporter.
• Funds will be credited to his a/c.
• Goods are required to be sent through approved
transport agencies & forwarding agents.
• Goods will be suitably insured while in the
warehouse & in transit.

7. Processing of an Export Order
5.Booking of shipping space-
• Usually done 4-6 weeks in advance.
• Can be done through the C& F agent or freight
broker.
• After booking ,shipping company issues
shipping order, as a proof of space
reservation.

8. Processing of an Export Order
5.Booking of shipping space-
• Sending goods through road-lorry/ truck receipt is
issued with other docs to C& F at the port town for
taking the delivery of the cargo.
• Sending goods through rail-docs to be submitted at
railway station/yard are: forwarding note( a railway
doc), Sipping order ( as a proof of reservation of
shipping space), Wagon registration fee receipt. After
wagons are allotted , goods are loaded , for which
railways will issue RR (railway receipt).this receipt
along with other docs is sent to C & F at the port town.

9. Processing of an Export Order
6. Central Excise Clearance-
• The Central Excise & Salt Act of India –provide
refund of excise duty paid.
• Docs used are -invoice & ARE1/ARE2 forms.
• As goods become ready foe despatch,
production dept. apply to the central excise
authority for excise clearance .

10. Processing of an Export Order
7.Pre-shipment Inspection of Export goods-
• GOI notifies goods whose export is subject to
compulsory quality control/ Pre-shipment
Inspection .
• Indian Customs Authority require submission of
an inspection certificate, before permitting the
shipment to the importer’s place.
• Basis of inspection is usually importer’s
specification.
• Inspection can be conducted in 3 ways-
consignment wise, in- process quality control, self
certification.

11. Processing of an Export Order
7.Pre-shipment Inspection of Export goods-
• Application for applying for this certificate, should
go along with the following docs-copy of
commercial invoice, crossed cheque of inspection
fee, copy of export contract, importer’s technical
specifications/ approved sample.
• Original copy is given to customs verification,
second copy to the buyer & third copy is for
exporter’s record.

12. Processing of an Export Order
8.Apointment of C & F Agent-
• Also known as Freight Forwarder.
• Undertakes the procedural & documentary formalities
on behalf of the exporter/ importer.
• Helps the shipper in packing ,marking & labeling of
consignment, arranging for transport to the port,
customs clearance of cargo, arranging shipment
overseas & procurement of transport & other docs.
• Main function –is to obtain customs clearance, ship
goods & procure the relevant transport doc( bill of
lading or airway bill)

13. Processing of an Export Order
9. Despatching goods to Port of Shipment-
• Movement of goods to the port for shipment
involve following activities: Packing , marking
& labeling of consignment, Arrangement for
movement of goods either by road or by rail.
• Export- worthy packing minimizes freight &
delivery costs & eliminates possibility of the
insurance company’s refusal to pay the claim.

14. Processing of an Export Order
9. Despatching goods to Port of Shipment-
• After packing , goods are marked & labeled.
• Proper marking helps in quick & safe transportation.
• Labels are either stenciled or affixed on the packs
which contains handling instructions.

15. Processing of an Export Order
10.Documents required for Export-
Docs that are sent from export dept. to the freight
forwarder along with shipping instructions:
• Commercial invoice
• Customs declaration form
• Packing list
• Original L/C
• Inspection certificate
• GR form –original & duplicate
• Invoice
• Railway receipt/ lorry way bill

16. Processing of an Export Order
11.Port formalities & customs clearance-
• C & F ,on receiving docs, store the goods in
warehouse ,after receiving it from road / rail
transport.
• He initiates action to obtain customs
clearance & permission from port to bring
cargo into the shipment shed.

17. Processing of an Export Order
11.Port formalities & customs clearance-
Objectives of customs control are-
• Ensure goods go out of country after compliance
with different laws concerning export trade.
• Ensure authenticity of value of export goods to
check over/ under invoicing.
• Correctly assess & collect export duty.
• Compile data on cargo movements.

18. Processing of an Export Order
11.Port formalities & customs clearance-
• Customs authority checks docs at the office of
customs.
• Customs authority do physical examination of
goods in shipment shed.
• Doc on which customs give clearance for
export is the shipping bill.

19. Processing of an Export Order
Docs which C & F has to file wit the Customs:
• Shipping bill
• Contract
• L/C
• Commercial invoice
• G R form
• Inspection certificate
• ARE1/ ARE2 form
• Packing list

20. Processing of an Export Order
Customs officer after thorough check of the
docs,
• Tells that the value & quantity declared in
shipping bill is the same as in the export order
or L/C.
• Tells that the formalities regarding exchange
control, pre-shipment quality control
inspection etc., have been duly completed.

21. Processing of an Export Order
• After taking the delivery of docs from the
export dept., C & F presents the port trust doc
to the shed superintendent.
• He gets carting order for bringing the export
cargo to the transit shed for physical
examination by the dock appraiser & for their
shipment.

22. Processing of an Export Order
After brining the cargo into the shed ,he presents
the following docs to the Dock Appraiser for
conducting physical examination of the cargo:
• Copies of shipping bill
• Commercial invoice
• Packing list
• ARE1/ARE2 form
• Inspection certificate
• GR form

23. Processing of an Export Order
• Dock appraiser after conducting physical examination,
records examination report & makes “ Let Export”
endorsement on the duplicate copy of shipping bill.
• Dock officer hand over it to Forwarding agent along
with all other docs to be presented to the Preventive
Officer of the Customs Dept who supervises the
loading of cargo on board the vessel.
• Preventive officer makes an endorsement “Let Ship” on
the duplicate copy of the shipping bill.
• The duplicate copy is then given to the agent of the
shipping company.( shipping company is to accept the
cargo on the vessel.

24. Processing of an Export Order
12.Obtaining mate’s receipt & bill of lading
• After goods are loaded , captain issues Mate’s Receipt
to Shed superintendent.
• Forwarding agent makes payment of port charges &
takes Mate’s receipt.
• Forwarding agent gives Mate’s receipt to Preventive
Officer , who records Certificate of Shipment.
• Preventive Officer returns export promotion copy , a
copy of drawback shipping bill & presents Mate’s
receipt to shipping co., & requests to issue Bill of
Lading.

25. Processing of an Export Order
13. Dispatch of docs by Forwarding Agent to the Exporter-
after getting B/L from shipping co. , the agent sends
following docs to exporter-
• Copy of commercial invoice
• Export promotion copy of shipping bill
• Drawback copy of shipping bill
• Full set of ‘ Clean on Board Bill of Lading’
• Original L/C
• Copies of Customs invoice
• ARE1/ ARE2 & invoice
• GR form

26. Processing of an Export Order
14. Certificate of Origin
• After getting docs from Forwarding agent, Exporter
fills application of getting ‘Certificate of Origin ‘
from Chamber of Commerce.
• If importer’s country if offering GSP concession ,then
the same will be taken by the exporter from EIA.

27. Processing of an Export Order
15. Advising importer of Shipment-
• Exporter sends ‘shipment advice ‘ to importer
intimating about –date of shipment, name of the
vessel, & its expected time of arrival at
destination port.
• Docs that are sent along with the shipping advice
,so that importer start arrangements of taking
cargo delivery are- Non- negotiable copy of B/L,
Commercial invoice, Packing list, customs invoice.

28. Processing of an Export Order
16. Presentation of docs to Bank for Negotiation-
• Commercial invoice
• Certificate of Origin
• Customs Invoice
• GR Form
• Packing List
• Full set of ‘ Clean on Board Bill of Lading’
• Additional copies of commercial invoice for certification by the
Bank.
• Original L/C
• Bank Certificate in the prescribed form in duplicate.
• Marine insurance policy
• Bill of Exchange

29. Processing of an Export Order
17. Process of claiming Export Incentives-
a. Excise rebate-
• After completing post-shipment formalities, C & F
agent will file following docs with the Maritime
Central Collector or Jurisdictional Assistant collector of
Central Excise for claiming the refund of excise duty or
for obtaining release from bond, are: ARE1/ ARE2
form, which has been certified by the Customs
Preventive Officer, And Non- Negotiable copy of B/L
certified by the Customs Preventive Officer.
• Additional docs to be submitted for claiming refund
are- Application for refund & Pre-receipt.

30. Processing of an Export Order
17. Process of claiming Export Incentives-
b. Duty Drawback-
• For the same ,the exporter’s agent file customs
attested copy of Drawback shipping Bill, with
following docs- Drawback claim proforma, bank
or Customs Certified copy of Commercial Invoice,
Non- Negotiable copy of B/L .
• After finding claim to be correct , the Drawback
Dept will dispatch cheque to the exporter or will
sent it to his bank & the amount will be credited
to his a/c.

31. Processing of an Export Order
17. Process of claiming Export Incentives-
c. DEPB-
DEPB shipping bills are submitted to Regional
Licensing Authorities for insurance of DEPB
Script for duty free imports.