export import procedure

1. CHETANA’S
HAZARIMAL SOMANI COLLEGE OF COM. &
ECO. & SMT KUSUMTAI CHAUDHARI
COLLEGE OF ARTS
CHETANA SELF FINANCING COURSE
EXPORT IMPORT
(PROCEDURES AND DOCUMENTATION)
S.Y.B.M.S B

2. MARINE INSURANCE &
ISO 9001

3. Marine Insurance
Marine insurance is the first kind of insurance that existed as
early as vedic period.
Marine insurance is a contract under which the insurer agrees
to compensate the insured against losses, caused due to the
perils of the sea.
It may cover loss or damage to ship, cargo or goods carried on
the ship. The main advantage of marine insurance is that it
protects against losses to ship, cargo or goods in sea
transportation.

4. Types of Marine Policies
Voyage Policy
Time Policy
Mixed Policy
Valued Policy
Unvalued Policy
Blanket Policy
Floating Policy

5. Voyage Policy
The term ‘voyage’ means a journey by sea. As the meaning of
the word shows a voyage policy is for one trip only.
The compensation is paid if the goods are lost or damaged in
that voyage while they are being carried from one port to
another. The time needed in the journey is not considered in
this policy.
The policy comes to an end after after the journey of goods is
completed, that is, after the goods reach the port of delivery.

6. Time Policy
Time policy gives protection cover only for a particular period
of time. In this policy, goods are insured for a particular period.
Compensation is paid by the insurance company only when the
loss occurs during the specific period of insurance.
Hence, the subject matter matter is insured for a specific period
of time.

7. Mixed Policy
Mixed policy is a combination of voyage policy and time
policy.
It is a policy which covers the risk during a particular voyage
for a specific period.
Such policy contains a contract for both voyage and time.

8. Valued Policy
In valued policy, the insurer agrees to pay a fixed value of the
subject matter at the time of making the policy.
Compensation of that amount is paid if the loss occurs.
A particular fixed amount is paid by the insurer wheather the
loss suffered is total or partial.

9. Unvalued Policy
In unvalued policy the value of the compensation is fixed as
and when the loss actually occurs.
The loss is examined and then the compensation is paid
according to the amount of loss.
This policy is opposite to the valued policy, as the value of the
compensation is not fixed in the policy itself. It is also called as
open policy.

10. Blanket Policy
This policy is taken for a particular fixed amount and full
premium is paid in the beginning itself.

11. Floating Policy
Floating policy covers all the ships of a policyholder carrying
goods from one port to another. Here, particular ship or a
specific journey is not covered.
This policy is applicable to any ship and the compensation is
paid as and when the loss occurs. This policy is popular among
ship owners who are engaged in import-export trade on a
regular basis.
The goods may be carried on in any ship but insurance cover is
given in all ships. This policy is also know as open-cover
policy.

12. Scope of Marine Insurance
Hull Insurance
Cargo Insurance
Freight Insurance
Marine Liability Insurance

13. Hull Insurance
Hull insurance is an insurance contract which subject matter is
based on vessels. Insurance of vessel and its equipments are
included under hull insurance.
There are a number of classifications of vessels such as ocean
steamers, sailing vessels, builders, risks, fleet policies etc.

14. Cargo Insurance
When the goods or cargo transported from the port of departure
to the port of destination, from the subject matter of insurance,
it is called as cargo insurance.
These are used for the insurance of goods and are incorporated
in cargo policies. The clauses of this policy describe the nature,
extent and define the comprehensive condition and restrictions.
Terms and conditions of cargo insurance are specially
incorporated in the policies. Generally exporters of the goods
take this cargo insurance policy.

15. Freight Insurance
Freight insurance is an insurance contract which protect against
such loss of freight.
The clauses of freight insurance are framed in connection with
the loss of freight due to maritime perils which may be insured
for a voyage.
These clauses to be incorporated in the policy are generally
taken from various associations.

16. Marine Liability Insurance
Sometimes for the lack of sincerity of the captain and staff the
ship may fall in loss.
To protect these types of perils when the shipping authority
takes a policy then it would be called marine liability
insurance.
The marine liability insurance policy may include liability
hazards such as collision or running down.

17. Procedure to Obtain Marine Insurance
Insurance can be arranged by an insurance broker or an
insurance company.
An insurance policy is issued when the goods are insured, but it
is also usual to use a ‘certificate of insurance’ which is used as
an evidence of insurance.
A policy is also used as collateral security when an exporter
gets an advance against his bank credit. Individual policies for
a single shipment are seldom used by companies regularly
engaged in foreign trade.
Exporters normally insure under long term policies, known as
‘Open Cover’.

18. Procedure to Obtain Marine Insurance
As evidence of insurance of each shipment, the insured or his
insurance broker can issue a certificate of insurance, which
gives all the information contained in an insurance policy.
It also saves him the trouble of having to arrange for protection
every time he makes a shipment, and he always knows his
exact insurance costs.
On a CIF contract the exporter sends the certificate of
insurance to the customer, for him to claim at the port of
destination if the goods have been damaged on the ship.
It is a common practice to insure for 10% above the CIF value
of the goods, in order to allow for problems involved in
replacing the goods, waiting for the money.

19. Guaranteed Remittance Form
As per Foreign Exchange Management Act (FEMA) 2000, all
exporters from India are required to submit an exchange
control declaration from GR form.
The aim behind this declaration is to make sure that the export
payment is received by the exporters on time and defaulters are
tracked.
As per FEMA, exporters have to submit the export documents
to the authorized dealers (banks within 21 days from the date of
shipment).
Guaranteed Remittance (GR) forms is to be submitted to the
custom authorities at the port of shipment, that is the exporters
port.

20. Guaranteed Remittance Form
The exporter is needed to submit the duplicate copy of GR
form along with the shipping documents with the bank named
in the GR form for collection of export bills within 21 days
from the shipment of goods.
As soon as the documents are negotiated, the bank informs the
Reserve Bank of India. Later on, after the receipt of export
payment by the exporter, the bank submits the duplicate copy
of the GR form and a copy of invoice to the Reserve Bank of
India.
In this way, the RBI ensures that the exporters receive payment
on time. The exporters can obtain GR forms from the Regional
Offices of the Reserve Bank.

21. Guaranteed Remittance Form
GR forms are now made available online on the Reserve Banks
Website.
At certain custom offices, Electronic Data Interchange (EDI)
system has been introduced as the shipping documents are
processed electronically.
The existing declaration in GR form is replaced by a
declaration in form SDF (Statuory Declaration Form).

22. ISO 9001
The ISO 9001 certificate is suitable for all sizes of organisation
and is well established around the world as an invaluable
quality management system.
It is suitable for organisations in all industry sectors and will
help the organisation to improve management processes to
compete locally and globally.
To achieve ISO 9001 certification the organisation needs to
demonstrate that it can meet the regulatory requirements and
apply the system effectively to be of real benefit to the
customers.

23. Benefits To The Organisation
Provides senior management with an efficient management
process.
Sets out areas of responsibility across the organization.
Mandatory if you want to tender for some public sector work.
Communicates a positive message to staff and customers.
Identifies and encourages more efficient and time saving
processes.
Highlights deficiencies.
Reduces your costs.
Provides continuous assessment and improvement.
Marketing opportunities.

24. Benefits To The Customers
Improved quality and service.
Delivery on time.
Fewer returned products and complaints.

25. Procedure to Obtain ISO 9001 Certification
Identify the requirements of ISO 9001 and how they apply to
the business involved.
Establish quality objectives and how they fit in to the operation
of the business.
Produce a documented quality policy indicating how these
requirements are satisfied.
Communicate them throughout the organisation.
Evaluate the quality policy, its stated objectives and then
prioritise requirements to ensure they are met.

26. Identify the boundaries of the management system and produce
documented procedures as required.
Ensure these procedures are suitable for the organisation.
Once developed, internal audits are needed, to ensure the
system carries on working.
Procedure to Obtain ISO 9001 Certification

27. Questions
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