SlideShare a Scribd company logo
1 of 68
WHAT IS INTERNATIONAL TRADE?
THE EXCHANGE
OF GOODS &
SERVICES
BETWEEN
COUNTRIES.
IMPORTANCE OF FOREIGN TRADE
REGISTER AS
AN IMPORTER
OR EXPORTER
NEGOTIA
TE
TERMS OF
SALE
UNDERSTAND
EXPORT
FORMALITIES
AND
RESPONSIBILIT
Y TOWARDS
SALE
PROCEEDS
UNDERSTAND
DOCUMENTA
TI
ON AND
INCOTERMS
FOR
EXPORT
,COMP
LETE
CUSTOMS
FORMALITIES
AND OBTAIN
DOCUMENTS
SUBMIT TO THE
BANK FOR
ONWARD
TRANSMISSION
TO BUYER
RECEIVE SALE
PROCEEDS
EXPORT IMPORT PROCESS
EXIM BANK
EXIM BANK
Export-Import Bank of India is the premier export finance institution of
the country, established in 1982 under the Export-Import Bank of India
A
G
c
o
t
v
e
1
r
9
n
8
m
1
e
n
t
of India launched the institution with a mandate, not just to
enhance exports from India, but to integrate the country’s foreign trade and
investment with the overall economic growth. like other Export Credit
Agencies in the world, Exim Bank of India has, over the period, evolved into
an institution that plays a major role in partnering Indian industries,
particularly the Small and Medium Enterprises, in their globalisation efforts,
through a wide range of products and services offered at all stages of the
business cycle, starting from import of technology and export product
development to export production, export marketing, pre-shipment and
post-shipment and overseas investment.
EXIM BANK
Exim Bank of India has been the prime mover in encouraging project exports
from India.
The Bank extends lines of credit to overseas financial institutions, foreign
governments and their agencies, enabling them to finance imports of goods and
services from India on deferred credit terms.
The Bank provides financial assistance by way of term loans in Indian
rupees/foreign currencies for setting up new production facility,
expansion/modernization/upgradation of existing facilities and for acquisition of
production equipment/technology. Such facilities Such facilities particularly help
export oriented Small and Medium Enterprises for creation of export capabilities
and enhancement of international competitiveness.
The Bank has launched the Rural Initiatives Programme with the objective of
linking Indian rural industry to the global market. The programme is intended to
benefit rural poor through creation of export capability in rural enterprises.
EXIM BANK
Exim Bank
supplements its
financing programmes
with a wide range of
value-added
information, advisory
and support services,
which enable
exporters to evaluate
international risks,
exploit export
opportunities and
improve
competitiveness,
thereby helping them
SUPPORT INSTITUTIONS TO FACILITATE
EXPORTS
Some of these institutions are:
Export Credit Guarantee
Corporation (ECGC)
Exim Bank of India
India Trade Promotion
Organisation (ITPO)
Export Inspection council (EIC)
Indian Institute of Packaging (IIP)
contd
ECGC
The Export Credit Guarantee Corporation of India Limited(ECGC) is a
company wholly owned by the Government of India based in
Mumbai, Maharashtra. It provides export credit insurance support to Indian
exporters and is controlled by the Ministry of Commerce. Government of
India had initially set up Export Risks Insurance Corporation (ERIC) in July
1957.
ECGC LOGO
ECGC
What does ECGC do?
Provides a range of credit risk insurance covers to
exporters against loss in export of goods and
services.
Offers guarantees to banks and financial institutions to enable
exporters to obtain better facilities from them.
Provides Overseas Investment Insurance to Indian companies
investing in joint ventures abroad in the form of equity or loan.
Information on different countries with its own credit rating
Assists the exporters in recovering bad debts
EXPORTS & IMPORT – GENERAL
PROVISIONS IN FOREIGN TRADE
POLICY
 The interpretation of Policy: DGFT is the final
authority. Any exemption from policy or procedure
also to be referred to DGFT
 Freedom to export & import except to the extent of
provisions in the Foreign Trade Policy or any other
law in force
 Every exporter/importer must comply with the
provisions of the Foreign Trade (Development &
Regulation) Act 1992
 No agency shall withhold consignments allowed for
exports. Free movement of export goods is allowed.
Authority can take undertaking from exporter in
case of any doubt
EXCISE
DUTY
An excise or excise tax (sometimes called a duty of
excise special tax) is an inland tax on the sale, or
production for sale, of specific goods or a tax on a good
produced for sale, or sold, within a country or licenses
for specific activities. Excises are distinguished from
customs duties, which are taxes on importation
CUSTOM
DUTY
Custom Officer U.K
.
Customs duty is a kind of indirect
tax which is realized on goods of
international trade. In economic
sense, it is also a kind of consumption
tax. Duties levied by the government
in relation to imported items is referred
to as import duty. In the same vein,
duties realized on export
consignments is called export
duty. Tariff, which is actually a list of
commodities along with the leviable
rate (amount) of Customs duty, is
popularly understood as Customs
INCOTERMS
The Incoterms rules or International Commercial terms are a series of
pre-defined commercial terms published by the International
Chamber of Commerce (ICC) widely used in international commercial
transactions.It defines the trade contract ,responsibilities and
liabilities between the buyer and the seller
These terms make international trade easier and help traders in
different countries to understand the responsibilities and rights of
t
h
e
S
b
O
u
y
Me
r
s
E
a
n
O
ds
Fe
l
l
Te
r
Hs
.
E TERMS ARE-
EXW – Ex Works (named place of delivery)
FCA – Free Carrier (named place of delivery)
CPT - Carriage Paid To (named place of destination)
CIP – Carriage and Insurance Paid to (named place of destination)
DAT – Delivered at Terminal (named terminal at port or place of
destination)
DAP – Delivered at Place (named place of destination)
DDP – Delivered Duty Paid (named place of destination)
WHAT IS AN EXPORT?
• 1. Develop Your Export Strategy
Identify products to sell.(https://youtu.be/GZqqz0gBVWw) HS Code
Identify markets to sell to.(https://youtu.be/hwLSvgjvxU8) DGFT site
Identify your strategy for selling
Identify how you will support your products: Service,technical
support,repairing,warranties,Returns
Identify any intellectual property concerns.(ipindiaonline.gov.in)
Decide how to price your products.(costs,demand,competion,Market segment,product
line,Market elasticities)
ACTIVITY
• 1. Identify HS codes for
• Gems & jewellery
• Spices
• Toys
• Keyboard Instruments
• Grains
• Rice
• Comment on
• 1. Import & export Policy
• 2. Major Trading partners
• 3.Top 10 Exporting states of India
• 4.Indias world merchandise trade
ACTIVITY 2 ON WHY IPR IS IMPORTANT IN
INTERNATIONAL TRADE
• Concept of ‘Deceptively Similar’ in Indian trademark law: Starbucks v Sardarbuksh
• Sued by Starbucks, SardarBuksh changes name to Sardarji-Bakhsh
2. REVIEW AND UNDERSTAND EXPORT AND
IMPORT REGULATIONS
• any restrictions on exporting your goods:Export license
requirements. (Embargoed Countries)
• Restricted parties
• any restrictions on importing your goods in prospective countries.(Use HS
Code import licenses and permits, various certificates, absolute and tariff rate
quotas, and anti-dumping and countervailing duties.)
• Research to see if your products qualify for any free trade agreements (FTA)
The U.S. currently has free trade agreements with 20 countries
3. PREPARE YOUR GOODS FOR SHIPPING
• Identify partners like freight forwarders.
1. Do I have a specialized product line or type of export?
2. How many ports will I be using for exports?
3. Is automation easy with this partner?
4. What is the broker or freight forwarder’s general reputation?
5. Do I need a dedicated account representative?
6. Do we have a written working agreement?
7. Are there warning signs about the freight forwarder you might choose?
The answers to your questions about freight forwarders will help you identify if your relationship is
as functional and profitable as it could be.
• Understand Incoterms 2020 rules.
Incoterms, a standardized set of rules that help facilitate trade between countries.
Incoterms 2020 rules are the official commercial terms published by the International Chamber of
Commerce (ICC). They are a voluntary, authoritative, globally-accepted and adhered-to text for
determining the responsibilities of buyers and sellers for the delivery of goods under sales
contracts for international trade. Incoterms closely correspond to the U.N. Incoterms are only part
of the whole export contract. They don’t say anything about the price to be paid, when payment
will be made or the method of payment that will be used in the transaction. Furthermore,
Incoterms 2020 rules don’t deal with the transfer of ownership of the goods, breach of contract or
product liability; all of these issues need to be considered in the contract of sale. Also, Incoterms
2020 rules can’t override any local country laws.
THESE ARE THE 11 INCOTERMS 2020 RULES:
• EXW (Ex Works)—insert place of delivery
• FCA (Free Carrier)—insert named place of delivery
• CPT (Carriage Paid To)—insert place of destination
• CIP (Carriage and Insurance Paid To)—insert place of destination
• DAP (Delivered at Place)—insert named place of destination
• DPU (Delivered at Place Unloaded)—insert of place of destination
• DDP (Delivered Duty Paid)—insert place of destination
• FAS (Free Alongside Ship)—insert name of port of loading
• FOB (Free on Board)—insert named port of loading
• CFR (Cost and Freight)—insert named port of destination
• CIF (Cost Insurance and Freight)—insert named port of destination
Understand product labeling requirements in your destination country
• Here are a few things you need to consider:
• Does the country legally require using specific language?
• Do the product content and country of origin need to be included?
• Are weights and measures stated in the local units?
• Do items need to be labelled individually?
• Pack your goods.
• Understand and correctly apply Hazmat (dangerous goods)requirements if
appropriate
• Make carrier choices.
• Understand insurance requirements.
4. COMPLETE YOUR EXPORT PAPERWORK
• you now need to fill out the documentation and supporting paperwork that will
accompany your goods on their export journey. This is crucial to your success,
because any errors (even simple typos) in your paperwork could delay shipments
and your payday.
• Depending on what, how and where you’re exporting, you may need to prepare
several different export forms.
5. MAKE SURE YOU GET PAID
• Find an international banking partner.
• Understand your payment options.
CHAPTER II. WHO’S WHO IN YOUR EXPORT
JOURNEY
• 1. Exporter
• 2.Shipping Department
• 3.Freight Forwarder
• 4.Inland carrier
• 5.Licenses and other agencies
• 6.International carrier
• 7.Foreign custom agency
• 8.Intermediate Consignee
• 9.Banks
• 10.Buyer/Importer
CASE STUDY: AMAZON GO
HTTPS://YOUTU.BE/NRMMK1MYRXC
STUDENT EXERCISE
• What goes into the Amazon Global Business strategy secret sauce?
• Does this case study explores Amazon's revenue model and culture of
customer metrics, history of Amazon.com and marketing objectives.
CASE STUDY: AMUL
HTTPS://WWW.YOUTUBE.COM/WATCH?V=WVU0SZUB83S&T=106S
STUDENT EXERCISE?
• AMUL SUCCESS STORY? What Makes Amul Visually Appealing and
Memorable GLOBALLY
BISLERI A GLOBAL SUCCESS
HTTPS://WWW.YOUTUBE.COM/WATCH?V=AN1APUYCQ3E&T=25S
EXPORT PROCEDURES &
DOCUMENTATIONS
It is essential for an exporter to register himself
with the specified authorities:
1) Regional licensing Authority
2) Registration with export promotion councils
REGIONAL LICENSING AUTHORITY
REGISTRATION WITH EPCS
• This is done on a prescribed form given by the
council.
• 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’ organization)
STEPS INVOLVED IN EXPORT PROCESS
• Step 1 In the case of first time exporters –importers ,they need to apply to the Director
General of Foreign Trade (DGFT) regional office for getting Importer-Exporter Code (IEC)
Number.
• Step 2 The exporter has to register with the concerned export promotion council in order to
obtain various permissible benefits given by the government. ,they need to get registered
with sales tax office, and even Export Credit Guarantee Corporation.
• Step 3 The exporter can now go in for procuring orders, by first sending a sample, if
required. The importer sends a purchase order once both exporter and importer have agreed
upon the terms and conditions of the contract like pricing, documents, freight charges,
currency etc.
• Step 4 With export order in hand, the exporter starts manufacturing goods or buying them
from other manufacturers.
• Step 5 The exporter makes arrangements for quality control and obtains a certificate
confirming the quality of the goods from inspector of quality control.
• Step 6 Exportables are then dispatched to ports/airports for transit.
• Step 7 The export firm has to apply to an insurance company for marine/air insurance
cover.(The exporter asks the importer to take marine/ air insurance under cost and freight ,
free on board etc., terms of contract.)
• Step 8 The exporter contacts the clearing and forwarding agent (C & F) for storing the goods
in warehouses. A document called Shipping Bill, required for allowing shipment by Customs
Authority is presented by the forwarding agent.
• Step 9 Once the goods are loaded into the ship ,a receipt called ‘Mate’s Receipt ‘ is issued
by the captain to the ship superintendent of the port.
• Step 10 The superintendent calculates port charges and handover to the exporter /C&F
agent.
• Step 11After making the port payments , the C&F agent or exporter gets the Bills of Lading
or Airway Bill from the official agent of the shipping company or the airline
• Step 12 The exporter applies to the relevant Chamber of Commerce for obtaining
Certificate of Origin, stating that the goods originated from India.
• Step 13 The exporter sends a set of documents to the importers, stating the date of
shipment ,name of vessel ,etc.
• Step 14 Within 21 days after shipment the exporter must present all the documents
at his bank which scrutinizes these documents against the original letter ofcredit
/purchase order.
• Step 15 The exporter’s bank sends these documents to the importer’s bank which
should make the payment on of before the due date.
IMPORTANT DOCUMENTS
• Proforma Invoice Proforma Invoice, as the name suggests ,is a proforma of the
invoice. It is prepared by an exporter and sent to the importer for necessary
acceptance. It suggests to a buyer what the actual invoice would look like and is
sent to him when he is ready to purchase the goods
• Shipping Bill/Bill of Entry It is a requisite for seeking the permission of customs
to export goods .It contains a description of export goods by sea/air. It contains a
description of export goods, number and kind of packages, shipping marks, and
number numbers, value of goods, the name of the vessel, the country of
destination ,etc. On the other hand, importers have to submit copies of document
called Bill of Entry for customs clearance.Later, a copy has to be given to the bank
for verification.
• ARE-1 Form This form is an application for the removal of excisable goods from the
factory premises for export purposes. The ARE-1 form has multiple copies which are
distributed to different authorities, including Customs, Range office of Excise, Refund
office of Excise , etc.
• Exchange Declaration Form (GR/SDF Form) The RBI has prescribed has prescribed a
GR form (SDF) , a PP form, and SOFTEX forms to declare the export transactions. The
GR form contains :
• a) Name and address of the exporter and description of goods.
• b) Name and address of the authorized dealer through whom proceeds of theexports
have been or will be realized.
• c) Details of commission and discount due to foreign agent or buyer.
• d) The full export value, giving break up of FOB, Freight, Insurance, Discount ,and
Commission ,etc.
OTHER DOCUMENTS
1. Commercial invoice
2. Packing list
3. Bill of lading
4. Combined transport document
5. Certificate of inspection/quality control
6. Insurance certificate/policy
7. Certificate of origin
8. Bills of exchange and shipment advice
9. Performa invoice
10. Intimation for inspection
11. Shipping instructions
12. Insurance declaration
13. Shipping order
14. Mate receipt
IMPORT PROCEDURES &
DOCUMENTATIONS
Import procedure:
Step 1. Obtaining import license and quota
Importer has to attach the following documents to his application form :-
 Receipt which shows that import license fee has been paid.
 Certificate from a Chartered Accountant showing the total value of goods to be imported.
 Verification Certificate for income tax.
Step 2. Obtaining foreign exchange
Before placing any order, the importer must apply to the Exchange Control Department (ECD) of RBI (India's
Central Bank) for the release of requisite foreign exchange. The importer should forward the application through
his bank. The ECD verifies the application of the importer, and if found valid, sanctions the foreign exchange for the
particular transaction.
Step 3. Placing an order
The importer may either place the order directly or through the indent house (Agent). In case of canalised
items, he obtains the imports through the canalizing agency. The importer cannot directly import such
canalized items. They have to place an order with the canalizing agency who shall import and supply the
same.
Step 4. Despatching letter of credit
After getting the confirmation from the supplier regarding the supply of goods, the importer requests his bank to
issue a Letter of credit in favour of supplier. It can be defied as "an undertaking by importer's bank stating that
payment will be made to the exporter if the required documents are presented to the bank".
Step 5. Appointing clearing and forwardingagents
The importer makes arrangement to appoint clearing and forwarding agents to clear the goods from the customs.
Since clearing of goods is a specialized job, it is better to appoint C & F agents.
Step 6. Receipt of shipment device
The importer receives the shipment advice from the exporter. The shipment advice states the date on which the
goods are loaded on the ship. The shipment advice helps the importer to make arrangement for clearance of
goods.
Step 7. Receipts of documents
The importer's bank receives the documents from the exporter's bank. The documents include bill of exchange, a
copy of bill of lading, certificate of origin, commercial invoice, consular invoice, packing list, and other relevant
documents. The importer makes payment to the bank (if not paid earlier) and collects the documents.
Step 8. Bill of entry
This is a document required in case of import of goods. It is like shipping bill in case of exports. A Bill of Entry is the
document testifying the fact that goods of the stated value and description in specified quantity are entering into the
country from abroad. The customs office supplies this form which is prepared in triplicate. Three different colours are
used to prepare bill of entry.One copy is retained by custom department, other is retained by port trust and the third
is kept by the importer.
Step 9. Delivary order
The clearing agents obtains the delivery order from the office of the shipping company. The shipping company gives
the delivery order only after payment of freight, if any.
Step 10. Clearing of goods
The clearing agent pays the necessary dock or port trust dues and obtains the port Trust Receipt in two copies.
He then approaches the Customs House and presents one copy of Port Trust Receipt, and two copies of Bill of.
Entry to the customs authorities. The customs officer endorses the Bill of Entry Forms and one copy of Bill of Entry
is handed back to the importer. The importer then pays the customs duty and clears the goods. In case, the customs
duty is not paid, then the goods are stored in the bonded warehouses. As and when the duty is paid, the goods are
cleared from the docks.
Step 11. Payment to clearing and forwarding agent
The importer then makes the necessary payment to the clearing agent for his various expenses and fees.
Step 12. Payment to exporter
The importer has to make payment to exporter. Usually, the exporter draws a bill of exchange. The importer has
to accept the bill and make payment.
Step 13. Follow up
The importer then informs the exporter about the receipt of goods. If there are any discrepancies or
damages to the goods, he should inform the exporter.
EXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptx

More Related Content

Similar to EXIM procedures & documentation for.pptx

International business – exim, ecgc
International business – exim, ecgcInternational business – exim, ecgc
International business – exim, ecgc
Prakash Venkataramani
 
Assignment on export and import procedures of flying king exports and imports...
Assignment on export and import procedures of flying king exports and imports...Assignment on export and import procedures of flying king exports and imports...
Assignment on export and import procedures of flying king exports and imports...
Juhi Shah
 
meaningofforeigntradepolicy
meaningofforeigntradepolicymeaningofforeigntradepolicy
meaningofforeigntradepolicy
ShashankHS16
 

Similar to EXIM procedures & documentation for.pptx (20)

Import export procedures
Import export proceduresImport export procedures
Import export procedures
 
Export procedure
Export procedure  Export procedure
Export procedure
 
Export procedure kohima
Export procedure  kohimaExport procedure  kohima
Export procedure kohima
 
Eeb exim policy
Eeb   exim policyEeb   exim policy
Eeb exim policy
 
International business – exim, ecgc
International business – exim, ecgcInternational business – exim, ecgc
International business – exim, ecgc
 
Role of Banking in Customs & Trade procedures
Role of Banking in Customs & Trade proceduresRole of Banking in Customs & Trade procedures
Role of Banking in Customs & Trade procedures
 
Export management
Export managementExport management
Export management
 
Export promotion scheme in india
Export promotion scheme in indiaExport promotion scheme in india
Export promotion scheme in india
 
Export
ExportExport
Export
 
Commerce Material 2nd year
Commerce Material 2nd yearCommerce Material 2nd year
Commerce Material 2nd year
 
Assignment on export and import procedures of flying king exports and imports...
Assignment on export and import procedures of flying king exports and imports...Assignment on export and import procedures of flying king exports and imports...
Assignment on export and import procedures of flying king exports and imports...
 
Ecgc & gsp
Ecgc & gspEcgc & gsp
Ecgc & gsp
 
International trade finance and promotion
International trade finance and promotionInternational trade finance and promotion
International trade finance and promotion
 
Dgft
DgftDgft
Dgft
 
Export promotion scheme in india
Export promotion scheme in indiaExport promotion scheme in india
Export promotion scheme in india
 
Export Promotion, Import Substitution & Packaging Requirements
Export Promotion,  Import Substitution &  Packaging RequirementsExport Promotion,  Import Substitution &  Packaging Requirements
Export Promotion, Import Substitution & Packaging Requirements
 
Unit i international trade finance
Unit i international trade financeUnit i international trade finance
Unit i international trade finance
 
meaningofforeigntradepolicy
meaningofforeigntradepolicymeaningofforeigntradepolicy
meaningofforeigntradepolicy
 
FEMA Compliance on Export of Goods and Services.pdf
FEMA Compliance on Export of Goods and Services.pdfFEMA Compliance on Export of Goods and Services.pdf
FEMA Compliance on Export of Goods and Services.pdf
 
FEMA Act, FDI In india, ECB Compliance
FEMA Act, FDI In india, ECB Compliance FEMA Act, FDI In india, ECB Compliance
FEMA Act, FDI In india, ECB Compliance
 

More from RichaGoel44

HOch12_instructor monopolistic competition.ppt
HOch12_instructor monopolistic competition.pptHOch12_instructor monopolistic competition.ppt
HOch12_instructor monopolistic competition.ppt
RichaGoel44
 
demand& the elasticity and degrees of .PPT
demand& the elasticity  and degrees of .PPTdemand& the elasticity  and degrees of .PPT
demand& the elasticity and degrees of .PPT
RichaGoel44
 
govt budget and the economy for sust.ppt
govt budget and the economy for sust.pptgovt budget and the economy for sust.ppt
govt budget and the economy for sust.ppt
RichaGoel44
 
hubbard01_instructorppt02.ppt comparativ
hubbard01_instructorppt02.ppt comparativhubbard01_instructorppt02.ppt comparativ
hubbard01_instructorppt02.ppt comparativ
RichaGoel44
 
hubbard01_instructorppt01.ppt eco founda
hubbard01_instructorppt01.ppt eco foundahubbard01_instructorppt01.ppt eco founda
hubbard01_instructorppt01.ppt eco founda
RichaGoel44
 
Business_Cycles working fiscal measures .ppt
Business_Cycles working fiscal measures .pptBusiness_Cycles working fiscal measures .ppt
Business_Cycles working fiscal measures .ppt
RichaGoel44
 
1. Concept of Business Env bvhjhkjljj.ppt
1. Concept of Business Env bvhjhkjljj.ppt1. Concept of Business Env bvhjhkjljj.ppt
1. Concept of Business Env bvhjhkjljj.ppt
RichaGoel44
 
Role of Government in organized society; Changing Perspective- government in ...
Role of Government in organized society; Changing Perspective- government in ...Role of Government in organized society; Changing Perspective- government in ...
Role of Government in organized society; Changing Perspective- government in ...
RichaGoel44
 
Personal Branding Webinar on women leadership and empowerment and education
Personal Branding Webinar on women leadership and empowerment and educationPersonal Branding Webinar on women leadership and empowerment and education
Personal Branding Webinar on women leadership and empowerment and education
RichaGoel44
 
INTERNATIONAL_MONETARY_FUND.pptx
INTERNATIONAL_MONETARY_FUND.pptxINTERNATIONAL_MONETARY_FUND.pptx
INTERNATIONAL_MONETARY_FUND.pptx
RichaGoel44
 
foreigntradepolicy 2015-2020.pptx
foreigntradepolicy 2015-2020.pptxforeigntradepolicy 2015-2020.pptx
foreigntradepolicy 2015-2020.pptx
RichaGoel44
 
Intro to World War -1(1914-1918).pptx
Intro to World War -1(1914-1918).pptxIntro to World War -1(1914-1918).pptx
Intro to World War -1(1914-1918).pptx
RichaGoel44
 

More from RichaGoel44 (20)

HOch12_instructor monopolistic competition.ppt
HOch12_instructor monopolistic competition.pptHOch12_instructor monopolistic competition.ppt
HOch12_instructor monopolistic competition.ppt
 
demand& the elasticity and degrees of .PPT
demand& the elasticity  and degrees of .PPTdemand& the elasticity  and degrees of .PPT
demand& the elasticity and degrees of .PPT
 
govt budget and the economy for sust.ppt
govt budget and the economy for sust.pptgovt budget and the economy for sust.ppt
govt budget and the economy for sust.ppt
 
hubbard01_instructorppt02.ppt comparativ
hubbard01_instructorppt02.ppt comparativhubbard01_instructorppt02.ppt comparativ
hubbard01_instructorppt02.ppt comparativ
 
hubbard01_instructorppt01.ppt eco founda
hubbard01_instructorppt01.ppt eco foundahubbard01_instructorppt01.ppt eco founda
hubbard01_instructorppt01.ppt eco founda
 
Business_Cycles working fiscal measures .ppt
Business_Cycles working fiscal measures .pptBusiness_Cycles working fiscal measures .ppt
Business_Cycles working fiscal measures .ppt
 
1. Concept of Business Env bvhjhkjljj.ppt
1. Concept of Business Env bvhjhkjljj.ppt1. Concept of Business Env bvhjhkjljj.ppt
1. Concept of Business Env bvhjhkjljj.ppt
 
Role of Government in organized society; Changing Perspective- government in ...
Role of Government in organized society; Changing Perspective- government in ...Role of Government in organized society; Changing Perspective- government in ...
Role of Government in organized society; Changing Perspective- government in ...
 
Musgrave theory of comparaitive advantage in public finance
Musgrave theory of comparaitive advantage in public financeMusgrave theory of comparaitive advantage in public finance
Musgrave theory of comparaitive advantage in public finance
 
Personal Branding Webinar on women leadership and empowerment and education
Personal Branding Webinar on women leadership and empowerment and educationPersonal Branding Webinar on women leadership and empowerment and education
Personal Branding Webinar on women leadership and empowerment and education
 
Bdian session.pptx
Bdian session.pptxBdian session.pptx
Bdian session.pptx
 
Lecture01.ppt
Lecture01.pptLecture01.ppt
Lecture01.ppt
 
digital markt ppt.pptx
digital markt ppt.pptxdigital markt ppt.pptx
digital markt ppt.pptx
 
Sale_of_goods_act_913275503 (1).ppt
Sale_of_goods_act_913275503 (1).pptSale_of_goods_act_913275503 (1).ppt
Sale_of_goods_act_913275503 (1).ppt
 
INTERNATIONAL_MONETARY_FUND.pptx
INTERNATIONAL_MONETARY_FUND.pptxINTERNATIONAL_MONETARY_FUND.pptx
INTERNATIONAL_MONETARY_FUND.pptx
 
foreigntradepolicy 2015-2020.pptx
foreigntradepolicy 2015-2020.pptxforeigntradepolicy 2015-2020.pptx
foreigntradepolicy 2015-2020.pptx
 
Business_Cycles.ppt
Business_Cycles.pptBusiness_Cycles.ppt
Business_Cycles.ppt
 
NI.PPT
NI.PPTNI.PPT
NI.PPT
 
commercial bank.ppt
commercial bank.pptcommercial bank.ppt
commercial bank.ppt
 
Intro to World War -1(1914-1918).pptx
Intro to World War -1(1914-1918).pptxIntro to World War -1(1914-1918).pptx
Intro to World War -1(1914-1918).pptx
 

Recently uploaded

wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
allysaamping
 
一比一原版(Cornell毕业证书)康奈尔大学毕业证成绩单学位证书
一比一原版(Cornell毕业证书)康奈尔大学毕业证成绩单学位证书一比一原版(Cornell毕业证书)康奈尔大学毕业证成绩单学位证书
一比一原版(Cornell毕业证书)康奈尔大学毕业证成绩单学位证书
atedyxc
 
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
atedyxc
 
Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
klaudiafilka
 
Bahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttxBahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttx
AbdulNasirNichari
 
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单学位证书
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单学位证书一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单学位证书
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单学位证书
atedyxc
 
DSP Gold ETF Fund of Fund PPT - April'2024
DSP Gold ETF Fund of Fund PPT - April'2024DSP Gold ETF Fund of Fund PPT - April'2024
DSP Gold ETF Fund of Fund PPT - April'2024
DSP Mutual Fund
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
joshuaclack73
 
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
atedyxc
 
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
atedyxc
 
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单学位证书
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单学位证书一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单学位证书
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单学位证书
atedyxc
 

Recently uploaded (20)

Abhay Bhutada: A Journey of Transformation and Leadership
Abhay Bhutada: A Journey of Transformation and LeadershipAbhay Bhutada: A Journey of Transformation and Leadership
Abhay Bhutada: A Journey of Transformation and Leadership
 
How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.
 
wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
 
一比一原版(Cornell毕业证书)康奈尔大学毕业证成绩单学位证书
一比一原版(Cornell毕业证书)康奈尔大学毕业证成绩单学位证书一比一原版(Cornell毕业证书)康奈尔大学毕业证成绩单学位证书
一比一原版(Cornell毕业证书)康奈尔大学毕业证成绩单学位证书
 
Monthly Market Risk Update: May 2024 [SlideShare]
Monthly Market Risk Update: May 2024 [SlideShare]Monthly Market Risk Update: May 2024 [SlideShare]
Monthly Market Risk Update: May 2024 [SlideShare]
 
Human Capital: Education and Health in Economic Development
Human Capital:  Education and Health      in Economic DevelopmentHuman Capital:  Education and Health      in Economic Development
Human Capital: Education and Health in Economic Development
 
how do i convert pi coins to usdt easily.
how do i convert pi coins to usdt easily.how do i convert pi coins to usdt easily.
how do i convert pi coins to usdt easily.
 
International economics – 2 classical theories of IT
International economics – 2 classical theories of ITInternational economics – 2 classical theories of IT
International economics – 2 classical theories of IT
 
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
 
Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
 
Bahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttxBahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttx
 
how can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best pricehow can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best price
 
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单学位证书
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单学位证书一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单学位证书
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单学位证书
 
DSP Gold ETF Fund of Fund PPT - April'2024
DSP Gold ETF Fund of Fund PPT - April'2024DSP Gold ETF Fund of Fund PPT - April'2024
DSP Gold ETF Fund of Fund PPT - April'2024
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
 
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
 
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
 
How to exchange my pi coins on HTX in 2024
How to exchange my pi coins on HTX in 2024How to exchange my pi coins on HTX in 2024
How to exchange my pi coins on HTX in 2024
 
Maximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice DiscountingMaximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice Discounting
 
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单学位证书
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单学位证书一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单学位证书
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单学位证书
 

EXIM procedures & documentation for.pptx

  • 1. WHAT IS INTERNATIONAL TRADE? THE EXCHANGE OF GOODS & SERVICES BETWEEN COUNTRIES.
  • 2.
  • 4.
  • 5.
  • 6.
  • 7. REGISTER AS AN IMPORTER OR EXPORTER NEGOTIA TE TERMS OF SALE UNDERSTAND EXPORT FORMALITIES AND RESPONSIBILIT Y TOWARDS SALE PROCEEDS UNDERSTAND DOCUMENTA TI ON AND INCOTERMS FOR EXPORT ,COMP LETE CUSTOMS FORMALITIES AND OBTAIN DOCUMENTS SUBMIT TO THE BANK FOR ONWARD TRANSMISSION TO BUYER RECEIVE SALE PROCEEDS EXPORT IMPORT PROCESS
  • 9. EXIM BANK Export-Import Bank of India is the premier export finance institution of the country, established in 1982 under the Export-Import Bank of India A G c o t v e 1 r 9 n 8 m 1 e n t of India launched the institution with a mandate, not just to enhance exports from India, but to integrate the country’s foreign trade and investment with the overall economic growth. like other Export Credit Agencies in the world, Exim Bank of India has, over the period, evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises, in their globalisation efforts, through a wide range of products and services offered at all stages of the business cycle, starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.
  • 10. EXIM BANK Exim Bank of India has been the prime mover in encouraging project exports from India. The Bank extends lines of credit to overseas financial institutions, foreign governments and their agencies, enabling them to finance imports of goods and services from India on deferred credit terms. The Bank provides financial assistance by way of term loans in Indian rupees/foreign currencies for setting up new production facility, expansion/modernization/upgradation of existing facilities and for acquisition of production equipment/technology. Such facilities Such facilities particularly help export oriented Small and Medium Enterprises for creation of export capabilities and enhancement of international competitiveness. The Bank has launched the Rural Initiatives Programme with the objective of linking Indian rural industry to the global market. The programme is intended to benefit rural poor through creation of export capability in rural enterprises.
  • 11. EXIM BANK Exim Bank supplements its financing programmes with a wide range of value-added information, advisory and support services, which enable exporters to evaluate international risks, exploit export opportunities and improve competitiveness, thereby helping them
  • 12. SUPPORT INSTITUTIONS TO FACILITATE EXPORTS Some of these institutions are: Export Credit Guarantee Corporation (ECGC) Exim Bank of India India Trade Promotion Organisation (ITPO) Export Inspection council (EIC) Indian Institute of Packaging (IIP) contd
  • 13. ECGC The Export Credit Guarantee Corporation of India Limited(ECGC) is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce. Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957.
  • 15. ECGC What does ECGC do? Provides a range of credit risk insurance covers to exporters against loss in export of goods and services. Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them. Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan. Information on different countries with its own credit rating Assists the exporters in recovering bad debts
  • 16. EXPORTS & IMPORT – GENERAL PROVISIONS IN FOREIGN TRADE POLICY  The interpretation of Policy: DGFT is the final authority. Any exemption from policy or procedure also to be referred to DGFT  Freedom to export & import except to the extent of provisions in the Foreign Trade Policy or any other law in force  Every exporter/importer must comply with the provisions of the Foreign Trade (Development & Regulation) Act 1992  No agency shall withhold consignments allowed for exports. Free movement of export goods is allowed. Authority can take undertaking from exporter in case of any doubt
  • 17. EXCISE DUTY An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation
  • 18. CUSTOM DUTY Custom Officer U.K . Customs duty is a kind of indirect tax which is realized on goods of international trade. In economic sense, it is also a kind of consumption tax. Duties levied by the government in relation to imported items is referred to as import duty. In the same vein, duties realized on export consignments is called export duty. Tariff, which is actually a list of commodities along with the leviable rate (amount) of Customs duty, is popularly understood as Customs
  • 19. INCOTERMS The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions.It defines the trade contract ,responsibilities and liabilities between the buyer and the seller These terms make international trade easier and help traders in different countries to understand the responsibilities and rights of t h e S b O u y Me r s E a n O ds Fe l l Te r Hs . E TERMS ARE- EXW – Ex Works (named place of delivery) FCA – Free Carrier (named place of delivery) CPT - Carriage Paid To (named place of destination) CIP – Carriage and Insurance Paid to (named place of destination) DAT – Delivered at Terminal (named terminal at port or place of destination) DAP – Delivered at Place (named place of destination) DDP – Delivered Duty Paid (named place of destination)
  • 20. WHAT IS AN EXPORT? • 1. Develop Your Export Strategy Identify products to sell.(https://youtu.be/GZqqz0gBVWw) HS Code Identify markets to sell to.(https://youtu.be/hwLSvgjvxU8) DGFT site Identify your strategy for selling Identify how you will support your products: Service,technical support,repairing,warranties,Returns Identify any intellectual property concerns.(ipindiaonline.gov.in) Decide how to price your products.(costs,demand,competion,Market segment,product line,Market elasticities)
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28. ACTIVITY • 1. Identify HS codes for • Gems & jewellery • Spices • Toys • Keyboard Instruments • Grains • Rice • Comment on • 1. Import & export Policy • 2. Major Trading partners • 3.Top 10 Exporting states of India • 4.Indias world merchandise trade
  • 29. ACTIVITY 2 ON WHY IPR IS IMPORTANT IN INTERNATIONAL TRADE • Concept of ‘Deceptively Similar’ in Indian trademark law: Starbucks v Sardarbuksh • Sued by Starbucks, SardarBuksh changes name to Sardarji-Bakhsh
  • 30. 2. REVIEW AND UNDERSTAND EXPORT AND IMPORT REGULATIONS • any restrictions on exporting your goods:Export license requirements. (Embargoed Countries) • Restricted parties • any restrictions on importing your goods in prospective countries.(Use HS Code import licenses and permits, various certificates, absolute and tariff rate quotas, and anti-dumping and countervailing duties.) • Research to see if your products qualify for any free trade agreements (FTA) The U.S. currently has free trade agreements with 20 countries
  • 31. 3. PREPARE YOUR GOODS FOR SHIPPING • Identify partners like freight forwarders. 1. Do I have a specialized product line or type of export? 2. How many ports will I be using for exports? 3. Is automation easy with this partner? 4. What is the broker or freight forwarder’s general reputation? 5. Do I need a dedicated account representative? 6. Do we have a written working agreement? 7. Are there warning signs about the freight forwarder you might choose? The answers to your questions about freight forwarders will help you identify if your relationship is as functional and profitable as it could be.
  • 32. • Understand Incoterms 2020 rules. Incoterms, a standardized set of rules that help facilitate trade between countries. Incoterms 2020 rules are the official commercial terms published by the International Chamber of Commerce (ICC). They are a voluntary, authoritative, globally-accepted and adhered-to text for determining the responsibilities of buyers and sellers for the delivery of goods under sales contracts for international trade. Incoterms closely correspond to the U.N. Incoterms are only part of the whole export contract. They don’t say anything about the price to be paid, when payment will be made or the method of payment that will be used in the transaction. Furthermore, Incoterms 2020 rules don’t deal with the transfer of ownership of the goods, breach of contract or product liability; all of these issues need to be considered in the contract of sale. Also, Incoterms 2020 rules can’t override any local country laws.
  • 33. THESE ARE THE 11 INCOTERMS 2020 RULES: • EXW (Ex Works)—insert place of delivery • FCA (Free Carrier)—insert named place of delivery • CPT (Carriage Paid To)—insert place of destination • CIP (Carriage and Insurance Paid To)—insert place of destination • DAP (Delivered at Place)—insert named place of destination • DPU (Delivered at Place Unloaded)—insert of place of destination • DDP (Delivered Duty Paid)—insert place of destination • FAS (Free Alongside Ship)—insert name of port of loading • FOB (Free on Board)—insert named port of loading • CFR (Cost and Freight)—insert named port of destination • CIF (Cost Insurance and Freight)—insert named port of destination
  • 34. Understand product labeling requirements in your destination country • Here are a few things you need to consider: • Does the country legally require using specific language? • Do the product content and country of origin need to be included? • Are weights and measures stated in the local units? • Do items need to be labelled individually?
  • 35. • Pack your goods. • Understand and correctly apply Hazmat (dangerous goods)requirements if appropriate • Make carrier choices. • Understand insurance requirements.
  • 36. 4. COMPLETE YOUR EXPORT PAPERWORK • you now need to fill out the documentation and supporting paperwork that will accompany your goods on their export journey. This is crucial to your success, because any errors (even simple typos) in your paperwork could delay shipments and your payday. • Depending on what, how and where you’re exporting, you may need to prepare several different export forms.
  • 37. 5. MAKE SURE YOU GET PAID • Find an international banking partner. • Understand your payment options.
  • 38. CHAPTER II. WHO’S WHO IN YOUR EXPORT JOURNEY • 1. Exporter • 2.Shipping Department • 3.Freight Forwarder • 4.Inland carrier • 5.Licenses and other agencies • 6.International carrier • 7.Foreign custom agency • 8.Intermediate Consignee • 9.Banks • 10.Buyer/Importer
  • 39. CASE STUDY: AMAZON GO HTTPS://YOUTU.BE/NRMMK1MYRXC
  • 40. STUDENT EXERCISE • What goes into the Amazon Global Business strategy secret sauce? • Does this case study explores Amazon's revenue model and culture of customer metrics, history of Amazon.com and marketing objectives.
  • 42. STUDENT EXERCISE? • AMUL SUCCESS STORY? What Makes Amul Visually Appealing and Memorable GLOBALLY
  • 43. BISLERI A GLOBAL SUCCESS HTTPS://WWW.YOUTUBE.COM/WATCH?V=AN1APUYCQ3E&T=25S
  • 45. It is essential for an exporter to register himself with the specified authorities: 1) Regional licensing Authority 2) Registration with export promotion councils
  • 47. REGISTRATION WITH EPCS • This is done on a prescribed form given by the council. • 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’ organization)
  • 48.
  • 49.
  • 50.
  • 51. STEPS INVOLVED IN EXPORT PROCESS
  • 52. • Step 1 In the case of first time exporters –importers ,they need to apply to the Director General of Foreign Trade (DGFT) regional office for getting Importer-Exporter Code (IEC) Number. • Step 2 The exporter has to register with the concerned export promotion council in order to obtain various permissible benefits given by the government. ,they need to get registered with sales tax office, and even Export Credit Guarantee Corporation. • Step 3 The exporter can now go in for procuring orders, by first sending a sample, if required. The importer sends a purchase order once both exporter and importer have agreed upon the terms and conditions of the contract like pricing, documents, freight charges, currency etc. • Step 4 With export order in hand, the exporter starts manufacturing goods or buying them from other manufacturers. • Step 5 The exporter makes arrangements for quality control and obtains a certificate confirming the quality of the goods from inspector of quality control.
  • 53. • Step 6 Exportables are then dispatched to ports/airports for transit. • Step 7 The export firm has to apply to an insurance company for marine/air insurance cover.(The exporter asks the importer to take marine/ air insurance under cost and freight , free on board etc., terms of contract.) • Step 8 The exporter contacts the clearing and forwarding agent (C & F) for storing the goods in warehouses. A document called Shipping Bill, required for allowing shipment by Customs Authority is presented by the forwarding agent. • Step 9 Once the goods are loaded into the ship ,a receipt called ‘Mate’s Receipt ‘ is issued by the captain to the ship superintendent of the port. • Step 10 The superintendent calculates port charges and handover to the exporter /C&F agent. • Step 11After making the port payments , the C&F agent or exporter gets the Bills of Lading or Airway Bill from the official agent of the shipping company or the airline
  • 54. • Step 12 The exporter applies to the relevant Chamber of Commerce for obtaining Certificate of Origin, stating that the goods originated from India. • Step 13 The exporter sends a set of documents to the importers, stating the date of shipment ,name of vessel ,etc. • Step 14 Within 21 days after shipment the exporter must present all the documents at his bank which scrutinizes these documents against the original letter ofcredit /purchase order. • Step 15 The exporter’s bank sends these documents to the importer’s bank which should make the payment on of before the due date.
  • 55. IMPORTANT DOCUMENTS • Proforma Invoice Proforma Invoice, as the name suggests ,is a proforma of the invoice. It is prepared by an exporter and sent to the importer for necessary acceptance. It suggests to a buyer what the actual invoice would look like and is sent to him when he is ready to purchase the goods • Shipping Bill/Bill of Entry It is a requisite for seeking the permission of customs to export goods .It contains a description of export goods by sea/air. It contains a description of export goods, number and kind of packages, shipping marks, and number numbers, value of goods, the name of the vessel, the country of destination ,etc. On the other hand, importers have to submit copies of document called Bill of Entry for customs clearance.Later, a copy has to be given to the bank for verification.
  • 56. • ARE-1 Form This form is an application for the removal of excisable goods from the factory premises for export purposes. The ARE-1 form has multiple copies which are distributed to different authorities, including Customs, Range office of Excise, Refund office of Excise , etc. • Exchange Declaration Form (GR/SDF Form) The RBI has prescribed has prescribed a GR form (SDF) , a PP form, and SOFTEX forms to declare the export transactions. The GR form contains : • a) Name and address of the exporter and description of goods. • b) Name and address of the authorized dealer through whom proceeds of theexports have been or will be realized. • c) Details of commission and discount due to foreign agent or buyer. • d) The full export value, giving break up of FOB, Freight, Insurance, Discount ,and Commission ,etc.
  • 57. OTHER DOCUMENTS 1. Commercial invoice 2. Packing list 3. Bill of lading 4. Combined transport document 5. Certificate of inspection/quality control 6. Insurance certificate/policy 7. Certificate of origin 8. Bills of exchange and shipment advice 9. Performa invoice 10. Intimation for inspection 11. Shipping instructions 12. Insurance declaration 13. Shipping order 14. Mate receipt
  • 59. Import procedure: Step 1. Obtaining import license and quota Importer has to attach the following documents to his application form :-  Receipt which shows that import license fee has been paid.  Certificate from a Chartered Accountant showing the total value of goods to be imported.  Verification Certificate for income tax. Step 2. Obtaining foreign exchange Before placing any order, the importer must apply to the Exchange Control Department (ECD) of RBI (India's Central Bank) for the release of requisite foreign exchange. The importer should forward the application through his bank. The ECD verifies the application of the importer, and if found valid, sanctions the foreign exchange for the particular transaction. Step 3. Placing an order The importer may either place the order directly or through the indent house (Agent). In case of canalised items, he obtains the imports through the canalizing agency. The importer cannot directly import such canalized items. They have to place an order with the canalizing agency who shall import and supply the same.
  • 60. Step 4. Despatching letter of credit After getting the confirmation from the supplier regarding the supply of goods, the importer requests his bank to issue a Letter of credit in favour of supplier. It can be defied as "an undertaking by importer's bank stating that payment will be made to the exporter if the required documents are presented to the bank". Step 5. Appointing clearing and forwardingagents The importer makes arrangement to appoint clearing and forwarding agents to clear the goods from the customs. Since clearing of goods is a specialized job, it is better to appoint C & F agents. Step 6. Receipt of shipment device The importer receives the shipment advice from the exporter. The shipment advice states the date on which the goods are loaded on the ship. The shipment advice helps the importer to make arrangement for clearance of goods. Step 7. Receipts of documents The importer's bank receives the documents from the exporter's bank. The documents include bill of exchange, a copy of bill of lading, certificate of origin, commercial invoice, consular invoice, packing list, and other relevant documents. The importer makes payment to the bank (if not paid earlier) and collects the documents.
  • 61. Step 8. Bill of entry This is a document required in case of import of goods. It is like shipping bill in case of exports. A Bill of Entry is the document testifying the fact that goods of the stated value and description in specified quantity are entering into the country from abroad. The customs office supplies this form which is prepared in triplicate. Three different colours are used to prepare bill of entry.One copy is retained by custom department, other is retained by port trust and the third is kept by the importer. Step 9. Delivary order The clearing agents obtains the delivery order from the office of the shipping company. The shipping company gives the delivery order only after payment of freight, if any. Step 10. Clearing of goods The clearing agent pays the necessary dock or port trust dues and obtains the port Trust Receipt in two copies. He then approaches the Customs House and presents one copy of Port Trust Receipt, and two copies of Bill of. Entry to the customs authorities. The customs officer endorses the Bill of Entry Forms and one copy of Bill of Entry is handed back to the importer. The importer then pays the customs duty and clears the goods. In case, the customs duty is not paid, then the goods are stored in the bonded warehouses. As and when the duty is paid, the goods are cleared from the docks.
  • 62. Step 11. Payment to clearing and forwarding agent The importer then makes the necessary payment to the clearing agent for his various expenses and fees. Step 12. Payment to exporter The importer has to make payment to exporter. Usually, the exporter draws a bill of exchange. The importer has to accept the bill and make payment. Step 13. Follow up The importer then informs the exporter about the receipt of goods. If there are any discrepancies or damages to the goods, he should inform the exporter.