2. EXPORT DOCUMENTATION
Export documentation is used to
• To indicate the ownership of goods for collection purposes or
in the event of dispute
• To Keep shipment & delivery on schedule
• To obtain payment
• To describe cargo
• For customs clearance
3. • There are no of documents, which have to be prepared by the
exporter in order to arrange export of his consignments.
• A number of government regulatory agencies, such as the
Directorate General of Foreign Trade in India, inspection
agencies, insurance companies, customs and central excise
authorities, banking institutions, clearing and forwarding
agents, shipping companies or airlines, carriers for inland
transportation, etc. facilitate trade transactions between the
exporter and importer.
• The exporter have to comply with the rules, regulations &
trade customs of all these organizations.
4. Consequences of poorly completed
documentation
• Poor documentation may result in a number of problems in
executing an export order, which may lead to additional costs
to the exporter. These costs may be of three types.
• The cost of interest charges incurred by the exporters due to
delay in payment.
• The cost of putting the problem right, such as telephone bills,
courier charges for sending replacement documents, bank
charges for amending documents such as letter of credit &
possibly, loss of credit insurance cover.
• The most important problem is the relationship between the
exporter and importer gets affected which is very difficult to
quantify.
5. Adaption of Aligned Documentation
Systems (ADS) in India
• ADS is a methodology of creating information on a set of
standard forms printed on a paper of same size in such a way
that the items of identical specification occupy the same
position on each form.
• The basic objectives of ADS are
a. It simplifies & prioritizes information required by various
commercial interests & government agencies and aligns it in
a standardized format.
b. It achieves economy of time and effort involved in the
prevailing methodology of export documentation.
6. • Sweden was the first country to introduce pre-shipment export
trade documents in standard layout in 1956 followed by
Denmark, Finland and Norway.
• An ADS requires the preparation of only one “Master
Document” containing the information common to all
documents included in the aligned series.
• The system is mainly based on Master Document 1 for
preparing commercial documents and Master Document 2 for
preparing regulatory documents.
• The commercial documents under ADS are prepared on a
uniform and standard A4 size paper, while the regulatory
document papers are prepared on a full scale paper (34.5 cm
21.5cm)
• On an average, about 25 documents have to be prepared for an
export shipment.
