The document outlines the steps and formalities required for exporting goods, beginning with the receipt of an order and registration with authorities, followed by obtaining necessary licenses and preparing shipping documentation. It includes detailed information on securing letters of credit, fixing exchange rates, and handling customs procedures through a forwarding agent. The document also lists various documents required for customs clearance and emphasizes the importance of follow-up with buyers post-sale to build relationships for future orders.

1. How to export goods
Harpreet Singh

2. How to export goods
Step 1. Receipt of an order
 The exporter has to get himself
registered with various authorities
like RBI, income tax authorities, etc.
In addition, he has to appoint agents
or distributors for collection of orders
from foreign countries. Exporter
receives an order from importer
directly or through Indent House.

3. How to export goods
Step 2. Obtaining License and Quota
 After obtaining order, exporter has to
secure export license from the
government. For this, he has to apply
to the Export Trade Control Authority
and obtain the valid license. Quota is
the total quantity of goods that is
permitted for exports.

4. How to export goods
Step 3. Letter of Credit
 Exporter demands letter of credit from
importer or sometimes importer may
send it himself along with the order.

5. How to export goods
Step 4. Fixing exchange rate
 Exchange rate means the rate at
which the currency of one country is
exchanged for the currency of another
country. It fluctuates from time to time.
Hence the exporter and importer fix
the exchange rate mutually.

6. How to export goods
Step 5. Foreign exchange formalities
 According to FERA (Foreign
Exchange Regulation Act of India)
every exporter has to furnish a
declaration in the form prescribed for
this purpose.
 The declaration states :-
 Foreign exchange earned by way of
exports will be disposed in the manner
and within the period specified by RBI.

7. How to export goods
 Negotiations of shipping documents
will be through authorised dealers in
foreign exchange.
 The payment for goods exported will
be collected only through approved
method.

8. How to export goods
Step 6. Preparation for executing the
order
The exporter makes necessary
arrangements for executing the order.
In this respect he performs the
following activities :-
 Packing and marking of the goods as
per the specifications of the importer.

9. How to export goods
 Securing insurance policy from the
Export Credit Guarantee Corporation
(ECGC) to get protection against the
credit risks.
 Obtaining a suitable marine insurance
policy, consular invoice and certificate of
origin, if required.
 Appointing a forwarding agent for
handling the customs and forwarding
activities.

10. How to export goods
Step 7. Formalities done by forwarding
agent
The Forwarding Agent completes the
following formalities :-
1.He obtains the Customs' Permit from the
Customs Department for exporting
goods.
2.The Forwarding Agent discloses the
details of the goods such as their nature,
size, quantity, weight, etc. to the shipping
company.

11. How to export goods
3. The Forwarding Agent discloses the
details of the goods such as their nature,
size, quantity, weight, etc. to the shipping
company.
4. The Forwarding Agent prepares a
Shipping Bill.
5. The Forwarding Agent prepares two
copies of the dock challans and pays the
dock dues.

12. How to export goods
6. The Captain of the ship gets the
goods loaded on the ship on the basis
of the Shipping Order in the presence
of customer officers.
7. When the goods are loaded on the
ship, the Mate (Vice Captain or the
Captain) issues a receipt, called
Mate's or Captain's Receipt.

13. How to export goods
Step 8. Bill of Lading
 The exporter approaches the shipping
company, presents the Mate's Receipt
and in exchange receives a document
called Bill of Lading. It is an official
receipt given by the shipping company

14. How to export goods
Step 9. Shipment advice to importer
 The exporter sends Shipment Advice
to the importer informing him about
the dispatch of the goods. He sends a
copy of packing list, commercial
invoice and a non-negotiable copy of
the Bill of Lading, along with the
Advice Note.

15. How to export goods
Step 10. Presentation of documents to the
bank
 The exporter confirms that he has
secured a complete set of the shipping
documents namely, the Bill of Lading,
Marine Insurance Policy, Certificate of
Origin, the Consular Invoice and the
Commercial Invoice. He then draws a Bill
of Exchange on the basis of the
commercial invoice. The exporter hands
over the documnetary bill to his bank.

16. How to export goods
Step 11. Realisation of export proceeds
 For realisation of export proceeds, the
exporter has to undergo certain
banking formalities. Generally he
receives payment in foreign currency
by bill of exchange or by bank draft.

17. How to export goods
 Documents Required
 Export procedure describes the documents required for
exporting from India. Special documents may be
required depending on the type of product or
destination. Certain export products may require
a quality control inspection certificate from the Export
Inspection Agency.Some food and pharmaceutical
product may require a health or sanitary certificate for
export.
Shipping Bill/ Bill of Export is the main document
required by the Customs Authority for allowing
shipment. Usually the Shipping Bill is of four types and
the major distinction lies with regard to the goods being
subject to certain conditions which are mentioned
below:

18. How to export goods
 Export duty/ cess
 Free of duty/ cess
 Entitlement of duty drawback
 Entitlement of credit of duty under
DEPB Scheme
 Re-export of imported goods

19. How to export goods
The following are the export documents required for
the processing of the Shipping Bill:
 GR forms (in duplicate) for shipment to all the countries.
 4 copies of the packing list mentioning the contents,
quantity, gross and net weight of each package.
 4 copies of invoices which contains all relevant
particulars like number of packages, quantity, unit rate,
total f.o.b./ c.i.f. value, correct & full description of goods
etc.
 Contract, L/ C, Purchase Order of the overseas buyer.
 AR4 (both original and duplicate) and invoice.
 Inspection/ Examination Certificate.

20. How to export goods
The formats presented for the Shipping Bill are
as given below
 White Shipping Bill in triplicate for export of duty
free of goods.
 Green Shipping Bill in quadruplicate for the
export of goods which are under claim for duty
drawback.
 Yellow Shipping Bill in triplicate for the export of
dutiable goods.
 Blue Shipping Bill in 7 copies for exports under
the DEPB scheme
Note :- For the goods which are cleared by
Land Customs, Bill of Export (also of 4 types
- white, green, yellow & pink) is required
instead of Shipping Bill.

21. How to export goods
Documents Required for Post Parcel Customs
Clearance
In case of Post Parcel, no Shipping Bill is required. The
relevant documents are mentioned below:
 Customs Declaration Form - It is prescribed by the
Universal Postal Union (UPU) and international
apex body coordinating activities of national postal
administration. It is known by the code number
CP2/ CP3 and to be prepared in quadruplicate,
signed by the sender.
 Despatch Note, also known as CP2. It is filled by the
sender to specify the action to be taken by the postal
department at the destination in case the address is
non-traceable or the parcel is refused to be accepted.

22. How to export goods
 Prescriptions regarding the minimum and maximum
sizes of the parcel with its maximum weight : Minimum
size: Total surface area not less than 140 mm X 90 mm.
Maximum size: Lengthwise not over 1.05 m.
Measurement of any other side of circumference 0.9 m./
2.00 m.
Maximum weight: 10 kg usually, 20 kg for some
destinations.
 Commercial invoice - Issued by the seller for the
full realisable amount of goods as per trade term.
 Consular Invoice - Mainly needed for the
countries like Kenya, Uganda, Tanzania, Mauritius,
New Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus,
Nigeria, Ghana, Zanzibar etc. It is prepared in the
prescribed format and is signed/ certified by the
counsel of the importing country located in the
country of export.

23. How to export goods
 Customs Invoice - Mainly needed for the countries like
USA, Canada, etc. It is prepared on a special form being
presented by the Customs authorities of the importing
country. It facilitates entry of goods in the importing
country at preferential tariff rate.
 Legalised/Visaed Invoice - This shows the seller's
genuineness before the appropriate consulate/ chamber
of commerce/ embassy. It do not have any prescribed
form.
 Certified Invoice - It is required when the exporter needs
to certify on the invoice that the goods are of a particular
origin or manufactured/ packed at a particular place and in
accordance with specific contract. Sight Draft and Usance
Draft are available for this. Sight Draft is required when
the exporter expects immediate payment and Usance
Draft is required for credit delivery.

24. How to export goods
 Packing List - It shows the details of goods contained in
each parcel/ shipment.
 Certificate of Inspection - It shows that goods have been
inspected before shipment.
 Black List Certificate - It is required for countries which
have strained political relation. It certifies that the ship or
the aircraft carrying the goods has not touched those
country(s).
 Weight Note - Required to confirm the packets or bales or
other form are of a stipulated weight.
 Manufacturer's/ Supplier's Quality/ Inspection Certificate.
 Manufacturer's Certificate - It is required in addition to the
Certificate of Origin for few countries to show that the
goods shipped have actually been manufactured and are
available.

25. How to export goods
 Certificate of Chemical Analysis - It is required to ensure the
quality and grade of certain items such as metallic ores,
pigments, etc.
 Certificate of Shipment - It signifies that a certain lot of goods
have been shipped.
 Health/ Veterinary/ Sanitary Certification - Required for export of
foodstuffs, marine products, hides, livestock etc.
 Certificate of Conditioning - It is issued by the competent office
to certify compliance of humidity factor, dry weight, etc.
 Antiquity Measurement - Issued by Archaeological Survey of
India in case of antiques.
 Transhipment Bill - It is used for goods imported into a customs
port/ airport intended for transhipment.

26. How to export goods
 Shipping Order - Issued by the Shipping (Conference)
Line which intimates the exporter about the reservation of
space of shipment of cargo through the specific vessel
from a specified port and on a specified date.
 Cart/ Lorry Ticket - It is prepared for admittance of the
cargo through the port gate and includes the shipper's
name, cart/ lorry No., marks on packages, quantity, etc.
 Shut Out Advice - It is a statement of packages which are
shut out by a ship and is prepared by the concerned shed
and is sent to the exporter.
 Short Shipment Form - It is an application to the customs
authorities at port which advises short shipment of goods
and required for claiming the return.
 Shipping Advice - It is prepared in aligned document to
be used to inform the overseas customer about the
shipment of goods

27. How to export goods
Step 12. Follow up
 After the sales, exporter should
always have a follow-up, to find out
buyer's reactions towards the goods.
Such follow up builds goodwill and the
exporter can get more and more
orders in future