The document outlines the commercial, legal, and regulatory aspects of exporting and importing goods across borders, detailing the necessary documentation such as export contracts, bills of lading, and insurance policies. It highlights the roles of exporters and importers in the shipment and payment process, and the importance of various regulatory requirements including registrations with the Reserve Bank of India and Director General of Foreign Trade. Additionally, it emphasizes the types of documents used in import and export transactions, including letters of credit and indent forms.

1. Documentation

2. Rationale of Documents
Source: Secondary Sources on Google

3. Rationale of Documents
1) Commercial Perspective:
Trade between two business firms located in different countries begins with the conclusion of an
export contract. Under the contract, the duty of the exporter is to ship the contracted goods in
the agreed form (e.g., packing) and by agreed mode of transport as well as according to agreed
time schedule. On the other hand, it is the duty of the importer to remit sale value to the
exporter according to agreed terms of payment. In this process of physical movement of goods
from the exporter to the importer and remittance of sale value in the reverse order, neither the
exporter nor the importer is personally and physically involved.
Instead goods are handed over to a shipping company or an airline which issues a receipt for
these goods. Further, since goods in transit may be damaged or lost due to some accident, the
exporter may be required to get an insurance policy
Source: Secondary Sources on Google

4. Rationale of Documents
1) Commercial Perspective (cont.):
Physical possession of the good will be linked with the acceptance of a payment document by the
importer. In actual practice, a set of documents given proof of shipment and cargo insurance
coverage along with a bill for payment is sent by the exporter to the importer through the banking
channel.
This set of documents symbolises ownership in goods. This will be handed over to the importer by
the bank in his country, which it has received from the bank in the exporting country only when
he has honoured the bill. In other words, the importer will get delivery of the goods from the
carrier on the basis of the transport document, which is obtained through the bank, after he has
complied with the agreed terms of payment
Source: Secondary Sources on Google

5. Rationale of Documents
2) Legal Perspective :
Source: Secondary Sources on Google

6. Rationale of Documents
2) Legal Perspective (cont.) :
Source: Secondary Sources on Google

7. Rationale of Documents
3) Incentive Perspective :
Source: Secondary Sources on Google

8. Kinds of Documents
Commercial Documents:
CIF: Cost, insurance, and freight (CIF)
Source: Secondary Sources on Google

9. Kinds of Documents
Commercial Documents:
Source: Secondary Sources on Google

10. Kinds of Documents
Commercial Documents:
Source: Secondary Sources on Google

11. Kinds of Documents
Commercial Documents:
Airway Bill: An air waybill (AWB) is a document that accompanies goods shipped by an
international air courier to provide detailed information about the shipment and allow it to be
tracked. An air waybill (AWB), also known as an air consignment note. AWB is issued in non-
negotiable form, meaning there's less protection with an AWB versus bills of lading.
 Air waybill, when issued is always a non-negotiable transport document. Buyers could collect
the consignment from the carrier at the airport of destination by simply proving their identities
against the company information stated on the consignee part of the air waybill.
 Bill of lading on the other hand, when issued in negotiable form, represents title to the goods.
For this reason at least one original copy of the bill of lading must be surrendered to the
carrier’s nominated agent at the port of discharge in order to collect the goods.
Source: Secondary Sources on Google

12. Kinds of Documents
Commercial Documents:
Insurance Policy or Certificate: Cargo Insurance Policy provides protection to cargo owners in the event of
loss or damage to cargo in transit. This loss or damage is caused by accidents, which cannot be known in
advance and against which no protection is possible.
These may be caused by natural calamities as well as by man-made accidents. It is, therefore, necessary
that the risk of loss or damage to the cargo be minimised by obtaining a suitable insurance cover from an
insurance company
Source: Secondary Sources on Google

13. Kinds of Documents
Commercial Documents:
Combined Transport Document: It is a document of multi-modal movement of goods in
container. The movement is carried out by more than one mode
Source: Secondary Sources on Google

14. Kinds of Documents
Legal/Regulatory Documents for export from India:
Regulatory export documents are of two types. Documents needed for different kinds of
registrations of the firm and documents, which are specific to a shipment.
In the first category are included applications and supporting documents for obtaining:
(i) Importer-Exporter Code Number valid for the firm's life- time, and
(ii) Registration Cum-Membership Certificate, (RCMC) from the relevant export promotion
council, commodity board, development authority etc., valid for a specified time period. RCMC
is strictly not a legal requirement for exporting from India, but is needed for claiming some of
the important export incentives.
The application of the Importer-Exporter Code Number (IEC) is to be made in the prescribed
form to the Regional Licensing Authority
Source: Secondary Sources on Google

15. Kinds of Documents
Legal/Regulatory Documents for export from India
In the second category are the documents, which an exporter or his agent has to prepare for
shipment of goods
 Guaranteed Remittance (GR) Form: GR Form is an exchange control document required by
the Reserve Bank of India (RBI). As per the exchange control regulations, an exporter has to
realise export proceeds within 180 days of the shipment of goods from India. In order to
ensure this, the RBI has introduced the GR procedure.
 SOFTEX Form: SOFTEX forms are to be filed with STPI (Software Technology Park of India, an
autonomous society under the Ministry of Communication and Information Technology) to
regulate inward outward remittance by Reserve Bank under export of goods in non-physical
form, either domestic or offshore. The products includes computer software, export of
Video and TV software and all other types of software products and packages which are
falling under goods of non physical form.
Source: Secondary Sources on Google

16. Kinds of Documents
 PP Form: PP forms are used under export through Post office. If you effect shipment
through post office, PP form need to be filed up by exporter duly signed and sealed. PP
form is a declaration by exporter mentioning the details of goods exporting through post
office. These details contains the description of goods, value of goods, term of payment,
terms of delivery, port of loading, port of discharge, country of destination, shipper details,
consignee details etc.etc. Exports to all countries by parcel post (PP), except when made
on ‘value payable’ or ‘cash on delivery’ basis should be declared on PP forms.
 VP/COD form: It is required to be filled in one copy for exports to all countries by post
parcel under arrangements to realise proceeds through postal channels on ‘value payable’
or ‘cash on delivery’ basis.
Source: Secondary Sources on Google

17. Kinds of Documents
Important Documents used in Import Trade:
• Indent: An indent is an order placed by an importer with the exporter for the supply of certain
goods. It is usually prepared in duplicate or triplicate
An indent contains the following information:
(a) Quantity of goods to be imported
(b) Quality of goods
(c) Method of forwarding the goods
(d) Nature of packing
(e) Mode of setting payment
(f) Price to be charged
(g) Sale of delivery
Source: Secondary Sources on Google

18. Kinds of Documents
Important Documents used in Import Trade:
• Bill of Lading: It is an acknowledgement of receipt of goods on board of the ship. It contains
terms and conditions on which the goods are to be taken to the port of destination. The
exporter sends one copy of bill of lading to the importer enabling him to clear the goods from
the ship.
• Bill of Entry: This is a form supplied by the custom office to the importer and is to be filled in
triplicate.
The bill of entry contains following particulars:
(a) Name and address of the importer
(b) Name of the ship
(c) Package number
(d) Marks on the package
(e) Description of goods
(f) Quantity and value of goods, Name, address and country of the exporter
(g) Port of destination, custom duty payable Source: Secondary Sources on Google

19. Kinds of Documents
Important Documents used in Import Trade:
• Letter of Credit: A letter of credit, popularly known as ‘L/C or ‘L.C:’ is an undertaking by the
issuer (usually importer’s bank) that the bills of exchange drawn by the foreign dealer on the
importer will he honoured on presentation up to a specified amount. Letter of credit is needed
because exporter wants to be sure that payments will be made as agreed by the importer.
• Bill of Sight: Bill of sight refers to a declaration made to customs officer by an importer who is
unsure about what is being shipped. The bill of sight allows an importer to inspect the goods
before paying duties. Generally, bill of sight is found in maritime law
• Dock Challan: It is a form to be filled by the importer or his clearing agent in the dock for
payment of dock charges. Dock charges are paid when all the formalities of the customs are
completed. The goods imported will be delivered only when dock charges are paid.
• Dock Warrant: This is document issued by Warehouse keepers to the persons who have
deposited the goods with them.
Source: Secondary Sources on Google

20. Registration Requirements
• Registration with Reserve Bank of India (RBI): Prior to 1997, it was necessary for every first
time exporter to obtain IEC number from Reserve Bank of India (RBI) before engaging in any
kind of export operations. But now this job is being done by DGFT.
• Registration with Director General of Foreign Trade (DGFT): For every first time exporter, it is
necessary to get registered with the DGFT (Director General of Foreign Trade), Ministry of
Commerce, Government of India. DGFT provide exporter a unique IEC (Importer - Exporter
Code) Number. IEC Number is a ten digits code required for the purpose of export as well as
import.
• Registration with Export Promotion Council: Registered under the Indian Company Act, Export
Promotion Councils or EPC is a non-profit organisation for the promotion of various goods
exported from India in international market. EPC works in close association with the Ministry
of Commerce and Industry, Government of India and act as a platform for interaction between
the exporting community and the government. So, it becomes important for an exporter to
obtain a registration cum membership certificate (RCMC) from the EPC. An application for
registration should be accompanied by a self certified copy of the IEC number. Membership fee
should be paid in the form of cheque or draft after ascertaining the amount from the
concerned EPC.
Source: Secondary Sources on Google

21. Registration Requirements
Export Promotion Councils are government-initiated authorities that promote and support
export firms in developing their overseas trade and presence by providing technical and
industry insight
• Registration with Commodity Boards: Commodity Board is registered agency designated by
the Ministry of Commerce, Government of India for purposes of export-promotion and has
offices in India and abroad. At present, there are five statutory Commodity Boards under the
Department of Commerce. These Boards are responsible for production, development and
export of tea, coffee, rubber, spices and tobacco.
• Registration with Income Tax Authorities: To get the benefit of tax exemption it is important
for an exporter to get registered with the Tax Authorities.
Source: Secondary Sources on Google