The document is a project report by Vikas Pillai on export-import logistics, detailing acknowledgements, objectives, theoretical perspectives, and step-by-step procedures in import and export activities. It covers the roles of various stakeholders including importers, exporters, and financial institutions, and discusses regulatory compliance and documentation requirements in international trade. Additionally, the report highlights the importance of logistics in optimizing trade efficiency and boosting foreign exchange earnings for the country.

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ACKNOWLEDGEMENT
I express my sincere thanks to my project guide Mr. Sumit Gandhi, Shipping Manager,
Mission pharma Logistics India Pvt Ltd., Kandla SEZ, Gandhidham for guiding me right
from inception till the successful completion of the project. I sincerely acknowledge &
express my gratitude for valuable guidance, support and timely review of the report and
above all the moral support extended at all stages to successfully complete this project.
I would also like to thank everyone who extended their help and cooperation throughout
completion of my project.
(Sd/-)
VIKAS PILLAI
REG.NO. 201919201

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INDEX
SERIAL
NUMBER
CONTENTS
PAGE
NUMBER
1 NO OBJECTION CERTIFICATE 1
2 ACKNOWLEDGEMENT 2
3 CERTIFICATE BY THE GUIDE 3
4 CERTIFICATE/DECLARATION REGARDING
ORIGINALITY/ DECLARATION BY THE LEARNER
5
5 INTRODUCTION 6
6 OBJECTIVES AND SCOPE 7
7 THEORETICAL PERSPECTIVE 8-77
8 METHODOLOGY AND PROCEDURE OF WORK 76-77
9 ANALYSIS OF DATA 77
10 LIMITATIONS 77
11 COMPANY PROFILE 77-78
12 FINDINGS, INFERENCES AND RECOMMENDATIONS 78
13 CONCLUSION AND YOUR SUGGESTIONS FOR
IMPROVEMENT IN THE ORGANISATION
78
14 REFERENCES / FIGURES 78-79
15 SEZ CONCEPT IN INDIA (Duty Free Enclave To Boost
Export)
80

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DECLARATION BY THE LEARNER
This is to declare that I Vikas Ravindran Pillai have carried out this project work myself in part
fulfilment of PGDM IN EXPORT IMPORT MANAGEMENT- 2019-21 of SCDL.
The work is original, has not been copied from anywhere else and has not been submitted to
any other University/Institute for an award of any degree/diploma.
Signature: VIKAS PILLAI
Place: GANDHIDHAM
Date: 30-12-2021
NAME: VIKAS PILLAI

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1. INTRODUCTION
Export Import logistics is generally the organisation and implementation of various complex operations
carried out in process. The logistics word was originated from the word logic and static in Latin
language. It is the management of flow of things between the point of origin and the point of
consumption to meet the requirements of consumers and as well as Logistic world.
Exim Logistics comprises of physical items usually that involves the integration of information flow,
materials handling, production, packaging, inventory, transportation, warehousing and retail stores.
Import Logistics is also known as inbound logistics that is importing of items from the proposed
countries(foreign) for manufacturing, trading and other various purposes. Import transaction involves
buying & physically bringing goods from foreign country into one’s home country & remitting the
payment in foreign currency for the goods received from the foreign country. This contributes to fulfil
the need of finished goods produced as well as strengthen the quality and competitiveness in the
international markets. The country who Imports such goods and services always ensures and comply
with the regulatory norms stipulated by the Government as well as other organization and the Reserve
Bank in order to safeguard and balance the flow of foreign exchange. The Net Foreign Exchange
Earning is the core factor for the importing country to have a steady and substantial growth of their
NATION. Various Bilateral Trade pacts have been made to collaborate between two or more Nations
to safeguard their needs and interest and existence of each other especially on financial stability like
INDIA and USSR Bilateral Trade Agreement. Types of Importers:
Importers can be classified into following two categories:
1. Actual users: Means an actual user who may be either industrial or non- industrial.
a. Actual user (industrial) means a person who utilizes the imported goods for his own
industrial unit or for his own use/process in another unit including a job work.
b. Actual user (non – industrial) means a person who utilizes the imported goods for his
own use in any commercial establishment, laboratory, R&D institute or any service
industry.
2. Non-Actual Users: Refers to personal importers, import of gifts & import for stock & sale.

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2. OBJECTIVE AND SCOPE
 Understand the essentials of buying and selling of products and services to global markets
 Rules, Regulations and functions governed by Govt. authorities to control and ease of doing
Import export business
 Strategies adopted to produce and deliver goods to compete in the global markets
 To know which documents are required to carry out export activity by the exporter
 To plan and augment operational and shipment activities
 To achieve the set goal of export targets by correct filing of documents to avoid loss/penalties
that incur huge costs
 Both export import procedures are connected with documentation
 For inviting new start-ups to come and face up in the export import market by easy accessibility
and adaptability.
 To encourage Indian exporters to promote their exports in international market – SEZ concept
 To help nation to achieve more and sustainable foreign exchange for the Nation
 To facilitate interaction and communication within state, central as well as international level
 To collaborate and interlink with foreign corporations working in the same field
 Economic advantages and protection while doing Import Export Business
 Unified system and classification adopted in Import Export business activities
 Facilitation, control and concept with intergovernmental organizations in international trade

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3. THEORY PERSPECTIVE
IMPORT
The Importer or an import manager needs to plan & process systematically while handling imports.
Outlined below are the various steps involved in imports:
 What to import
 From where to import (location)
 From whom to import (specific supplier)
 Import Contract
 IEC number (Import Export Code)
 Import License
 Import Finance
 Import Clearance
WHAT TO IMPORT: The first thing is to decide on items that one would like to import. The selection
is to be based on two things. First, to see if the requirement is absolutely essential & if it is imperative
to import the item. Secondly, the legal aspects in view of the provisions of the foreign trade policy
would need to be examined- whether the items fall under the freely importable goods category, or if it
is a restricted item, or a prohibited item that cannot be imported at all.
SELECTION OF MARKET: Once the item is finalized, based on the need & policy aspects, the real
task of the importer begins. He has to find out the potential markets that deals in his item of choice. He
must also research into pockets that are renowned for good quality & reliable delivery. Based on the
facts available & collected further by him, he will be in position to zero-in-on the most suitable supply
Centre.
SELECTION OF SUPPLIER: This task requires the importer to finalize the specific exporter in a
foreign country location who will supply the item under question. This is a crucial job & the importer
must undertake proper research to ensure that he is choosing the right supplier. He will have to cross –
check the details supplied by the exporter. Proper references must be obtained and thorough
investigation about the potential supplier’s financial standing, manufacturing capability,
trustworthiness & track record must be carried out. If possible, a person visits to the supplier’s facility

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either himself or through some local representative is certainly advisable. A first-hand feel will help
one finalise & take a decision.
IMPORT CONTRACT: Having finalized the supplier, based on the quotations given by him & other
details the importer has to issue a firm order favouring the supplier. This will be in response to his
proforma invoice, in answer to the importer’s query & subsequent discussions/ negotiations. If the
importer is satisfied that the contents of the proforma invoice are in perfect order, as per the mutual
agreement of the parties, he must confirm the same back to the supplier & issue a formal supply order,
the acceptance of which will create a binding contract on both parties.

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 PROCEDURES FOR IMPORT EXPORT LOGISTICS
The import logistics procedures comprise of 10 steps majorly. These are importer, Banks, custom
inspectors, documents, policy and materials. The steps are stated as below:
 The foremost step involves importing of a material simultaneously to accumulate information
about the nations and firms which gave the material required by the exporter. It can be fetched
from trade directories, trade organizations, and associations. The exporter prepares the
quotation i.e., Performa Invoice and sends it to the importer.
 The Importer coordinates with the export-import (EXIM) Policy in power, all together to
analyse whether the items that he/she needs to import are subjected to import licensing or not.
 In the scenario of import sections, the provider resides in a foreign country and subsequently
requests the instalment of foreign cash. This includes the trade of Indian Currency into foreign
currency. The Exchange Control Department of the Reserve Bank of India (RBI) manages
foreign trade exchange in India. According to the rules formulated by RBI, each merchant needs
to secure the sanction of foreign trades.
 The importer puts in an import request or indents with the exporter for the supply of items. The
request contains information with respect to cost, quality, quantity, size and grade of goods
instructions with respect to packaging, delivery shipping, a method of payment and so on.
 At the point when the payment terms concur between the importer and the foreign provider, the
importer gets the letter of credit from its banker and forwards it to the foreign provider.
 The importer arranges for money in advance to pay the exporter on arrival of goods at the port.
This empowers the importer to avoid huge penalties on the imported goods lying uncleared at
the port for the need of payment.
 The overseas supplier after loading the goods on the ship dispatches the “Shipment Advice” to
the importer. It gives information with respect to the shipment of goods like receipt number,
bill of lading/airway bill, the name of the ship with date description of merchandise and amount
and so forth.
 After dispatching the goods, the abroad exporter hands over the different documentation like
an invoice, bill of lading, insurance certificate of origin to his banker for their forward
transactions to the importer when he receives the bill of exchange drawn by the provider. The
acknowledgment of a bill of exchange by the importer to get a confirmation of delivery is
known as the retirement of import documents.

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 At the point when the sent merchandise comes in the importer’s nation, the individual
accountable for the merchandise conveys the officer in control at the dock or the airport about
it. The individual responsible for the ship or airway gives the report with respect to import.
 Imported merchandise are subjected to customs which is an exceptionally extensive process
and includes a considerable time to complete. The importer more often than not appoints a C&F
operator for completing these customs.
 Essentially, the merchant acquires a delivery order which is otherwise called an endorsement
for delivery. This order allows the importer to take to take the delivery of merchandise
subsequent to pay the cargo charges. Importer likewise needs to pay dock dues for getting port
trust dues receipts for which he submits two duplicates filled in the form is known as
“application to import” to the Landing and “Delivering Dues Office”. Subsequent to paying
dock dues the importer gets back one copy of the application as a receipt which is called as
‘port trust levy receipts.
 At long last, the importer fills in a frame known as ‘bill of entry’ for appraisal of customs import
duty. An inspector inspects the merchandise and gives his report regarding the bill of entry.
This bill is then introduced to the port administration which on getting the important charges,
issues the discharge arrangements.
The export logistics procedures comprise of 17 steps majorly. The export procedure is important in
increasing our nations income as well as GDP as wells as for Foreign Exchange currency reserve in
our country. The steps are illustrated as below:
 The exporter receives a request from the buyer asking for invoice along with the monetary
value, standard and different from competitors in terms and conditions for the transportation of
goods. The exporter reverts the buyer with Proforma Invoice.
 If the buyer purchasing the goods from the exporter agrees upon the parts of terms and
conditions as per buyer request is matched upon the proforma invoice further the buyer gives
the confirmation to prepare for the packaging of goods as per quantity and quality.
 After receiving the conformation from the buyer, the exporter ensures for financial dealings
involved between the buyer and him to safeguard the payment transactions. It is important to
exporter to ensure to avoid any breach or frauds or bankruptcy in the part of buyer before
entering into any export dealings with that buyer.
 As per custom rules and regulations, before entering into any export dealings, the exporter
should have IEC and export permit or license. Without the export license, the exporters are not
allowed to carry out any of the export dealings. Even government is also scrutinising, the overall

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export activity carried out by exporters as well as importers. For opting Export License, the
exporter needs to open account in any foreign dealing banks, obtain IEC number from
Directorate General Foreign Trade (DGFT), Registering with any export promoting committee
such as EPCES and getting enrolled with Export Credit Guarantee Corporation.
 After exporter receives the export order, the exporter schedules to meet his banker for obtaining
the financial confirmation from the bank for planning the production activities. The exporter in
collaboration with his banker, ensures that payment is secured by way of confirmed and
irrevocable letter of credit or advance payment.
 The exporter ensures the merchandise to meet with the quality standards as well as pre-shipment
Inspection, Testing and Regulations stipulated by the buyer’s importing country. The pre-
shipment inspection carried out by the respective international agencies like Bureau Veritas
(BVQ), SGS (Société Générale de Surveillance), INTERTEK and CROWN AGENTS which
provides inspection, verification, testing and certification services.
 After inspection is carried out by inspector issues the inspection report to enable the agency to
certify and issue the certificate of conformity.
 The exporter plans the export shipment with the shipping lines and plans the shipment is based
on the incoterms stipulated in the contract or export order.
 The exporter files the respective documents and completes the custom formalities and proceed
to obtain the containers (in case of ocean shipments or transport goods to airport cargo complex
(in case of air shipment).
 After obtaining, customs and Inspection agencies clearance the exporter ship out the goods after
sealing of the packages or container.
The following points need to be clearly defined by the importer in the contract.
 The item
 The description of item
 The quantity required
 The price per unit
 The term of payment & delivery
 Date of order to exporter’s proforma invoice/ quotation
 Date of delivery
 The kind of packaging required
 The kind of labelling required
 The kind of marking required

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 Insurance instruction, if required
 Inspection instruction, if required
 Documentation required
 Production sample instruction, if required
 Penalties for late delivery, if any
 Any other special conditions.
IMPORT LICENSE: Wherever required, the importer will have to apply for & obtain an import
license from the Competent Licensing Authority to be able to legally import the product of his
choice.
IMPORT FINANCE The importer must arrange the financing of the import transaction well in
advance to ensure its smooth completion. Banks in India provide various types of finance schemes
for imports. In addition, ECGC & Exim bank also offers various financial/ guarantee schemes to
support imports. Forfaiting is also a good finance option.
Bank provides various types of funding/ services to importers for facilitating imports in the country.
The various facilities provided are:
Collection of import bill
Opening of Import L/C’s (Sight/DA)
Financing of import by way of Foreign Currency Loans
Issuing guarantees, etc. on behalf of importers.
COLLECTION OF IMPORT BILLS: Import bills are collected through 116 authorized branches
at very competitive rates. The Bank has a correspondent relationship with reputed international
banks throughout the world & can provide services to importers who may be importing from any
part of the globe.
LETTER OF CREDIT (L/C): Bank offers L/C facility for the purchase of goods in the international
market. The L/Cs of reputed Banks are well accepted in the international market.
With L/C issued by these banks, importers can build a better trust/ confidence in their suppliers &
develop other business relationships at a much faster pace.

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The vast network of the bank’s overseas branches/subsidiaries & correspondent banks worldwide
will facilitate prompt & efficient services to importers.
The L/C facility can be granted to the importers after assessing their requirement/ credit worthiness/
financial strength & other parameters being to the satisfaction of the Bank.
BANK GUARANTEES: Bank on behalf of importers/other customers, issues guarantee in favor
of beneficiaries abroad which can be both performance & financial.
IMPORT CLEARANCE PROCEDURE: Importers needs to follow a certain procedure to take
delivery of goods imported from Customs authorities. Once the goods arrive whether by air or sea,
the importer has to file a form called Bill of Entry to clear the goods from customs. This is a
requirement as per Section 46 of the Custom Act, 1962. The importer has an option to use one of
the following:
 Bill of Entry for Home Consumption: It is used in situations where the importer wants to
clear the goods immediately on their arrival, by paying full duty for consumption of goods
in India. Such a Bill of Entry is white in colour.
 Bill of Entry for Warehouses: It is used where the importer does not want an immediate
delivery of goods imported by him. This bill of entry allows him to store the goods in a
warehouse without payment of duty under a bond, to be cleared at a later date when he needs
them, on payment of duty. The importer is thus able to defer the payment of Customs duty
until he actually needs the goods. This type of bill of entry is yellow in color. It is also called
“Bond Bill of Entry”.
 Bill of Entry for Ex- bond Clearance: It is used to clear the earlier stored goods from
warehouse on actual payment of duty. Such goods are already been classified & valued in
the yellow bill of entry at the time of clearance from the Customs Port. Therefore, no value
& classification is done on this bill of entry. Such bills are green in color. Duty, however,
shall be payable at the rate applicable on the date of removal of goods from the warehouse.
The Bill of Entry must be filed in quadruplicate- the original & duplicate are meant for Customs,
third copy is for the importer & the fourth copy is for bank for making remittance. On the body of
the bill of entry, the purpose for which it will be used is generally mentioned. The Bill of Entry must
be filed in prescribed form by the importer or his authorized agent giving the prescribed details such
as:
i. Name & Address of Importer

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ii. Importer – Exporter Code (IEC)
iii. Name, address & license number of Custom House Agent
iv. Vessel name
v. Rotation number & date
vi. Line Name
vii. Port of shipment
viii. Country of origin
ix. Country of consignment
x. Bill of lading number
xi. Description of packages
xii. Number of packages
xiii. Quantity of goods
xiv. Customs Tariff Heading
xv. Details of exemption from customs duty claimed
xvi. Invoice number
xvii. Value
A declaration that the details are true & that there is no other document showing contrary
information must also be given. The Bill of Entry may be signed by the importer himself or his
Custom House Agent.
ELECTRONIC SUBMISSION UNDER EDI SYSTEM – Where EDI system is implemented,
formal submission of Bill of Entry is not required, as it is generated in computer system. Importer
should submit declaration in electronic format to ‘Service Centre’. A signed paper copy of
declaration for non-reputability should be submitted. Bill of Entry number is generated by system
which is endorsed on printed check list. Original documents are to be submitted only at the stage of
examination.
Assessment of Duty and Clearance: The documents submitted by importer are checked and assessed
by Customs authorities and then goods are cleared. Section 2(2) defines ‘assessment’ as follows –

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‘Assessment’ includes provisional assessment, reassessment and any order of assessment in which
the duty assessed is Nil. Thus, ‘assessment’ includes ‘Nil’ assessment.
Noting of Bill of Entry: Bill of Entry submitted by importer or Customs House Agent is cross-
checked wit ‘Import Manifest’ submitted by person in charge of vessel / carrier. It is noted if the
description tallies. ‘Noting’ really means taking on record by customs officer. This date is relevant
for determining rate of customs duty.
Thoka number (serial number) is given in the import section. Otherwise, it is returned for
clarifications. In case of EDI system, noting is done by the system itself which also generates bill
of entry number.
Date of presentation of bill of entry is highly relevant and the rate of duty as applicable on this date
will be considered for calculating the duty payable. Bill of Entry is accepted only after proper
scrutiny vis-a-vis import manifest and various declarations given in bill of entry and attached
documents like invoice, bill of lading etc. If such documents are not attached, the authorities can
refuse to accept the Bill of Entry, and hence submission of such incomplete Bill of Entry cannot be
taken as date of presentation of Bill of Entry - Simla Agencies v. CC - 1993 (63) ELT 248 (CEGAT).
PRIOR ENTRY OF BILL OF ENTRY: After the goods are unloaded, these have to be cleared
within stipulated time - usually three working days. If these are not so removed, demurrage is
charged by port trust/airport authorities, which is very high. Hence, importer wants to complete as
many formalities as possible before ship arrives. Provision to Section 46(3) of Customs Act allows
importer to present bill of entry upto 30 days before expected date of arrival of vessel. In such case,
duty will be payable at the rate applicable on the date on which ‘Entry Inward’ is granted to vessel
and not the date of presentation of Bill of Entry, but rate of exchange will be as prevalent on date of
submission of bill of entry. - confirmed in CC, New Delhi circular No 64/96 dated 10.12.1996 and
CBE&C circular No 22/97-Cus dated 4.7.1997.
ASSESSMENT OF CUSTOMS DUTY: Section 17 provides that assessment of goods will be
made after Bill of Entry is filed. Date stamp of receipt is put on the ‘Bill of Entry’ and then it is sent
to appraising department either manually or electronically. There are various Appraising groups for
different Chapter headings. Each group is under an Assistant/Deputy Commissioner. Group consists
of ‘Examiners’ and ‘Appraisers’.
APPRAISING THE GOODS: Appraiser has to (a) correctly classify the goods (b) decide the
Value for purpose of Customs duty (c) find out rate of duty applicable as per any exemption
notification and (d) verify that goods are not imported in violation of any law. He can call for any

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further documents that may be required for assessment. If he is of the opinion that goods have to be
examined for appraisal, he will issue an examination order, usually on the reverse of Bill of Entry.
If such order is issued, the Bill of Entry is presented to appraising staff at docks / air cargo
complexes, where the goods are examined in presence of importer’s representative. Assessment is
finalised after getting the report of examination. – Chapter 3 Para 11 and 12 of CBE&C’s Customs
Manual, 2001.
VALUATION OF GOODS: As per rule 10 of Customs Valuation Rules, the importer has to file
declaration about full 'value' of goods. If the assessing officer has doubts about the truth and
accuracy of 'value' as declared, he can ask importer to submit further information, details and
documents. If the doubt persists, the assessing officer can reject the value declared by importer. [rule
10A(1) of Customs Valuation Rules]. If the importer requests, the assessing officer has to give
reasons for doubting the value declared by importer. [rule 10A(2)]. If the value declared by importer
is rejected, the assessing officer can value imported goods on other basis e.g. value of identical
goods, value of similar goods etc. as provided in Customs Valuation Rules. [This amendment has
been made w.e.f. 19.2.98, as per WTO agreement. However, it has been held that burden of proof
of under valuation is on department]. - - Assessing Officer should not arbitrarily reject the declared
value and increase the assessable value. He should follow due process of law and issue appealable
order. – MF(DR) circular No. 16/2003-Cus dated 17-3-2003.
APPROVAL OF ASSESSMENT: The assessment has to be approved by Assistant Commissioner,
if the value is more than Rs one lakh. (in cases covered under ‘fast track clearance for imports’,
appraiser is also authorised to approve valuation). After the approval, duty payable is typed by a
“pin-point typewriter” so that it cannot be tampered with. As per CBE&C circular No. 10/98-Cus
dated 11-2-1998, Assessing Officer should sign in full in Bill of Entry followed by his name,
preferably by rubber stamp.
EDI ASSESSMENT: In the EDI system, the cargo declaration is transferred to assessing officer in
the groups electronically. Processing is done on the screen itself. All calculations are done by the
system itself. If assessing officer needs clarification, he can raise a query. The query is printed at
service centre and importer replies through service centre. Facility of tele-enquiry about status of
documents is provided in major customs stations.
Under EDI, normally, documents are inspected only after assessment. After assessment, copy of
Bill of Entry is printed at service centre. Final Bill of Entry is printed only after ‘Out of Charge’
order is given by customs officer. – Chapter 3 Para 18 to 22 of CBE&C’s Customs Manual, 2001.

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PAYMENT OF CUSTOMS DUTY: After assessment of duty, necessary duty is paid. Regular
importers and Custom House Agents keep current account with Customs department. The duty can
be debited to such current account, or it can be paid in cash/DD through TR-6 challan in designated
banks. After payment of duty, if goods were already examined, delivery of goods can be taken from
custodians (port trust) after paying their dues. If goods were not examined before assessment, these
have to be submitted for examination in import shed to the examining staff. After shed appraiser
gives ‘out of charge’ order, delivery of goods can be taken from custodian.
EXAMINATION OF GOODS: Examiners carry out physical examination and quantitative
checking like weighing, measuring etc. Selected packages are opened and examined on sample basis
in ‘Customs Examination Yard’. Examination report is prepared by the examiner.
PAYMENT OF DUTY: If goods are to be removed to a warehouse, duty payment is not required.
The goods can be taken to a warehouse under bond, without payment of duty. However, if goods
are to be removed for home consumption, payment of customs duty is required. CHA or the importer
can take it for payment of customs duty. Large importers and CHA have P.D. accounts with customs.
Duty can be paid either in cash or through P.D. account. P. D. account means provisional duty
account. This is a current account, similar to PLA in central excise. The importer or CHA pays lump
sum amount in the account and gets credit on the amount paid. He can pay customs duty by debiting
the amount in P.D. (Provisional Duty) account. If the importer does not have an account, he can pay
duty by cash using TR-6 challan. Of course, payment through PD account is very convenient and
quick. The duty should be paid within five working days (i.e. within five days excluding holidays)
after the ‘Bill of Entry’ is returned to the importer for payment of duty. [section 47(2)]. (Till 11-5-
2002, the period allowed was only 2 days).
INTEREST FOR LATE PAYMENT: If duty is not paid within 5 working days as aforesaid,
interest is payable. Such interest can be between 10% to 36% as may be notified by Central
Government. [Section 47(2) of Customs Act, 1962.]. - - Interest rate is 15% w.e.f. 13-5-2002.
[Notification No. 28/2002-Cus(NT) dated 13-5-2002] Earlier, interest rate was 24% p.a, w.e.f. 1-3-
2000, as per notification No. 34/2000-Cus(NT)].
DISPOSAL IF GOODS ARE NOT CLEARED WITHIN 30 DAYS: As per section 48 of
Customs Act, goods must be cleared within 30 days after unloading. Customs Officer can grant
extension. Otherwise, goods can be sold after giving notice to importer. However, animals,
perishable goods and hazardous goods can be sold any time - even before 30 days. Arms &
ammunition can be sold only with permission of Central Government.

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OUT OF CUSTOMS CHARGE ORDER: After goods are examined, it is verified that import is
not prohibited and after customs duty is paid, Customs Officer will issue ‘Out of Customs Charge’
order under section 47. Goods can be cleared from customs area only on receipt of such order. This
is an ‘adjudicating order’ within the meaning of Customs Act, even if it is passed by Appraiser and
not by Assistant Commissioner.
DEMURRAGE IF GOODS NOT CLEARED: Heavy demurrage is payable if goods are not
cleared from port within three days of unloading goods. If due to Customs formalities, such goods
cannot be removed, the customs authorities issue a certificate stating that the delay was due to bona
fide Customs formalities. In such a case, demurrage may be refunded by the port authorities.
ADVANCE FILLING OF BILL OF ENTRY: For faster clearance of goods, provision has been
made in Section 46 of the Act, to allow filling of bill of entry, prior to the arrival of goods. This bill
of entry is valid if the vessel/ aircraft carrying the goods arrives within 30 days from the date of
presentation of bill of entry. The importer is to file 5 copies of the bill of entry & the fifth copy is
called “Advance Noting copy”.
EXPORTS:
Exports is term used when goods are moved physically from one country to another or a service is
rendered to other country. Detailed list of services is given in the Foreign Trade Policy covering
more than 160 items e.g., Insurance, Hospital, Postal and Telecommunication etc.
TWO CLASSES OF EXPORTS:
 PHYSICAL EXPORTS: If the goods physically go out of the country or services are
rendered outside the country then it is called as physical export.
 DEEMED EXPORTS: Where the goods do not go out of the country physically, they can
be termed as deemed exports. This will be subject to certain conditions as prescribed by the
DGFT. Under Deemed Exports, the goods may be supplied to the manufacturer exporter
who ultimately export a finished product of which this supply forms a part and ultimately
go out of the country. Eg. Supply of fabrics to the garment exporter who exports the garments
made out of the said fabric.
The government may announce from time to time the types of supplies that may be considered as
deemed export. The Foreign Trade Policy gives the list of supplies considered under the Deemed
Export Category. The policies and procedures are different for Physical Exports and Deemed
Exports as also the benefits available. In a nutshell, Deemed Exports do not enjoy all the benefits
that are available under Physical Export. The Foreign Trade defines exports as taking out of India

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any goods by land, sea, air. Although the act does not term them as “Physical Exports”, we have to
put phrase to distinguish it from “Deemed Exports” which is sales in India but considered as exports
for limited purpose.
Types of Exporters: Exporters can be basically classified into two groups
• MANUFACTURER EXPORTER: As the exporter has the facility to manufacturer the
product he intends to export and hence he exports the products manufactured by him.
• MERCHANT EXPORTER: An exporter who does not have the facility to manufacture an
item. But, he procures the same from other manufacturers or from the market and exports the same.
An exporter can be both a manufacturer exporter as well as a merchant exporter, he can export
product manufactured by him or he can export items bought from the market.
Once it is decided to export, it is mandatory on your part to follow certain procedures, rules and
regulations as prescribed by various regulatory authorities such as DGFT, RBI, and Customs. These
procedures, rules and regulations are laid down in the Exim Policy 2004-09, Exchange Control
Manual, Customs Act etc. Accordingly Export documents are required to be prepared keeping in
view of the requirement of the foreign buyers and our regulatory authorities.
EXPORT PROCESS:
Before entering into the venture of exports, one must look for the product to be exported and the
market where he intends to export.
In case of a manufacturer, obviously he would like to export the product he manufactures as is or
with possible modification as may be required by the market. However, in case of a merchant
exporter or a trader, one has to identity the product to export. If the exporter is already in the trade
in the domestic market and is familiar with the product it would be an advantage to export the said
product of which he has reasonable knowledge.

22. 21
Before selecting a product, one must simultaneously made a study and find out the prospective
market. For finding out the market for the selected product, the following methods will help.
• Get statistical information as to imports of the product by various countries and their growth
prospects in the respective countries
• Approach the chamber of commerce for their guidance to find out the market.
• Approach the Export Promotion Council dealing in the product of selection to get more
information.
THE PRELIMINARY:
Once you are ready with the product you wish to export and have found the market for the same,
you are ready to proceed further. Following sequences can be followed:
• Any one, who wishes to export, must first of all get an Importer Exporter Code Number (IE
Code).This can be obtained by making a formal application to the office of the Regional Directorate
General of Foreign Trade (DGFT).
• Get yourself registered with the related Export Promotion Council and become a member.
Also arrange to obtain Registration-Cum-Membership Certificate (RCMC) from the council. This
has twin objectives:
o Under the Foreign Trade Policy, it is mandatory that an exporter gets him registered with
the Export Promotion Council to avail of various export facilities.
o Being a member, you will have access to all the information relating to the product that could
be made available by the council
o Many foreign buyers send their enquiries for the imports to the Export Promotion Council.
Hence you will have few customers interested in your product.
• If you are a manufacturer, find out the provisions under the EXIM Policy of getting the raw
materials duty free.
• Get familiar with the excise formalities as goods meant for export can be cleared without
payment of C. Excise duty on the finished product subject to compliance of certain formalities.
• Understand the local government regulations in relations to the export of the product.

23. 22
• Get information of the government’s regulations of the importing country as to restrictions
on the quantity, product specification, packing regulations, customs regulations, requirement of
specific documents/information etc.
• Availability of Vessels/Airlines, the transport charges, frequency of operation etc.,
• To look for a Custom House Agent (CHA) (also know as freight forwarders or clearing
agents) for handling the documents/cargo in the customs.
• If the product is covered under any quota regulation, find out the agency/council who are
handling the quota distribution for the product and the availability of quota for exports.
FINDING A CUSTOMER:
Once you have selected the market, the next step is to find a prospective customer. This you can get
• From the directory of importers of the country
• By writing to the Embassy of India in that country for assistance
• By writing to the chamber of commerce of that country
• By means of participation in a Fair/Exhibition abroad either directly or through the Export
PROMOTION COUNCIL
• By participating in international fair if organized locally
• Through the personal contacts in that country. By these processes one can only have the list
of customers. One has to dialogue or correspond with these customers by sending samples, getting
feedback from the customers etc. to ultimately select the customer with whom to deal with. It is
necessary to know the financial standing of the company which can be obtained through the bank
channel or through the office of ECGC.
NEGOTIATING CONTRACT:
Once the prospective customer is found, the business deal has to be concluded. The following
aspects may be considered before entering into a final contract with the buyer.
• Credit Worthiness of the Customer.

24. 23
• Availability of the Steamer/Airlines and the frequency
• The freight charges
• The full product specification
• The quantity, Price
• Terms of Payment
• Type of packing and markings on the packages
• Mode of shipment & Shipment schedule
• Tolerance of quantity to be shipped
• Documentation requirement for the customer
• Documentation requirement of the government of importing country
• Compliance of the local governmental rules and regulations
Before entering into contract, one should take note of the above factors. While these are indicative,
the requirements will vary from country to country, product to product and buyer to buyer.
EXPORT CONTRACT TERMS & CONDITIONS
Very often exporters do not enter into any formal contract and finalize the trade deal through the
exchange of letters, cable, telex etc. It is, however, expedient that the parties (exporters & importers)
incorporate all important terms & conditions of their trade deal in a separate document or contract
that will avoid disputes arising out of uncertainty or ambiguity. Export contract may be sent in
duplicate along with the Proforma Invoice to the overseas buyer.
NATURE OF INTERNATIONAL TRADE CONTRACTS.
There are certain, peculiar characteristics of international trade contract which are not present in
those for sales of goods in the domestic market
Whereas the parties to a domestic trace contract normally needs only agree on the elements which
are necessary for their particular trade transactions like price, description, quality and quantity of
goods, delivery terms etc the situation will be quite different when the buyer and the seller to
sale/purchase contract belong to different countries. The parties to all international trade contracts
provide all their relative rights and obligations in several ways

25. 24
For example, they may agree to adopt either the Law of the country of the buyer or that of the seller.
The traders are normally reluctant to leave the determination of the rights and obligations by
implications under the legal system of either’s country. They prefer to make explicit provisions
regarding the rights and obligations by including a set of detailed and precise terms and conditions
in their contract. Entering Into an Export Contract
In order to avoid disputes, it is necessary to enter into an export contract with the overseas buyer.
For this purpose, export contract should be carefully drafted incorporating comprehensive but in
precise terms, all relevant and important conditions of the trade deal.
There should not be any ambiguity regarding the exact specifications of goods and terms of sale
including export price, mode of payment, storage and distribution methods, type of packaging, port
of shipment, delivery schedule etc. The different aspects of an export contract are enumerated as
under:
• Product, Standards and Specifications
• Quantity
• Inspection
• Total Value of Contract
• Terms of Delivery
• Taxes, Duties and Charges
• Period of Delivery/Shipment
• Packing, Labeling and Marking
• Terms of Payment-- Amount/Mode & Currency
• Discounts and Commissions
• Licenses and Permits
• Insurance
• Documentary Requirements
• Guarantee
• Force Majeure of Excuse for Non-performance of contract

26. 25
• Remedies
• Arbitration clause
It will not be out of place to mention here the importance of arbitration clause in an export contract
Court proceedings do not offer a satisfactory method for settlement of commercial disputes, as they
involve inevitable delays, costs and technicalities. On the other hand, arbitration provides an
economic, expeditious and informal remedy for settlement of commercial disputes. Arbitration
proceedings are conducted in privacy and the awards are kept confidential. The Arbitrator is usually
an expert in the subject matter of the dispute. The dates for arbitration meetings are fixed with the
convenience of all concerned. Thus, arbitration is the most suitable way for settlements of
commercial disputes and it may invariably be used by businessmen in their commercial dealings.
ARBITRATION:
Arbitration clause recommended by the Indian Council of Arbitration:” All disputes or differences
whatsoever arising between the parties out of / relating to the meaning, construction and operation
or effect of this contract or the breach thereof shall be settled by arbitration in accordance with the
rules of Arbitration of the Indian Council of Arbitration and the award made in pursuance thereof
shall be binding on the parties” (or any other arbitration clause that may be agreed upon between
the parties).
TERMS OF SHIPMENT – INCOTERMS:
The INCOTERMS (International Commercial Terms) is a universally recognized set of definition
of international trade terms, such as FOB, CFR & CIF, developed by the International Chamber of
Commerce(ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between
buyer and seller. It is invaluable and a cost-saving tool. The exporter and the importer need not
undergo a lengthy negotiation about the conditions of each transaction. Once they have agreed on a
commercial terms like FOB, they can sell and buy at FOB without discussing who will be
responsible for the freight, cargo insurance and other costs and risks.
The INCOTERMS was first published in 1936 --- INCOTERMS 1936 --- and it is revised
periodically to keep with changes in the international trade needs. The complete definition of each
term is available from the current publication --- INCOTERMS 2000. Under INCOTERMS 2000,
the international commercial terms are grouped into E, F, C and D, designated by the first letter of
the term, relating to the final letter of the term. E.g. EXW—exworks comes under grouped ‘E’.

27. 26
The purpose of Incoterms is to provide a set of international rules for the interpretation of the most
commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of
such terms in different countries can be avoided or at least reduced to a considerable degree. The
scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the
contract of sale with respect to the delivery of goods. Incoterms deal with the number of identified
obligations imposed on the parties and the distribution of risk between the parties.
In international trade, it would be best for exporters to refrain, wherever possible, from dealing in
trade terms that would hold the seller responsible for the import customs clearance and/or payment
of import customs duties and taxes and/or other costs and risks at the buyer’s end, for example the
trade terms DEO (Delivery Ex Quay) and DDP (Delivered Duty Paid)
Quite often, the charges and expenses at the buyer’s end may cost more to the seller than anticipated.
To overcome losses, hire a reliable customs broker or freight forwarder in the importing country to
handle the import routines.
Similarly, it would be best for importers not to deal in EXW (Ex Works) which would hold the
buyer responsible for the export customs clearance, payment of export customs charges and taxes,
and other costs and risks at the seller’s end
MORE CLARIFICATION ON INCOTERMS:
EXW {+THE NAMED PLACE}
EX WORKS: Ex means from. Works means factory, mill or warehouse, which are the seller’s
premises. EXW applies to goods available only at the seller’s premises. Buyer is responsible for
loading the goods on truck or container at the sellers premises and for the subsequent costs and risks.
In practice, it is not uncommon that the seller loads sthe goods on truck or container at the sellers
pre4mises without charging loading fee. N the quotation, indicate the named place (sellers premises)
after the acronym EXW for example EXW Kobe and EXW San Antonio.
The term EXW is commonly used between the manufacturer (seller) and export-trader(buyer), and
the export-trader resells on other trade terms to the foreign buyers. Some manufacturers may use
the term Ex Factory, which means the same as Ex Works.
FCA {+THE NAMED POINT OF DEPARTURE}
FREE CARRIER: The delivery of goods on truck, rail car or container at the specified point(depot)
of departure, which is usually the sellers premises, or a named railroad station or a named cargo

28. 27
terminal or into the custody of the carrier, at sellers expense. The point(depot) at origin may or may
not be a customs clearance centre. Buyer is responsible for the main carriage/freight, cargo insurance
and other costs and risks.
In the air shipment, technically speaking, goods placed in the custody of an air carrier are considered
as delivery on board the plane. In practice, many importers and exporters still use the term FOB in
the air shipment. The term FCA is also used in the RO/RO (roll on/roll off) services
In the export quotation, indicate the point of departure (loading) after the acronym FCA, for example
FCA Hong Kong and FCA Seattle. Some manufacturers may use the former terms FOT (Free on
Trucks) and FOR (Free on Rail) in selling to export-traders.
FAS {+THE NAMED PORT OF ORIGIN}
FREE ALONGSIDE SHIP: Goods are placed in the dock shed or at the side of the ship, on the
dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at
seller’s expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance,
and other costs and risks In the export quotation, indicate the port of origin(loading)after the
acronym FAS, for example FAS New York and FAS Bremen. The FAS term is popular in the break-
bulk shipments and with the importing countries using their own vessels.
FOB {+THE NAMED PORT OF ORIGIN}
FREE ON BOARD: The delivery of goods on the board the vessel at the named port of origin
(Loading) at seller’s expense. Buyer is responsible for the main carriage/freight, cargo insurance
and other costs and risks. In the export quotation, indicate the port of origin (loading) after the
acronym FOB, for example FOB Vancouver and FOB Shanghai.
Under the rules of the INCOTERMS 1990, the term FOB is used for ocean freight only. However,
in practice, many importers and exporters still use the term FOBin the air freight. In North America,
the term FOB has other applications. Many buyers and sellers in Canada and the USA dealing on
the open account and consignment basis are accustomed to using the shipping terms FOB Origin
and FOB destination.
FOBOrigin means the buyer is responsible for the freight and other costs and risks. FOBDestination
means the seller is responsible for the freight and other costs and risks until the goods are delivered
to the buyer’s premises which may include the import custom clearance and payment of import
customs duties and taxes at the buyer’s country, depending on the agreement between the buyer and

29. 28
seller. In international trade, avoid using the shipping terms FOB Origin and FOB Destination,
which are not part of the INCOTERMS (International Commercial Terms).
CFR {+THE NAMED PORT OF DESTINATION}
COST AND FREIGHT: The delivery of goods to the named port of destination (discharge) at the
sellers’ expenses. Buyer is responsible for the cargo insurance and other costs and risks. The term
CFRwas formerly written as C&F. Many importers and exporters worldwide still use the term C&F.
In the export quotation, indicate the port of destination (discharge) after the acronym CFR, for
example CFR Karachi and CFR Alexandria. Under the rules of the INCOTERMS 1990, the term
Cost and Freight is used for ocean freight only. However, in practice, the term Cost and Freight
(C&F) is still commonly used in the air freight.
CIF {+NAMED PORT OF DESTINATION}
COST, INSURANCE AND FREIGHT: The cargo insurance and delivery of goods to the named
port of destination (discharge) at the seller’s expense. Buyer is responsible for the import customs
clearance and other costs and risks.
In the export quotation, indicate the port of destination (discharge) after the acronym CIF, for
example CIF Pusan and CIF Singapore. Under the rules of the INCOTERMS 1990, the term CIFI
is used for ocean freight only. However, in practice, many importers and exporters still use the term
CIF in the air freight.
CPT {+THE NAMED PLACE OF DESTINATION}
CARRIAGE PAID TO: The delivery of goods to the named port of destination (discharge) at the
sellers’ expenses. Buyer assumes the cargo insurance, import custom clearance, payment of custom
duties and taxes, and other costs and risks. In the export quotation, indicate the port of destination
(discharge) after the acronym CPT, for example CPT Los Angeles and CPT Osaka.
CIP {+ THE NAMED PLACE OF DESTINATION)
CARRIAGE AND INSURANCE PAID TO: The delivery of goods and the cargo insurance to the
named place of destination (discharge) at seller’s expense. Buyer assumes the importer customs
clearance, payment of customs duties and taxes, and other costs and risks.
In the export quotation, indicate the place of destination (discharge) after the acronym CIP, for
example CIP Paris and CIP Athens.

30. 29
DAF {+ THE NAMES POINT AT FRONTIER}
DELIVERED AT FRONTIER: The delivery of goods to the specified point at the frontier at
seller’s expense. Buyer is responsible for the import custom clearance, payment of custom duties
and taxes, and other costs and risks.
In the export quotation, indicate the point at frontier (discharge) after the acronym DAF, for example
DAF Buffalo and DAF Well and.
DES {+NAMED PORT OF DESTINATION}
DELIVERED EX SHIP: The delivery of goods on board the vessel at the named port of destinat ion
(discharge) at seller’s expense. Buyer assumes the unloading free, import customs clearance,
payment of customs duties and taxes, cargo insurance, and other costs and risks.
In the export quotation, indicate the Port of destination (discharge) after the acronym DES, for
example DES Helsinki and DES Stockholm.
DEQ {+ THE NAMED PORT OF DESTINATION
DELIVERED EX QUAY: The delivery of goods to the Quay (the port) at the destination at buyer’s
expense. Seller is responsible for the importer customs clearance, payment of customs duties and
taxes, at the buyer’s end. Buyer assumes the cargo insurance and other costs and risks. In the export
quotation, indicate the Port of destination (discharge) after the acronym DEQ, for example DEQ
Libreville and DEQ Maputo.
DDU {+ THE NAMED POINT OF DESTINATION}
DELIVERED DUTY UNPAID: The delivery of goods and the cargo insurance to the final point
at destination, which is often the project site or buyers’ premises at seller’s expense. Buyer assumes
the import customs clearance, payment of customs duties and taxes. The seller may opt not to insure
the goods at his/her own risks.
In the export quotation, indicate the point of destination (discharge) after the acronym DDU for
example DDU La Paz and DDU N’djamena.
DDP {+ THE NAMED POINT OF DESTINATION)
DELIVERED DUTY PAID: The seller is responsible for most of the expenses which include the
cargo insurance, import custom clearance, and payment of custom duties, and taxes at the buyers
end, and the delivery of goods to the final point of destination, which is often the project site or

31. 30
buyers premise. The seller may opt not to insure the goods at his/her own risk. In the export
quotation, indicate the point of destination (discharge) after the acronym DDP, for example DDP
Bujumbura and DDP Mbabane.
“E”-term,”F”-term, “C”-term &”D”-term: Incoterms 2000, like its immediate predecessor, groups
the term in four categories denoted by the first letter in the three-letter abbreviation.
• Under the “E”-TERM (EXW), the seller only makes the goods available to the buyer at the
seller’s own premises.
• Under the “F”-TERM (FCA, FAS, &FOB), the seller is called upon to deliver the goods to
a carrier appointed by the buyer.
• Under the “C”-TERM (CFR, CIF, CPT, & CIP), the seller has to contract for carriage, but
without assuming the risk of loss or damage to the goods or additional cost due to events occurring
after shipment or discharge.
• Under the “D”-TERM (DAF, DEQ, DES, DDU & DDP), the seller has to bear all costs and
risks needed to bring the goods to the place of destination.
All terms list the seller’s and buyer’s obligations. The respective obligations of both parties have
been grouped under up to 10 headings where each heading on the seller’s side “mirrors” the
equivalent position of the buyer. Examples are Delivery, Transfer of risks, and Division of costs.
This layout helps the user to compare the parties’ respective obligations under each Incoterms.
PROCESSING AN EXPORT ORDER
You should not be happy merely on receiving an export order. You should first acknowledge the
export order, and then proceed to examine carefully in respect of
• Items
• Specification
• Pre-shipment inspection
• Payment conditions
• Special packaging
• Labelling and marketing requirements

32. 31
• Shipment and delivery date
• Marine insurance
• Documentation requirement etc.
If you are satisfied on these aspects, a formal confirmation should be sent to the buyer, otherwise
clarification should be sought from the buyer before confirming the order. After confirmation of the
export order immediate steps should be taken for procurement/manufacture of the export goods. In
the meanwhile, you should proceed to enter into a formal export contract with the overseas buyer.
Before accepting any order necessary homework should have been done as to availability of the
production capacity, raw material e.t.c. It would be in the interest of the exporter to look into entering
into forward contract to safeguard against exchange rate fluctuations. Ensure that the mode of
payment is also agreed upon. In case of shipment against letter of credit, the buyer should be advised
to open the credit well in advance before effecting the shipment.
Financial Risks Involved In Foreign Trade
As an exporter while selling goods abroad, you encounter various types of risks. The major risks
which you have to undergo are as follows:
• Credit Risk
• Currency Risk
• Carriage Risk
• Country Risk
You can protect yourself against the above risks by initiating appropriate steps.
Credit Risks: You can cover your credit risk against the foreign buyer by insisting upon opening a
letter of credit in your favour. Alternatively, one can avail of the facility offered by various credit
risk agencies. A specific insurance cover can also be obtained from ECGC (Exports Credit &
Guarantee Corporation) to cover your country risk besides covering credit risk.
Currency Risks: As regards covering the currency risk, due to the exchange rate fluctuations, you
can request your banker to book a forward contract.
Carriage Risk: The carriage risk can be covered by taking an appropriate general insurance policy.

33. 32
Country Risk: ECGC provides cover to protect the exporter from country risks. A detailed procedure
how an exporter can get himself protected against the above risks are given in separate chapters
later.
EXPORT DOCUMENTS
Any export shipment involved various documents required by various authorities such as customs,
excise, RBI, Inspection and according depending upon the requirements, there are categorized into
2 categories, namely commercial documents and regulatory documents.
A. COMMERCIAL DOCUMENTS: - Commercial documents are required for effecting
physical transfer of goods and their title from the exporter to the importer and the realisation of
export sale proceeds. Out of the 16 commercial documents in the export documentation framework
as many as 14 have been standardised and aligned to one another. These are proforma invoice,
commercial invoice, packing list, shipping instructions, intimation for inspection, certificate, of
inspection of quality control, insurance declaration, certificate' of insurance, mate's receipt, bill of
lading or combined transport document, application for certificate origin, certificate of origin,
shipment advice and letter to the bank for collection or negotiation of documents. However, shipping
order and bill of exchange could not be brought within the fold of the Aligned Documentation
System,
1. COMMERCIAL INVOICE: Commercial invoice is an important and basic export
document. It is also known as a 'Document of Contents' as it contains all the information required
for the preparation of other documents. It is actually a seller's bill of merchandise. It is prepared by
the exporter after the execution of export order giving details about the goods shipped. It is essential
that the invoice is prepared in the name of the buyer or the consignee mentioned in the letter of
credit. It is prima facie evidence of the contract of sale or purchase and therefore, must be prepared
strictly in accordance with the contract of sale.
Contents of Commercial Invoice
• Name and address of the exporter.
• Name and address of the consignee.

34. 33
• Name and the number of Vessel or Flight.
• Name of the port of loading.
• Name of the port of discharge and final destination.
• Invoice number and date.
• Exporter's reference number.
• Buyer's reference number and date.
• Name of the country of origin of goods.
• Name of the country of final destination.
• Terms of delivery and payment.
• Marks and container number.
• Number and packing description.
• Description of goods giving details of quantity, rate and total amount in terms of
internationally accepted price quotation.
• Signature of the exporter with date.
Significance of Commercial Invoice
• It is the basic document useful in preparation of various other shipping documents.
• It is used in various export formalities such as quality and pre-Shipment inspection excise
and customs procedures etc.
• It is also useful in negotiation of documents for collection and claim of incentives.
• It is useful for accounting purposes to both exporters as well as importers.
2 PACKING SLIP: This document provides details of number of packages, quantities packed
in each of them, the weight & measurement of each package & the net & gross weight of the total
consignment. It includes all the information as the commercial invoice except rate & total amount.
3 Inspection Certificate: The certificate is issued by the inspection authority such as the export
inspection agency. This certificate states that the goods have been inspected before shipment, and
that they confirm to accepted quality standards.

35. 34
4 MARINE INSURANCE POLICY: Goods in transit are subject to risk of loss of goods
arising due to fire on ship, perils of sea, theft etc. marine insurance protects losses incidental to
voyages and in land transportation. Marine insurance policy is one of the most important document
used as collateral security because it protects the interest of all those who have insurable interest at
the time of loss. The exporter is bound to insure the goods in case of CIF quotation, but he can also
insure the goods in case of FOB contract, at the request of the importer, but the premium payment
will be made by the exporter. There are different types of policies such as
• Specific Policy
• Floating Policy
• Open Policy
• Open Cover Policy
INSURANCE PREMIUM: Differs upon product to product and a number of such other factors,
such as, distance of voyage, type and condition of packing, etc. Premium for air consignments are
lowered as compared to consignments by sea.
5. CERTIFICATE OF ORIGIN: The importers in several countries require a certificate of origin
without which clearance to import is refused. The certificate of origin states that the goods exported
are originally manufactured in the country whose name is mentioned in the certificate. Certificate
of origin is required when: -
• The goods produced in a particular country are subject to’ preferential tariff rates in the
foreign market at the time importation.
• The goods produced in a particular country are banned for import in the foreign market.
TYPES OF CERTIFICATE OF ORIGIN
(A) NON-PREFERENTIAL CERTIFICATE, OF ORIGIN: - Non-preferential certificate of
origin is required in general by all countries for clearance of goods by the importer, on which no
preferential tariff is given. It is issued by:
• The authorised Chamber of Commerce of the exporting country.
• Trade Association. Of the exporting country.
(B) CERTIFICATE OF ORIGIN FOR AVAILING CONCESSIONS UNDER GSP:-
Certificate of origin required for availing of concessions under Generalised System of Preferences

36. 35
(GSP) extended by certain, countries such as France, Germany, Italy, BENELUX countries, UK,
Australia; Japan, USA, etc. This certificate can be obtained from specialised agencies, namely;
• Export Inspection Agencies.
• Jt. Director General of Foreign Trade.
• Commodity Boards and their regional offices.
• Development Commissioner, Handicrafts.
• Textile Committees for textile products.
• Marine Products Export Development Authority for marine products.
• Development Commissioners of EPZs
(C) CERTIFICATE FOR AVAILING CONCESSIONS UNDER COMMONWEALTH
PREFERENCES (CWP): Certificate of origin for the purpose of Commonwealth Preference is
also known as 'Combined Certificate of Origin and Value'. It is required by two member countries,
i.e., Canada and New Zealand of the Commonwealth. For concession under Commonwealth
preferences, the certificates or origin have to be submitted in special forms obtainable, from the
High Commission of the country concerned.
(d) Certificate for availing Concessions under other Systems of Preference: - Certificate of origin
is also required for tariff concessions. under the Global System of Trade Preferences (GSTP),
Bangkok Agreement (BA) and SAARC Preferential Trading Arrangement (SAPTA) under which
India grants and receives tariff concessions on imports and exports. Export Inspection Council (EIC)
is the sole authority to print blank Certificates of Origin under BA, SAARC and SAPTA which can
be issued by such agencies as EPCs, DCs of EPZs, EIC, APEDA, MPEDA, FIEO, etc...
CONTENTS OF CERTIFICATE OF ORIGIN
• Name and logo of chamber of commerce.
• Name and address of the exporter.
• Name and address of the consignee.
• Name and the number of Vessel of Flight

37. 36
• Name of the port of loading.
• Name of the port of discharge and place of delivery.
• Marks and container number.
• Packing and container description.
• Total number of containers and packages.
• Description of goods in terms of quantity.
• Signature and initials of the concerned officer of the issuing authority.
• Seal of the issuing authority.
SIGNIFICANCE OF THE CERTIFICATE OF ORIGIN
• Certificate of origin is required for availing of concessions under Generalised System of
Preferences (GSP) as well as under Commonwealth Preferences (CWP).
• It is to be submitted to the customs for the assessment of duty clearance of goods with
concessional duty.
• It is required when the goods produced in a particular country are banned for import in the
foreign market.
• It helps the buyer in adhering to the import regulations of the country.
• Sometimes, in order to ensures that goods bought from some other countries have not been
reshipped by a seller, a certificate of origin IS required.
6. BILL OF LADING: The bill of lading is a document issued by the shipping company or its
agent acknowledging the receipt of goods on board the vessel, and undertaking to deliver the goods
in the like order and condition as received, to the consignee or his order, provided the freight and
other charges as specified in the bill have been duly paid. It is also a document of title to the goods
and as such, is freely transferable by endorsement and delivery.
Bill of Lading serves three main purposes:
• As a document of title to the goods;
• As a receipt from the shipping company; and
• As a contract for the transportation of goods.

38. 37
TYPES OF BILLS OF LADING
• CLEAN BILL OF LADING: - A bill of lading acknowledging receipt of the goods
apparently in good order and condition and without any qualification is termed as a clean bill of
lading.
• CLAUSED BILL OF LADING: - A bill of lading qualified with certain adverse marks
such as, "goods insufficiently packed in accordance with the Carriage of Goods by Sea Act," is
termed as a claused bill of lading.
• TRANSHIPMENT OR THROUGH BILL OF LADING: - When the carrier uses other
transport facilities, such as rail, road, or another steamship company in addition to his own, the
carrier issues a through or transhipment bill of lading.
• STALE BILL OF LADING: - A bill of lading that has been held too long before it is passed
on to a bank for negotiation or to the consignee is called a stale bill of lading.
• FREIGHT PAID BILL OF LADING: - When freight is paid at the time of shipment or in
advance, the bill of landing is marked, freight paid. Such bill of lading is known as freight bill of
lading.
• FREIGHT COLLECT BILL OF LADING: - When the freight is not paid and is to be
collected from the consignee on the arrival of the goods, the bill of lading is marked, freight collect
and is known as freight collect bill of lading
Contents of Bill of Lading
• Name and logo of the shipping line.
• Name and address of the shipper.
• Name and the number of vessels.
• Name of the port of loading.
• Name of the port of discharge and place of delivery.
• Marks and container number.
• Packing and container description.
• Total number of containers and packages,
• Description of goods in terms of quantity.

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• Container status and seal number.
• Gross weight in kg. and volume in terms of cubic meters.
• Amount of freight paid or payable.
• Shipping bill number and date.
• Signature and initials of the Chief Officer.
SIGNIFICANCE OF BILL OF LADING FOR EXPORTERS
• It is a contract between the shipper and the shipping company for carriage of the goods to
the port of destination.
• It is an acknowledgement indicating that the goods mentioned in the document have been
received on board for the Purpose of shipment.
• A clean bill of lading certifies that the goods received on board the ship are in order and
good condition.
• It is useful for claiming incentives offered by the government to exporters
• The exporter can claim damages from the shipping company if the goods are lost or damaged
after the issue of a clean bill of lading.
Significance of Bill of Lading for Importers
• It acts as a document of title to goods, which is transferable endorsement and delivery.
• The exporter sends the bill of lading to the bank of the importer so as to enable him to take
the delivery of goods.
• The exporter can give an advance intimation to the foreign buyer about the shipment of
goods by sending him a non-negotiable copy of bill of lading
Significance of Bill of Lading for Shipping Company
• It is useful to the shipping company for collection of transport charges from the importer, if
not collected from the exporter.
7. AIRWAY BILL: An airway bill, also called an air consignment note, is a receipt issued by
an airline for the carriage of goods. As each shipping company has its own bill of lading, so each

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airline has its own airway bill. Airway Bill or Air Consignment Note is not treated as a document
of title and is not issued in negotiable form.
CONTENTS OF AIRWAY BILL
• Name of the airport of departure and destination.
• The names and addresses of the consignor, consignee and the first carrier.
• Marks and container number.
• Packing and container description.
• Total number of containers and packages.
• Description of goods in terms of quantity.
• Container status and seal number.
• Amount of freight paid or payable.
• Signature and initials of the issuing carrier or his agent.
IMPORTANCE OF AIRWAY BILL: It is a contract between the airlines or his agent to carry
goods to the destination. It is the document of instructions for the airline handling staff. It acts as a
customs declaration form. Since, it contains details about freight it also represents freight bill.
8. SHIPMENT ADVICE TO IMPORTER: - After the shipment of goods, the exporter
intimates the importer about the shipment of goods giving him details about the date of shipment,
the name of the vessel, the destination, etc. He should also send one copy of non-negotiable bill of
lading to the importer.
9. BILL OF EXCHANGE: The instrument is used in receiving payment from the importer.
The importer may prefer Bill of Exchange to LC as it does not involve blocking of funds. A bill of
exchange is drawn by the exporter on the importer, to make payment on demand at sight or after a
certain period of time.
• B/E is a means to collect payment.
• B/E is a means to demand payment.
• B/E is a means to extent the credit.
• B/E is a means to promise the payment.

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• B/E is an official acknowledgement of receipt of payment.
• Financial documents perform the function of obtaining the finance collection of payment
etc.
• 2 sets. Each one bearing the exclusion clause making the other part of the draft invalid.
• Sight B/E.
• Usance B/E.
• It is known as draft.
• Immediate payment – Sight draft.
• There are two copies of draft. Each one bears reference to the other part A&B. when any
one of the drafts is paid, the second draft becomes null and void.
PARTIES TO BILL OF EXCHANGE.
1. The drawer: The exporter / person who draws the bill.
2. The drawee: The importer / person on whom the bill is drawn for payment.
3. The payee: The person to whom payment is made, generally, the exporter / supplier of the
goods.
B AUXILIARY DOCUMENTS: These documents generally form the basic documents based
on which the commercial and or regulatory documents are prepared. These documents also do not
have any fixed formats and the number of such documents will wary according to individual
requirements.
1. PROFORMA INVOICE: The starting point of the export contract is in the form of offer
made by the exporter to the foreign customer. The offer made by the exporter is in the form of a
proforma invoice. It is a quotation given as a reply to an inquiry. It normally forms the basis of all
trade transactions.
CONTENTS OF PROFORMA INVOICE
• Name and address of the exporter.
• Name and address of the importer.
• Mode of transportation, such as Sea or Air or Multimodal transport.

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• Name of the port of loading.
• Name of the port of discharge and final destination.
• Provisional invoice number and date.
• Exporter's reference number.
• Buyer's reference number and date.
• Name of the country of origin of goods.
• Name of the country of final destination.
• Marks and container number. .
• Number and packing description.
• Description of goods giving details of quantity, rate and total amount in terms of
internationally accepted price quotation.
• Signature of the exporter with date.
Importance of Proforma Invoice
• It forms the basis of all trade transactions.
• It may be useful for the importer in obtaining import licence or foreign exchange.
2. INTIMATION FOR INSPECTION: Whenever the consignment requires the pre-
shipment inspection, necessary application is to be made to the concerned inspection agency for
conducting the inspection and issue of certificate thereof.
3. DECLARATION OF INSURANCE: Where the contract terms require that the insurance
to be covered by the exporter, the shipper has to give details of the shipment to the insurance
company for necessary insurance cover. The detailed declaration will cover:
• Name of the shipper exporter.
• Name & address of buyer.
• Details of goods such as packages, quantity, value in foreign currency as well as in Indian
Rs. Etc.
• Name of the Vessel Aircraft.

43. 42
• Value for which insurance to be covered.
4. APPLICATION OF THE CERTIFICATE Origin: In case the exporter has to obtain
Certificate of Origin from the concerned authorities, an application has to be made to the concerned
authority with required documents. While the simple invoice copy will do for getting CO from the
chamber of commerce, in respect of obtained the same from the office of the Textile Committee or
Export Promotion Council, the documents requirement are different.
5. MATE'S RECEIPT: Mate's receipt is a receipt issued by the Commanding Officer of the
ship when the cargo is loaded on the ship. The mate's receipt is prima facie evidence that goods are
loaded in the vessel. The mate's receipt is first handed over to the Port Trust Authorities. After
making payment of all port dues, the exporter or his agent collects the mate's receipt from the Port
Trust Authorities. The mate's receipt is freely transferable. It must be handed over to the shipping
company in order to get the bill of lading. Bill of lading is prepared on the basis of the mate's receipt.
TYPES OF MATE'S RECEIPTS
• CLEAN MATE'S RECEIPT: - The Commanding Officer of the ship issues a clean mate's
receipt, if he is satisfied that the goods are packed properly and there is no defect in the packing of
the cargo or package.
• QUALIFIED MATE'S RECEIPT: - The Commanding Officer of the ship issues qualified
mate's receipt, when the goods are not packed properly and the shipping company does not take any
responsibility of damage. to the goods during transit.
CONTENTS OF MATE'S RECEIPT
• Name and logo of the shipping line.
• Name and address of the shipper.
• Name and the number of vessel.
• Name of the port of loading.
• Name of the port of discharge and place of delivery.
• Marks and container number.
• Packing and container description.
• Total number of containers and packages.

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• Description of goods in terms of quantity.
• Container status and seal number.
• Gross weight in kg. and volume in terms of cubic meters.
• Shipping bill number and date.
• Signature and initials of the Chief Officer.
SIGNIFICANCE OF MATE'S RECEIPT
• It is an acknowledgement of goods received for export on board the ship.
• It is a transferable document. It must be handed over to the shipping company in order to get
the bill of lading.
• Bill of lading, which is the title of goods, is prepared on the basis of the mate's receipt.
• It enables the exporter to clear port trust dues to the Port Trust Authorities.
OBTAINING MATE'S RECEIPT
The goods are then loaded on board the ship for which the Mate or the Captain of the ship issues
Mate's Receipt to the Port Superintendent.
6. SHIPPING ORDER: it is issued by the Shipping/Conference Line intimating the exporter
about the reservation of space for shipment of cargo which the exporter intends to ship. Details of
the vessel, poet of the shipment, and the date on which the goods are to be shipped are mentioned.
This order enables the exporter to make necessary arrangements for customs clearance and loading
of the goods.
7. SHIPPING INSTRUCTIONS: at the pre-shipment stage, when the documents are to sent
to the CHA for customs clearance, necessary instructions are to be give with relevance to
• The export promotion scheme under which goods are to be exported.
• Name of the specific vessel on which the goods are to be loaded.
• If goods are to be FCL or LCL.
• If freight amount are to be paid / collected.
• If shipment are covered under A.R.E.-1 procedure.
• Instructions for obtaining Bill of Lading etc.

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8. Bank letter for negotiation of documents: at the post shipment stage, the exporter has to
submit the documents to a bank for negotiation or discounting or collection for forwarding the same
to the customer and also for realization of export proceeds. The bank letter is the set of instruction
for the bank as to how to handle the documents by them and by the bank at the buyer’s country
which may include
• Name and address of the buyer.
• Details of various documents being sent and the number of the copies thereof.
• Name and address of the buyer’s bank if available.
• If the documents are sent L/C or on open terms.
• If the proceeds are to adjusted against any pre-shipment packing credit loan.
• If the bill amount is to be adjusted against any forward exchange cover.
• In case of credit bill who has to bear the interest, either exporter or if the same is to be
collected from the buyer.
• Instructions in case non-acceptance/non-payment by the buyer.
C. REGULATORY DOCUMENT: Regulatory pre-shipment export documents are prescribed
by the different government departments and bodies in order to comply with various rules and
regulations under the relevant laws governing export trade such as export inspection, foreign
exchange regulation, export trade control, customs, etc. Out of 9 regulatory documents four have
been standardised and aligned. These are shipping bill or bill of export, exchange control declaration
(GR from), export application dock challan or port trust copy of shipping bill and receipt for
payment of port charges.
1. SHIPPING BILL: Shipping bill is the main customs document, required by the customs
authorities for granting permission for the shipment of goods. The cargo is moved inside the dock
area only after the shipping bill is duly stamped, i.e. certified by the customs. Shipping bill is
normally prepared in five copies:-
• Customs copy.
• Drawback copy.
• Export promotion copy.
• Port trust copy.

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• Exporter's copy.
TYPES OF SHIPPING BILL
Based on the incentives offered by the government, customs authorities have introduced three types
of shipping bills: -
• DRAWBACK SHIPPING BILL: - Drawback shipping bill is useful for claiming the
customs drawback against goods exported.
• DUTIABLE SHIPPING BILL: - Dutiable shipping bill is required for goods which are
subject to export duty.
• DUTY-FREE SHIPPING BILL: - Duty-free shipping bill is useful for exporting goods on
which there is no export duty.
CONTENTS OF SHIPPING BILL
• Name and address of the exporter.
• Name and address of the importer.
• Name of the vessel, master or agents and flag.
• Name of the port at which goods are to be discharged.
• Country of final destination.
• Details about packages, description of goods, marks and numbers, quantity and details of
each case.
• FOB price and real value of goods as defined in the Sea Customs Act.
• Whether Indian or foreign merchandise to be re-exported
• Total number of packages with total weight and value.

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SIGNIFICANCE OF SHIPPING BILL
a) Shipping bill is the main customs document, required by the customs authorities for granting
permission for the shipment of goods.
b) The cargo is moved inside the dock area only after the shipping bill is duly stamped, i.e.
certified by the customs.
c) Duly endorsed shipping bill is also necessary for the collection of export incentives offered
by the government.
d) It is useful to the Customs Appraiser while determining the actual value of goods exported.
2. A.R.E. 1 FORM (CENTRAL EXCISE): This form ARE-1 is prescribed under Central
Excise rules for export of goods. In case goods meant for export are cleared directly from the
premises of a manufacturer, the exporter can avail the facility of exemption from payment of
terminal excise duty. The goods may be cleared for export either under claim for rebate of duty paid
or under bond without payment of duty. In both the events the goods are to be cleared under form
A.R.E-1 which will show the details of the goods being exported, the relevant duty involved and if
the duty is paid or goods being cleared under bond, details of goods being sealed either by the
exporter or Central Excise officials etc.
3. EXCHANGE CONTROL DECLARATION FORM (GR/PP/SOFTEX): under the
exchange control regulations all exporters must declare the details of shipment for monitoring by
the Reserve Bank of India. For this purpose, RBI has prescribed different forms for different types
of shipments like GRI, PP forms etc. These declaration forms must be presented to the customs
officials at the time of passing of export documentation. Under the EDI processing of shipping bill
in the customs, these forms have been dispensed with and a new form SDF has to be submitted to
the customs in the place of above forms.
4. EXPORT APPLICATION: this is the application to be made to the customs officials
before shipment of goods. The prescribed form of the application is the Shipping Bill/Bill of Export.
Different types are required for shipment like ex-bond, duty free goods, and dutiable goods and for
export under different export promotion schemes such as claims for duty drawback etc.

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5. VEHICLE TICKET/CART TICKET/GATE PASS ETC.: before the goods are being
taken inside the port for loading, necessary permission has to be obtained for moving the vehicle
into the customs area. This permission is granted by the Port Trust Authority. This document will
contain the detail of the export cargo, name and address of the shippers, lorry number, marks and
number of the packages, driver’s licence details etc.
6. BANK CERTIFICATE OF REALISATION: this is the form prescribed under the
Foreign Trade Policy, wherein the negotiating bank declares the fob value of exports and for the
date of realisation of the export proceeds. This certificate is required fore obtaining the benefit under
various schemes and this value of fob is reckoned as fob value of exports.
D. OTHER DOCUMENT:
• BLACK LIST CERTIFICATE: it certifies that the ship/aircraft carrying the cargo has not
touched the particular country on its journey or that the goods are not from the particular country.
This is required by certain nations who have strained political and economic relations with the so
called “Black Listed Countries”.
• LANGUAGE CERTIFICATE: Importers in the European Community require a language
certificate along with the GSP certificate in respect of handloom cotton fabrics classifiable under
NAMEX code 55.09. Generally, four copies of language certificate are prepared by the concerned
authority who issues GSP certificate. Three copies are handed over to the exporter. A copy is sent
along with the other documents for realisation of export proceeds.
• FREIGHT PAYMENT CERTIFICATE: in most of the cases, the B/L or AWB will
mention the transportation and other related charges. However, if the exporter does not want these
details to be disclosed to the buyer, the shipping company may issue a separate certificate for
payment of the freight charges instead of declaring on the main transport documents. This document
showing the freight payment is called the freight certificate.
• INSURANCE PREMIUM CERTIFICATE: this is the certificate issued by the Insurance
Company as acknowledgement of the amount of premium paid for the insurance cover. This
certificate is required by the bank for arriving at the fob value of the goods to be declared in the
bank certificate of realisation.
• COMBINED CERTIFICATE OF ORIGIN AND VALUE: this certificate is required by the
Commonwealth Countries. This certificate is printed in a special way by the Commonwealth
Countries. This certificate should contain special details as to the origin and value of goods, which

49. 48
are useful for determining import duty. All other details are generally the same as that of
Commercial Invoice, such as name of the exporter and the importer, quality and quantity of the
goods etc.
• Customs Invoice: this is required by the countries like Canada, USA for imposing
preferential tariff rates.
• Legalized Invoice: this is required by the certain Latin American Countries like Mexico. It
is just like consular invoice, which requires certification from Consulate or authorised mission,
stationed in the exporter’s country.
SHIPPING AND CUSTOMS FORMALITIES
(As per the Prevailing Law i.e., ICA 62)
The shipment of export cargo has to be made with prior permission of, and under the close
supervision of the custom authorities. The goods cannot be loaded on board the ship unless a formal
permission is obtained from the custom authorities. The custom authorities grant this permission
only when it is being satisfied that the goods being exported are of the same type and value as have
been declared by the exporter or his C&F agent, and that the duty has been properly determined and
paid, if any.
The custom procedure can be briefly explained as follows:
• Submission of Documents: The exporter or his agent submits the necessary documents along
with the shipping bill to the Custom House. The documents include:
o ARE-1 (Original and duplicate)
o Excise gate pass (Original and duplicate transporters’ copy
o Proforma Invoice
o Packing List
o GRI form (Original and duplicate)
o Customs Invoice (where required in the importing country)
o original letter of credit/contract
o Declaration form in triplicate

50. 49
o Quality Certificate
o Purchase memo
o Labels
o Licence (if any required) including advance licence copy
o Railway receipt/lorry way bill
o Inspection Certificate by Export Inspection Agency
• VERIFICATION OF DOCUMENTS: The Customs Appraiser verifies the documents and
appraises the value of goods. He then makes an endorsement of “Examination Order” on the
duplicate copy of shipping bill regarding the extent of physical examination of the goods at the
docks. All documents are returned back to the agent or exporter, except
o Original Copy of GR to be forwarded to RBI
o original copy of shipping bill
o One copy of commercial invoice
• CARTING ORDER: The exporter’s agent has to obtain the carting order from the Port
Trust Authorities. Carting Order is the permission to bring the goods inside the docks. The carting
order is issued by the superintendent of Port Trust. Carting Order is issued only after verifying the
endorsement on the duplicate copy of shipping bill. The Carting Order enables the exporter’s agent
to cart goods inside the docks and store them in proper sheds.
• STORING THE GOODS IN THE SHEDS: After securing the carting order, the goods
are moved inside the docks. The goods are then stored in the sheds at the docks.
• EXAMINATION OF GOODS: The exporter’s agent then approaches the customs
examiner to examine the goods. The customs examiner examines the cargo and records his report
on the duplicate copy of the shipping bill. The customs examiner then sings the “Let Export Order”
• LET EXPORT ORDER: The Let Export Order is then shown to the Customs Preventive
Officer, along with other documents. The CPO is in charge of supervision of loading operations on
the vessel. If CPO finds everything in order, he endorses the duplicate copy of shipping bill with the
“Let Ship Order” This order helps the exporter/shipper to load the goods on the ship.
• LOADING GOODS: The goods are then loaded on the ship. The CPO supervises the
loading operations. After loading is completed, the Chief Mate (Cargo Officer) of the ship issues

51. 50
the “Mate’s Receipt”. The Mate’s Receipt is sent to the Port Trust Office. The C&F agent pays the
port trust dues and collects the mate’s receipt. The C&F agent then approaches the CPO and gets
the certification of shipment of goods on AR Forms and other documents
• OBTAINING BILL OF LADING: The Mate’s Receipt is then handed over to the shipping
company (on whose vessel the goods are loaded). The shipping company issues bill of lading. The
Bill of Lading is issued in:
o 3 negotiable copies of Bill of Lading
o 10 to 12 Non-negotiable copies of Bill of Lading.
The negotiable copies have title to goods; whereas non-negotiable copies do not have title to goods
but are used for record purpose.
PROCEDURE OF EXCISE CLEARANCE
The common procedure of excise clearance under “bond” and under “rebate” is discussed as
follows:
• PREPARING OF INVOICE: The export goods have to be cleared from the factory under
invoice. The invoice contains details like name of the exporter, value of goods, excise duty
chargeable, etc. The invoice is to be prepared in triplicate. In case of export under Bond, the invoice
should be marked as “For Export without payment of duty”. In addition to the invoice, a prescribed
for ARE 1 has to be filed in by exporter.
• FILLING UP OF ARE-1 FORM (ANNEXURE-20): The ARE-1 form needs to be filled
in four copies. A fifth (Optional) may be filled in by the exporter, which can be used at the time of
claiming other export incentives. The ARE-1 copies have distinct colour for the purpose of
verification and processing.
• Application to Assistant Commissioner of Central Excise (ACCE): The exporter has to make
an application to ACCE regarding the removal of goods from the factory/warehouse for export
purpose.
• Information to Range Superintendent of Central Excise (RSCE): The ACCE will inform the
RSCE under whose jurisdiction the goods are intended to be cleared for export

52. 51
• DEPUTATION OF INSPECTOR: The RSCE will then depute an inspector to clear the
goods, either at the factory or warehouse, and in certain cases at the port.
• PROCESSING OF ARE-1 FORM: The Excise Officer/Inspector will make endorsement
on all copies of ARE-1. The handling of ARE-1 Form is done as follows:
o the inspector returns the original and duplicate copies to the exporter
o the triplicate copy is sent to officer (ACCE or Maritime Commissioner (MCCE) to whom
bond was executed or letter of undertaking (LUT) was given. This copy can also be handed over to
the exporter in a tamper proof sealed cover to be submitted to ACCE/MCCE.
o the 4th copy will be retained by the excise inspector.
o the 5th copy is also handed over to the exporter.
o At the time of export, original, duplicate and the 5th copy (optional) will be submitted to
customs officer. The customs officer will examine these copies and then export will be allowed.
o The customs officer will then make endorsement of export on all copies of ARE-1. He will
cite shipping bill number and date and other particulars of export on ARE-1.
o The original copy and quintuplicate (optional) will be returned to the exporter. The duplicate
copy will be sent directly to the ACCEMCCE i.e., excise officer with whom bond was executed
will get 2 copies, one from RSCE (or excise inspector) when goods are cleared from factory and
other Custom Officer after export. This will enable him to keep track to ensure that all goods cleared
from factory or warehouse without payment of duty are actually exported. In case of export after
payment of duty, under claim of rebate, the basic procedure is same as above, except that the
triplicate copy (by excise inspector) and duplicate copy (by customs officer) will be sent to the
officer to whom rebate claim is filed. If claim of rebate is by electronic submission, these copies
well be sent to excise rebate audit section at the place of export.
• REFUND OR RELEASE OF BOND: The exporter should make an application to the
excise officer for refund or release of bond. The application must be supported by original copy of
ARE-1 form. The excise officer crosschecks the original copy of ARE-1 form and the duplicate and
triplicate copies of ARE-1 form, which he had received earlier. If the copies match, then refund is
given or the bond is released.

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FACTORY STUFFING OF CARGO:
Clearance of goods to docks: If the goods meant for export is of a small quantity which may not be
sufficient to make one full container, the cargo is said to be less than container load (LCL) cargo.
Such cargo has to be taken to the docks where the goods will be consolidated (combining the cargo
of other exporters to make up quantity for a full container) by the agent and loaded into a container.
Here the examination of the cargo is done at the docks. (There are also inland container depots
approved by the customs where the goods can be consolidated and stuffed into the container by the
agent under the supervision of the customs officer)
If the goods meant for export is of sufficient quantity to make up a full container, the exporter has
the option to take the goods to the docks and get them examined and stuffed into a separate container.
An exporter gets the benefit on the freight amount for a full container. (Generally called box rate)
Alternatively, he can have a container allotted to him and get the same to his Factory premises. The
goods meant for exports can be stuffed into the container under the supervision of the regional
Central Excise Authority. Here the exporter has to
• Obtain permission from the Customs for getting the container to his premises for stuffing
(House Stuffing)
• Inform the Central Excise Authorities at least 24 hours before bringing the container for
loading.
The Central Excise Authority will supervise the loading, seal the container and certify the invoice
as directed in the permission given by the custom authorities. A special Lock is used to lock the
doors of the container. Samples from the goods will be drawn, if necessary, as required under the
customs permission. Such samples will be sealed and forwarded along with the container. The
examiner in the docks may arrange to send the sample for testing. Then the container is moved to
the dock for loading. Generally, such containerized goods are not subject to further examination in
the customs. They will be directly taken for loading.

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SALES TAX EXEMPTION PROCEDURE
Export good are exempted from the payment of sales tax. The exporter can claim exemption from
sales tax (on purchases or sales for export purpose), provide the exporter is registered with the Sales-
Tax Department. If the exporter is not registered with the sales tax department, he cannot utilize the
facility of sales tax exemption. Therefore, it is necessary for the exporter to get his organization
registered with sales tax department.
I REGISTRATION PROCEDURE
• APPLICATION: The exporter must apply to the Sales Tax Officer (STO) under whose
jurisdiction the head/ registered office of the exporter is located.
• DEPUTATION OF INSPECTOR: The STO may depute an inspector to visit the office of
the exporter and inspect:
o Relevant books showing sales/ purchases.
o Partnership Deed or Memorandum and Articles of Association along with Incorporation
Certificate.
o Other Relevant documents.
• INSPECTION: The inspector visits the office of the exporter and inspects the necessary
books and other documents.
• REPORT BY INSPECTOR: The Sales Tax Inspector makes a report to the STO for
registration or otherwise. The STO verifies the inspector report. The STO, before granting the ST
Reg. Number may cal the exporter for necessary clarifications, if required.
• SECURITY BOND: The STO normally requires the exporter to provide a security bond
from another firm which is registered with the Sales Tax Department.
• GRANTING OF SALES TAX REG. NUMBER: After completing necessary formalities,
the STO grants Sales Tax Reg. Number to the exporter.
II. EXEMPTION PROCEDURE
• OBTAINING FORM ‘H’: the registered exporters need to apply to the concerned STO for
obtaining Form ’H’. the exporter should submit:
o A copy of Letter of Credit

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o A copy of Letter of Credit /Export Order.
o Copy of the Invoice, where goods are already purchased for export purchase.
o A copy of shipping bill duty certified by customs.
The exporter has to affix the prescribed court fee stamp on each of the Form ‘H’ issued. The STO
then affixes the exporter’s company stamp on the Form ’H’.
• Filling the details in Form ‘H’: After export of goods, the exporter fills the relevant details
in ‘Form H’. The Form ‘H’ needs to be prepared in triplicate.
The exporter retains one copy, and other two copies are sent to the seller from whom the exporter
purchased the goods for export purpose. The seller than sends on copy of Form ‘H’ to STO along
with the Return of Sales Tax. The other copy is retained by seller. The STO may issue refund order
to the exporter.
METHODS OF RECEIVING PAYMENT AGAINST EXPORTS
Before we proceed to understand the concept of Letter of Credit, let us understand the various types
of payment methods available against export.
METHODS OF PAYMENT
There are three methods of payment depending upon the terms of payment, and each method of
payment involves varying degrees of risks for the exporter. The methods are:
• Payment in advance
• Documentary Bills
• Letter of Credit
• Open Account
• Counter Trade
A. PAYMENT IN ADVANCE
This method does not involve any risk of bad debts, provided entire amount has been received in
advance. At times, a certain percent is paid in advance, say 50% and the rest on delivery. This
method of payment is desirable when:

56. 55
• The financial position of the buyer is weak or credit worthiness of the buyer is not known.
• The economic/ political conditions in the buyer’s country are unstable.
• The seller is not willing to assume credit risk, as un the case of open account method.
However, this is the most unpopular methods as a foreign buyer would not be willing to pay advance
of shipment unless:
• The goods are specifically designed for the customer, and
• There is heavy demand for the goods (a seller’s market situation).
B. DOCUMENTARY BILLS:
Under this method, the exporter agrees to submit the documents to his bank along with the bill of
exchange. The minimum documents required are
• full set of bills of lading
• commercial Invoice
• Marine Insurance policy and other document, if required.
There are two main types of documentary bills:
• Documents against Payment,
• Documents against Acceptance.
Documents against payment (D/P): The documents are released to the importer against payment.
This method indicates that the payment is made against Sight Draft. Necessary arrangements will
have to be made to store the goods, if a delay in payment occurs.
The risk involved that the importer may refuse to accept the documents and to pay against them.
The reason for non-acceptance may be political or commercial ones. In India, ECGC covers losses
arising out of such risks. Under this system, as compared to D/A, the exporter has certain
advantages:
• The document remain in the hands of the bank and the exporter does not lose possession or
the ownership of goods till payment is made,
• Other reason may include that the exporter may not be able to allow credit and wait for
payment.

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DOCUMENTS AGAINST ACCEPTANCE (D/A): The document are released against
acceptance of the Time Draft i.e. credit allowed for a certain period, say 90 days. However, the
exporter need not wait for payment till bill is met on due date, as he can discount the bill with the
negotiating bank and can avail of funds immediately after shipment of goods.
In case of D/A as compared to D/P bills, the risk involved is much greater, as the importer has
already taken possession of goods which may or may not be in his custody on the maturity date of
the bill. If the importer fails to pay on due date, the exporter, will have to start civil proceedings to
receive his payment, if all other alternatives fail. The risk involved can be insured with ECGC.
C. LETTER OF CREDIT (L/C):
This method of payment has become the most popular form in recent times, it is more secured as
compared to other methods of payment (other than advance payment).
A letter of credit can be defined 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 within the variety of the
L/C”.
THE LETTER OF CREDIT
INTRODUCTION
The cycle of a business transaction can be said to be complete prima facie when the buyer has
received the product he desires to buy and the seller gets his payment in due consideration of the
product supplied.
While the seller is keen to receive the payment for his supplies, the buyer is equally keen that he
gets what he wants by the paying for the same.
Tough there are many merits and demerits in each of the different mode of payments we have
discussed earlier, in relation either to the buyer or to the seller, we shall now deal in detail about the
mode of payment under the Documentary Credit.
Generally, though exporters are complacent once they get the letter of Credit on hand feeling that
their payment is secured, let me say it is as much a dubious instrument as is a safe instrument.

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If one does not understand the implications of the terms and condition of a letter of credit, the
provisions under UCP 500, how co-operative are the exporter’s bank and how good are the L/C
opening bank and the reimbursement bank, he is sure to land in trouble at once stage or another.
There are ample cases of frauds under the Letter of Credit. More and more ingenious methods are
adopted to circumvent the provisions of UPC 500 by fair or foul means. Hence, even the safety and
security under the Letters of Credit may prove to be no better than a mirage for a man in the desert.
Hence, sufficient care is to be taken by the exporter to ensure that instrument is received in order
and the conditions of the L/C can be well complied with, and there are no clauses of ambiguity.
WHAT IS A DOCUMENTARY CREDIT?
To say in simple language, this is an Undertaking by a Bank associated with the buyer to make the
payment for the supply of goods by a seller subject to compliance of various requirements that may
be specified in the document of undertaking by the Bank. This document is known as Documentary
Credit. A Documentary Credit is also called a Letter of Credit (L/C).
CONTENTS OF A LETTER OF CREDIT
A letter of credit is an important instrument in realizing the payment against exports. So, needless
to mention that the letter of credit when established by the importer must contain all necessary
details which should take care of the interest of Importer as well as Exporter. Let us see what a letter
of credit should contain in the interest of the exporter. This is only an illustrative list.
• Name and address of the bank establishing the letter of credit
• Letter of credit number and date
• The letter of credit is irrevocable
• Date of expiry and place of expiry
• Value of the credit
• Product details to be shipped
• Port of loading and discharge
• Mode of transport
• Final date of shipment

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• Details of goods to be exported like description of the product, quantity, unit rate, terms of
shipment like CIF, FOB etc.
• Type of packing
• Documents to be submitted to the bank upon shipment
• Tolerance level for both quantity and value
• If L/C is restricted for negotiation
• Reimbursement clause
PROCEDURE INVOLVED IN THE LETTER OF CREDIT:
The following are the step in the process of opening a letter of credit:
• EXPORTER’S REQUEST: The exporter requests the importer to issue LC in his favor.
LC is the most secured form of payment in foreign trade.
• IMPORTER’S REQUEST TO HIS BANK: The importer requests his bank to open a L/C.
He May either pay the amount of credit in his current account with the bank.
• ISSUE OF LC: The issuing bank issues the L/C and forwards it to its correspondent bank
with also request to inform the beneficiary that the L/C has been opened. The issuing bank may also
request the advising bank to add its confirmation to the L/C, if so required by the beneficiary.
• RECEIPT OF LC: the exporter takes in his possession the L/C. He should see it that the
L/C is confirmed.
• SHIPMENT OF GOODS: Then exporter supplies the goods and presents the full set of
documents along with the draft to the negotiating bank.
• SCRUTINY OF DOCUMENTS: The negotiating bank then scrutinizes the documents and
if they are in order makes the payment to the exporter.
• NEGOTIATION: The exporter’s bank negotiates the document against the letter of credit
and forwards the export documents to the L/C opening bank or as per their instructions.
• REALIZATION OF PAYMENT: The issuing bank will reimburse the amount (which is
paid to the exporter) to the negotiating bank.
• DOCUMENT TO IMPORTER: the issuing in turn presents the documents to the importer
and debits his account for the corresponding amount.

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In order to have uniformity and to avoid disputes, the ICC Paris has evolved uniform customs and
practices of documentary credit (UCPDC), in short known as UCP 500 effective from 1-1-96.These
are rules have been adopted by more than 150 countries. They provide the comprehensive and
practical working aid to banker, lawyer, importers, exporters, Exporters, transporters, executives
involved in international trade.
Note: as soon as an L/C is received ensure that the same is authenticated. Meaning that the
genuineness of the L/C is certified by the Advising Bank by an endorsement with the marking
‘AUTHENTICATED’ OR ELSE THE L/C IS OF NO USE.
DIFFERENT TYPE OF DOCUMENTARY CREDITS.
There are various types of Documentary Credit opened by a bank in favour of it’s customer
depending upon the requirement. Let us talk about few types of Documentary Credit which are in
common use.
• REVOCABLE / IRREVOCABLE DOCUMENTARY CREDIT: A Revocable
Documentary Credit can be revoked (cancelled) by the buyer at his own discretion and this does not
require the consent of the seller. The risk factor here is that the L/C may be cancelled even after the
shipment is done and before the beneficiary present the documents to the bank for claiming the
reimbursement. Hence, a revocable L/C is as goods as no L/C. obviously, no seller will entertain a
revocable L/C. Contrary to this, an Irrevocable Documentary Credit once established and advised
to the beneficiary, cannot be revoked or cancelled unilaterally by the buyer without the consent of
the beneficiary (Seller).A Seller must always ask for an Irrevocable Letter of Credit.
• RESTRICTED/ UNRESTRICTED DOCUMENTARY CREDIT: A Documentary
Credit stipulates the name of the bank who is authorized to negotiate the document for claming the
reimbursement. In this case the beneficiary is obliged to negotiate the documents only through the
specified bank i.e. Negotiation of document is restricted to that particular bank. On the contrary if
no specific bank is nominated for negotiation, it may say ‘Negotiation by any bank’ which means
the beneficiary is free to negotiate the document through the bank of his choice. This is beneficial

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because he can negotiate the documents through his own bank where he is having an account. Since
the bank is not alien to him, he will not face any practical/procedural difficulty in negotiating the
document. It is suggested to have an unrestricted L/C or L/C which may be restricted to the bank of
the beneficiary’s choice.
• CONFIRMED/UNCONFIRMED DOCUMENTARY CREDIT: Confirmed
Documentary Credit is one in which the beneficiary has the option to have the L/C confirmed by a
bank in the beneficiary country i.e. the bank who confirms the L/C takes the responsibility of making
the final payment to the beneficiary upon negotiation of the document in strict compliance with the
terms and conditions of the Letter of Credit. By this process the final payment will be made in the
beneficiary’s country by the bank which confirms the L/C immediately upon negotiation of the
documents. The beneficiary do not stand the risk of waiting for the document to reach the opening
bank who will have the final say so to the compliance under the L/C before making the payment.
Further, the payment is also made immediately after negotiation and without recourse to the
beneficiary i.e. the payment once made by the confirmed bank cannot be revoked. Moreover, if the
importing country’s regulation changes and the money is not allowed to be repatriated, this will
eliminate the risk. On the contrary, in an unconfirmed L/C, the negotiating bank only accepts the
documents and pays for the same with recourse i.e. if as and when the documents reach the opening
bank, and the opening find some discrepancy in the documents it may refuse to make the payment
or seek clarification for the applicant before reimbursement. The beneficiary is fully at the mercy of
the opening bank for payment. It is suggested to ask for a Confirmed L/C.
• WITH RESOURCE AND WITHOUT (SANS) RESOURCE LETTER OF CREDIT:
The revocable or irrevocable LC can further be classified as with resource and without resource LC.
• WITH RESOURCE LC: In this type the exporter is held liable to the paying/ negotiating
bank, if the draft drawn against LC is not honoured by the importer/issuing bank. The negotiating
bank can make the exporter to pay the amount along with the interest, which it has already paid to
the beneficiary.
• WITHOUT (SANS) RESOURCE LC: In the case of sans (without) resource letter of
credit, the negotiating bank has no recourse to the exporter, but only to the issuing bank or to the
confirming bank.
Normally, the negotiating bank makes advance payment to the exporter in resource of letter of credit
either by discounting bills against letter of credit or by purchasing the bills of exchange. In such an
instance, if the issuing bank fails to make payment or dishonour the letter of credit, then the

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negotiating bank cannot get the money back from the exporter or hold him liable to pay the amount.
However, in the case of with resource letter of credit, the negotiating bank can ask the exporter to
pay back the money along with certain other expenses. For the exporter, sans Resource letter of
credit is safer as compared to With Resource letter of credit.
• TRANSFERABLE/NON-TRANSFERABLE DOCUMENTARY CREDIT: In a
transferable L/C, the beneficiary can transfer the L/C opened in his name in favour of a third party
who may effect the shipment and negotiate the documents and claim payment under the said L/C.
• REVOLVING DOCUMENTARY CREDIT: Where an exporter is having a regular
shipment for a particular customer and the value of each shipment may also be of more or less equal
value, then one can call for a Revolving Documentary Credit. The salient feature of this L/C is that
the buyer opens an L/C which can take care of shipments, say, may be for a period of one year on a
monthly basis.
For e.g., an exporter enters into a contract for supply of 5000 pairs of Trousers valued
approx.US.$.75,000/- to be shipped every month. The buyer can open an L/C for a value of
US.$.75000/- with validity for 12 months stipulating shipment every month for a value of US$.
75000/-and by adding a clause to make 12 shipment of like value the L/C stands replenished for the
full value of the L/C after each shipment is made the documents are negotiated for which payment
are also made immediately for the value of the shipment. The main benefit in this L/C is that the
buyer, the bank and the exporter are saved from the routine of opening one L/C every month, the
anxiety of non-receipt of the L/C on time, the amendments that may be warranted every time, the
bank charges for opening number of L/Cs etc.,. A revolving Documentary Credit may have
cumulative effect i.e. if a particular shipment is not made, then the value is added to the value for
future utilization. In an automatic Revolving Credit, the bank is liable for the total amount covering
the entire shipment and where it is non-automatic its responsibility is restricted to the value of one
shipment. In automatic Revolving Credit the value of the credit is automatically replenished by an
amendment.
Where there are continuous shipments like the one stated above one can call for a Revolving Letter
of Credit.
• ASSIGNABLE DOCUMENTARY CREDIT: In this type of L/C the benefit is shared
between the first beneficiary and the parties whose names are assigned on the L/C. The assignee is
not a party to the letter of credit but he only derives the benefit as per the L/C. this is more beneficial

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to the assignee because he receives his part of the money once the documents are negotiated by the
first beneficiary in whose name the L/C is opened. Calls for an L/C as necessary.
• STAND BY LETTER OF CREDIT: This is aimed at providing a security to a seller in
case the buyer fails to perform his part. Thus, this L/C is used in case of non-performance while the
other types of L/Cs are generally for some performance. Such credits are paying on first presentation
and the only document required therein is a simple declaration of non-performance along with the
statement of claim. This type of L/C is mainly common in U.S.A.
A standby Documentary Credit is generally common on open account trading where the seller may
expect some security for getting his payment. This is not permitted in India.
• RED CLAUSE LC: The red clause LC is the usual irrevocable LC with further authorities
the negotiating bank to make advance to the beneficiary for the purpose of processing the export
goods. Thus, the red LC enables the exporter to obtain packing credit facility for the purpose of
processing the goods. It is called a red-cause LC because it is generally printed/ typed in red ink.
• GREEN CLAUSE LC: The Green LC in addition to permitting packing credit advance also
provides for the storing facilities at the port of shipment. Green LCs is extensively used in Australian
wool creditors.
• BACK-TO-BACK LC: Back-to Back LC is a domestic letter of credit. It is a ancillary
credit created by a bank based on a confirmed export LC received by the direct exporters. The direct
exporter keep the original LC (received from issuing bank) with the negotiating or some other bank
in India, as a security, and obtains another LC in favour of domestic supplier. Through this route
the domestic supplier gains direct access to a pre-shipment loan based on the receipt of domestic or
back-to-back LC.
• DOCUMENTARY LC: Most of the LC is documentary LC. Payment is being made by
the bank against delivery of the full set of documents as laid down by the terms of credit. The
important documents required to be submitted by the exporter under documentary LC includes the
following:
o Bill of Lading /Airway Bill or any other transport document
o Commercial Invoice
o Insurance Policy
o Shipping Bill

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o Certificate of Origin
o Combined Invoice and Certificate of Value and Origin
o GSP/CWP certificate
o Packing List
o Certificate of Quality Inspection
o Bill of Exchange
o Any other document if required.
A letter of credit may call for some or most of the above documents and may also call for some
other documents specific to the shipment.
TYPES OF PAYMENTS UNDER A DOCUMENTARY CREDIT.
Payment under a documentary credit can be of the following types:
• PAYMENT AT SIGHT: In this mode, the payment is made by the L/C opening bank or its
nominated bank or by a confirming bank on presentation of the documents in full conformity with
the L/C. The L/C may or may not call for draft at sight for the full value of the documents.
• DEFERRED PAYMENT SCHEME: In this case the payment is to be made at a future
date as stipulated in the L/C. Here, generally NO draft is required as the due date of payment is
defined in the L/C. In case of a confirmed L/C, the final payment is made by the confirmed bank on
due date and by the issuing bank or its nominated bank if the L/C is not confirmed.
• ACCEPTANCE CREDIT: This type of credit requires a usance draft to be drawn on a
nominated or accepting bank. The payment is made by the nominated/accepting bank on the due
date as per instructions of the negotiating bank. In case of a confirmed L/C the payment on due date
is made by the negotiating bank (confirming bank).
• NEGOTIATION CREDIT: Here the payment is made by the negotiating bank upon
negotiation of the documents if it prepares to take the risk and will recourse to the beneficiary. If
the credit is confirmed, then the negotiation bank is obliged to make the payment upon submission
of a clean document by the beneficiary.
Expect in the case of confirmed L/C there is always a time lag between the date of negotiation of
the document and the date of receipt of the payment. This is a grey area. If the bank acts swiftly and
without prejudice, one gets payment within a week’s time. If the payment is delayed beyond this

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time, though an exporter has every right to ask for compensation, in actual practice, no justice is
done to the exporter for the delayed payment. Very rarely, on persistent approach by the
exporter/their banker, does a defaulting bank comes forward to compensate for the delayed payment.
Generally, the exporter has to forego lot of money in correspondence through the negotiating bank
because every communication of the bank is charged to the exporter. It is no surprise many exporters
suffer this loss silently.
SCRUTINY OF LETTER OF CREDIT:
Mere receipt of letter of credit is no guarantee of payment. There are many ifs and buts before the
documents are submitted to the bank against the letter of credit for realization of proceeds from the
opening bank. As soon as the letter of credit is received a through scrutiny is to be undertaken to
ensure that
• First and foremost, that the credit is properly authenticated by the advising bank.
• The letter of credit has been opened in accordance with the terms of the contract.
• The name and address of the beneficiary has been spelt properly.
• The details of product description, quality, and value are in order.
• The validity of shipment and expiry are correct.
• The documents that are required can be submitted.
• There is sufficient % of tolerance of quantity and value.
• The unit price and the terms of contract are correct.
• The terms and conditions stipulated can be complied with.
• That the credit is available for negotiation without restriction.
• In case of exports requires the credit to be confirmed by the local, then necessary clause is
incorporated by the opening bank on the credit.
• Last but not the least; the credit has a reimbursing clause enabling the negotiation bank to
get reimbursement of the money paid to the exporter against the documents.
There are only few suggestions. The requirement may differ for different exporter and the scrutiny
has be done relative to the requirement.

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AMENDMENTS TO THE CREDIT
On scrutiny of the letter of credit, if the exporter finds that some changes are required to be made in
the credit, he should immediately request the buyer to make necessary change in the letter of credit
and the opening bank issued necessary amendment in this respect. Any oral and written agreement
by the importer about change in the credit directly to the exporter should not be accepted as it is not
valid under the credit. Any change must be advised by the importer through the opening bank only
as a sort of amendment to the original credit.
DOCUMENTARY CREDIT IN GENERAL
Of all the various type of payments, the safest as far as the exporter is concerned is to get an advance
payment in full for the value of shipment to be affected. Obviously, this puts the buyer totally at the
mercy of the seller and unless the buyer feels unavoidable, he will not be prepared to make advance
payment. Hence, of the rest of the modes of payment, the best is calling for a Documentary Credit
for any shipment. Now let us see how we can take care of the interest of the exporter while an L/C
is established.
It is suggested that the exporter gives the full details as to the various requirements to the buyer for
incorporation in the L/C. this will avoid the necessary of asking for amendments and will save both
time and money. Bear in mind every amendment costs you badly. Care should be taken to ensure
that there are NO spelling mistakes, omission and commission of “, or”, or such small things. A
discrepancy is a discrepancy and there is nothing like minor discrepancy or major discrepancy as
far as the bank is concerned. A bank strictly deals in documents and the documents are expected to
be cent percent in line with details give in the Documentary Credit. Ensure that the Validity for
shipment and for negotiation of documents can be complied with. If not possible, call for
amendment extending the validity as required.
Unless the L/C specifies the tolerance for the quantity and value, the exporter should follow the
quantity and value as stipulated in the L/C. There is provision for a tolerance of the quantity up to 5
percent more or less than stipulated in the L/C even if the L/C does not specify tolerance exclusively
and unless tolerance is prohibited 0 specifically. However, the value of documents, on no account,
could exceed the limits of the L/C.
Check the description of the product properly, the rates if specified, and quantity of each of the
items. Ask for amendment where you cannot agree with the terms. Make sure that all the documents
as called for by the Credit can be submitted without any exception.

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The last but not the least is the Reimbursement clause (Getting the funds for the shipment made).
An L/C without this clause is no L/C. if there is no provision as to from where the exporter is going
to get paid for, the whole exercise of the L/C is futile. The opening bank may specify the
reimbursement clauses as follows:
• The negotiating bank to send the documents to the opening bank who will, upon receipt of
the documents, arrange for reimbursement as claimed by the negotiation bank.
• The negotiating bank can claim reimbursement directly from a nominated bank (say ABC
Bank, New York) either upon negotiation of documents or after a period of ¾ days of negotiation
subject to the documents being submitted by the beneficiary is strictly in conformity with terms and
condition of the letter of credit.
I for one prefer the reimbursement clause as in b) so that on one hand my bank sends the documents
to the opening bank and at the same times claims the reimbursement from nominated bank.
These are some of the aspects one should take care to ensure that the L/C established in his favour
is in order and that he can comply with all the provision thereof. However, one is advised to make
a checklist and take a note of each and every condition of the L/C for compliance at the right time.
DOCUMENTS FOR BANK NEGOTIATION
Document against exports should normally be realized through an authorized dealer foreign
exchange. However, payment of export can be received directly from the overseas buyer in the form
of bank draft, pay order, banker’s cheque, personal cheque foreign currency notes, foreign currency
traveller’s cheque, etc. Without any monetary limit provided the exporter’s track record is good, he
is a customer of the authorized dealers through whom documents are to be negotiated and prima
facie the instrument of payment represents export proceeds realization. Take care to submit various
documents in a proper manner and within the prescribed time schedule. Apply to the Reserve Bank
for extension of time in case you feel there is likely to be a delay in realizing export proceeds.
The following are the steps in realizing export proceeds:
• Approaching a Bank: After dispatch of the goods, either by sea, or by air, the exporter should
approach his bank (authorized dealer) with a formal request to realize sale proceeds from the foreign
buyer. It is obligatory to submit the shipping documents to an authorized dealer within 21 days of
the date of shipment (subject to certain exceptions). In India, the exporters have to realize the full
value of exports within 180 days from the date of shipment, (unless the payment terms offered are

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“deferred payment terms”). Where it is not possible to realize the sale proceeds within the prescribed
period, the exporter should apply for extension in prescribed form ETX (in duplicate) to RBI.
• Submission of Documents to the Bank: The exporter should submit the following documents
o Bill of Exchange
o Full set of Bill of Lading
o Commercial Invoice Copies
o Certificate of Origin
o Insurance Policy
o Inspection Certificate
o Packing List
o GR (duplicate copy to forward it to RBI)
o Bank Certificate
o Other relevant documents.
The above documents need to be submitted in two complete sets, because it is customary to dispatch
two sets of documents, one after the other. This is because, if one set is misplaced or delayed in
transit, the importer can get at least the other set and clear the goods.
• Verification of Documents: The bank will verify the documents to find
o Whether the required documents are in order.
o Whether the required documents are attested by customs and other authorities.
• LETTER OF INDEMNITY: If the exporter wants immediate payment from his bankers,
then his bankers may provide advance payment only when the exporter signs an indemnity letter.
The implications of an indemnity letter is that in the event of refusal of payment by the issuing bank
in respect of LC, then the negotiating bank can ask the exporter to pay back the money advanced
along with necessary charges.
Common Document Discrepancies
• Credit Expired

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• Late shipment
• Presented after permitted time from date of issue of shipping documents
• Short Shipment
• Credit Amount Exceeded
• Underinsured
• Description of goods on invoice differ from that of credit
• Mark and numbers differ between documents
• Bill of lading, Insurance documents, Bill of Exchange not endorsed correctly
• Absence of Documents called for under credit.
• Insurance certificate submitted instead of policy.
• Weight in different document differs.
• Class of Bill of lading no acceptable-charter party or House B/L.
• Insurance cover expressed in currency other than that of credit.
• Absence of signature, where required on documents.
• Bill of exchange not drawn as per tenor stated in credit.
• Bill of exchange drawn on wrong party.
• Insurance risks covered not being those specified in credit.
• Absence of freight paid statement on B/L in CFR of CIF shipment.
• Bill of lading doses not carry shipped on broad stamp.
• Amount shown on invoice and bill of exchange differ.
• Shipment not make to port specified.
• Transhipment/part shipment undertaken where expressly forbidden.
• Discounting of bills: the bank may discount or negotiate the bills drawn against LC, and
make immediate payment to the exporter, if so required.

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• Dispatch of documents: before the submission of documents for negotiation/collection, the
bank examines them thoroughly with reference to the terms and conditions of the buyer’s order.
Letter of credit and the laws relating to foreign exchange control. If any scrutiny, the documents are
in order, the bank dispatches them to its overseas branch/correspondent branch as early as possible.
The overseas branch of the bank then submits the document to the importer’s bank, and the
importer’s bank hands it over to the importer.
SHIPMENT THROUGH COURIERS
In addition to the exporter by sea, air, rail or road, exports are also allowed by courier under the
courier imports or exporters (clearance) Regulation Act, 1998.
These regulations shall apply for clearance of goods carried by authorized courier on outgoing
flights on behalf of exports. Consigner for a commercial consideration.
EXPORT TERMS & CONDITIONS:
Export of any item can be affected by courier, except the following.
• Goods which are subject to cess.
• Goods proposed to be exported with claim of duly drawback.
• Goods proposed to be exported under DEPB, EPCG, AL (Advance License)
• Where the value of goods is more than Rs. 25,0000/-
• Goods where weight of individual packet is more than 32 kg.
CUSTOM PROCEDURE FOR EXPORT UNDER EDI SYSTEM
It is brought to the notice of all exporters, importers, CHAs, Trade and General Public that the
computerized processing of Shipping Bills under the Indian Customs EDI (Electronic Data
Interchange) System – (Exports), will commence w.e.f.1`5-09-2004. The computerized processing
of shipping bills would be in respect of the following categories:
• Duty Free white shipping bills
• Dutiable shipping bills (Cess)
• DEEC Shipping Bills

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• EPCG Shipping Bills
• DEPB Shipping Bills
• DFRC Shipping Bills
• 100% EOU Shipping Bills
• Re export, Jobbing Shipping Bills
• Drawback Shipping Bills
• Other NFEI Shipping Bills
The procedure to be followed in respect of filing of shipping bills under the Indian customs EDI
System-Exports at CFS-Mulund shall be as follows:
2. DATA ENTRY FOR SHIPPING BILLS
2.1 Exporters/CHAs are required to register their IE codes, CHAs Licence Nos, and the Bank
A/C No. (for credit of Drawback amount) in the Customs Computer Systems before an EDI
Shipping Bill is filed.
2.2 Exporters/CHAs would be required to submit at the SERVICE CENTRE the following
documents.
• A declaration in the specified format
• SDF declaration
• Quota/Inspection Certificate
• Drawback/DEEC/DFRC/DEPB Declarations etc., as applicable
2.3 The formats should be duly completed in all respects and should be signed by the exporter
or his authorized CHA. Forms, which are incomplete or unsigned will not be accepted for data entry
2.4 Data entry for Shipping Bills are allowed to be made, using Remote EDI System (ICE Gate).
In the Remote EDI system, Exporters/CHAs have right to electronically file their shipping bills from
their offices.
2.5 After completion of data entry & successful submitting of S/Bill online, the system will
automatically generate the S/Bill Number. Exporter will print by the S/Bill & shall submit the hard
copy of duly signed shipping bill to Customs Authority.

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2.6 The declarations (SDF) is also generated through online, which needs to be submitted along
with S/Bill.
2.7 The validity of the S/Bill in EDI System is fifteen days only. After expiry of fifteen days
from the date of filing of shipping bill, the exporter has to file the declaration afresh.
1. ARRIVAL OF GOODS AT EXPORT EXAMINATION SHEDS IN CFS
1.1 The existing procedure of permitting entry of goods, brought for the purpose of examination
(and subsequent: “Let export” Order) in the CFS on the strength of S/B shall be discontinued. The
CONCOR will permit entry of the goods on the strength of the checklist, the date entry form and
the declaration. The CONCORwould endorse the quantity of goods entering the CFS on the reverse
of the checklist
1.2 The goods should be brought for examination within 15 days of filing of declaration in the
Centre. In case of delay, a fresh declaration would need to be filed
1.3 If at any stage subsequent to the entry of goods in CFS it is noticed that the declaration has
not been registered in the system, the exporters and CHAs will be responsible for the delay in
shipment of goods and any damage, deterioration or pilferage, without prejudice to any other action
that may be taken.
2. PROCESSING OF SHIPPING BILLS
2.1 The S/B shall be processed by the system on the basis of declaration made by the exporter.
However, the following S/B shall require clearance of the Assistant Commissioner/Dy.
Commissioner (AC/DC Exports):
• Duty free S/B for FOB value above Rs.10 lakh
• Free Trade Sample S/B for FOB value above Rs.25,000
• Drawback S/B where the drawback exceeds Rs. One lakh
2.2 Subject to the provisions of para 20.3 of this PN the following categories of S/Bills shall be
processed buy the Appraiser (Export Assessment) first and then by the Asstt/Dy. Commissioner:
• DEEC
• DEPB

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• DFRC
• EOU
• EPCG
2.3 Apart from verifying the value and other particulars for assessment, the AO / AC / DC may
call for the sample s for confirming the declared value or the checking classification under the
drawback schedule / DEEC / DEPB / DFRC / EOU etc., He may also give special instruction for
examination of goods.
2.4 If the S/B falls in the categories indicted in para 6.1 above, the exporter should check up
with the query counter at the Centre, whether the S/B has been cleared by Asstt. Commissioner /Dy.
commissioner, before the goods are taken for examination. In case AC / DC raises any query, it
should be replied through the Service Centre or, in case of EDI connectivity, through terminals of
the Exporter / CHA. After all the queries have been satisfactorily replied to, AC / DC will pass the
S/B
3. CUSTOMS EXAMINATION OF EXPORT CARGO
3.1 On receipt of the goods in the Export Shed in the CFS, the exporter will contact the system
examining officer (SEO)and present the checklist with the endorsement of CONCOR on the
declaration, along with all original documents such as Invoice, Packing List, ARE-1(AR-4)etc. He
will also present additional particulars in the prescribed form.
3.2 SEO will verify the quantity of the goods actually received against that entered in the system.
He will enter the particulars in the system. The system would identify the Examining Officer (if
more than one are available) who would be carrying out physical examination of goods. The system
would also indicate the packages (the quantity and the serial numbers) to be subjected to
examination. SEO would write this information on the checklist and hand it over to the exporter. He
would hand over the original documents to the Examining Officer. No examination order shall be
given unless the goods have been physically received in the Export Shed. It may, however, be
clarified that Customs may examine all the packages/goods in case of any discrepancy.
3.3 The Examining Officer may inspect and/or examine the shipment, as per instructions
contained in the checklist and enter the examination report in the system. There will be no written
examination report. He will then mark the Electronic S/B and forward the checklist along with the
original documents to the Appraiser/authorized officer. in Charge. If the Appraiser/Supdt. is
satisfied that the particulars entered in the system conform to the description given in the original

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documents (including AEPC quota and other certifications) and the; physical examination, he will
proceed to give “: Let Export” order for the shipment and inform the exporter. The Appraiser/
authorized officer. would retain the checklist, the declaration and all original documents with him.
3.4 In case of any variation between the declaration in S/B and the documents or physical
examination report, the Appraiser/ authorized officer. will mark the electronic S/B to AC/DC
Exports. He will also forward the documents to AC/DC and advise the exporters to meet the AC/DC
for further action regarding settlement of dispute. In case the Exporter agrees with the views of the
Department, the S/B would be processed finally. Where the exporter disputes the views of the
Department, the case would be adjudicated following the principles of natural justice.
4. GENERATION OF SHIPPING BILLS
4.1 As soon as the Shed Appraiser/Supdt.gives “Let Export” order, the system would print 6
copies of the S/B in case of Free and scheme S/B. In case of DEPB there are 7 S/B. If the S/B
(DEPB) is assessed provisionally, then EP copy will be generated only after AC/DC finalises the
assessment. On the examination report the Appraiser/Shed Supt.will sign. On all the copies, the
Appraiser/Shed Supdt., Examination Offer as well as exporter’s representative/CHA will sign.
Name and ID Card number of the Exporters representative/CHA should be clearly mentioned below
his signature.
4.2 The distribution of S/Bills is as follows:
DEPB Scheme S/Bills Other Scheme S/Bills
• 1. Exporter’s copy 1. Exporters copy
• 2. Custom’s Copy 2. Customs copy
• 3. Exchange Control Copy 3. Exchange Control Copy
• 4. Scheme Bill Copy 4. Export Promotion Copy
• 5. E.P. Copy 5. TR-1. TR-2 Copies
• 6. TR-1, TR-2 Copies
4.3 The original AEPC quota and other certificates will be retained with the S/Bills and recorded
in the Export Shed.

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5. DRAWAL OF SAMPLES
5.1 Where the Appraiser of Customs orders for samples to be drawn and tested, the Examining
Officers will proceed to draw two samples from the consignment and enter the particulars thereof
along with name of the testing agency in the system. No registers will be maintained for recording
dates of samples drawn. Three copies of the test memo will be prepared and signed by the Examining
Officer, the Appraiser and Exporter. The disposal of the three copies would be as follows:
• Original to be sent along with the sample to the testing agency
• Duplicate copy to be retained with the second sample
• Triplicate to be handed over to the exporter.
5.2 AC/DC may, if he deems necessary, order for sample to be drawn for purposes other than
testing such as visual inspection and verification of description, market value enquiry etc.
6. QUERIES
With the discontinuation of the assessment of S/B in the Export Department, there should not be
any queries. The exporter, during examination, can clarify doubts, if any. In case where the need
arises for the detailed answer from the exporter, a query can be raised in the system buy the
Appraiser, but would need prior approval of AC/DC (Exports) The S/B will remain pending and
cannot be printed till the exporter replies to the query to the satisfaction of the Assistant
Commissioner/Dy. Commissioner
7. AMENDMENTS:
7.1 Corrections/amendments in the checklist can be made at the service centre provided the
system has not generated the S/B number. Where corrections are required to be made after the
generation of the S/B No. or, after the goods have been brought in the docks/CFS, amendments will
be carried out in the following manner.
• If the goods have not yet been allowed “Let Export”, Assistant Commissioner/Dy.
Commissioner may allow the amendment.
• Where the “Let Export” order has been given, the Addl./Joint Commissioner (Exports)
would allow the amendments
7.2 In both the cases, after the permission for amendments has been granted, the Asstt./Dy.
Commissioner(Exports) will approve the amendments on the system. Where the print out of the S/B

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has already been granted, the exporter will surrender all copies of the S/Bill to the Appraiser for
cancellation before amendment is approved in the system.
8. SHORT SHIPMENTS, SHUT OUT, CANCELLATION AND BACK TO TOWN
PERMISSIONS.
AC/DE (Export) will give permission for issue of short shipment certificate, shut out or cancellation
of S/B, on the basis of an application made by the exporter. The S/B particulars would need to be
cancelled /modified in the system before granting such permission. AC/DC should check the status
of the goods, before granting permission.
9. AMENDMENT OF FREIGHT AMOUNT
If the freight/insurance amount undergoes a change before “Let Exports” is given, corresponding
changes would also need to be made in the S/B with the approval of AC/DC Exports. But if the
change has taken place after the “Let Exports” Order, approval of Additional/Joint Commissioner
would be required. Non-intimation of such changes would amount to mis-declaration and may
attract penal action under Customs Act 1962.
10. RECONSTRUCTION OF LOST DOCUMENTS:
Duplicate print out of EDI S/B cannot be allowed to be generated if it is lost, since extra copies of
S/B are liable to be misused. However, a certificate can be issued by the Customs stating that “Let
Exports” order has been passed in the system to enable the goods to be accepted by the Shipping
Line, for export. Drawback will be sanctioned on the basis of the “Let Export” order already
recorded on the system.
11. RE-PRINT OF SHIPPING BILL:
Similarly, reprints can be allowed where there is a system failure, as a result of which the print
out(after the “Let Export” order) has not been generated or there is a misprint. Permission of AC/DC
(exports) would be necessary for the purpose. The misprint copy shall be cancelled before such
permission is granted
12. EXPORT GENERAL MANIFEST:
All the steamer agents shall furnish the Export General Manifest, House Bill of Landing wise, to
the Customs electronically. The steamer agents are required to enter the manifest through EDI
system.

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13. GRIEVANCE HANDLING
The Asstt. Commissioner/ Dy. Commissioner of Customs, may be approached by exporters or
their CHAs for settlement of any problems faced at any stage of the export clearance.
 METHODOLOGY AND PROCEDURE OF WORK:
Primary analysis of problem through collections of various data from Logistics, Warehouse &
Planning department to know the planned and actual status. Preparation of the list of problem and
analysis of the problem. Collections of information regarding difficulties in execution of
import/Export activities from various section in-charges and employees.
 ANALYSIS OF DATA:
As, I am making project with Mission pharma Logistics India Pvt. Ltd , I intend to conduct my
study at my workplace & I will also study working/ function of our service providers/vendors/CHA
(I) Primary data: - Are those which are collected fresh and for the first time.
(ii) Secondary data: - Are those data which are already collected by the someone else and which has
passed by the purpose of another person.
there are several methods for collecting primary data observation method, interview methods,
through questionnaire, through schedule.
As concerned with selection for my project report, I have selected both methods primary data
through questionnaire to my senior, personal observation and for secondary data I also study books
& magazines of material management; published by reputed publishers.
We adopted following methods for execution of project:
•Primary analysis of problem through collections of various data from finance and
Project department of to know the planned and actual status.
•Prepare the list of problem and analysis the problem.
•Collections of information regarding difficulties in Project Purchasing and Project execution from
various section in-charges and employees.
•Consultation with all concerned section in-charges and employees to find out the solutions to
minimize and resolve the problems of project purchasing.
•Discussion and in-depth study of Reading books and information available from e- library

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 LIMITATIONS:
Correctly identify Logistics/shipping costs involved in the planning phase. Know how to handle
your vendors. Utilize in-house expertise appropriately and effectively.
The planning process is, in many ways, based on guesswork. You’re making a bet that your
team will be able to get your task done the way you want it done and at a certain cost. Accurately
identifying costs is a key to avoiding unexpected items down the road as the project gets underway.
You need to include the scope of work base line the project schedule, your human resource plan, a
risk assessment and environmental factors all in your budget process, too.
 COMPANY PROFILE:
Missionpharma is a part of Euro pharma and the CFAO Group, leading distributors of
pharmaceuticals and international brands to the private market in Africa. Mission pharma is a
leading global supplier of pharmaceuticals, medical consumables, hospital equipment and medical
kits for the benefit of the African population. The company’s aim is to strengthen healthcare in
Africa through engagement, cooperation and intelligent solutions in close partnership with local
stakeholders. With being the primary health products distributors in Africa, they are committed to
making a difference in Africa. The company’s mission is to provide tailored intelligent healthcare
solutions based on the latest professional insights, and on decades of experience in Africa. Every
year, they supply high volumes of healthcare products via pharmaceutical supply programs across
the African continent
Missionpharma has subsidiaries in India and China that play a vital role in supporting the
development of Indian and Chinese manufacturers and with such proximity ensure the ability to
provide a fast and action-oriented approach to challenges.
The branches of Missionpharma:
Missionpharma Logistics India Pvt.Ltd
Missionpharma Logistics offers 9,500 m² state-of-the-art warehousing facilities, fully equipped to
manufacture and distribute medical kits across borders. Being the heart of our kit packing,
Missionpharma Logistics is highly specialised to handle both customised and standard medical kits.
No project is too complex and we have the capacity and experience to manage all kinds of kit
projects: from small-scale kits to complex, large-volume projects.

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Missionpharma Logistics India is having their registered branch office in Ahmedabad. It is 100
percent subsidiary of Missionpharma A/S Denmark
MISSIONPHARMA SHANGHAI
The establishment of Missionpharma Shanghai back in 2007 is a direct consequence of their
strategic decision to optimise the sourcing and quality level of Chinese-originated products
 FINDINGS, INFERENCES AND RECOMMENDATIONS:
The overall finding of the company is – they are engaged into making of Healthcare Kits (Medicinal
and Surgical Kits) and supplies to various International / UN Humanitarian Aid organisation
especially to the poor & underprivileged population across the African continent.
 CONCLUSION AND YOUR SUGGESTIONS FOR IMPROVEMENT IN THE
ORGANISATION:
The core of study was to learn & understand the systematic procedure of organization for importing
the goods & exporting the finished goods & efficiently& effectively utilizing your vendors.
 REFERENCES / FIGURES:
 Books Referred:
Export/Import Procedures and Documentation - Thomas E. Johnson
 Documents Referred:
Procedure for Import and Export
 Web References:
http://www.indiantradeportal.in
http://www.eximguru.com
http://www.commerce.gov.in
http://www.sezonline-ndml.com

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 FIGURES (MERCHANDISE REPORT AS PER RBI 2021):

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 SPECIAL ECONOMIC ZONE (SEZ) CONCEPT
India has one of the first countries to recognize export-led model of development and contemplated
the idea of Export Processing Zone (EPZ) model. With this mindset, Asia’s First Export Processing
Zone set up in the Port town of Kandla in Gujarat in the year 1965 named as ‘Kandla Free Trade
Zone’.
In order to facilitate and boost exports to various countries, the concept of Special Economic Zone
(SEZs) & Export Oriented Unit (EOUs) as well as SEZ Ports, SEZ Developer etc created. These
are set up as ‘demarcated geographic areas’ within the country mainly for exports where the rules
of business are different from those that prevail in the national territory. This will be delineated as
‘duty free enclave’ and it is treated as deemed to be foreign territory for the purpose of doing the
export trade & business operations through a single window process.
The main objectives of setting up an SEZ:
a) generation of additional economic activity and earn foreign currencies
b) promotion of export of high-quality product exports and services
c) attract and promote investment from domestic and foreign countries
d) development of infrastructure facilities
e) strengthen the business relation-ship between India and overseas countries
In India the SEZ & EOUs set up by the Ministry of Commerce, Govt. of India governed by the SEZ
Act (2005) & Rules (2006). The foreign trade is regulated by the Foreign Trade Policy and
controlled by the DGFT (Director General of Foreign Trade) with an object to stimulate exports of
various goods and services. The industries set up within the Zone get duty and tax exemptions,
financial support, un-interrupted power supply, electronic digital platform to carry out the customs
and other govt. day to day documentation work like EDI (Electronic Data Integration system),
ICEGATE, SEZ-NDML online etc. This will facilitate the industries to produce cheap and
qualitative goods and compete in the International Markets as well as hassle-free trade environment,
increase employment generation and higher foreign exchange earnings (specifically for developing
economies). The review study shows that the factors which influence the performance of SEZs in
developing economies covers integration with regional production network, proximity to industrial
hubs, resources and markets, benefit from lower manpower cost, green channel facilitation at SEA
& Airport hubs and ensure to work with International Business Standard & to comply with the
guidelines of World Trade Organization (WTO).