UNDERSTANDING EXPORT DOCUMENTATION

PRESENTED BY EXIM BITS

(AN INSIGHT INTO EXIM MATTERS)

IMPORTANCE OF EXPORT DOCUMENTATION

Documentation plays a vital role in international business to facilitate flawless transactions and movements of goods across national frontiers. Follow certain formalities and procedures with the help of various documents. Documents are prescribed with specific purposes and therefore carries its own significance. If the purpose and preparation are understood alongwith its timings and number of copies required, when and where to file, the process becomes very easy and speedy.
EXIM BITS

Export Documentation

Manual Documentation has become a theme of past. It lacked proper co-ordination, causing delays and mistakes, rendering the task very clumsy, tiresome, repetitive, and truly frustrating. An Internationally accepted ADS (Aligned Documentation System) came into being in 1991
EXIM BITS

Export Documentation

Complex documentation due to number of agencies Take help of anybody either CHA or EPCs or Consultants no shame Row starts from Buyers, Buyers agents, Bank (Both foreign and India) Excise, Customs, DGFT, other disbursing agencies such as APEDA and Port Authorities, VAT Insurance Companies, Inspection Agencies, Clearing and Forwarding Agents, Shipping Companies/Airlines and Inland Carriers etc. and no end.
EXIM BITS

Export Documentation

Proper Documentation can save time and money which ensures hurdle-free transactions to enjoy success in business. Accuracy is the key word so dont leave documents inaccurate or incomplete. It will cause serious financial losses and damage the goodwill not of that particular person, but the whole countrys. So a clear understanding of documents purposewise is essential. Even keep alert on documents that are to be received from agencies.
EXIM BITS

Categories of Export Documents

Primary 4 categories: (1) Commercial (2) Regulatory (3) Incentives Documents (4) Buyers requirements

(1) Commercial Documents: to discharge their respective legal and other incidental responsibilities under sales contract.
EXIM BITS

Commercial Documents
(i) Principal Commercial Documents: These documents serves the following purposes: (a) To effect physical transfer of goods and title of the goods from exporter to the buyer. (b) To realize export sales proceeds.
EXIM BITS

Commercial Documents
Principal Documents include: Commercial Invoice (and the invoice prescribed by the importer) Packing list Certificate of Inspection Certificate of Insurance/Insurance Policy Bill of Lading/Airway bill/Combined Transport Documents Certificate of Origin Bill of Exchange Shipment Advice
EXIM BITS

Commercial Export Documents

(ii) Auxiliary Commercial Documents: These
Documents are required to prepare /procure the principal commercial documents and include: Proforma Invoice Shipping Instructions Insurance Declaration Intimation for Inspection Shipping Order Mates Receipt Application for Certificate of Origin Letter to bank for negotiation /collection of documents
EXIM BITS

Categories of Export Documents

(2) Regulatory Documents: (i) Exchange Control Declaration Form-GR Form (ii) Freight Payment Certificate (iii) Insurance Premium Payment Certificate (iv) ARE I/ARE II Forms (v) Shipping Bill/Bill of Export (vi)Port Trust Copy of Shipping Bill /Export Application/Dock Challan (vii) Receipt of Payment of Port Charges (viii) Vehicle Ticket.
EXIM BITS

Categories of Export Documents

(3) Export Incentives Documents: claiming various incentives like FPS, FMS, MLFPS, DFIA, AA, EPCG, VKGUY and others from EPC/EDA etc (4) Buyers requirements: documents as per the Countrys instructions/manualto like certificates of origin, consular invoice, quality control certificate etc. even some under FTAs etc.
EXIM BITS

Commercial Documents
(1) Commercial Invoice:

Basic and primary document of a transaction. All the columns are required to be filled in. Exporters details, Invoice number with date, details of the consignee and buyer (if the buyer is other than consignee), buyers order number with date, country of origin of the goods, country of final destination, terms of payment and delivery, precarriage details (Road/Rail), vessel/flight number, port of loading, port of discharge, final destination, container number, number and kind of packaging, detailed description of goods, quantity, rate and total amount chargeable etc
EXIM BITS

Commercial Documents

Therefore, a Commercial Invoice contains the complete details of the export order. Normally, the trade practice is to raise and send a Proforma Invoice to the buyer for his approval, once the order has been finalized. On receipt of the approved Proforma Invoice, the exporter can use it as a part of the export contract. The Commercial Invoice then becomes easier to prepare on the basis of the approved Proforma Invoice.
EXIM BITS

Commercial Documents
(2) Packing List: Containing number of packages; quantity packed in each of them; the weight and measurement of each of the package and the net and gross weight of the total consignment. Net weight refers to the actual weight of the items and the gross weight means the weight of the items plus the weight of the packing material. The packing list serves and helps both exporter and importer in despatch and receipt for cross checks of goods sent.
EXIM BITS

Commercial Documents
Easy in handling of the consignment at the port. It eases Customs examination procedure like physical, weight, measurements vis-avis declarations made by exporter. (3) Certificate of Inspection: This is the Certificate issued by the Export Inspection Agency or any other agencies nominated for the purpose of inspection - the pre-shipment inspection of goods for export provided the goods fall under the notified category of goods requiring compulsory shipment of inspection.

EXIM BITS

Commercial Documents
(4) Certificate of Insurance/Insurance Policy: Insurance is an important area in the export business as the stakes are usually very high. Protection needs to be taken in the form of insurance cover for the duration of transit of goods from the exporter to the importer. (5) Bill of Lading: This is issued when the goods are shipped using ocean (marine) transport. When the exporter finally hand over the goods to the shipping company for loading on board the ship for transport to their final destination, the shipping company issues a set of Bills of Lading to the exporter.

EXIM BITS

Commercial Documents
(6) Airway Bill: Airway Bill is a bill of lading when the goods are shipped using air transport. It is also known as air consignment note or airway bill of lading. (7) Combined Transport Document: This is also known as Multi-modal Transport Document. Popularity of container usage brought the concept of Combined Transport Document.
EXIM BITS

Commercial Documents
(8) Certificate Of Origin:

Proof of the country of origin of goods for the importer in his country. Be produced at the time customs clearance of import cargo to ascertain their importabilty. Important part in computing the liability and the rate of import duty in the country of import, if under FTAs if any.

EXIM BITS

Commercial Documents
(9) Bill of Exchange: an instruments for payment realization. unconditional order for payment from a drawer (exporter) to a drawee (importer), directing the drawee to pay a specified amount in specified currency to the drawer or a named payee at a fixed or determinable future date, either to himself or his nominee (endorsee).

EXIM BITS

Commercial Documents
Bill of Exchange contd. This order could be made for payment on demand, called a bill of exchange at sight or payment at a future date, called a usance bill of exchange. (10) Shipping Advice: The exporter sends shipping advice, to the buyer soon after the shipment containing details of shipment, as an advance intimation of the shipment and allows the importer to arrange for delivery of the same.

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