IMPORT EXPORT DOCUMENT & EXPORT ORDER PROCESS

PROCESSING AN EXPORT ORDER

Entering into export contract The different aspects of an export contract are enumerated as under: 1. Product, Standards and Specifications 2. Quantity 3. Inspection . Tota! "a!ue of #ontract $. Terms of %e!i&ery '. Taxes, %uties and #harges (. Period of %e!i&ery)Shipment

*. Pac+ing, ,a-e!ing and .ar+ing /. Terms of Payment001mount).ode 2 #urrency 13. %ocumentary 4e5uirements

Processing the export order

The export cyc!e 1. Setting up the dea! once you ha&e esta-!ished your sa!es contract, -y either -eing in possession of an internationa! purchase order or a documentary credit stating you as the -eneficiary, you are no6 in a position to process the order. There are a fe6 steps you shou!d go through 6hen processing an export order. 7o6e&er, you must first 6ait unti! the dea! has -een proper!y esta-!ished -efore committing your resources to the order.

#ase Study: 1s you can see, 8ohn .otsa has recei&ed an internationa! purchase order from 9i!! 8ones and has -een ad&ised -y his -an+ of the documentary credit made a&ai!a-!e to him -y 9i!!:s -an+ in ,ondon. 8ohn has chec+ed the documentary credit ;,)#< according to the chec+!ist and has accepted the credit 6ithout amendment.

2. Shipping the goods once the dea! has -een set up, you shou!d ta+e the fo!!o6ing steps: 4ead the purchase order)documentary credit &ery carefu!!y and ta+e note of the re5uirements of the -uyer. If there are any pre0shipment actions that must occur, these acti&ities must ta+e p!ace -efore you -oo+ the freight and !oad the container. Pre0shipment acti&ities cou!d inc!ude pre0shipment inspections, hea!th inspections or product ana!yses, a!! of 6hich must -e carried out -efore the goods ha&e -een pac+ed for shipping. If any of these inspections are re5uired, ma+e arrangements 6ith the appropriate ser&ice pro&iders and o-tain the necessary certification -efore shipping the goods. =ou are no6 in a position to comp!ete your >1(* and ha&e it attested 6ith the -an+. 1s an >1(* dec!aration is a commitment -y you to the 4eser&e 9an+ that funds 6i!! -e -rought into the country in exchange for goods, you shou!d not ma+e this dec!aration unti! you are sure the dea! is going to happen. =ou are no6 ready to pac+ and !a-e! the goods. 1t this point, you can contact your freight for6arder to ma+e a -oo+ing on the next a&ai!a-!e carrier, or on the carrier offering the ser&ice you re5uire. =ou 6i!! furnish your for6arder 6ith a freight for6arders instruction and an attested >1(*, and re5uest him to arrange for customs c!earance and transport. 7e can a!so arrange for marine insurance if re5uired. =ou 6i!!, at this point, arrange for him to co!!ect the goods or de!i&er the goods to his 6arehouse yourse!f. =our freight for6arder 6i!! de!i&er the goods to the carrier and o-tain a transport document as proof of receipt. 7e is no6 in a position to arrange for customs c!earance, 6hich 6i!! re5uire the su-mission of a customs -i!! of entry %1 $$3, an attested >1(* and a transport document ;in the case of air, road and rai! exports<. 7e 6i!! then hand o&er the transport and insurance documents to you. =ou are no6 in a position to issue your commercia! documents, name!y, the commercia! in&oice and pac+ing !ist and can assem-!e you export documentation. This 6i!! inc!ude your commercia! documents, transport

document, insurance document, as 6e!! as the &erification documents issued -y third parties.

#ase Study: 9ased on the ,)#, 8ohn comp!eted his >1(* and had it attested at his -an+. 7e then app!ied to the %irectorate: P!ant Protection and Qua!ity #ontro! for the issue of a phytosanitary certificate. 9ased on his dec!aration, the certificate 6as issued. 7e then 6ent to the 8ohannes-urg #ham-er of #ommerce and arranged for the issue and authentication of a certificate of origin. 8ohn 6as no6 in a position to ship the goods. 7e contacted his for6arder, made a -oo+ing on the next a&ai!a-!e f!ight to ,ondon and sent the for6arder a freight for6arder:s instruction, a!ong 6ith his origina! attested > 1(*. 1t the same time, he arranged for his assistant to de!i&er the honey to the for6arder:s premises at 8ohannes-urg Internationa! 1irport. The for6arder handed the cargo o&er to South 1frican 1ir6ays and 6as issued an 1ir 6ay-i!!. 1 %1 $$3 6as comp!eted and su-mitted, a!ong 6ith the >1(* and 1ir 6ay-i!! to 8ohannes-urg Internationa! 1irport #ustoms. #ustoms c!earance 6as o-tained and the for6arder issued an insurance certificate according to the information in the freight for6arder:s

instruction. The for6arder then handed o&er the 1ir 6ay-i!!, insurance certificate, > 1(* and %1 $$3 to 8ohn. 8ohn 6as no6 in a position to issue his pac+ing !ist and commercia! in&oice. 7e no6 had a!! the documents re5uired -y the ,)#. 3. ?etting Paid @nce a!! documents are ready and comp!eted in accordance 6ith the documentary credit, ;or if not using a documentary credit, in accordance 6ith the purchase order<, you are no6 in a position to present the documents for payment. In the case of documentary credits, you 6i!! su-mit the documents to the negotiating -an+, ;usua!!y your -an+<, 6hich 6i!! chec+ the documents, ensuring that they are in accordance 6ith the ,)#, and ma+e payment to you. @f course, if se!!ing on an acceptance ,)#, the -an+ 6i!! accept your drafts, and you 6i!! recei&e payment at maturity of the draft.

#ase Study: 8ohn carefu!!y chec+ed a!! his documents against the ,)# and 6as satisfied that e&erything 6as in order. 7e noted that he on!y had t6o days after shipment 6ithin 6hich to present his documents to the -an+. 7e 6ent to the -an+ and presented his documents to a -an+ officia!, 6ho chec+ed them against the ,)#. E&erything, 6as in order and the

documents 6ere accepted. 8ohn then signed a >orm E, 6hich cance!!ed his >1(* o-!igation, and a!!o6ed the -an+ to -uy his AS do!!ars. The -an+ deposited the rands into his account t6o days !ater. 8ohn had Bust comp!eted his first export order. The -an+ sent the documents to the issuing -an+ in ,ondon, 6hich in turn has handed them o&er to 9i!! 8ones. 9i!!, in the meantime, has ta+en receipt of the honey, -ased on an air6ay re!ease issued -y his -an+, as the documents ha&e ta+en !onger than the goods to get to ,ondon. 9i!! no6 has the honey in his 6arehouse and 8ohn has -een paid. . >o!!o60up and ser&ice: The +ey to future success the most important part of your export mar+et de&e!opment process has no6 arri&ed. It is sometimes more difficu!t to secure a fo!!o60up order than it is to achie&e the first order. It is &ita!, at this point, to get feed-ac+ from the -uyer as to 6hether you ha&e met his needs. It might -e necessary, to p!an a fo!!o60up &isit to secure your position 6ith the -uyer and chec+ to see 6hether his needs ha&e changed. The chances are that one of your competitors has ta+en action against your entrance -y possi-!y offering the -uyer -etter terms of payment. It is &ita! that you de&e!op your mar+et inte!!igence in order to ta+e 6hate&er action is necessary to +eep your mar+et and increase your mar+et share. #ase Study: 8ohn has recei&ed en5uiries from ?ermany 6hich !oo+ promising and has Bust arranged another &isit to Europe. 7e has made arrangements 6ith 9i!! 8ones to attend the !aunch of his honey at one of the main retai!ers in ,ondon. The fo!!o6ing set of documentation 6i!! assist you 6ith comp!eting the re5uired documents for processing your export order: #ertificate of origin 1ir 6ay-i!! #ertificate of Insurance 9i!! of entry)export

 #ommercia! in&oice Pac+ing !ist

So, the export order processing can -e summariCed as fo!!o6s:

1. The importer ma+es in5uiry from potentia! supp!ier exporter sends cata!ogs and price !ist .Importers re5uest for samp!es. Exporter recei&es purchase order. 2. Importer arranges financing through his -an+. 3. ImporterDs -an+s send !etter of credit. ;.ost fre5uent!y used form of payment<. . ExporterDs -an+ notifies exporter that !etter of credit is recei&ed. $. Exporter produces goods. '. Exporter arranges transportation and documentation. Space reser&ed on ship or aircraft. %ocuments produced, as re5uired: ;a< exporterDs !icense ;-< Shipper export dec!aration ;c< #ommercia! in&oice ;d< 9i!!s of !ading ;e< .arine insurance certificates. ;f< #ertificate of origin. (. Exporter ships goods to importer *. Exporter presents documents to -an+ for payment. /. Importer has goods c!eared through customs and de!i&ered to his 6arehouse.

13. Export #harges 2 4e5uirements

Export charges
1 !imited num-er of items, most!y primary commodities or processed agricu!tura! products, are su-Bect to duties. #urrent!y, the on!y products su-Bect to an export tax ;at the rate of 13E< are goat, sheep and -o&ine !eathers. Products may a!so -e su-Bect to a minimum export price. The !ist of products su-Bect to minimum prices inc!udes -asmati and non0-asmati rice, cotton, and hard and soft cotton 6aste. .ost minimum export prices are specified in do!!ars on an fo- -asis.

Export re!"ire#ents
Sett!ement of 9i!!s: The ?o&ernment prescri-es conditions for exchange contro! and sett!ement of -i!!s re!ated to exports under the authority of the >oreign Exchange 4egu!ation 1ct, 1/(3. >or norma! commercia! exports to a!! countries, except Fepa! and 9hutan, exporters are re5uired to comp!ete the ?4 >orm in dup!icate. The ?4 >orm co&ers exports not made -y post. Gith fe6 exceptions, a!! exports must -e dec!ared on the appropriate form and the exporter:s code num-er as assigned -y the 4eser&e 9an+ of India must -e sho6n on the form. The payment arrangements are !etter of credit, sight draft, time draft and shipment on consignment. The time !imit for sett!ement of export proceeds, that is, the amount representing the fu!! export &a!ue of the goods, is six months. 1 maximum of 1$ months is a!!o6ed for exports to Indian0o6ned 6arehouses a-road.

EXPORT DOCUMENTS
%ocuments: The fo!!o6ing documents are re5uired for exports:

GR FORM EXPORT LICENSE 0 1 document indicating that a go&ernment

has granted a !icensee the right to export specified goods to specified countries

EXPORT DECLARATION CUSTOMS ENTRY FORM CUSTOMS INVOICE 0 Extended form of commercia! in&oice
re5uired -y customs ;often in a specified format< in 6hich the exporter states the description, 5uantity and se!!ing price, freight, insurance, and pac+ing costs, terms of de!i&ery and payment, 6eight and)or &o!ume of the goods for the purpose of determining customs import &a!ue at the port of destination.

COMMERCIAL INVOICE 0 %ocument re5uired -y customs to

determine true &a!ue of the imported goods, for assessment of duties and taxes. 1 commercia! in&oice ;in addition to other information<, must identify the -uyer and se!!er, and c!ear!y indicate the

;1< %ate and terms of sa!e, ;2< Quantity, 6eight and)or &o!ume of the shipment,

;3< Type of pac+aging, ; < comp!ete description of goods, ;$< Anit &a!ue and tota! &a!ue, and ;'< Insurance, shipping and other charges ;as app!ica-!e<

CERTIFICATE OF ORIGIN- %ocument that certifies a

shipment:s country of origin. It is used -et6een mem-ers of a trading -!oc+ or 6here specia! pri&i!eges are granted to goods produced in certain countries. #ertificate of origin is common!y issued -y a trade promotion office, or a cham-er of commerce in the exporting country. 1!so ca!!ed dec!aration of origin

BILL OF LADING/AIR WAYBILL H

%ocument issued -y a carrier, or its agent, to the shipper as a contract of carriage of goods. It is a!so a receipt for cargo accepted for transportation, and must -e presented for ta+ing de!i&ery at the destination. 1mong other items of information, a 9), contains ;1< consignor:s and consignee:s name, ;2< Fames of the ports of departure and destination, ;3< Fame of the &esse!, ; < %ates of departure and arri&a!, ;$< ItemiCed !ist of goods -eing transported 6ith num-er of pac+ages and +ind of pac+aging, ;'< .ar+s and num-ers on the pac+ages,

;(< Geight and)or &o!ume of the cargo, ;*< >reight rate and amount. It ser&es as a proof of o6nership ;tit!e< of the cargo, and may -e issued either in a negotia-!e or non0 negotia-!e form. In negotia-!e form, it is common!y used in !etter of credit transactions, and may -e -ought, so!d, or tradedI or used as security for -orro6ing money

PACKING LIST 0 ItemiCed !ist of artic!es usua!!y inc!uded in each

shipping pac+age, gi&ing the 5uantity, description, and 6eight of the contents. Prepared -y the shipper and sent to the consignee for accurate ta!!ying of the de!i&ered goods. 1!so ca!!ed -i!! of parce!s, pac+ing s!ip, or unpac+ing note

Specia! documents may -e re5uired depending on the type of product or destination. #ertain export products may re5uire a 5ua!ity contro! inspection certificate from the Export Inspection 1gency. Some food and pharmaceutica! product may re5uire a hea!th or sanitary certificate for export.

IMPORT DOCUMENTS
The o-!igation to su-mit to customs documents co&ering imported goods 1n importer sha!! su-mit to customs authorities import documents -efore imported goods are remo&ed from storage at the transporter, p!aced in a -onded 6arehouse or remo&ed from a -onded 6arehouse or a free Cone for disposa! domestica!!yI the documents sha!! -e su-mitted to customs no !ater than 3 months from the date of arri&a! of the &esse! 6hich transported the goods to the country. Import documents sha!! -e su-mitted to the director of customs in the customs district 6here the goods are un!oaded from the &esse!, un!ess the goods are transported undec!ared to another customs district and arrangements are made for customs treatment there. %ocuments that sha!! -e su-mitted

The fo!!o6ing documents sha!! -e su-mitted 6ith an import dec!aration, as far as app!ica-!e:

AN INVOICE

In&oices sha!! contain the fo!!o6ing information: name and address of the se!!er ;consignor<, name and address of the -uyer ;consignee<, p!ace and date of issue,

 6hen the sa!e too+ p!ace, num-er of pieces, type of pac+ing, 6eight, mar+s and num-ers, the goods contained in a consignment, type, ma+e and 5uantity ;num-er, 6eight or measurements, as the case may -e<, the se!!ing price of indi&idua! artic!es and the currency in 6hich the price is specified, Terms of payment, payment conditions and de!i&ery conditions, discounts and other deductions and the reasons for granting such discounts or ma+ing such deductions. 1n origina! or a copy of the documents !isted a-o&e may -e su-mitted to customs, pro&ided that internationa! agreements to 6hich Ice!and is a party do not stipu!ate other6ise.

A BILL OF LADING OR A TRANSPORT DOCUMENT

issued in connection 6ith the transport of the goodsI ho6e&er 6hen there is su-mitted a -i!! co&ering freight charges or a notice from the transporter to the consignee concerning a consignment of goods, and these documents contain the same information as specified in regu!ar -i!!s of !ading, a -i!! of !ading need not -e su-mitted un!ess specia!!y re5uested,

A CERTIFICATE OF ORIGIN 6hen preferentia! customs

treatment is re5uested in accordance 6ith internationa! agreements to 6hich Ice!and is a party, un!ess a dec!aration of origin has -een entered on the in&oice,

other documents concerning the imported goods 6hich are of re!e&ance to their customs treatment, e.g. an import !icense 6hen

re5uired, a confirmation of an authoriCation for specia! customs treatment 6hen such is the case, or other certificates re5uired in specia! circumstances. 1n importer may su-mit such import documents 6hich he has recei&ed in other forms than in 6riting, for examp!e -y computer media or te!ecommunications. If customs authorities deem it necessary, they can a!6ays stipu!ate that an importer must su-mit an origina! of the aforementioned documents.