Teena Y.

Sharma

Export Procedure & Documentation

EXPORT PROCEDURE AND

DOCUMENTATION

Export Procedure & Documentation

Proper export procedure and documentation is crucial to

international marketing, as both importer and exporter
are situated in different countries and are governed by
different legislative framework.
The export transaction chain consist of a number of
entities, which provide a smooth functioning of business.
A number of government regulatory agencies facilitate
trade between exporter and importer.
Both exporter and importer have to comply with these
regulations and trade customs.
Apart from these there are issues related to payment.
Hence, an export manager has to make himself fully
aware of all of these.

Teena Y. Sharma

INTRODUCTION

Teena Y. Sharma

INTRODUCTION
The Export Transaction framework can be depicted
as following:

Export Procedure & Documentation

PAYMENT

EXPORTERS
BANK

DOCUMENTS

IMPORTERS
BANK

EXPORTER (FOB)

EXPORT
CONTRACT

IMPORTER (CIF)

PORT OF
LOADING
CARRIER

PORT OF
DISCHARGE

Teena Y. Sharma

CONTENTS OF THIS PRESENTATION

Attention !!!
The entire Presentation is divided into two parts:

2.

Export Procedure & Documentation

1.

Pre Shipment Documents

Export Procedure

Teena Y. Sharma
Export Procedure & Documentation

PART I PRE SHIPMENT DOCUMENTS

Teena Y. Sharma

PRE-SHIPMENT EXPORT DOCUMENTS

Pre-shipment
Export Documents

Commercial
Documents

Regulatory
Documents

Auxiliary

Exchange Control
Declaration

Commercial Invoice

Proforma Invoice

Frieght Payment
Certificate

Packing List

Shipping Instructions

Insurance Premium
Payment Certificate

Certificate of
Inspection

Insurance
declaration

ARE I/ARE II forms

Certificate of
Insurance

Intimation for
Inspection

Shipping Bill

Bill of Lading

Shipping Order

Port Trust Copy of

shipping Bill

Certificate Of Origin

Mates Receipt

Receipt of Payment
of Port Charges

Bill of Exchange

Application for
Certificate of Origin

Shipment Advice

Letter of Bank for

Negotiation

Vehicle Ticket

Export Procedure & Documentation

Principal

Teena Y. Sharma

PRE-SHIPMENT EXPORT DOCUMENTS

These Documents can be classified into two major
categories:

Export Procedure & Documentation

Commercial Documents
Regulatory Documents

Commercial Documents can be further classified

into:
Principal Documents
Auxiliary Documents

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COMMERCIAL DOCUMENTS
Commercial Documents:

Principal Documents:
Required for enabling physical transfer of goods along with
their title-of-ownership, from exporter to importer.

Auxiliary Documents:
Required for preparation/ procurement of Principal
Documents. They act as the base for preparation of
Principal Documents.

Export Procedure & Documentation

These are the documents, which as per trade customs,

are required to be prepared and used by exporters and
importers for their legal and other incidental
Responsibilities.
The Commercial Documents are further classified into:

Teena Y. Sharma

COMMERCIAL DOCUMENTS (I) : PRINCIPAL

DOCUMENTS
Principal Documents:

Are of following types:

Export Procedure & Documentation

Commercial Invoice:

It is the key document for an export transaction, and is prepared by

exporter.
Provides a very comprehensive information regarding: consignees details,
country of origin of goods, country of final destination, terms of delivery and
payment, detailed description of goods, kind of packaging, quantity, marks
and numbering etc.
Annexure 15.3

Packing List:

Packing List provides details of how the goods are packed, the contents
of different boxes, cartons etc.
Details of the weights and measurements of each package in
consignment.
It is used by the carrier while deciding on the loading of consignment.
Annexure 15.5

Inspection Certificate:

Ocean/Marine Bill of Lading (B/L)

It is a transport document issued by the shipping company,

for accepting the goods for carrying of merchandise.
It is also known as document of title, which means the
legitimate holder of the document is entitled to claim the
owner ship of the goods covered therein.
Hence, the importer cannot obtain the possession of the
goods until they surrender the signed Bill of Lading
Annexure 15.6

Export Procedure & Documentation

According to Quality control and Inspection Act, it is

mandatory to obtain an export inspection certificate.
This is asked by an importer for ensuring the quality of
merchandise as per export contract.
Annexure 15.11 & 15.12

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COMMERCIAL DOCUMENTS (I) :

PRINCIPAL DOCUMENTS

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Airway Bill (AWB) :

Combined Transport Document (CTD) :

The Combined Transport Document covers the movement of cargo from

place of containerization to place of destination using a multi-modal
transport.
Can be used for goods, which are stuffed for padding purposes.
Annexure 15.6

Certificate of Origin :

This document is used as an evidence of the origin og goods in the

importing country.
It includes the details of goods covered, where they were grown or
manufactured
It is used for deciding the liability and the rate of importing duty in the
importing country.
Annexure 15.8

Export Procedure & Documentation

It is the Bill of Lading used for air transport.

But unlike ocean bill of lading, it does not have very strict rules.

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COMMERCIAL DOCUMENTS (I) :

PRINCIPAL DOCUMENTS

11

Insurance Policy/Certificate:

Mates Receipt:

On the receipt of cargo on board, the master of the vessel issues

Mates Receipt for every shipment taken on board.
The port authorities take this from chief officer of the vessel.
The shipper then collects this Mates Receipt from port authorities
after clearing all dues.
After collecting this, the shipper or his agents prepares Bill of
Lading.
Annexure 15.7

Export Procedure & Documentation

Since the carrier and other intermediaries, such as C&F agents

and other port authorities, warehousing operators etc. have a
limited liability during the process of cargo movement from
exporter to importer, they cannot be held responsible in the event
of loss.
Therefore, in order to provide protection to the cargo owner, an
insurance cover is necessary.
Annexure 15.13 & 15.14

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COMMERCIAL DOCUMENTS (I) :

PRINCIPAL DOCUMENTS

12

Bill of Exchange:

Shipment Advice :
Soon after shipment has taken place, the Shipment Advice is
sent to importer, giving an advance information of details of
delivery.
It generally covers details of Vessel/Flight, port of discharge
and port of destination, export order number, description of
cargo, quantity etc.
Is used for confirming safe delivery and making arrangements
for receiving the export.
Annexure 15.15

Export Procedure & Documentation

An unconditional order in writing prepared and signed by

exporter and addressed to importer, asking him to pay on
demand in future date, a sum of money.
Generally two copies are prepared, and sent through different
modes, whichever is received first is excepted.

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COMMERCIAL DOCUMENTS (I) :

PRINCIPAL DOCUMENTS

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Export Procedure & Documentation

Regulatory Documents fulfill the statutory

requirement.
They are required for benefit of both importer and
exporter.
These documents are related various government
authorities, like: Directorate General of Foreign
Trade etc., Reserve Bank of India etc.
These documents are also needed by other bodies
like export inspection agencies, banks and custom
& central excise authorities etc.
They can be of many kinds.

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(II) : REGULATORY DOCUMENTS

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Exchange Control Declaration Forms:

Shipping Bill/ Bill of Export:

Shipping Bill is the main document required by custom authorities.

The export cargo is allowed to be charted on the port sheds and
docks only after the Shipping Bill has been stamped by custom
authorities.
It is called Bill of Export if shipment is being done by land.
Annexure 15.20, 15.21, 15.22

Export Procedure & Documentation

Under the Foreign Exchange Management Act, for every export

activity taking place out of India, the exporter has to submit an
Exchange Control Declaration Form.
Exports to Bhutan and Nepal are exempted from such declaration.
The aim of this document to ensure realization of export
proceedings by the exporter as per Foreign Exchange
Management Act.

Teena Y. Sharma

(II) : REGULATORY DOCUMENTS

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Bill of Entry:

Export Procedure & Documentation

After unloading, the imported cargo is transferred to the

custody of an authorized agency such as Port Trust Authority
or Airport Authority.
This is done for a custom examination, duty payment, and
other formalities, then the cargo is released to the importer.
Hence, for getting custom clearance at this stage the exporter
has to produce Bill Of Export in four copies.
The format of this is standardized by Central Board of
Customs and Clearance Excise.
It can be of three types.
Annexure 15.23

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(II) : REGULATORY DOCUMENTS

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ARE -1

Export Procedure & Documentation

This document is in form of application.

It is prepared by exporter at the time of removal of goods. and
made for jurisdictional central excise superintendent.
It contains details of consignment, such as value of
consignment and amount of duty involved etc.
The exporter has to submit this document 24 hours in advance
from the time of removal of goods, in four copies.
It acts as a proof of exports.
Annexure 15.24

Teena Y. Sharma

(II) : REGULATORY DOCUMENTS

ARE -2
This document is used for refund of excise duty paid on
finished goods as well as production inputs.
It strengthens ARE-1.
Annexure 15.25

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Blacklist Certificate:

Export Procedure & Documentation

Countries which have strained political relationships, or at war

with one another, require Blacklist Certificate as an evidence of
the following:
The point of origin is not a particular country.
The parties involved like intermediaries, bank, insurance
companies etc are not blacklisted.
It needs to be furnished by an exporter only when specifically
asked for.

Teena Y. Sharma

(II) : REGULATORY DOCUMENTS

Health/ Veterinary/ Sanitary Certificate:

The importer at times require this certificate for foodstuffs etc,
from a responsible authority.
This is done to ensure that the cargo is not contaminated.

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Teena Y. Sharma
Export Procedure & Documentation

PART II EXPORT PROCEDURE

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SUMMARY OF EXPORT PROCEDURE

Compliance with
Legal Framework

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Concluding an
Export Deal

Manufacturing of
Goods

Appointing C&F
Agents

Arranging for
Cargo Insurance

Booking Shipping
Space

Sending
documents to C&F
Agents

Cargo Loading by
C&F Agents

Receipt of
Documents &
Cargo by C&F
Agents

Custom
Clearance,
Completion of Port
Formalities

Sending
Documents to
Exporter

Sending Shipping
advice to Importer

Export Procedure & Documentation

Arranging Export
Finance

Claiming Export
Incentive

Presentation of
documents to the
Bank

Exporter receives
payment

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Registration with
Export Promotion
Council

Registration with
Sales Tax
Authorities

Registration with
Juriditional Central
Excise Authorities

Export Procedure & Documentation

Obtaining
Importer-Exporter
Code Number

Teena Y. Sharma

COMPLIANCE WITH LEGAL FRAMEWORK IN

INDIA

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Teena Y. Sharma
Export Procedure & Documentation

THANK YOU !!!

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