Ozg Impex Consultant
impexconsultant.com
&
Ozg Documentation Centre
documentationcentre.com
Ozg Centre | London | Delhi | Mumbai
Back Office Phone # 0091-9811415616-27-60-81-91
EXPORT DOCUMENTATION AND PROCEDURES
Exporters should seriously consider
having the freight forwarder handle the formidable amount of
documentation that exporting requires; freight forwarders are
specialists in this process. The following documents are commonly used
in exporting; which of them are actually used in each case depends on
the requirements of both our government and the government of the
importing country.
1. Commercial invoice2. Bill of lading3. Consular invoice4. Certificate of origin5. Inspection certification6. Dock receipt and warehouse receipt7. Destination control statement8. Insurance certificate9. Export license10. Export packing list
STEP1: Enquiry :
The starting point for any Export Transaction is an enquiry.
An enquiry for product should, inter alia, specify the following details or provide the following data
- => Size details – Std. or oversize or undersize
- => Drawing, if available
- => Sample, if possible
- => Quantity required
- => Delivery schedule
- => Is the price required on FOB or C& F or CIF basis
- => Mode of Dispatch – Sea, air or Sea/air
- => Mode of Packing
Terms of Payment that would be
acceptable to the Buyer – If the buyer proposes to open any Letter of
Credit, any specific requirement to be complied with by the Exporter -
- => Is there any requirement of Pre-shipment inspection and if so, by which agency
- => Any Certificate of Origin required – If so, from what agency.
STEP 2: – Proforma generation :
After studying the enquiry in detail,
the exporter – be it Manufacturer Exporter or Merchant Exporter – will
provide a Proforma Invoice to the Buyer.
STEP 3: Order placement :
If the offer is acceptable to the
Buyer in terms of price, delivery and payment terms, the Buyer will then
place an order on the Exporter, giving as much data as possible in
terms of specifications, Part No. Quantity etc. (No standard format is
required for such a purchase order)
STEP 4: Order acceptance :
It is advisable that the Exporter
immediately acknowledges receipt of the order, giving a schedule for the
delivery committed.
STEP 5: Goods readiness & documentation :
Once the goods are ready duly packed
in Export worthy cases/cartons (depending upon the mode of despatch),
the Invoice is prepared by the Exporter.
If the number of packages is more than one, a packing list is a must.
Even If the goods to be exported are excisable, no excise duty need be charged at the time of Export, as export goods are exempt from Central Excise, but the AR4 procedure is to be followed for claiming such an exemption.
Similarly, no Sales Tax also is payable for export of goods.
STEP 6: Goods removal from works :
There are different procedures for
removing Export consignments to the Port, following the AR4 procedure,
but it would be advisable to get the consignment sealed by the Central
Excise authorities at the factory premises itself, so that open
inspection by Customs authorities at the Port can be avoided.
If export consignments are removed from the factory of manufacture, following the AR4 procedure, claiming exemption of excise duty, there is an obligation cast on the exporter to provide proof of export to the Central Excise authorities
STEP 7: Documents for C & F agent :
The Exporter is expected to provide
the following documents to the Clearing & Forwarding Agents, who are
entrusted with the task of shipping the consignments, either by air or
by sea.
=> Invoice=> Packing List=> Declaration in Form SDF (to meet the requirements as per FERA) in duplicate.=> AR4 – first and the second copy=> Any other declarations, as required by Customs
On account of the introduction of
Electronic Data Interchange (EDI) system for processing shipping bills
electronically at most of the locations – both for air or sea
consignments – the C&F Agents are required to file with Customs the
shipping documents, through a particular format, which will vary
depending on the nature of the shipment. Broad categories of export
shipments are:
=> Under claim of Drawback of duty=> Without claim of Drawback=> Export by a 100% EOU=> Under DEPB Scheme
STEP 8: Customs Clearance :
After assessment of the shipping bill
and examination of the cargo by Customs (where required), the export
consignments are permitted by Customs for ultimate Export. This is what
the concerned Customs officials call the ‘LET EXPORT’ endorsement on the
shipping bill.
STEP 9: Document Forwarding :
After completing the shipment
formalities, the C & F Agents are expected to forward to the
Exporter the following documents:
=> Customs signed Export Invoice & Packing List=> Duplicate of Form SDF=> Exchange control copy of the Shipping Bill, processed electronically=> AR4 (original duplicate) duly endorsed by Customs for having effected the Export=> Bill of Lading or Airway bill, as the case may be.
STEP 10: Bills negotiation :
With these authenticated shipping
documents, the Exporter will have to negotiate the relevant export bill
through authorized dealers of Reserve Bank, viz., Banks.
Under the Generalized System of Preference, imports from developing countries enjoy certain duty concessions, for which the exporters in the developing countries are expected to furnish the GSP Certificate of Origin to the Bankers, along with other shipping documents.
=> Broadly, payment terms can be:=> DP Terms=> DA Terms=> Letter of Credit, payable at sight or payable at… days.
Step11: Bank to bank documents forwarding :
The negotiating Bank will scrutinize
the shipping documents and forward them to the Banker of the importer,
to enable him clear the consignment.
It is expected of such authorized dealers of Reserve Bank to ensure receipt of export proceeds, which factor has to be intimated to the Reserve Bank by means of periodical Returns.
STEP 12: Customs obligation discharge :
As indicated above, Exporters are
also expected to provide proof of export to the Central Excise
authorities, on the basis of the Customs endorsements made on the
reverse of AR4s and get their obligation, on this score, discharged.
STEP 13: Receipt of Bank certificate :
Authorized dealers will issue Bank
Certificates to the exporter, once the payment is received and only with
the issuance of the Bank Certificate, the export transaction becomes
complete.
It is mandatory on the part of the Exporters to negotiate the shipping documents only through authorized dealers of Reserve Bank, as only through such a system Reserve Bank can ensure receipt of export proceeds for goods shipped out of this country.
