export procedures and documentation (1)

7/31/2019 Export Procedures and Documentation (1)

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Presented by:Radhika Saxena

Akshay Yadav MBA (FC)


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Export procedure describes the documentsrequired for exporting from one country toanother. Special documents may berequired depending on the type of productor destination. Certain export productsmay require a quality controlinspection certificate from the ExportInspection Agency. Some foodand pharmaceutical product may require ahealth or sanitary certificate for export.
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Preliminaries Offer & receipt of confirmed orders

Production & clearance of the product for export

Shipment

Negotiation of documents and realization of export proceeds

Obtaining various export incentives


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Individuals and businessfirms intending to export and/importgoods and/or services should obtain IECNumber from the regional licensingauthorities, unless exempted byDGFT.This number mentioned is beshown in documents.


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Membership in certain bodies: After obtaining theIEC number , the exporters and importers mayobtain membership in certain bodies like ExportPromotion Council ,India Trade Promotion

Organization ,etc. Membership in theseorganization, help the exporter and importerregarding information and documentation.

Registration : The exporter/importer have toregister themselves with the Export PromotionCouncils, Sales tax authorities,etc.


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Inquiry is the request made by a prospectiveimporter regarding his wish to import certaingoods . Offer is a proposal submitted by anexporter expressing his intention to exportspecific goods at a specific price with specific

terms and conditions. Exporter usually makes anoffer in the form of a Performa Invoice". Itincludes following items:Name of the buyer: The complete name andaddress of the buyer /importer.

Description of goods: A brief description of goods indicating technical , physical andchemical features . If necessary , a detaileddescription is provided.


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Price: Unit wise and total price of the goods ininternationally accepted currencies or mutuallyagreed currencies . It should also cover thequantity discounts and cash discounts both inunit-wise and total . The price indicated should

be f.o.b.,c and f,c.i.f or in other internationallyaccepted form.Conditions of sale: Conditions of sale should beincorporated in detail . Important among themare:


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The exporting house after obtaining a confirmed order should

produce the goods exactly as specified in the invoice.Packing and Marking: After the goods are procured , theexporter should arrange for packing and marking as per theinternational standards prescribed by various bodies . TheBureau of Indian Standards has prescribed packing standardsfor certain items.Quality control and Pre-shipment Inspection : The exporter hasto arrange for quality control and pre-shipment inspection inorder to ensure the quality of products as indicated in theinvoice.Excise Duty Rebates: Government has exempted the goodsmeant for exports from the imposition of excise duty. Exporterscan export the excisable goods either under claim for rebate of excise duty or in bond without payment of duty. The rebate isprovided under Rule 12 of the Central Excise Rules of 1944.Exporter has to submit the following forms for rebateafter the excise duty is paid.Gate Pass,GP-1,AR-4 form.


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Transporting the goods by ship is cheaper compared to that by air. In addition,physical size of the products create hurdles for transporting by air.Regarding shipment the exporter has to contact shipping companies for space,after getting the confirmed order. Sometimes getting the space in ships is easythrough agents as they have information of all shipping companies throughoutthe world.

Customs Clearance: The exporter has to get custom clearance of the goodsbefore, they are loaded on the ship.

GR-1 Form: This form is an exchange control document required by the RBI.

The exporter has to realize the proceeds of the goods exported within 180 daysfrom the date of shipment from India.

Shipping Bill: This is an exchange document needed by the custom officialsfor granting permission for shipment.


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Export license is necessary for certain categories of goods.Export license can be obtained from the joint director general of foreigntrade(JDGFT).

Once the goods are ready for export and the shippingorder is available, the exporter has to approach the superintendent of theconcerned port trust for the latters permission to move the goodsphysically inside the port area.

: The custom authorities after

checking the documents, check the products to be exported at the docks.The exporters forwarding agent collects the Mates

Receipts & submits the same to the authorities.


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The exporter submits the relevant documents tohis banker for getting the payment for the goodsexported.

Bill of ladingCommercial Invoice together with the packingslip an bill of exchange

Certificate of originGR-1 formMarine Insurance PolicyLetter of credit


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Export incentives include,

Exporter is eligible to get back the excise

duty and central excise paid on all raw materials,components and consumables used in the production of goods exported, under this scheme.

Exporter is eligible for refund of theexcise duty. He/she can recover it after export, if he paid atthe beginning. He/she also can execute a bond with theexcise authorities without making the payment.


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export procedures and documentation (1)

Documents